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3 August 2017
Five Individuals Indicted in California for Allegedly Stealing More Than $9 Million in Tax RefundsRead the Press Release
A grand jury in the Northern District of California returned an indictment, which was unsealed today, charging five individuals with conspiring to submit fraudulent claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California. Two of the individuals were also indicted for bank fraud.
According to the indictment and information provided to the court, Jorge Vissani, Jacqueline Ramos a/k/a Jackie Acosta, Ana Bajo a/k/a Ana Cobraubias, Norma Morfin and Antonio Ahumada filed fraudulent tax returns with the Internal Revenue Service (IRS) that included fake income, false dependents and bogus education expenses. As a result of filing these fraudulent returns, the defendants are alleged to have stolen more than $9 million in tax refunds. The indictment alleges that the defendants directed the IRS to send the refunds to addresses and bank accounts that they controlled. According to the indictment, they forged endorsements and cashed or deposited the refund checks at financial institutions and businesses in Northern California.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendants face a statutory maximum penalty of five years in prison on the conspiracy count. Ramos and Ahumada also face a statutory maximum sentence of 30 years in prison on the bank fraud counts. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael G. Pitman and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Final defendants sentenced to federal prison for roles in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A man and a woman from Paramount, California, and a woman from South Charleston were sentenced to federal prison today for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Gregory Crum, 42, and Diana Salazar Gamboa, 44, both previously pleaded guilty to conspiracy to distribute methamphetamine. Crum was sentenced to 20 years in federal prison. Gamboa was sentenced to eight years and one month in federal prison. Additionally, Beth Hammonds, 53, previously pleaded guilty to using the mail to facilitate a drug crime and was sentenced to two and a half years in federal prison.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several packages that contained crystal methamphetamine, commonly referred to as “ice.” Since January 2014, several pounds of crystal methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area.
Crum and Gamboa admitted that they arranged for methamphetamine to be sent into the Southern District and accepted payment for the drugs. Hammonds admitted that she received methamphetamine and further distributed it to individuals around South Charleston. Hammonds also admitted that she mailed proceeds from the drug distributions to Joseph Cooper, another individual involved in the conspiracy.
Multiple defendants have been sentenced to federal prison as a result of this large-scale methamphetamine trafficking investigation. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. David Huffman was sentenced to eight years and four months in prison for conspiracy to distribute methamphetamine. Mark Cobb and Shayne Shamblen were both sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine. Harold Parsons was sentenced to four years in prison for possession with intent to distribute methamphetamine. Light was sentenced to four years in prison for conspiracy to distribute methamphetamine. Jon Bowman was sentenced to a year and a half in prison for using the mail to facilitate a drug crime.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentences and presided over these cases.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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Final Defendant Pleads Guilty in 100-Plus Pound Methamphetamine Trafficking ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of LUIS MANUEL SANCHEZ-LOPEZ for conspiracy to possess with intent to distribute more than 100 pounds of methamphetamine. SANCHEZ-LOPEZ entered his guilty plea today before U.S. District Judge Ann D. Montgomery in Minneapolis, Minn.
SANCHEZ-LOPEZ is the last of three defendants to plead guilty to a March 2017 indictment. Co-defendants ABRAHAM SUAZO and ARTURO JUAREZ MADRIGAL entered their guilty pleas in U.S. District Court on May 15, 2017, and June 15, 2017, respectively.
“To the best of our knowledge, this was the largest single seizure of methamphetamine destined for Minnesota this year,” said Assistant U.S. Attorney Bradley Endicott. “One-hundred pounds of methamphetamine represents an indescribable harm to the community. The Department of Homeland Security and our local law enforcement partners deserve great credit for their investigative efforts and success in taking these dangerous drugs off the street.”
According to the defendants’ guilty pleas and documents filed in court, on February 8, 2017, the South Dakota State Patrol stopped a vehicle that contained approximately 92 pounds of methamphetamine. The driver, SUAZO, was transporting the methamphetamine from California to JUAREZ-MADRIGAL’S house in Eagan, Minn. Following a controlled delivery, law enforcement agents executed a search warrant at the house and were able to recover an additional 9.6 pounds of methamphetamine and $118,500 in U.S. currency. At the time of the search, SANCHEZ-LOPEZ was also in the house and had used various chemicals, including acetone, to “wash” the methamphetamine to make it clear or white.
