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Thursday 22 June 2017
Albuquerque Felon Facing Federal Firearms Charges Arising Out of Burglary of Federal Firearms DealerRead the Press Release
ALBUQUERQUE – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has filed a criminal complaint charging David Barber, 40, of Albuquerque, N.M., with federal firearms charges arising out of the burglary of an Albuquerque-based federal firearms dealer’s place of business.
The criminal complaint, which was filed yesterday, charges Barber with being a felon in possession of firearms and theft from a federal firearms dealer’s business inventory. The criminal complaint alleges that Barber committed the crimes in April 2017, in Bernalillo County, N.M. According to the criminal complaint, Barber and another man burglarized a federal firearms dealer’s business in the early hours of April 24, 2017, and stole 12 firearms. The business’s surveillance system video-recorded the burglary and law enforcement officers used the videotape of the burglary to identify Barber as one of the two alleged burglars. The criminal complaint alleges that in April 2017, Barber was prohibited from possessing firearms or ammunition due to his status as a convicted felon.
The criminal complaint alleges that on May 11, 2017, officers of the Albuquerque Police Department (APD) seized three of the 12 firearms stolen during the burglary when they executed a search warrant at an apartment in which Barber had been observed on several occasions. It also alleges that the officers found other evidence relating to the burglary when they executed a search warrant on a van allegedly used by Barber during the burglary.
APD officers arrested Barber on outstanding state warrants on June 20, 2017, following a high-speed vehicle chase through Albuquerque. Barber remains in state custody pending transfer to federal custody to face the charges in the criminal complaint.
If convicted, Barber faces a statutory maximum term of imprisonment of ten years on each of the two charges in the criminal complaint. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The ATF office in Albuquerque and APD investigated this case, which is being prosecuted by Special Assistant U.S. Attorney Timothy Trembley under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Wednesday 21 June 2017
York County Man Indicted on Drug and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose M. Osorio, III, age 28, of York County, Pennsylvania, was indicted by a federal grand jury for crack cocaine trafficking and possession of a firearm and ammunition as a previously convicted felon.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Osorio distributed crack cocaine on September 22, 2016, in York, Pennsylvania. The indictment also alleges that on December 1, 2016, Osorio unlawfully possessed a .357 caliber revolver and ammunition as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is twenty years of imprisonment for the drug trafficking offense, ten years of imprisonment for the firearm offense, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wisconsin Produce Vendor Corporate Officer Indicted for Tax Evasion, Failing to File Corporate Tax Returns and StructuringRead the Press Release
A federal grand jury in Madison, Wisconsin indicted a Johnson Creek, Wisconsin produce vendor corporate officer today for tax evasion, failure to file a corporate tax return, and structuring currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jeffrey M. Anderson for the Western District of Wisconsin.
According to the indictment, during the relevant timeframe, Thomas G. Paine was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company. Paine was allegedly responsible for the finance and tax aspects of the company. The indictment alleges that Paine failed to file corporate tax returns with the Internal Revenue Service (IRS) for 2010 through 2012 and attempted to evade the taxes due and owing by G.W. Paine Inc. According to the indictment, Paine concealed the company’s income by structuring cash deposits so they were made in amounts less than $10,000 in order to evade the bank’s reporting requirements. Banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction. The indictment alleges that from 2012 through 2013, Paine structured more than $400,000.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Paine faces a statutory maximum sentence of five years in prison for each of the tax evasion counts, one year in prison for each of the failure to file counts and 10 years in prison for each of the structuring counts.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Anderson commended special agents of the IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Waltham Investment Advisor Sentenced to Prison for Securities FraudRead the Press Release
BOSTON – The managing partner of a Waltham-based investment advisory firm was sentenced today in federal court in Boston in connection with a securities fraud scheme known as “cherry-picking” that netted over $1.3 million.
Michael J. Breton, 50, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years in prison and two years of supervised release. Breton was also ordered to forfeit $1,326,696 and to pay restitution in the same amount. In March 2017, Breton pleaded guilty to one count of securities fraud.
Breton was the managing partner of Strategic Capital Management LLC – a
state-registered investment advisory firm that provided financial planning and portfolio management services to individuals and small businesses. In that capacity, Breton had authority to purchase and sell securities on his clients’ behalf and often did so using a master brokerage allocation account, which allowed him to place block trades and later allocate the trades to specific clients or other accounts.
Beginning in least in 2011 and continuing through July 2016, Breton used the master allocation account to regularly purchase shares in publicly-traded companies the day that those companies announced earnings from the previous quarter. Breton purchased those shares shortly before the earnings announcements were made, but waited to allocate the trades among accounts until after he knew whether the company’s earnings were positive or negative, which determined whether the trade was likely to be profitable in the short term. Throughout the course of the scheme, Breton allocated more profitable trades to himself and allocated unprofitable trades to his clients, thereby stealing more than $1.3 million in potential profits from his clients.
In January 2017, the Securities and Exchange Commission (SEC) filed a parallel civil action against Breton and Strategic Capital Management. Breton agreed to partially resolve the SEC’s claims by, among other things, agreeing to the entry of an SEC order permanently barring him from working in the securities industry.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the SEC. The case was prosecuted by Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit.
United States Attorney Announces Americans with Disabilities Act Restaurant InitiativeRead the Press Release
COLUMBIA— United States Attorney Beth Drake announced today that the U.S. Attorney’s Office is reviewing selected restaurants in Greenville to ensure that the restaurants provide the access required by the Americans with Disabilities Act of 1990 (the “ADA”). The review stems from the Department of Justice’s Congressionally-mandated responsibility to ensure compliance with the ADA.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, which include restaurants, hotels, theatres, and other establishments. The ADA requires that these facilities be “designed, constructed, and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations. The ADA also requires the U.S. Department of Justice to investigate places of public accommodation and undertake periodic review of compliance with the ADA, and to bring civil enforcement actions to obtain compliance and penalties as appropriate.
As part of this review, restaurant owners are first asked to complete a survey regarding the restaurant’s accessibility. A Department of Justice investigator may then visit the selected restaurants to evaluate ADA compliance. If the site visit reveals ADA noncompliance, the U.S. Attorney’s Office will notify the owners and operators. The Department of Justice generally pursues voluntary compliance measures first. It may, however, commence a civil lawsuit in federal court if necessary. It does so, for example, in cases that involve a pattern or practice of discrimination or that raise issues of general public importance.
U.S. Attorney Drake noted that, “The ADA secures for people with disabilities access to our communities and the services that will allow them like every other American to reach their potential and be a contributing member of our society. Imagine, if you will, what life would be like if you could not get into a grocery store or a school or government office, or in this case, eat at a restaurant.” Drake added that the ADA is a critical tool in ensuring that people living with disabilities have access to our communities. “We look forward to working with our restaurants. If any restaurants are noncompliant, we will work with them to bring them into compliance, so that the entire community can enjoy their facilities.”
This initiative continues the U.S. Attorney’s Office and DOJ’s long commitment to enforcing the ADA, including: an agreement with the Richland County Election Board to ensure that Polling Places are ADA compliant; an agreement with the City of Columbia Police Department regarding treatment of arrestees who are deaf, and several ADA agreements with South Carolina municipalities as part of the DOJ project civic access.
The U.S. Attorney’s Office for the District of South Carolina enforces federal civil rights laws, including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes include monetary penalties, injunctions, civil judgments and more.
To learn more about the ADA and other laws protecting the rights of people with disabilities, log on to www.ada.gov/ta-pubs-pg2.htm or call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD). The U.S. Attorney’s Office Civil Rights Program webpages are located at https://www.justice.gov/usao-sc/civil-rights.
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Union County, New Jersey, Man Charged in Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – The owner of a purported business consulting firm was arrested today for operating a $1.1 million scheme that artificially inflated the stock price of a publicly traded company he controlled, Acting U.S. Attorney William E. Fitzpatrick announced.
James Farinella, 46, of Springfield, New Jersey, is charged by complaint with one count of securities fraud. He will make his initial appearance this afternoon before U.S. Magistrate Judge Leda D. Wettre in Newark federal court.
According to the complaint:
From June 2012 through December 2012, Farinella and others allegedly operated a “pump-and-dump” stock manipulation scheme to fraudulently inflate the prices of Pazoo Inc. (PZOO). Pazoo had little or no real business operations, and when it started trading in June 2012, Farinella controlled 98 percent of the free-trading shares in Pazoo.
Farinella and other conspirators allegedly “pumped” the price of those shares by orchestrating a series of trades between accounts they controlled to create the appearance that Pazoo stock was rising in price and heavily traded. In order to further inflate the prices, Farinella and his conspirators also disseminated misleading promotional materials to lure investors to purchase the stocks, including touting Pazoo as a leading provider of nutritional supplements for people and their pets.
After pumping the stocks, Farinella and his conspirators “dumped” them by selling large volumes of the stock to investors at artificially inflated prices. The companies’ stock prices then dropped, causing victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $1.1 million in gross trading proceeds.The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The U.S. Securities and Exchange Commission (SEC) is filing a civil complaint against Farinella today.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
U.S. District Court Blocks EnergySolutions’ Acquisition of Waste Control SpecialistsRead the Press Release
Senior Judge Sue L. Robinson of the U.S. District Court for the District of Delaware today ruled in favor of the Justice Department’s civil antitrust lawsuit to block radioactive waste disposal provider EnergySolutions’ $367 million acquisition of rival Waste Control Specialists. Judge Robinson entered an order ruling in favor of the United States and enjoining the merger.
“Substantial evidence showed that head-to-head competition between EnergySolutions and Waste Control Specialists led to better disposal services at lower prices,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Today’s decision protects competition in an industry that is incredibly difficult to enter. While EnergySolutions’ preference was to buy its main rival rather than continue to compete to win business, today’s decision ensures that customers will benefit from the competitive process.”