All three defendants face a 10-year mandatory minimum prison sentence.
This case is the result of an investigation conducted by Homeland Security Investigations, the Drug Enforcement Administration, the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Department, the Rapid City Police Department, the St. Paul Police Department, the Minneapolis Police Department, and the South Dakota State Patrol.
This case is being prosecuted by Assistant United States Attorney Bradley M. Endicott.
Defendant Information:
ABRAHAM SUAZO, 36
Unknown
Convicted:
- Conspiracy to possess methamphetamine with intent to distribute, 1 count
ARTURO JUAREZ MADRIGAL, D.O.B. unknown
Eagan, Minn.
Convicted:
- Conspiracy to possess methamphetamine with intent to distribute, 1 count
LUIS MANUEL SANCHEZ-LOPEZ, D.O.B. unknown
Eagan, Minn.
Convicted:
-
Conspiracy to possess methamphetamine with intent to distribute, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal, State, and Local Law Enforcement Take Down East Alabama Drug Trafficking OrganizationRead the Press Release
Montgomery, Ala. – Twenty-six suspected drug traffickers with ties to East Alabama were arrested in a joint federal, state, and local narcotics investigation, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. Thirteen suspects were arrested on federal narcotics and money laundering charges. An additional thirteen suspects were arrested on state narcotics charges.
According to the six-count federal indictment, the suspects listed below conspired to possess with intent to distribute or did distribute a variety of drugs, including cocaine, marijuana, Xanax and methylenedioxy-methamphetamine (also known as MDMA or ecstasy). In addition to the drug charges, the indictment alleges four of the defendants committed the crime of money laundering.
The thirteen federal suspects are:
1) Alfred Lorenzo Cole – 36 years old, Santa Rosa, California;
2) Sakeya Monique Donaldson, 38 years old, Atlanta, Georgia;
3) Leanne Grimmett, 31 years old, Auburn, Alabama;
4) Jermichael Lamar Hart, 31 years old, Auburn, Alabama;
5) Worldly Dieago Holstick – 35 years old, Auburn, Alabama;
6) Mackenzie Leigh Keith, 23 years old, Auburn, Alabama;
7) Tyesha Lanise Lockhart – 20 years old, Auburn, Alabama;
8) John Willie Maddox, Jr. - 27 years old, Auburn, Alabama;
9) Marquis Lanez Miller – 36 years old, Auburn, Alabama;
10) Timothy Lamar Spinks, 42 years old, Auburn, Alabama;
11) Erin Kristen Turner – 23 years old, Auburn, Alabama;
12) Lateasha Lashun Williams, 30 years old, Auburn, Alabama; and
13) Lester Stephen Young, 34 years old, Auburn, Alabama;
For the conspiracy count, defendants Holstick, Miller, Maddox, Cole, Lockhart, Turner, Donaldson, Young, Spinks, and Hart are facing no less than 5 years imprisonment, and not more than 40 years. In addition, they are subject to a fine of not more than 5 million dollars.
For the money laundering conspiracy, defendants Holstick, Turner, Cole and Grimmett face not more than 20 years imprisonment. In addition, they are subject to a fine of not more than $500,000.00 dollars.
Defendants Maddox, Williams, Keith and Miller face not more than 20 years imprisonment for distribution charges. In addition, they are subject to a fine of not more than 1 million dollars.
The following suspects are facing state charges of criminal conspiracy to commit a controlled substance crime.
1) Shedrick Taryl Cannon, Notasulga, Alabama;
2) Travis Lamar Dowdell, Auburn, Alabama;
3) Carlton Antonio Goodman Jr., Dadeville, Alabama;
4) Blakely Elizabeth Kilgore, Huntsville, Alabama;
5) Samson Jermon Logan, Auburn, Alabama;
6) Keuntae Rajhun Mabson, Tuskegee, Alabama;
7) Adam Lee McPheeters, Auburn, Alabama;
8) Antonio Jermaine Mitchell, Opelika, Alabama;
9) Eric Kendall Smith, Auburn, Alabama;
10) Alexander White Jr., Thomasville, Alabama; and
11) Caleb Andrew Whitworth, Notasulga, Alabama.