The Court’s decision follows a 10-day trial that concluded in May. The Justice Department filed suit in November 2016, alleging that the proposed acquisition would combine the two most significant competitors for the disposal of low-level radioactive waste available to commercial customers in 36 states, the District of Columbia and Puerto Rico.
Texas Resident Sentenced to Four Years in Prison for Bribing Public Official at San Francisco International AirportRead the Press Release
SAN FRANCISCO – Bobby Napier was sentenced to 48 months’ imprisonment for bribing a public official, announced Acting United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentence was handed down yesterday by the Honorable Charles R. Breyer, United States District Judge, following a guilty plea in which Napier admitted to committing the crime.
Napier, 47, of Stafford, Tex., pleaded guilty on January 11, 2017, to bribing a public official in order to smuggle drugs through passenger security screening at San Francisco International Airport (SFO). The public official was an employee of a private company under contract to provide baggage and passenger screening services to the Transportation Security Administration (TSA).
The plea agreement describes five separate occasions between May 16, 2013, and April 17, 2014, in which Napier paid the public official for the purpose of smuggling cocaine through the security screening checkpoint at SFO. According to the guilty plea, Napier also admitted that even before the instances described in his plea agreement, he had smuggled marijuana through SFO. Napier acknowledged making payments in the form of cash deposits to the public official’s bank account, money orders or cash mailed to the official, and cash payments in face-to-face meetings. Napier admitted the payments were intended to allow persons carrying drugs in carry-on luggage to pass through the security checkpoint undetected. Napier facilitated the smuggling of a total of 23 kilograms of cocaine through the checkpoint and paid bribes totaling $13,500 to the TSA official.
On January 10, 2017, Napier was charged by superseding information with one count of bribing a public official, in violation of 18 U.S.C. § 201(b)(1). Pursuant to his plea agreement, Napier pleaded guilty to the charge.
In addition to the prison term, Judge Breyer sentenced Napier to three years of supervised release. Judge Breyer ordered Napier to surrender on or before September 8, 2017, to begin serving his sentence.
Assistant United States Attorney Laura Vartain Horn is prosecuting the case with the assistance of Rawaty Yim. This case is the product of an investigation by the Drug Enforcement Administration and the Federal Bureau of Investigation.
Tampa Man Pleads Guilty to Sexually Abusing 7-Year-Old ChildRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Richmond Joseph McDonald (40, Tampa) has pleaded guilty to enticing a minor to engage in sexually explicit conduct. He faces a minimum mandatory term of 10 years, up to life, in federal prison; the sentencing hearing is scheduled for September 28, 2017.
According to the plea agreement, McDonald and his wife, Shauna Maryann Boselli, engaged in sexual activity with a 7-year-old child with the consent of her relative, Jamie Esposito. Esposito had engaged in explicit conversations, via the Internet and text messages, with McDonald and Boselli regarding sexual acts with the victim.
On July 19, 2016, Esposito took the child to Tampa to meet McDonald and Boselli for the purpose of the three of them engaging in sex acts with her. Esposito brought the girl to the zoo in Tampa, where they met with McDonald and Boselli. After spending time at the zoo and taking the child for ice cream, McDonald and Boselli led Esposito and the child to their house in Tampa. While at the house, McDonald sexually abused the child, while Esposito watched. Afterwards, Esposito and the child returned to their hotel in Tampa. Two days later, McDonald and Boselli met with Esposito and the child at their hotel where McDonald and Boselli engaged in sex acts with the child.
Federal agents executed a federal search warrant at McDonald’s residence and seized numerous electronic devices and the vehicle that McDonald and Boselli had used in the commission of the offense. Forensic analyses of the devices revealed that McDonald possessed more than 1,300 images depicting child pornography, including images and videos of the 7-year-old girl performing sex acts.
Esposito and Boselli previously pleaded guilty for their roles in this case and are awaiting sentencing. Each faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Josephine W. Thomas.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Syracuse Woman Pleads Guilty to Credit-Card Cloning OperationRead the Press Release
SYRACUSE, NEW YORK – Taylor Boyd-White, 26, of Syracuse, New York, pled guilty yesterday to operating a multi-year credit-card cloning operation, announced United States Attorney Richard S. Hartunian.
Boyd-White pled guilty to one count of wire-fraud conspiracy and one count of money-laundering conspiracy. As part of her guilty plea, she admitted her involvement in the scheme, which involved the purchase of hundreds of stolen credit card numbers belonging to victims. The credit card numbers were frequently obtained from computer hackers located overseas and were used to fabricate cloned credit cards. Boyd-White further admitted that she and her co-conspirators used the cloned credit cards to purchase tens of thousands of dollars in merchandise and prepaid gift cards. The prepaid gift cards were used to purchase United States Postal money orders, which were converted to cash. The scheme operated from 2014 through 2016 in Syracuse, New York, and in the state of Georgia. The wire fraud and money laundering conspiracy charges carry a maximum possible sentence of 20 years in prison, a fine of up to $500,000.00 and a term of supervised release of up to 3 years following any term of incarceration.
Boyd-White is scheduled to be sentenced on October 18, 2017, in Syracuse, New York. This case is being investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the City of Syracuse Police Department – Gang Violence Task Force, the New York State Police, and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Steven Wang aka Shui Cheng Wang Sentenced to Prison in Immigration CasesRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant STEVEN WANG, aka SHUI CHENG WANG, age 53, from Tamuning, was sentenced today in District Court to a 57-month term of imprisonment for Mail Fraud, Visa Fraud, Money Laundering, and Willful Failure to Pay Over Tax. WANG was also sentenced in a separate case to 57 months of imprisonment for Conspiracy to Commit Visa Fraud. The District Court ordered the terms to run consecutive. WANG will serve 114 months in federal prison for both cases. The Court also ordered three years of supervised release following imprisonment, in addition to a mandatory $500 assessment fee for both cases. WANG was also ordered to pay restitution in the amount of $1,622,352.98 to former Hua Sheng workers, $186,312.59 to the Internal Revenue Service, and $96,781 to an individual identified as J.P.W.
On January 30, 2012, WANG entered a guilty plea to an Indictment that charged Mail Fraud, in violation of 18 U.S.C. § 1341; Visa Fraud, in violation of 18 U.S.C. § 1546(a); Money Laundering, in violation of 18 U.S.C. § 1957; and Willful Failure to Pay Over Tax, in violation of 26 U.S.C. § 7202. WANG, as general manager of Hua Sheng International Group Corporation Limited (Hua Sheng), fraudulently petitioned over 173 H-2B workers. He represented that the workers would earn the Guam prevailing hourly wage for their occupations. WANG, among other things, further caused his office workers to print checks in the name of each Hua Sheng H-2B worker. The checks reflected the amount of legal wages owed and the appropriate deductions for Guam income tax, and Social Security and Medicare withholding. However, WANG never gave these checks to his workers. The investigation revealed that WANG actually paid the workers below prevailing wages, loaned them as labor to other companies, and housed them in deplorable conditions. WANG also falsely represented to Guam Department of Labor that Hua Sheng H-2B workers had departed Guam, when in fact they still remained on island.
While pending sentencing for the Hua Sheng matter, WANG also entered a guilty plea to a charge of Conspiracy to Commit Visa Fraud, in violation of 18 U.S.C. §§ 371, 1546(a) and 2. WANG worked for Dalian Hongda Baiye Group (USA), Inc., which was used by WANG to facilitate the fraud. WANG attempted to secure an L1 nonimmigrant visa for J.P.W. WANG further accepted approximately $96,781 knowing that J.P.W. had never worked for Dalian Hongda Baiye Group Co. Ltd., in China, all in violation of the L1 nonimmigrant visa requirements.
Acting U.S. Attorney Anderson stated, “This case demonstrates the importance of combined federal and local enforcement efforts to uphold the integrity of the H-2B visa program. The Hua Sheng workers suffered substantial financial losses as a result of Wang’s conduct. The Court’s sentencing order sends a strong message of accountability that these workers deserve.
The Guam business community continues to face difficulties in hiring qualified United States workers. The ability of employers to seek temporary relief though the H-2B visa program is diminished by those who engage in dishonest business practices that poison the foreign labor pools on which the program relies. This case further demonstrates the ongoing commitment by the Department of Justice to promote lawfulness in our immigration system.”
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations; Internal Revenue Service, Criminal Investigation; Federal Bureau of Investigation; and the U.S. Department of Labor, Wage & Hour Division working together with Guam Department of Labor. The case was prosecuted by Stephen F. Leon Guerrero, an Assistant United States Attorney for the District of Guam.
Statement by Attorney General Jeff Sessions on the Bishop International Airport Attack in Flint, MichiganRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the attack at Bishop International Airport in Flint, Michigan:
“I’ve just spoken with officials at the FBI about the attack on a police officer in Flint, Michigan that is being investigated as an act of terrorism. President Trump has prioritized the safety of all law enforcement officers, and this Department of Justice is committed to that goal. I want to assure all our law enforcement across the nation, any attack on someone who serves and protects our citizens will be investigated and prosecuted to the fullest extent of the law. I am proud of the swift response from the FBI and our federal prosecutors and their partnership with local police and the Canadian authorities. Our prayers are with the officer and his family for a full recovery.”
St. Lawrence County Man Convicted of Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Yesterday, following a seven-day trial, a federal jury in Utica, New York, convicted Stacey J. LaPorte, Jr., 26, of Massena, New York, of five counts of sexually exploiting four different children, and one count of receiving child pornography, announced United States Attorney Richard S. Hartunian and Russell Linstad, Resident Agent in Charge of Homeland Security Investigations (HSI), Massena, New York.
LaPorte was convicted of conspiring with Mackenzie Bailey, 21 of Massena, NY, to sexually exploit a child from infancy to age two, and with using that child to produce sexually explicit images on two specific occasions. He was also convicted of conspiring with Hillary Trimm, 26, also of Massena, to sexually exploit another child, who was less than one-year old. Both Bailey and Trimm pled guilty to the crimes they committed with LaPorte, and testified at trial.
LaPorte was also convicted of exploiting a twelve year-old boy and his sixteen year old sister by coercing them to have sexual contact with one another in order to provide explicit images of the conduct. He was further convicted of receiving child pornography from another user over the messaging program “Kik Messenger.”
“The jury heard a week’s worth of testimony about abhorrent acts and rendered a verdict that will hold the defendant accountable for his horrific criminal conduct. With our law enforcement partners, we will continue to investigate and prosecute such unfathomable crimes against the most vulnerable among us – babies and other children -- to the fullest extent of the law,” said United States Attorney Hartunian.
"The conviction of Mr. Laporte now paves the way to permanently block his access to children," said Russell Linstad, Resident Agent in Charge of HSI Massena." HSI special agents and our partners will remain relentless in our pursuit to ensure these predators are held accountable for their depraved acts."
At sentencing on October 19, 2017, LaPorte faces a mandatory minimum sentence of 15 years, but could be sentenced to up to 170 years in prison. He will also be required to serve a term of supervised release of at least 5 years, and up to life, after any term of imprisonment, and he will have to register as a sex offender.
This case was investigated by the New York State Police, the Massena Police Department, and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Sahar L. Amandolare.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
St. Albans man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. - A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Christopher Carte, 43, entered his guilty plea to conspiracy to distribute methamphetamine.
On February 9, 2017, Carte was stopped by law enforcement conducting surveillance after he was seen leaving a room at the Super 8 motel in Dunbar and officers found approximately one ounce of crystal methamphetamine in his jacket pocket. Carte admitted that he had gotten the methamphetamine from a known individual in the hotel room, and that he intended sell the drugs and pay that individual with the proceeds.
Carte faces up to 20 years in federal prison when he is sentenced on September 13, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge Joseph R. Goodwin is presiding over the case.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Somerville Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Somerville man pleaded guilty yesterday in federal court in Boston for failing to register as a sex offender.
James Mercer, 51, pleaded guilty to one count of failing to register as a sex offender before U.S. District Court Judge F. Dennis Saylor IV., who scheduled sentencing for Sept. 12, 2017.
Mercer was required to register as a Level 2 sex offender in Massachusetts after being convicted in 1992 and 1996 on state charges. He was convicted twice for failing to register – in 2007 in Florida state court and in 2015 in federal court in Boston.
Following his release from custody in relation to the 2015 federal conviction in Boston, Mercer left Massachusetts without reporting to authorities, as required by law. Mercer was located in California, where he was arrested for failing to update his sex offender registration in Massachusetts.
The charge provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sixteen Members and Associates of the Yung Money/Yung Gunz Bloods Street Gang Charged with Conspiracy to Transport Stolen Vehicles Across State Lines and Wire FraudRead the Press Release
LAS VEGAS, Nev. – Sixteen members and associates of the Yung Money/Yung Gunz Bloods street gang have been indicted with conspiracy to commit transportation of stolen vehicles and wire fraud, transportation of stolen vehicles, sale or receipt of stolen vehicles, and wire fraud, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The 13-count indictment was returned by a grand jury in Las Vegas on June 14, 2017, and unsealed today. State and Federal law enforcement officials arrested individuals in Houston and Atlanta. The 16 defendants charged in the indictment are Channing Williams, a/k/a “Bhano,” 27, of Missouri City, Texas; Everly James, 27, of Houston, Texas; Korregan Washington, 28, of Houston, Texas; Keenan St. Hillaire, 26, of Missouri City, Texas; Maurice Lewis, a/k/a “Lew,” 22, of Missouri City, Texas; Kaleb Louis, a/k/a “Kay Lou,” 23, of Missouri City, Texas; Cody Williams-Jackson, a/k/a “Codeen,” 18, of Missouri, Texas; Torren James, a/k/a “Tee James,” 25, of Houston, Texas; Dominique Washington, a/k/a “D. Wash,” 24, of Missouri City, Texas; Demani Dancy, 21, of Houston, Texas; Trevionne Williams, 21, of Houston, Texas; Casey Walters Jr., 25, of Houston, Texas; Keith Bell, a/k/a “Daze,” 24, of Missouri City, Texas; Denzel Campbell, 26, of Houston, Texas; Trevaughn James, a/k/a “Lil Tre,” 21, of Missouri City, Texas; and Daniel Wilson, 24, of Missouri City, Texas.
The indictment alleges that, from July 2015 to about April 2017, the defendants conspired to fraudulently rent vehicles, then steal, transport, and sell the vehicles for profit, often at well-below the actual value of the vehicle. As alleged, they created and used fraudulent personal identification documents to open bank accounts and debit cards which they used to rent vehicles from car rental companies. The defendants are alleged to have stolen vehicles in Nevada, California, Texas, Tennessee, Arizona, and Florida, and transported some of the vehicles across state lines to sell them to unsuspecting victims. As alleged in the indictment, to further the scheme, the defendants produced fraudulent car titles and other documents to deceive buyers who were required to pay cash for the vehicle; the defendants placed advertisements to sell the stolen vehicles on websites such as Craigslist and OfferUp; and they used social media to communicate with each other and to brag about their criminal activities. The total approximate value of the stolen vehicles was $1,046,179.
The indictment also alleges that, on Nov. 15, 2016, Channing Williams and Lewis, transported a stolen Ford F-150 from California to Nevada, then sold the vehicle in Nevada and that, on Nov. 21, 2016, Channing Williams, Lewis, and Torren James transported a stolen Ford Expedition from California to Nevada then sold the vehicle in Nevada. The indictment further alleges that Channing Williams, Lewis, Williams-Jackson, Torren James, Washington, Dancy, Trevionne Williams, Walters, Bell, and Trevaughn James used fraudulent identifications to open bank accounts, to obtain debit cards, to rent vehicles, and to sell the stolen vehicles.
The defendants face a statutory maximum statutory penalty of five years in prison for conspiracy to commit transportation of stolen vehicles and wire fraud; a maximum penalty of 10 years each for transportation of stolen vehicles and sale or receipt of stolen vehicles; and a maximum penalty of 20 years for wire fraud. The defendants also face a period of supervised release, forfeiture, and monetary penalties.
The case is being investigated by the FBI Las Vegas Division, the Las Vegas Metropolitan Police Department, and the Houston Police Department with assistance from the FBI’s Houston and Atlanta Divisions. The case is being prosecuted by Assistant U.S. Attorneys Kilby Macfadden and Cristina D. Silva.
The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Sex Trafficker Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – Rene Anthony Laureano, 31, of Roxbury, MA, was sentenced in U.S. District Court in Providence today to 24 months in federal prison for trafficking a Massachusetts female to Rhode Island for the purpose of prostitution.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Laureano to serve 3 years supervised release upon completion of his term of imprisonment. Laureano pleaded guilty on March 7, 2017, to transportation with the intent to prostitute.
Both the government and the defense recommended to the court a sentence of 60 months incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 46 to 57 months.
Laureano’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
At time of his guilty plea, Laureano admitted to the court that between January 2015 and March 2016, he met a female he knew to be engaged in prostitution and did aid and abet her in carrying out that endeavor by, among other things, driving her from Massachusetts to appointments with customers in Rhode Island, and by profiting directly and indirectly from her activity.
Laureano has been detained in federal custody since his arrest on May 23, 2016. A codefendant in this matter, Kedwin Vargas, 26, of Roxbury, MA, arrested on May 19, 2016, pleaded guilty on December 8, 2016, to transportation with the intent to prostitute. Vargas is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 30, 2017.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Rhode Island State Police and the FBI. Acting United States Attorney Stephen G. Dambruch thanks the Warwick, R.I., and Boston Police Departments for their assistance in the investigation.
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Rutland Man Sentenced to Three Years’ Imprisonment for Distribution of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kevin Williams (a.k.a. “Capone”and “Cap”), 44, was sentenced to three years’ imprisonment by U.S. District Judge Geoffrey Crawford for Williams’ distribution of heroin in the Rutland area in October 2015. Williams previously pled guilty to this offense. Williams is originally from Bronx, New York but more recently lived in the Rutland area. He has been in the custody of the U.S. Marshals Service since his arrest on February 16, 2016.
The maximum term of imprisonment for this offense is 20 years. In addition to imposing a three-year term of imprisonment, Judge Crawford sentenced Williams to the mandatory three-year term of supervised release, which will begin after Williams serves the prison term.
The government presented evidence at sentencing showing that Williams also organized a small prostitution ring in Rutland, in which Williams paid three women addicts with drugs in order to convince the women to prostitute themselves. Williams organized the prostitution and kept the cash the women earned, ranging from $50-$200 per session. The government’s evidence at sentencing showed that Williams used Backpage.com to advertise these women.
A 19-year-old victim testified at sentencing that in June 2015, just after she was released from DCF custody at age 18, she met Williams in Rutland and began buying heroin from him to feed her addiction. She testified she helped Williams deliver crack and heroin in exchange for heroin, which she then used. She also testified that on a few occasions Williams paid her in heroin to have sex with him. Finally, she testified that Williams asked her to prostitute herself, but she refused.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Vermont State Police Drug Task Force. The United States is represented by Assistant U.S. Attorney Joe Perella. The defendant is represented by William Kraham, Esq. of Brattleboro.
Restaurants Sentenced for Illegal Harboring of Aliens; Owners Sentenced for Unlawful EmploymentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that HOLLYWOOD EAST d/b/a EAST BUFFET and GRAND BUFFET, INC. were sentenced today after previously pleading guilty to Illegal Harboring of Aliens.
U.S. District Judge Kurt D. Engelhardt sentenced HOLLYWOOD EAST d/b/a EAST BUFFET, 2750 Severn Avenue, Metairie, and GRAND BUFFET, INC., 800 South Clearview Parkway, Suite L, Harahan, to five years probation and a $35,000 fine. According to court documents, both restaurants funded two separate residences in Jefferson Parish that harbored illegal aliens who worked in the restaurants, transporting them by van each day.