Two more individuals are facing state charges: Eric Lamar Kellum of Opelika, Alabama is being charged with distribution of a controlled substance, and Quentin Eugene Turner of Auburn, Alabama is facing charges of possession of a controlled substance, marijuana, and drug paraphernalia.
An indictment is merely a method of charging a defendant. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
These cases are being investigated by the following agencies: DEA – Montgomery Resident Office, Auburn Police Division, Eufaula Police Department, Prattville Police Department, Alabama Attorney General’s Office, Alabama Law enforcement Agency, Alabama HIDTA Task Force, Alabama National Guard, Autauga County Sheriff’s Office, Central Alabama Drug Task Force (CADTF), Elmore County Sheriff’s Office, Millbrook Police Department, Montgomery County Sheriff’s Office, Montgomery Police Department, Lee County Sheriff’s Office, Lee County District Attorney’s Office, Opelika Police Department, Troy Police Department, and the United States Marshals.
The federal case is being prosecuted by Assistant United States Attorneys Verne Speirs and John Geer. The state case is being prosecuted by the Lee County District Attorney’s Office.
Federal jury finds Krotz Springs man guilty of possessing firearms, ammunition illegallyRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Krotz Springs man guilty Wednesday of possessing firearms and ammunition after being convicted of a felony.
Paul Joseph Viola, 46, of Krotz Springs, La., was found guilty of two counts of possession of a firearm by a convicted felon and two counts of possession of ammunition by a convicted felon. United States District Judge S. Maurice Hicks Jr. presided over the trial, which started Monday and ended Wednesday. The jury returned a guilty verdict after deliberating for approximately two hours.
Testimony and evidence at trial revealed that an anonymous caller reported in October of 2015 that Viola was a felon in possession of firearms. In an undercover operation conducted between October 31, 2015 and November 13, 2015, law enforcement agents obtained photographs of a Remington 1100 12 gauge shotgun, a .22 caliber Remington Speedmaster Model 552 semi-automatic rifle, and a .22 caliber Ruger model 10/22 semi-automatic rifle that were in his trailer in Krotz Springs. While the investigation was still ongoing, Louisiana Department of Wildlife and Fisheries agents found Viola on November 28, 2015 at the Sherburne Wildlife Management area in St. Martin Parish in possession of a loaded .35 caliber Whelen single shot rifle and a rifle sling containing five rounds of ammunition. ATF agents also searched his trailer in Krotz Springs on December 7, 2015, where they found and seized 13,428 rounds of ammunition. During his arrest on January 21, 2016 in Krotz Springs, law enforcement agents searched Viola’s pickup. At that time, agents found 10 .22 caliber rounds of ammunition in a Ruger 10/22 rotary magazine for a Ruger 10/22 rifle, one round of Hornady .444 Marlin ammunition, three rounds of .243 Winchester ammunition and two rounds of .308 Winchester ammunition.
Viola faces up to 10 years in prison for each count, three years of supervised release and a $250,000 fine for each count. The court also ordered the forfeiture of any right or interest that Viola had in the forfeiture of the firearms and ammunition. The court did not set a sentencing date.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Federal jury finds Baldwin man guilty of cocaine conspiracy operated out of St. Mary ParishRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Baldwin man guilty Wednesday for his role in a cocaine distribution conspiracy operated in the St. Mary Parish area.
Barry Druilhet, 43, of Baldwin, La., was found guilty of one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of use of a communication facility in causing or facilitating a drug trafficking crime. United States District Judge Elizabeth E. Foote presided over the three-day trial. The jury returned a guilty verdict after deliberating for approximately 45 minutes.
Evidence admitted at trial revealed that Druilhet was a member of a conspiracy to distribute more than 5 kilograms of cocaine in the St. Mary Parish, Ascension Parish and Baton Rouge areas from January 2000 to June 2015. Omar Mascorro, 41, of Houston, Texas, was the source of the cocaine and provided it to Artey D. Foulcard, 38, of Franklin, La., who provided it to Druilhet and others to distribute. Agents recorded the defendants using their cellular phones to facilitate sale of the drugs.
Druilhet faces up to 20 years in prison for the conspiracy count and up to four years in prison for the communication count. He also faces three years of supervised release and a $250,000 fine for both counts. Sentencing has been set for December 7, 2017. Mascorro pleaded guilty to the conspiracy count on June 21, 2017. The other defendants in the indictment pleaded guilty to the conspiracy count. They are: Michael McDaniel, 44, of Missouri City, Texas, who pleaded guilty on April 25, 2017; Cordell Johnson, 40, of Jeanerette, La., who pleaded guilty on June 26, 2017; Duanyell Williams, 42, of Franklin, La., who pleaded guilty on June 19, 2017; and Calvin Burrell, 50, of Franklin, who pleaded guilty on April 25, 2017. D’Arnold T. Deville, 49, of Bourg, La., was transferred to the Eastern District of Louisiana in New Orleans on July 12, 2017 where he pleaded guilty to the conspiracy count and additional charges. Williams, Mascorro, McDaniel, Johnson and Burrell are scheduled to be sentenced on October 19, 2017. Foulcard was an unindicted coconspirator who pleaded guilty to conspiracy to distribute a Schedule II controlled dangerous substance in a bill of information in January 2016 in the Western District of Louisiana. The case was transferred to the Middle District of Louisiana in Baton Rouge in February 2016, and he was sentenced on March 2, 2017 to 85 months in prison and five years of supervised release.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Hater Hurterz.” The FBI and the Texas Department of Public Safety conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Robert F. Moore and Kelly P. Uebinger are prosecuting the case.
Federal Jury in New Mexico Convicts Colorado Man on Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict yesterday afternoon finding Colorado Springs, Colo., resident Leroy Tchod Cameron Ravenell, 28, guilty on a cocaine trafficking charge after a three-day trial. Acting U.S. Attorney James D. Tierney, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector announced the verdict.
U.S. Border Patrol agents arrested Ravenell on Nov. 11, 2016, after finding approximately .36 kilograms (.8 pounds) of cocaine and two firearms concealed in his vehicle during an inspection at the U.S. Border Patrol checkpoint near Alamogordo, N.M., in Otero County, N.M. Ravenell, who initially was charged in a criminal complaint, subsequently was indicted on May 17, 2017, and charged with possession of cocaine with intent to distribute.
Ravenell’s trial began on July 31, 2017, and concluded yesterday afternoon when the jury returned a guilty verdict against Ravenell on the sole count of the indictment.
The testimony at trial established that on Nov. 11, 2016, Ravenell was a passenger in his vehicle when it was driven into the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo. During a routine inspection of Ravenell’s vehicle, Border Patrol agents found approximately 243 grams of cocaine hidden in a small box and two firearms. Agents also located a large amount of cash on Ravenell’s person. Testimony during the trial established that Ravenell made a statement to law enforcement that he had bought the cocaine from another person in a parking lot in El Paso, Tex., on the morning of Nov. 11, 2016, with the intention of selling the cocaine to others.
The jury deliberated approximately three hours before returning its guilty verdict.
Ravenell was remanded into custody after the verdict was returned and will remain detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, Ravenell faces a maximum penalty of 20 years in federal prison.
This case was investigated by the DEA and the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Enforcer for Violent Gambling Organization Sentenced to 24 Months in PrisonRead the Press Release
Assistant U. S. Attorneys Benjamin Katz (619) 546-9604, Andrew Young (619) 546-7981 and Mark W. Pletcher (619) 546-9714
SAN DIEGO – Jack Rissell was sentenced today to 24 months in prison for his role as an enforcer in the gambling organization run by former USC football player Owen Hanson.
Rissell entered a guilty plea to Hobbs Act extortion on December 15, 2016. According to the plea agreement, Owen Hanson hired to travel from California to Minnesota to collect a gambling debt from an individual living in Minneapolis. The agreement between and Hanson included a “contact fee” – a premium or bonus for assaulting the victim. Once located the victim at his Minneapolis apartment, he carried out this assault by striking the victim in the face and demanding that the victim repay the gambling debt he owed to Hanson. During the confrontation, the victim’s son was present in the apartment. In a subsequent email to Hanson, described the attack saying, “he went down like a bag of potatoes.”