The individuals who owned the businesses, CHUI CHEUNG, age 41, YIK CHENG, age 36, and SAU CHEUNG, age 44, were sentenced after previously pleading guilty to Unlawful Employment of Aliens. Each individual was sentenced to two years probation and a fine of $5,000.
The investigation started when United States Immigration and Customs Enforcement (ICE) agents performed inspections of the restaurants. The restaurants did not report the workers to the Louisiana Workforce Commission. Federal search warrants were executed at both residences that yielded evidence of the employment and harboring of the illegal aliens.
Acting U.S. Attorney Evans praised the work of Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. was in charge of the prosecution.
Putnam County man sentenced to 10 years in federal prison for possessing child pornographyRead the Press Release
HUNTINGTON, W.Va. - A Putnam County man was sentenced today to 10 years in federal prison for a child pornography crime, announced United States Attorney Carol Casto. Scott Allen Forloine II, 36, of Scott Depot, previously pleaded guilty to possession of child pornography. After Forloine is released from prison, he will be on federal supervised release for 25 years and will also be required to register as a sex offender.
Forloine admitted that in April 2015, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were discovered on his personal computer located in his residence. Forloine was using a peer-to-peer file sharing program to download, receive, and distribute child pornography. The investigation also revealed that Forloine engaged in a pattern of sexually abusing and sexually exploiting a minor for approximately eight years.
The FBI, the West Virginia Internet Crimes Against Children Task Force, the West Virginia State Police, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Plant City Woman Sentenced in Identity Theft SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Fontella James (37, Plant City) to two years and eight months in federal prison for conspiracy and aggravated identity theft. She pleaded guilty on April 11, 2017.
According to court documents, James worked at Rotech Healthcare, Inc.’s Lakeland billing center. As an employee of Rotech, she had password-protected access to the company’s secure computerized databases that contained medical records and personally identifiable information (PII) of Rotech’s customers and patients, including names, dates of birth, and social security numbers. James agreed with fellow Rotech employee, co-defendant Sharmekia M. Young, to steal Rotech patient records containing PII to give to co-conspirator Vickie Bryant. James and Young provided the PII of hundreds of Rotech customers to Bryant so that she could sell the information to another individual (a confidential informant) who manufactured, sold, and used counterfeit credit cards and counterfeit Florida driver licenses. On June 9, 2016, and again the following week, Bryant met with the informant and sold him 957 different victims’ PII contained in printed medical records that had been stolen by James and Young.
On December 13, 2016, Bryant was sentenced to four years’ imprisonment for access device fraud and aggravated identity theft. Young has pleaded guilty and is awaiting sentencing.
This case was investigated by United States Secret Service, the Florida Department of Law Enforcement, and the Tampa Police Department, as part of the Secret Service’s Financial Investigations Strike Team. It is being prosecuted by Assistant United States Attorneys Rachel Jones, Amanda Riedel, and Adam Saltzman.
Owner of Computer School Admits $2.8 Million Veterans’ Retraining Assistance Program Education FraudRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, woman who owned a computer training center today admitted stealing $2.8 million from a program designed to help veterans find employment, Acting U.S. Attorney William E. Fitzpatrick announced.
Elizabeth Honig, 52, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Peter Sheridan in Trenton federal court to an information charging her with one count of theft of government funds
According to documents filed in this case and statements made in court:
Honig owns Computer Insight Learning Center (CILC), a computer training school based in Eatontown, New Jersey. She helped 182 veterans enroll to receive federal funding under a program – funded by the Department of Veterans Affairs (VA) and the Department of Labor – designed to help older, unemployed veterans receive training and find employment in high demand occupations. The vast majority of these veterans were either not eligible or not actually attending the training.
Honig’s program was approved by the VA to provide education and training to military veterans, including veterans who received tuition assistance under the Veteran’s Retraining Assistance Program (VRAP), which offered up to 12 months of benefits for older, unemployed veterans between the ages of 35 and 60. This program provided training assistance to unemployed veterans for programs designed to lead to a high-demand occupation.
Honig admitted she logged on to the applications system more than 100 times and certified that she was the actual veteran who was applying for benefits. She supplied false information about employment status to qualify to attend her school and receive funding from the VA. Honig then certified to the VA that the veterans enrolled in her Business Software Applications Program – approved by the VA as a 14-week course costing approximately $4,000 – were attending for up to one year. Honig also certified that the veterans were attending full-time, in-class, knowing that 62 of those veterans lived out of the state. CILC is not eligible to be approved to provide online education.
Honig allowed veterans to attend less than the required hours, to stop attending prior to completion, or, in many cases, never attend at all. Honig failed to report the non-attendance to VA, which is required by law after 30 days of non-attendance, as long as the veterans continued to pay her a monthly fee. This caused the VA to continue payments to veterans who were not entitled to the funds. Honig’s monthly fee of approximately $750 also resulted in overpayments by veterans far in excess of the VA approved $4,000 course tuition.
The count to which Honig pleaded guilty carries a maximum punishment of 10 years in prison and a fine of either $250,000, twice the gross amount of her gain from the crime, or twice the loss suffered by any victims, whichever is greatest. Sentencing is scheduled for Sept. 25, 2017.
Acting U.S. Attorney Fitzpatrick credited the Northeast Field Office, U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Donna L. Neves; and the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the Healthcare and Government Fraud Unit in Newark.
Defense counsel: Evan Nappen Esq., Eatontown
Orlando Armed Career Criminal Sentenced to 15 Years for Possession of A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Mario Donate Lockhart (37, Orlando) to 15 years in federal prison for possessing a firearm as a convicted felon. Due to his multiple prior felony convictions, he qualified for an increased penalty as an Armed Career Criminal. He pleaded guilty on March 14, 2017.
According to court documents, on August 29, 2016, Lockhart threatened to kill an individual while holding a loaded semiautomatic firearm with a bullet in the chamber. He then pointed the firearm at another individual as officers from the Orlando Police Department arrived on the scene and ordered him to drop the weapon. Lockhart ignored these requests and ran from the officers with the firearm in his hand. He was apprehended a short time later and the firearm was recovered. At the time of the offense, Lockhart had multiple prior felony convictions and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by ATF and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Operation “Real Time”: Pickens Man Sentenced in Federal Court for Possession of a Pipe BombRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Matthew Joseph Kelly, age 29, of Pickens, South Carolina, was sentenced to 46 months in federal prison today by United States District Judge Timothy M. Cain. Kelly previously entered a guilty plea in federal court on January 18, 2017, for possessing a destructive device.
Evidence presented at the change of plea hearing established that on August 19, 2016, agents with the U.S. Marshals Fugitive Task Force along with deputies from the Pickens County Sheriff’s Office had an arrest warrant for an individual believed to be at a residence in Easley, SC. While at this residence, agents encountered Kelly and obtained permission to search his belongings. This search revealed a pipe bomb in a bag belonging to Kelly.
Kelly was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to possess firearms in the Upstate community.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 115 defendants and seizure of over 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office adopting the case. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The case was investigated by the U.S. Marshals Fugitive Task Force, the Pickens County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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Operation "Real Time": Anderson Man Sentenced in Federal Court for Possessing Firearm and AmmunitionRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Nicholas Blake Cason, age 28, of Anderson, South Carolina, was sentenced to 78 months in federal prison today by United States District Judge Timothy M. Cain. Cason previously entered a guilty plea in federal court on July 21, 2016, for possessing a firearm and ammunition as a prohibited person.
Evidence presented at the change of plea hearing established that, on February 22, 2016, a deputy with the Greenville County Sheriff’s Office (GCSO) encountered Cason while looking for another individual. During that interface, GCSO discovered that Cason was in possession of drugs and a loaded 9mm pistol. Due to his prior criminal history and record, Cason is prohibited by federal law from possessing firearms or ammunition.
Cason was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 115 defendants and seizure of over 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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Okmulgee Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that THOMPSON CHRISTOPHER KYLE MANDRELL, age 30, of Okmulgee, Oklahoma, pled guilty to POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by up to 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that between on or about July 7, 2014, and on or about September 21, 2016, in the Eastern District of Oklahoma, the defendant, THOMPSON CHRISTOPHER KYLE MANDRELL, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
New Haven Man Admits Role in Large-Scale Fencing OperationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ANDREW SACCO, 44, of New Haven and formerly of Durham, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to charges stemming from his participation in a large-scale fencing operation.
According to court documents and statements made in court, between January 2012 and December 2014, SACCO participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resold the property at online websites. SACCO, his co-conspirator Matthew Harwood, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price.
After receiving the stolen merchandise, SACCO and Harwood stored the merchandise at multiple locations, including SACCO’s former residence in Durham and business locations in North Haven. SACCO and Harwood then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
SACCO pleaded guilty to one count of conspiracy to commit interstate transport of stolen property, which carries a maximum term of imprisonment of five years, and one count of interstate transport of stolen property, which carries a maximum term of imprisonment of 10 years.
In pleading guilty, SACCO also agreed to forfeit the house in Durham where he formerly resided.
SACCO has been released on a $100,000 bond since his arrest on July 15, 2016.
Judge Shea has scheduled sentencing for September 13, 2017.
On November 3, 2016, Harwood pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property. He awaits sentencing.
This matter is being investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
New Bedford Man Sentenced for Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON - A New Bedford man was sentenced yesterday in federal court in Boston for his role in a heroin and fentanyl drug trafficking operation based in and around Taunton.
Cory Nickerson, 33, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 71 months in prison and three years of supervised release. In March 2017, Nickerson pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
After a 15-month federal investigation, Nickerson and 25 others were arrested and charged with various drug offenses connected to the trafficking of heroin and fentanyl in Taunton and surrounding communities. The investigation targeted all levels of the drug trafficking operation: major suppliers, middlemen, and lower level dealers/users. Nickerson was in the mid-to-lower tier of the conspiracy, primarily arranging deals for a third party while he himself was using heroin.