Before sentencing Rissell to 24 months imprisonment, Judge Hayes described the premium payment as “cold blooded” and called Rissell’s involvement with Hanson as “egregious conduct” that left the victim in terror.
In total, 21 of 22 defendants charged in relation to Hanson’s enterprise have entered guilty pleas. The remaining defendant, Khalid Petras, is set for trial on August 29, 2017. He is accused of money laundering and running an illegal gambling business. The charges against this defendant are merely accusations, and he is considered innocent until proven guilty.
The case arose out of a joint investigation by FBI and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015, after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine.
DEFENDANT Case Number: 15CR2310-WQH
Jack Rissell Age: 51
SUMMARY OF CHARGES
Hobbs Act Extortion, 18 U.S.C. § 1951
Maximum penalty: 20 years’ imprisonment, $250,000 fine, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Darby Man Charged for Distributing FentanylRead the Press Release
PITTSBURGH – A resident of Darby, Pa., has been indicted by a federal grand jury in Pittsburgh for the distribution of furanyl fentanyl, a Schedule I controlled substance, Acting United States Attorney Soo C. Song announced today.
The 4-count indictment named Henry Koffie, a/k/a NarcoBoss, 32, of Darby, PA, as the sole defendant.
According to the indictment and associated criminal complaint, Koffie used the name NarcoBoss on the Dark Net marketplace AlphaBay to sell fentanyl products. Additionally, the indictment charges that on or about March 27, 2017; April 7, 2017; April 24, 2017, and May 15, 2017, Koffie distributed a quantity of furanyl fentanyl, a Schedule I controlled substance to an address in the Western District of Pennsylvania.
The law provides for a maximum total sentence of up to 80 years in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government. Substantial assistance was provided by the United States Attorney’s Offices in the District of Oregon and the Eastern District of Pennsylvania.
The United States Postal Inspection Service, Federal Bureau of Investigation, and Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Covington Business Owner Sentenced to 66 Months for Food Stamp Fraud SchemeRead the Press Release
COVINGTON, Ky. – An Edgewood, Ky., woman, who was found guilty by a federal jury in January 2017, was sentenced today to 66 months in prison.
U.S. District Court Judge David L. Bunning sentenced 49-year-old Phyllis Tyler for Conspiracy to Commit Food Stamp Fraud, Food Stamp Fraud, and four counts of Money Laundering.
Tyler operated A&E Fashion’s and Beauty Supply LLC (A&E), a convenient store in Covington, Ky., which was an authorized food stamp retailer. The United States Department of Agriculture administers the food stamp program, formally called the Supplemental Nutrition Assistance Program (SNAP), which provides benefits to recipients who are eligible for assistance. Retail stores may participate in SNAP only with the authorization of the USDA, Food and Nutrition Service and may only accept and redeem food stamp benefits in connection with the sale of eligible food stamp items. Authorized retailers cannot accept food stamp benefits in exchange for cash. Food stamp recipients use an Electronic Benefit Transfer (EBT) card that maintains the benefit balance and can be used at any authorized retailer to redeem benefits.
According to the evidence at trial, from January 2, 2012 until June 26, 2015, Tyler made cash purchases of food stamp benefits from beneficiaries, paying half the value of the benefits actually on the EBT cards. She then redeemed the full benefits by conducting EBT transactions at her store, which triggered a direct reimbursement for the sale from the federal government to Tyler’s business bank account. She also used cards that she purchased for cash at other retailers, to buy items for her personal use or for inventory at her store. As a result of the fraud, Tyler was responsible for causing a $408,979.76 loss to the food stamp program. On four occasions, Tyler also transferred more than $10,000 in food stamp fraud proceeds through a financial institution, in violation of federal money laundering statutes.
Under federal law, Tyler must serve 85 percent of her prison sentence and will be under supervision of the U.S. Probation Office for three years following her term of incarceration.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office, and Chief Brian Carter of the Covington Police Department, announced the sentence today.
IRS Criminal Investigation, United States Department of Agriculture, Kentucky Cabinet for Health and Family Services and the Covington Police Department conducted the investigation. Assistant U.S. Attorneys Kathryn Anderson and Elaine Leonhard represented the federal government.
Convenience store owners sentenced for food stamp fraud and identity theftRead the Press Release
ATLANTA – Jonathan and Stephanie Dupiton have been sentenced for using stolen identities to steal over $395,000 from the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP). The defendants illegally obtained SNAP benefits for themselves, and then cashed them at stores they owned in several Georgia communities.
“These defendants subverted the SNAP program to line their own pockets and also used hundreds of stolen identities to commit their crimes,” said U.S. Attorney John Horn. “They used the SNAP system as an ATM for their personal gain, diverting critical benefits that help those who need assistance in our communities.”
“The United States Department of Agriculture, Office of Inspector General- Investigations, actively investigates allegations of Supplemental Nutritional Assistance Program (SNAP) fraud. These defendants stole unsuspecting people’s identities, used those identities to fraudulently acquire EBT cards, and misused thousands of dollars worth of SNAP benefits to enrich themselves at the expense of American taxpayers. Collectively, this type of fraudulent activity undermines this vital program by misdirecting millions of dollars of taxpayer funds from the purposes they were intended,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG. “We would like to thank U.S. Attorney’s Office for aggressively prosecuting perpetrators of fraud and sending a strong message that illegally profiting by defrauding USDA programs will not be tolerated.”
“This investigation was a great example of partnership and cooperation between our Department and federal authorities,” said Georgia Department of Human Services Commissioner Robyn A. Crittenden. “DHS has zero tolerance for fraud, waste and abuse in the programs it administers. After internal efforts to detect fraud, DHS was able to work with the U.S. District Attorney’s Office in bringing these individuals to justice. Georgia’s most vulnerable citizens need these valuable resources, and we are committed to ensuring the integrity of SNAP in Georgia.”
According to U.S. Attorney Horn, the charges and other information presented in court: From July 2014 through October 2015, Jonathan and Stephanie Dupiton owned and operated two convenience stores in Cobb County, Georgia; J. Good Groceries in Mableton, and Stephanie’s Groceries in Austell. The USDA’s Food and Nutrition Service manages and funds SNAP, formerly known as the Food Stamp Program, with the purpose of alleviating hunger and malnutrition among low-income families. The Georgia Department of Human Services (DHS) administers the SNAP program.
The defendants used stolen identities to apply for SNAP benefits instead of accepting SNAP benefits from qualified recipients to purchase food. These SNAP benefits were loaded on EBT cards, which are similar to debit cards. The defendants directed DHS to mail hundreds of EBT cards to addresses they controlled. The Dupitons then collected and swiped the fraudulent SNAP cards at their convenience stores. Over $800,000 in SNAP payments were deposited in the defendants’ bank accounts. DHS and USDA were able to link $395,000 of those funds to 321 fraudulent SNAP accounts.
Jonathan Dupiton, 28, of Atlanta, Georgia, was sentenced to three years, nine months in prison, and Stephanie Dupiton, 24, also of Atlanta, Georgia, was sentenced to six months in prison. Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay $395,388.01 in restitution. Both defendants were convicted of conspiracy to commit wire and mail fraud in April 2017, after pleading guilty to these charges. Jonathan Dupiton was also convicted of aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The U.S. Department of Agriculture, Office of Inspector General and the Georgia Department of Human Services investigated this case.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped Bass and to Federal Tax ViolationsRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that today in federal court, GASTON L. SAUNDERS, JR., 53, of Wanchese, North Carolina, pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina. SAUNDERS also plead guilty to one count of federal tax evasion and three counts of failure to file federal taxes. In the plea agreement, the defendant agreed to pay restitution in the amount of $544,946.35 payable to the Internal Revenue Service.
According to the indictments and superseding criminal information in the public records in related cases, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. Officers found 173 illegally harvested Atlanic Striped Bass on board.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. The electronic mail retrieved, which included captains sharing LORAN coordinates and Buoy Numbers where they successfully harvested Atlantic striped bass, combined with the vessel monitoring track lines, illustrated a concerted effort by various commercial fisherman to illegal target and harvest that species from the EEZ. The review also revealed multiple years of illegal harvests by commercial trawlers.