Of the 26 defendants indicted, 21 have pleaded guilty and nine, including Nickerson, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Mother Who Fled Country with Daughters Sentenced for Identity TheftRead the Press Release
KANSAS CITY, KAN. – A Lawrence woman who pleaded guilty to forging her ex-husband’s signature on official documents when she fled to Europe with her daughters was sentenced Tuesday to three years on probation including six months home confinement, U.S. Attorney Tom Beall said today.
Samantha C. Elmer, 34, Lawrence, Kan., pleaded guilty to one count of aggravated identity theft. In her plea she admitted she forged her husband’s signature on a document giving her consent to take their two daughters to Europe. She filed the document as part of the process of getting passports for the girls.
Elmer was charged after she returned from Europe with the girls, who were 9 and 11 years old.
Beall commended the following agencies that worked on the investigation: the Lawrence Police Department, the FBI, Homeland Security Investigations, the Douglas County District Attorney’s Office, the Eudora Police Department, the Overland Park Police Department and the Johnson County District Attorney’s Office, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley.
Middleman Pleads Guilty in Foreign Bribery and Fraud Scheme Involving Potential $800 Million International Real Estate DealRead the Press Release
The middleman in a foreign bribery scheme pleaded guilty today to wire fraud and money laundering charges for his role in a scheme to bribe a foreign official in the Middle East to land a real estate deal, and to defrauding his co-schemers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Malcolm Harris pleaded guilty to wire fraud and money laundering charges arising from his role as a middleman in a corrupt scheme to pay millions of dollars in bribes to a foreign official (“Foreign Official-1”) of a country in the Middle East (“Country-1”). The bribes were intended to facilitate the sale by South Korean construction company Keangnam Enterprises Co., Ltd. (“Keangnam”) of a 72-story commercial building known as Landmark 72 in Hanoi, Vietnam, to Country-1’s sovereign wealth fund (the “Fund”) for $800 million. Instead of paying an initial $500,000 bribe to Foreign Official-1 as he had promised, Harris simply pocketed the money and spent it on himself. Harris pleaded guilty before U.S. District Judge Edgardo Ramos who is scheduled to sentence Harris on September 27.
According to the allegations contained in the Indictment to which Harris pleaded guilty, and statements made during the plea and other court proceedings:
From in or about March 2013 through in or about May 2015, Harris co-defendants Joo Hyun Bahn, a/k/a “Dennis Bahn” (“Bahn”) and his father Ban Ki Sang (“Ban”) engaged in an international conspiracy to bribe Foreign Official-1 in connection with the attempted $800 million sale of a building complex in Hanoi, Vietnam, known as Landmark 72.
During this time, Ban was a senior executive at Keangnam, a South Korean construction company that built and owned Landmark 72. Ban convinced Keangnam to hire his son Bahn, who worked as a broker at a commercial real estate firm in Manhattan, to secure an investor for Landmark 72.
Instead of obtaining financing through legitimate channels, Bahn and Ban engaged in a corrupt scheme to pay bribes to Foreign Official-1, through Harris, who held himself out as an agent of Foreign Official-1, to induce Foreign Official-1 to use his influence to convince the Fund to acquire Landmark 72 for approximately $800 million. In furtherance of the scheme, Harris sent Bahn numerous emails purportedly sent by Foreign Official-1 and bearing Foreign Official-1’s name. In or about April 2014, following communications with Harris, Bahn and Ban agreed to pay, through Harris, a $500,000 upfront bribe and a $2,000,000 bribe upon the close of the sale of Landmark 72 to Foreign Official-1 on behalf of Keangnam.
Unbeknownst to Bahn or Ban, however, Harris did not have the claimed relationship with Foreign Official-1 and did not intend to pay the bribe money to Foreign Official-1. Instead, Harris simply stole the $500,000 upfront bribe arranged by Bahn and Ban, which Harris then spent on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
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Harris, 53, of San Miguel de Allende, Mexico, pleaded guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conducting monetary transactions in illicit funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only as any sentencing of the defendant will be determined by the judge.
The case against Bahn is pending before Judge Ramos, and Ban is a fugitive believed to be residing in South Korea. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in New York City investigated the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel S. Noble of the Southern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Middleman Pleads Guilty in Foreign Bribery and Fraud Scheme Involving Potential $800 Million International Real Estate DealRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Kenneth A. Blanco, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that MALCOLM HARRIS pled guilty to wire fraud and money laundering charges arising from his role as a middleman in a corrupt scheme to pay millions of dollars in bribes to a foreign official (“Foreign Official-1”) of a country in the Middle East (“Country-1”). The bribes were intended to facilitate the sale by South Korean construction company Keangnam Enterprises Co., Ltd. (“Keangnam”) of a 72-story commercial building known as Landmark 72 in Hanoi, Vietnam, to Country-1’s sovereign wealth fund (the “Fund”) for $800 million. Instead of paying an initial $500,000 bribe to Foreign Official-1 as he had promised, HARRIS simply pocketed the money and spent it on himself. HARRIS pled guilty before U.S. District Judge Edgardo Ramos, who is scheduled to sentence HARRIS on September 27, 2017.
Acting U.S. Attorney Joon H. Kim said: “As he has now admitted, Malcolm Harris schemed to bribe a foreign official, and then double-crossed even his own co-conspirators, pocketing $500,000 intended as a bribe. Harris then spent that money on his own lavish personal expenses. As the saying goes, there is no honor among thieves, and Harris confirmed that today with his guilty plea.”
According to the allegations contained in the Indictment to which HARRIS pled guilty, and statements made during the plea and other court proceedings:
From in or about March 2013 through in or about May 2015, HARRIS’s co-defendants Joo Hyun Bahn, a/k/a “Dennis Bahn” (“Bahn”), and his father Ban Ki Sang (“Ban”) engaged in an international conspiracy to bribe Foreign Official-1 in connection with the attempted $800 million sale of a building complex in Hanoi, Vietnam, known as Landmark 72. During this time, Ban was a senior executive at Keangnam, a South Korean construction company that built and owned Landmark 72. Ban convinced Keangnam to hire his son Bahn, who worked as a broker at a commercial real estate firm in Manhattan, to secure an investor for Landmark 72.
Instead of obtaining financing through legitimate channels, Bahn and Ban engaged in a corrupt scheme to pay bribes to Foreign Official-1, through HARRIS, who held himself out as an agent of Foreign Official-1, to induce Foreign Official-1 to use his influence to convince the Fund to acquire Landmark 72 for approximately $800 million. In furtherance of the scheme, HARRIS sent Bahn numerous emails purportedly sent by Foreign Official-1 and bearing Foreign Official-1’s name. In or about April 2014, following communications with HARRIS, Bahn and Ban agreed to pay, through HARRIS, a $500,000 upfront bribe and a $2 million bribe upon the close of the sale of Landmark 72 to Foreign Official-1 on behalf of Keangnam.
Unbeknownst to Bahn or Ban, however, HARRIS did not have the claimed relationship with Foreign Official-1 and did not intend to pay the bribe money to Foreign Official-1. Instead, HARRIS simply stole the $500,000 upfront bribe arranged by Bahn and Ban, which HARRIS then spent on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
* * *
HARRIS, 53, of San Miguel de Allende, Mexico, and formerly of New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conducting monetary transactions in illicit funds, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only as any sentencing of the defendant will be determined by the judge.
The case against Bahn is pending before Judge Ramos, and Ban is a fugitive believed to be residing in South Korea. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
Mr. Kim praised the outstanding investigative work of the International Corruption Squad of the FBI’s New York Field Office. Mr. Kim also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
Mexican National Sentenced to Prison for Fraudulent Identification Document ConspiracyRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Humberto Ginez-Edmundo, 26, of Mexico, to 34 months in prison and one year of supervised release on fraudulent identification document conspiracy and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
According to filed court documents and today’s sentencing hearing, beginning in at least November 2015, Ginez-Edmundo produced and transfered fraudulent identification documents, including but not limited to, Social Security cards, state identification cards, driver’s licenses, and permanent residence cards. Ginez-Edmundo sold the falsified documents to other individuals, some of whom were undocumented aliens, knowing the documents would be used as proof of eligibility to remain in and work in the United States. Court records show that Ginez-Edmundo charged individuals between $130 to $600, depending on the type of fraudulent identification documents he provided.
Ginez-Edmundo is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.
ICE-HSI led the investigation. Assistant United States Attorneys Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
McAlester Man Sentenced to 24 Months Probation, $5,000 Fine for Operating Motor Vehicle Under the Influence on A Military ReservationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEFFREY LEE MORRIS, age 35, of McAlester, Oklahoma, was sentenced to 2 years probation, and to pay a $500.00 fine for OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL, in violation of Title 47, Section 11-902(A)(2) of the Oklahoma Statutes, and Title 18, United States Code, Sections 7(3) and 13.
The Information alleged that on or about October 8, 2016, within the Eastern District of Oklahoma, the defendant, JEFFREY LEE MORRIS, did drive and operate a black Jeep Laredo motor vehicle while under the influence of alcohol at or near the Main Gate on C-Tree Road of the McAlester Army Ammunition Plant, land acquired for the use of the United States and under the exclusive jurisdiction thereof.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Man Found Guilty of Making False Statement About Combat DeploymentRead the Press Release
DENVER – Following a five-day jury trial in federal court before Senior U.S. District Court Judge John L. Kane, defendant Cameo Williams, Sr., age 34, of Denver, was found guilty of the single count of making a false statement, the U.S. Attorney’s Office and the Department of Veterans Affairs Office of the Inspector General announced. A sentencing hearing date has not yet been scheduled. Williams appeared at the trial free on a $5,000 unsecured bond.
Williams was indicted by a federal grand jury in Denver on March 24, 2016. After substantial litigation, his jury trial began on June 12, 2017. The jury found him guilty on June 19, 2016.