Based on its review, NOAA determined that between January 19, 2009, and February 9, 2010, SAUNDERS, then Captain of the Little Sammie, a commercial trawler, harvested approximately 13,613 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The estimated fair market retail value of the 13,613 pounds of illegally harvested fish exceeds $108,000. SAUNDERS also submitted false statements to NOAA for two of three fishing trips, falsely claiming he caught the fish in state waters.
Further investigation revealed that despite earning a substantial income from his commercial fishing, SAUNDERS failed to file a tax return since 1999. Starting in 2010, and in order to avoid IRS’ collection efforts, SAUNDERS directed his wife to deposit his fishing income into their joint bank account, then withdraw the money the same day and use those funds to purchase cashier’s checks, primarily in denominations of less than $10,000 each. His wife would place the cashier’s checks in a safe deposit box, cashing them over the years as the couple needed money. Between October 2010 and August 2014, SAUNDERS caused his wife to deposit at least 20 fishing income checks totally $432,419.20 and convert the money to cashier’s checks. In total, SAUNDERS and his wife failed to pay $544,946.35 in federal taxes.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,160 ocean trawl quota were taken illegally from the EEZ.
Eleven other commercial fishermen previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO; United States v. John Roberts¸ No. 4:15-CR-3-BO; United States v. David Saunders, Jr., No. 2:15-CR-2-B0; United States v. Michael Potter, No. 2:15-CR-6-BO; United States v. Bryan H. Daniels, No. 4:14-CR-11-BO; United States v. Stephen Daniels, No. 2:15-CR-4-BO; and United States v. James K. Lewis, Jr., No. 4:14-CR-10-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues in DOJ’s Environmental Crimes Section to prosecute these important cases.”
Manny Antonaras, Deputy Speical Agent in Charge for NOAA’s Southeast Division’s Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
“Tax evasion is not a victimless crime. Saunders’ attempt to evade tax by hiding income and failing to file tax returns is a theft from the American public who are paying their fair share,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means.”
A sentencing hearing will be set at a later date. GASTON SAUNDERS faces a total maximum sentence of 13 years imprisonment and/or a $800,000 fine.
The Lacey Act investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. The tax investigation was conducted by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Collin County Man Guilty in Conspiracy to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
PLANO, Texas – A 62-year-old Plano, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston and Acting Assistant Attorney General for National Security Dana J. Boente today.
Peter Zuccarelli pleaded guilty to conspiring to smuggle and illegally export from the U.S., radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA). The plea was entered today before U.S. Magistrate Judge Kimberly Priest-Johnson.
Zuccarelli pleaded guilty to engaging in a conspiracy to smuggle and illegally export from the U.S. items subject to IEEPA, without obtaining licenses from the Department of Commerce. According to the allegations contained in the Information filed against Zuccarelli and statements made in court filings and proceedings, including today’s guilty plea:
Between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled.
In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
At sentencing, Zuccarelli faces a maximum statutory term of five years imprisonment and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the defendant’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; Postal Inspection Service; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Department of Defense, Defense Criminal Investigative Service. This case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas together with the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years and nine months in federal prison for a gun charge, announced United States Attorney Carol Casto. Re’Shaun Lamonte Wilborne, 31, previously pleaded guilty to being a felon in possession of a firearm.
Wilborne admitted that on October 13, 2016, he possessed a Taurus, Model PT92AF, 9x19mm semiautomatic pistol and several boxes of ammunition. An officer with the Metropolitan Drug Enforcement Network Team discovered the handgun in Wilborne’s backpack in a Motel 6 on MacCorkle Avenue in Charleston. Three days later, on October 16, 2016, a Charleston Police Department officer was dispatched to the 700 block of Central Avenue in Charleston in reference to two individuals behind a bar fighting, one of whom was later identified as Wilborne. When Wilborne saw the officer, he began to flee. The officer caught up to Wilborne around the 400 block of Elm Street and in a search of Wilborne incident to arrest, law enforcement recovered a Glock, Model 29, 10mm semiautomatic pistol. After a check of the gun’s serial number, law enforcement confirmed that the firearm was stolen. Wilborne was prohibited from possessing any firearm under federal law because of a conviction for second degree sexual assault in 2004 in Fayette County Circuit Court. As part of the plea agreement, Wilborne admitted to all of the criminal conduct charged in the indictment.