According to evidence presented to the jury at trial, Williams spent several years claiming to have post-traumatic stress disorder (PTSD) from a combat deployment. He was receiving disability compensation from the Department of Veterans’ Affairs (VA) for the PTSD. However, the defendant had actually served only a little more than two years in the Army—without a single day spent overseas—before being discharged for misconduct. Williams told the VA that the Army simply made an error in not mentioning his deployment on his discharge paperwork. However, the evidence at trial showed that not only did his personnel file lack any evidence of a deployment, he also had never received combat pay at any point in his Army career and had never had the necessary medical screenings and immunizations required for a deployment. In fact, Williams’ medical records showed him attending doctor’s appointments in Washington state during the time he claimed to have been deployed, and two soldiers from his unit testfied that no one from that unit had deployed during the time Williams said he was overseas.
The defendant faces not more than 5 years in federal prison and up to a $250,000 fine. This case was investigated by the Department of Veterans Affairs Office of the Inspector General, and prosecuted by Special Assistant U.S. Attorneys Tim Hoffman and Dan Burrows.
Louisville Felon Guilty of Possession of Multiple Drugs and A FirearmRead the Press Release
Admitted to possessing approximately 23 pounds of cocaine, heroin, meth and $170,000
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., announced the guilty plea of a Louisville felon, to possession with the intent to distribute cocaine, heroin and methamphetamine and to possession of a firearm by a convicted felon, in United States District Court before District Judge David J. Hale.
Ambrocio Jennings, 42, pled guilty yesterday, to all counts of a federal criminal complaint and remains in federal custody. At the time of his arrest Jennings possessed a stolen Glock 21 handgun, approximately $170,030 U.S. Currency, approximately 3 lbs. 4.2 ounces of heroin, approximately 6 pounds of meth, and 23 pounds 5.9 ounces of cocaine.
According to the Affidavit attached to the criminal complaint, on February 8, 2017, a U.S. Postal Inspector identified two packages being shipped from a Los Angeles California address to separate Louisville addresses, including one to defendant A. Jennings at Helck Avenue. The intercepted parcels contained 4 pounds of meth and two pounds of meth. With assistance from Louisville Metro Police and the Jefferson County Sheriff’s Office, controlled deliveries of the two packages were made. Jennings was observed entering and exiting the residence on Helck Avenue. When law enforcement attempted to stop Jennings, he began driving erratically and at high speeds, away from the officers. in the direction of Preston Highway near Gilmore Lane. LMPD Air Patrol followed Jennings and witnessed him throw three bags from his truck near Davies Avenue. Further, LMPD Air Patrol directed police to locate and arrest Jennings, then landed their helicopter in a field adjacent to the Davies Avenue location. The three bags were recovered and contained the U.S. currency, handgun, heroin, meth, and cocaine.
At the time of sentencing, the United States will recommend a sentence of 188 months’ incarceration followed by a period of supervised release. Sentencing is scheduled before Judge Hale on September 11, 2017, in Louisville.
Assistant United States Attorney Scott Davis is prosecuting this case. The United States Postal Inspection Service, Louisville Metro Police, and the Jefferson County Sherriff’s Department are investigating.
jennnings_criminal_information.pdfLeaders of Violent Bloods Street Gang Sentenced to 30 Years in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Two leaders of the Sex Money Murder set of the Bloods street gang were each sentenced to 360 months in prison for their respective roles in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced today.
Narik Wilson, a/k/a “Spaz,” 32, and Emil Rutledge, a/k/a “Diddy,” 28, both of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count Two of a superseding indictment charging them with racketeering conspiracy. Wilson was sentenced today by Judge Wigenton in Newark federal court. Rutledge was sentenced by Judge Wigenton on Jun 20, 2017.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.
Wilson and Rutledge, high-ranking members in Sex Money Murder, admitted that from 2007 to 2011, they committed a series of violent crimes to advance the gang’s objectives. Wilson, the leader, or “O.G.,” of Sex Money Murder, admitted that he directed the murder and attempted murder of eight rival gang members in and around Newark. Rutledge, a “captain,” or “shot-caller,” of Sex Money Murder, admitted that he and others carried out a number of the shootings ordered by Wilson, causing series injuries to others and the death of a victim.
Wilson admitted that he conspired with and directed other members of Sex Money Murder to murder the following individuals described in the indictment:
Feb. 4, 2007
Attempted murder of a rival gang member, (Victim 1)
Feb. 16, 2007
Attempted murder of a rival gang member (Victim 2)
Oct. 29, 2010
Attempted murder of a rival gang member (Victim 3)
June 16, 2011
Attempted murder of rival gang members (Victims 4-7)
July 14, 2011
Murder of a rival gang member (Victim 8)
Aug. 3, 2011
Attempted murder of a rival gang member (Victim 6)
Rutledge admitted that, acting at Wilson’s direction, he and others carried out drive-by shootings of Victims 3 through 7 on the above-described dates. Rutledge also admitted that he and others killed Victim 8 in a drive-by shooting. In addition, Wilson and Rutledge admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
Judge Wigenton also sentenced both defendants to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation.
He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Acting Special Agent in Charge Marcus S. Watson, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Dara Govan and Mary Toscano, Chief of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel:
Wilson: Michael N. Pedicini Esq., Chatham, New Jersey
Rutledge: Timothy R. Anderson Esq., Red Bank, New Jersey
Leader of New Haven Heroin Ring Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILSON VASQUEZ, also known as “Will” and “Pancho,” 44, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 151 months of imprisonment, followed by four years of supervised release, for heading a large heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that VASQUEZ obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 have pleaded guilty.
VASQUEZ has been detained since his arrest on July 15, 2015. On September 20, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Kenneth Matthew Adame, 24, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Adame and co-defendants Ricky Joe Garcia, 52, and Christopher Michael Sanchez, 24, both of Las Cruces, were arrested in April 2017, and were charged by criminal complaint with participating in a methamphetamine trafficking conspiracy on April 10, 2017, in Dona Ana County, N.M. According to the complaint, on that day, Adame, Garcia and Sanchez sold approximately 497.22 grams of methamphetamine to undercover law enforcement agents.
During today’s proceedings, Adame pled guilty to a felony information charging him with conspiracy to distribute methamphetamine and admitted that on April 10, 2017, he conspired with his co-defendants to distribute 497 grams of methamphetamine.
At sentencing, Adame faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Adame remains in custody pending a sentencing hearing, which has yet to be scheduled.
Garcia and Sanchez remain in custody on the charges in the criminal complaint. 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 Homeland Security Investigations’ Border Drug Task Force and is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.
KC Man Sentenced for Stolen FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing a stolen firearm.
Timothy R. Day, 49, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to seven years and two months in federal prison without parole.
On Dec. 21, 2016, Day pleaded guilty to possessing a stolen firearm.
On July 30, 2014, Kansas City police officers received information that Day had been driving around and waiving a gun on a daily basis, stating he was going to kill a woman named Sheila. Day was located in a local motel room with a woman who had registered the room in her name. Officers established a perimeter around the room and contacted Day and the woman. After some negotiation, the woman exited the room.
Day told officers that he had a gun on the bed. After several more minutes of negotiation, Day came out of the room and was arrested. Inside the room, officers found a loaded Hafdasa .45-caliber pistol, which Day admitted he stole from his father a few weeks earlier.
While in federal custody awaiting sentencing, Day mailed a threatening letter to his ex-wife, in which he threatened to sexually assault her upon his release from prison. As a result, the court found Day in breach of his plea agreement because he continued to engage in criminal conduct after his guilty plea. The court today granted the government’s request for a sentence above the advisory sentencing guidelines range.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Justice Department Conducts Animal Fighting Investigations TrainingRead the Press Release
WASHINGTON - On June 21 to 22, the U.S. Attorney’s Office for the Eastern District of North Carolina, the U.S. Department of Justice’s Environmental Crimes Section and the U.S. Department of Agriculture’s Office of Inspector General (USDA OIG) hosted over 100 federal and state regulators, criminal investigators and prosecutors from across the country for an animal fighting investigations training held at the National Guard Joint Forces Headquarters in Raleigh, North Carolina.
“Animal fighting ventures are violent and unlawful,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “Ending these cruel practices will require a close partnership among local, state, and federal law enforcement agencies, including coordinated investigations and enhanced training programs. Our Division is proud to be a leader in this worthy cause.”
“Our office was pleased to host this important conference on the serious problem of animal fighting and abuse,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Federal, state, and local law enforcement, along with non-governmental animal welfare groups, are working together to stop these horrific crimes, and the associated crimes that usually accompany them.”
“As the criminal investigations agency of the U.S. Department of Agriculture, the Office of Inspector General has successfully conducted animal fighting investigations across the country, with the assistance of our Federal, State and local law enforcement partners,” said Assistant Inspector General for Investigations Ann M. Coffey.
“The USDA OIG is pleased to have worked closely with the Department of Justice to coordinate this important training initiative to combat animal fighting and the associated crimes which often occur in animal fighting ventures,” said Special Agent in Charge Karen Citizen-Wilcox for the USDA OIG Southeast Region Office of Investigations. “Special Agents from all of the OIG’s regional offices will share their knowledge of and experiences with animal fighting investigations with personnel attending from other law enforcement agencies and private organizations.”
During the training, animal fighting investigators from the Humane Society of the United States, along with prosecutors and USDA OIG agents who have successfully investigated and prosecuted animal fighting cases, shared their experiences with attendees. Instructors provided participants with an overview of the business of dog fighting, a description of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals and successful sentencing strategies.
State and national animal control associations estimate that upwards of 40,000 people participate in dog fighting in the United States at a professional level, meaning that dog fighting and its associated gambling are their primary or only source of income. An unknown but potentially larger number of people participate in dog fighting on an occasional basis. Cockfighting is thought to be similarly widespread. In addition, animal fighting activities attract other serious crimes, such as gambling, drug dealing, weapons offenses and money laundering. Children are commonly present at animal fighting events.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. In 2014, the Department of Justice designated the Environment and Natural Resources Division as the centralized body within the Department responsible for tracking, coordinating, and working with the U.S. Attorneys’ Offices on animal cruelty enforcement matters.
For more information on the Department's efforts, visit: https://www.justice.gov/enrd/animal-welfare.
Justice Department Conducts Animal Fighting Investigations TrainingRead the Press Release
On June 21 to 22, the U.S. Attorney’s Office for the Eastern District of North Carolina, the U.S. Department of Justice’s Environmental Crimes Section and the U.S. Department of Agriculture’s Office of Inspector General (USDA OIG) hosted over 100 federal and state regulators, criminal investigators and prosecutors from across the country for an animal fighting investigations training held at the National Guard Joint Forces Headquarters in Raleigh, North Carolina.
“Animal fighting ventures are violent and unlawful,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “Ending these cruel practices will require a close partnership among local, state, and federal law enforcement agencies, including coordinated investigations and enhanced training programs. Our Division is proud to be a leader in this worthy cause.”
“Our office was pleased to host this important conference on the serious problem of animal fighting and abuse,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Federal, state, and local law enforcement, along with non-governmental animal welfare groups are working together to stop these heinous crimes, and the associated crimes that usually accompany them.”
“As the criminal investigations agency of the U.S. Department of Agriculture, the Office of Inspector General has successfully conducted animal fighting investigations across the country, with the assistance of our Federal, State and local law enforcement partners,” said Assistant Inspector General for Investigations Ann M. Coffey.
“The USDA OIG is pleased to have worked closely with the Department of Justice to coordinate this important training initiative to combat animal fighting and the associated crimes which often occur in animal fighting ventures,” said Special Agent in Charge Karen Citizen-Wilcox for the USDA OIG Southeast Region Office of Investigations. “Special Agents from all of the OIG’s regional offices will share their knowledge of and experiences with animal fighting investigations with personnel attending from other law enforcement agencies and private organizations.”
During the training, animal fighting investigators from the Humane Society of the United States, along with prosecutors and USDA OIG agents who have successfully investigated and prosecuted animal fighting cases, shared their experiences with attendees. Instructors provided participants with an overview of the business of dog fighting, a description of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals and successful sentencing strategies.
State and national animal control associations estimate that upwards of 40,000 people participate in dog fighting in the United States at a professional level, meaning that dog fighting and its associated gambling are their primary or only source of income. An unknown but potentially larger number of people participate in dog fighting on an occasional basis. Cockfighting is thought to be similarly widespread. In addition, animal fighting activities attract other serious crimes, such as gambling, drug dealing, weapons offenses and money laundering. Children are commonly present at animal fighting events.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. In 2014, the Department of Justice designated the Environment and Natural Resources Division as the centralized body within the Department responsible for tracking, coordinating, and working with the U.S. Attorneys’ Offices on animal cruelty enforcement matters.
For more information on the Department's efforts, visit: https://www.justice.gov/enrd/animal-welfare.
Jury Convicts KC Man of Illegal Drugs, FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been convicted in federal court of illegally possessing PCP and a firearm.
Darrell L. Givens, 45, of Kansas City, was found guilty of one count of possessing PCP with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Givens has been detained in federal custody without bond since his arrest on March 31, 2016.
Evidence introduced during the trial indicated that Givens was in possession of a loaded Jimenez .380-caliber semi-automatic handgun on March 31, 2016. Officers were dispatched to Givens’s residence on that date for a reported disturbance. Upon arrival the officers heard the sounds of screaming coming from within the residence. A woman told the officers, “He’s trying to hide his gun; he’s trying to hide it in the sink.” Givens, who had been in the kitchen, walked towards the living room and told the officers that he didn’t have a gun. One of the officers saw a large red bowl upside down on the left side of the double-sided stainless steel sink; the firearm was hidden underneath the bowl.
When officers searched Givens they found a vial of PCP in the right cargo pocket of his pants. The vial also had small pieces of apparent tobacco floating in the brown liquid, which is indicative of tobacco cigarettes having previously been dipped into the liquid before being smoked. The amount of PCP Givens possessed is not considered a personal use amount and is more commonly found in the possession of individuals who engage in the sale of PCP. Givens was also in possession of $6,999 – in large quantities of multiple denominations (249 one dollar bills, 32 five dollar bills, 30 ten dollar bills, 92 twenty dollar bills, 13 fifty dollar bills, and 38 one hundred dollar bills), which is also commonly associated with sales of illegal narcotics.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Givens has four prior felony convictions for possession of a controlled substance and four prior felony convictions for distributing crack cocaine.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. District Judge Beth Phillips on Tuesday, June 20, 2017, ending a trial that began Monday, June 19, 2017.
Under federal statutes, Givens is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson City Man Sentenced to 24 Years for Enticing a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for enticing a minor to engage in illicit sex.
Andrew C. Clayton, 38, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to 24 years and four months in federal prison without parole. The court also sentenced Clayton to spend the rest of his life on supervised release following incarceration.
Clayton, a computer information technician employed by the state of Missouri at the time of the offense, sought out sexual relationships with juvenile males, some as young as 14. Clayton, who pleaded guilty on Nov. 21, 2016, admitted that he used the KIK instant messaging app on his cell phone to attempt to persuade a minor to engage in illegal sexual activity.
Clayton used KIK to contact a minor, identified as John Doe #2, on March 19 and 20, 2015. Clayton offered John Doe #2 cigarettes and other items if he would re-connect him with another minor, identified as John Doe #1, with whom Clayton had previously engaged in sexual relations. Clayton wanted to have sexual relations with John Doe #1 (which would constitute a criminal offense). Instead, John Doe #2 contacted the Cole County Sheriff’s Department. Officers executed a search warrant at Clayton’s residence on March 27, 2015. In an interview with officers, Clayton admitted to having sex with several boys.
According to court documents, Clayton also propositioned John Doe #2 while trying to persuade him to contact John Doe #1 on his behalf, and also propositioned another juvenile, identified as John Doe #3.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department Cyber Crimes Task Force and the Missouri State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Home Improvement Contractor Found Guilty of Defrauding Customers and Hiding Assets from Creditors in Bankruptcy ProceedingsRead the Press Release
WASHINGTON - Michael L. Rosebar, 53, of Washington, D.C., has been found guilty of defrauding customers of his home improvement business and personal creditors, making false statements in bankruptcy proceedings, and defrauding a government program for needy families, announced U.S. Attorney Channing D. Phillips and Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division.
A jury returned the guilty verdicts on June 20, 2017, following a trial in the U.S. District Court for the District of Columbia. Rosebar was found guilty of six federal counts of concealment of bankruptcy assets, three federal counts of false oaths and statements in bankruptcy, and three counts of wire fraud. He also was found guilty of violating District of Columbia laws, including three counts of first-degree fraud related to his home contracting business and one count of first-degree fraud related to a scheme to defraud the District of Columbia’s public assistance (or welfare) program.
The Honorable Senior Judge Thomas F. Hogan scheduled sentencing for Sept. 14, 2017. Rosebar, who was first indicted in this case in February 2016, was held pending sentencing.
Rosebar’s wife, Erin M. Rosebar, 40, is scheduled to stand trial on Nov. 6, 2017 on related charges in the case. She has pled not guilty.
According to the government’s evidence, Rosebar operated businesses under several names, including EMR Construction Contractors. From at least February 2008 through January 2015, according to the evidence, he misrepresented himself to clients as a licensed home-improvement, electrical and heating/ventilation/air conditioning (HVAC) contractor. However, at no time during that period did Rosebar have a business or professional license from the District of Columbia Department of Consumer and Regulatory Affairs.
Rosebar recruited customers at home improvement stores, through referrals, and by acting as a sub-contractor on projects. According to the government’s evidence, he negotiated contracts with customers for substantial home improvement or HVAC projects, which he could not, and did not intend to, complete. During the trial, the government presented evidence related to numerous home renovation projects and a project to install air conditioners at an apartment complex in Atlanta. According to the government’s evidence, Rosebar received more than $800,000 from 2008 through 2013 for these projects. Rosebar not only abandoned these projects before completion, his demolition and other improper and unskilled work destroyed many residents’ homes. One senior citizen victim paid Rosebar over $380,000, and her home was an uninhabitable disaster with no proper roof when Rosebar abandoned the job. This woman lost her life savings to Rosebar, and was forced to live in a small portion of the home for seven years.
While scamming numerous victims, Rosebar filed for bankruptcy protection three times in the period between 2008 and 2013. The jury found him guilty of charges related to false statements he made during these proceedings, in which he understated his income and overstated his expenses.
The jury also found Rosebar guilty of receiving benefits to which he was not entitled from the District of Columbia’s Department of Human Services. From 2010 until 2014, Rosebar earned hundreds of thousands of dollars from his contracting fraud victims, and yet received benefits through the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program after falsely reporting that he had no income, was unemployed, and had no assets other than his family home.
In announcing the verdicts, U.S. Attorney Phillips and Inspector in Charge Wemyss commended the work of those who investigated the case from the U.S. Postal Inspection Service, Washington Division. They also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Inspector General, the Metropolitan Police Department (MPD), and the District of Columbia Office of the Attorney General.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Nicole Hinson and Mark Fitzgerald; former Criminal Investigator Juan Juarez; Paralegal Specialists Aisha Keys and Jessica Mundi; Supervisory Litigation Technology Specialist Joshua Ellen; Assistant U.S. Attorney Arvind K. Lal, Chief of the Office’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Philip A. Selden, now with the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the work of Assistant U.S. Attorneys John Marston and Anthony Saler, who prosecuted the case.
Harrison County man convicted of firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was convicted today of unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Matthew E. Boone, age 32, pled guilty to one count of “Unlawful Possession of a Firearm.”
Boone, having previously been convicted of heroin distribution in United States District Court, and five felonies in Harrison County Circuit Court, admitted to having a 9mm pistol in his possession. The crime occurred in January 2017 in Harrison County.
Boone faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Haitian National Sentenced to 108 Months in Federal Prison for Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
Guy Philippe, a former high-ranking Haitian National Police officer was sentenced today in Miami, Florida, to 108 months in prison with an order for a money judgement in the amount of $1.5 million to follow. Philippe previously pled guilty to a money laundering charge in connection with an international narcotics scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Philippe, 49, of Haiti was sentenced by U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, after having previously pled guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida and elsewhere in the United States in the late 1990s and early 2000s.
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted this case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Grape Street Crips Crack-Cocaine Wholesalers Get 18 Years in Prison for Racketeering, Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – Two crack-cocaine wholesalers for the New Jersey set of the Grape Street Crips were each sentenced today to 18 years in prison for their roles in racketeering and drug trafficking conspiracies operating in Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” 33, of East Orange, New Jersey, and Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” 30, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count 1 and Count 18 of a sixth superseding indictment charging them with racketeering conspiracy and conspiracy to distribute crack-cocaine. Judge Arleo imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Vanderhall, Concepcion and other members of the gang, including Jamar Hamilton, a/k/a “Gunner,” Tyquan Clark a/k/a “Tah,” and Rashan Washington, a/k/a “Shoota,” used and shared a dedicated cell phone to accept orders for, and distribute, thousands of clips of crack-cocaine to other distributors, including other gang members.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the area of 6th Avenue and North 5th Street in Newark used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison terms, Judge Arleo sentenced both Vanderhall and Concepcion to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the U.S. Attorney’s Office Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:Vanderhall: Joshua L. Markowitz Esq., Lawrenceville, New Jersey
Concepcion: Stephen Turano Esq., NewarkGardner Man Pleads Guilty to Conspiracy to Traffic Counterfeit SteroidsRead the Press Release
BOSTON – A Gardner, Mass., man pleaded guilty today in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids marketed on social media to bodybuilders and sold to customers around the country.
Robert Medeiros, 32, pleaded guilty to one count of conspiracy to traffic in counterfeit drugs and to distribute controlled substances. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 21, 2017.
On April 12, 2017, Medeiros and five others were arrested and charged with trafficking counterfeit steroids. It is alleged that, for at least two years prior to their arrests, members of the organization manufactured steroid products, marketed them falsely under the Onyx brand, and sold them to customers across the United States using email and social media platforms. Medeiros’ principal role in the conspiracy was to fulfill orders for anabolic steroids by obtaining the finished steroid products - branded with Onyx labeling and packaging - from other members of the conspiracy, prepare the steroids for shipment, and ship the steroids via the U.S. Postal Service to customers across the United States. Customers paid for the steroids through financial services companies like Western Union and MoneyGram. Members of the conspiracy allegedly used false identifications and multiple locations in an effort to collect the proceeds without attracting suspicion.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gain or loss of the criminal activity. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement today. Assistance was provided by the Drug Enforcement Administration, New England Field Division; Massachusetts State Police; Boston Police Department; Massachusetts Bay Transportation Authority Police Department; Customs and Border Protection; and Lynn, Shrewsbury, Gloucester, Saugus, and Gardner Police Departments. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
Former Treasurer of Mahopac Volunteer Fire Department Sentenced to 77 Months in Prison in Connection with Embezzlement of More Than $5.6 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL KLEIN, the former treasurer of the Mahopac Volunteer Fire Department (“MVFD”), was sentenced today by U.S. District Judge Cathy Seibel to 77 months in prison for wire fraud, subscription to false tax returns, obstruction of the grand jury, and false statement charges arising out of his embezzlement of more than $5.6 million from the MVFD.
Acting U.S. Attorney Joon H. Kim said: “On hundreds of occasions over more than 13 years, Michael Klein stole from the volunteer fire department he was elected to serve. Klein took more than $5 million of the fire department’s money, and used it to buy himself several boats, luxury cars, cruises, and tens of thousands of dollars of jewelry. Then he lied about it on his taxes, and obstructed the investigation of his crimes. Now, Michael Klein has been sentenced to the lengthy prison term that his crimes merit.”
According to documents filed in court:
MICHAEL KLEIN was first elected treasurer of the MVFD in 2001. From in or about January 2002 to in or about September 2015, KLEIN embezzled MVFD funds under his control by writing checks to his two businesses, Abbie Graphic Services, Ltd. (“Abbie Graphic”) and Buckshollow Emergency Equipment Corp. (“BEEC”). KLEIN then deposited the checks to bank accounts held by Abbie Graphic and BEEC. He entered these checks into the MVFD’s books as having been made payable to various vendors other than Abbie Graphic or BEEC that sold firefighting equipment or services used by fire departments. To satisfy the MVFD’s auditors, KLEIN prepared numerous false invoices to match the entries in the MVFD’s books.
KLEIN embezzled more than $5.6 million by writing more than 275 checks over a period of more than 13 years. He used the money to purchase, among other things, a 37-foot Thunderbird Formula boat; a 29-foot Everglades boat; a 55-foot Neptunus motor yacht named “K’Bam;” a second residence in Palm City, Florida; a 2010 Mercedes-Benz S550; a 2008 Jeep Liberty; and an antique fire truck. In January 2013, KLEIN went on what appears to be a Caribbean vacation and made $38,658.46 worth of jewelry and cruise purchases within two weeks. KLEIN also used the money he stole from the MVFD to support Abbie Graphic and BEEC.
KLEIN failed to report most of this income on his personal tax returns for the period from 2009 through 2014, thereby subscribing to false tax returns for each of those years.
Following law enforcement’s discovery of KLEIN’s embezzlement in September 2015, KLEIN obstructed the grand jury’s investigation of his conduct by making false statements regarding his finances and by concealing and dissipating assets. In September 2015, KLEIN concealed the proceeds he received from the sale of a Corvette by giving the money to a relative for deposit to her bank account and then arranging for the relative to pay his household bills. KLEIN also concealed an antique fire truck to prevent law enforcement from seizing it; sold a 2012 Victory motorcycle, converting the proceeds to cash; and transferred $58,000 to his mother as purported repayment of a college loan. In April 2016, KLEIN sold his yacht “K’Bam,” which he had purchased for $260,000 in 2012, for $136,850.46. In May 2016, KLEIN gave the United States Attorney a financial statement in which he falsely claimed, among other things, that BEEC had a delinquent loan of $275,000, and that, as a result of that loan, a lien was filed against KLEIN’s Florida property.
On March 7, 2017, KLEIN pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison; six counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison; one count of obstructing the grand jury’s investigation, which carries a maximum sentence of 20 years in prison; and one count of making false statements to the United States Attorney, which carries a maximum sentence of five years in prison.
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In addition to the prison sentence, KLEIN, 49, of Mahopac, New York, and Palm City, Florida, was sentenced to three years of supervised release. Judge Seibel also ordered KLEIN to forfeit $5,675,360.49 in ill-gotten gains, as well as various assets, including his residence in Palm City, Florida. Judge Seibel also ordered KLEIN to pay $5,675,360.49 in restitution.
Mr. Kim praised the outstanding investigative work of the IRS, FBI, New York State Comptroller, and New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Olga Zverovich, James McMahon, Andrew Dember, Maurene Comey, Michael Maimin, and Lauren Schorr are in charge of the prosecution.
Former Owner of Montana Area Chili's Sentenced to 30 Months in Prison for Bank FraudRead the Press Release
GREAT FALLS – Kenneth James Hatzenbeller, 65, of Great Falls, Montana, former owner of several Montana restaurants, was sentenced today to 30 months in prison and 3 years supervised release for bank fraud. He was also ordered to pay $1,077,866.82 to two banks. U.S. District Court Judge Brian M. Morris presided over the sentencing.
In court documents, federal prosecutor Chad Spraker wrote that on August of 2014, Hatzenbeller contacted Zions Bank and requested a $500,000 loan to purchase furniture, fixtures, and equipment for five Chili's restaurants operated by Shoot the Moon. The collateral for the loan was to be the furniture, fixtures, and equipment purchased with the loan proceeds.
On September 2, 2014, Hatzenbeller signed a Disbursement Request and Authorization requesting that $500,000.00 in loan proceeds be disbursed to Penner Brokerage. That same day, Zions Bank initiated a wire transfer of $494,890 to Wells Fargo for the benefit of Penner Brokerage based on invoices listing Penner Brokerage as the vendor for various furniture, fixtures, and equipment. The account controlled by Hatzenbeller’s daughter who knew nothing of Penner Brokerage or the invoices until interviewed by the FBI. The funds were never used for furniture, fixtures and equipment and were redirected to other company debts leaving Zions uncollateralized and unsecured.
In early September 2015, Hatzenbeller contacted Yellowstone Bank in Billings and indicated that Shoot the Moon was planning to open a Chili’s restaurant at the Rimrock Mall in Billings. Hatzenbeller was looking for financing for the project and stated he needed a $600,000 loan in order to purchase equipment and furnishings for the new restaurant. Hatzenbeller advised he and his partners would also be contributing an unspecified amount of capital to the project, and they would be personal guarantors on the loan. The bank was to have a lien on all fees, fixtures, and equipment as collateral
Due to Hatzenbeller and his partners’ strong financial statements, Yellowstone Bank did not require invoices from Shoot the Moon prior to making loan disbursements. Nevertheless, a bank vice president asked for invoices to make himself feel comfortable that the loan money was being spent as agreed upon. Hatzenbeller provided invoices that were either fabricated or for expenses that Shoot the Moon never incurred.
Shoot the Moon filed for a Chapter 11 bankruptcy in October of 2015. Hatzenbeller was deposed in the bankruptcy proceeding and admitted he used the Yellowstone Bank loan proceeds to pay expenses unrelated to the Billings Chili's restaurant. Hatzenbeller said he used the money to pay a food vendor, pay taxes, and meet payroll. When questioned about the September 2, 2014, $490,000 deposit from Zions Bank, Hatzenbeller falsely claimed it was a loan from his daughter and her husband.
This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by Federal Bureau of Investigation and the United States Trustee.