The Metropolitan Drug Enforcement Network Team, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Bullhead Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, woman convicted of Child Abuse was sentenced on August 1, 2017, by U.S. District Judge Charles B. Kornmann.
Alyssa Oka, age 28, was sentenced to 18 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Oka was indicted by a federal grand jury on February 15, 2017. She pled guilty on May 4, 2017.
The conviction stems from an incident on June 3, 2015, when BIA officers responded to a call at a residence in Bullhead, South Dakota. As they got there, a young child came up to them and stated his mother, Oka, the Defendant, had just beat him up. The victim stated that he left his mother laying on the ground by the walking bridge in town. Officers were unable to locate her there. The officers then proceeded to Oka’s residence, at which time Oka began shouting at them from across the street. Oka was observed to be staggering as she attempted to walk towards them.
Oka was placed in the back of the patrol vehicle while the victim was interviewed and informed the officers that he was struck on the left side of his face. When one of the officers examined the child, he noted discoloring to the face. Photographs were taken and Oka was placed under arrest.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Oka was immediately turned over to the custody of the U.S. Marshals Service.Bullhead Man Sentenced for AssaultsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man convicted of two counts of Domestic Assault by an Habitual Offender was sentenced on August 1, 2017, by U.S. District Judge Charles B. Kornmann.
Dana Yellow Earrings, age 44, was sentenced to 37 months in custody in each count to be served concurrently, 3 years of supervised release on each count to be served concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Yellow Earrings was indicted by a federal grand jury on February 15, 2017. He pled guilty on May 5, 2017.
The conviction stems from an incident on September 11, 2016, when Yellow Earrings went to the home of the victim, and angrily confronted her at her home in Bullhead, South Dakota. Yellow Earrings became more irate and physically assaulted the victim. He then left the residence and attempted to break the windows out of a vehicle outside the residence.On February 6, 2016, Yellow Earrings was walking across a bridge in Bullhead, South Dakota, and came across the victim walking across the bridge in the opposite direction. He and the victim began to argue and Yellow Earrings struck the victim with a beer can, knocking her to the ground. As the victim was laying on the ground, Yellow Earrings began to kick her in the abdomen. A person who observed the incident managed to distract Yellow Earrings, allowing the victim to flee. He was later apprehended.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Yellow Earrings was immediately turned over to the custody of the U.S. Marshals Service.Brockton Man Sentenced for Dealing Heroin and FentanylRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for distributing heroin and fentanyl.
Angelo Pina, 26, was sentenced by U.S. District Court Judge Denise J. Casper to 30 months in prison and three years of supervised release. In April 2017, Pina pleaded guilty to one count of distribution of heroin and fentanyl and two counts of distribution of heroin.
From December 2015 to August 2016, law enforcement conducted an investigation into heroin and fentanyl suppliers in Holbrook and surrounding communities. An undercover officer was introduced to Pina, and on five dates between January and June 2016, the undercover officer made five controlled purchases of heroin and fentanyl from Pina. In addition, the investigation revealed that the cellular telephone used by Pina had, on average, more than 500 calls and texts per day over an 11-month period, indicative of more extensive drug dealing, and that his cellular phone had the contact information of over a dozen people who suffered fatal or non-fatal overdoses in 2015 and 2016, reflecting the grave danger posed by heroin and fentanyl.
Acting U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The investigation was led by the Organized Crime Drug Enforcement Task Force. Assistant U.S. Attorney Theodore Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Bloods Gang Member Sentenced to 18 Years in Prison for Firearms and Drug CrimesRead the Press Release
Maurice Donnell Williams, aka Reecy, 23, of Nashville, Tenn., was sentenced yesterday in U.S. District Court, to 18 years in prison, for gun and drug crimes, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Williams was indicted by a federal grand jury in February 2017 and pleaded guilty in May of this year.
“This is an example of the importance of citizens being engaged in efforts to reduce crime,” said Acting U.S. Attorney Jack Smith. “Here, a citizen saw a concerning post on social media and reported it. The rapid response and investigation by law enforcement has now resulted in a dangerous criminal being removed from the community for a long period of time. Removing repeat offenders from our communities enhances our ability to combat street gangs and the violence often associated with illegal guns and drugs. I encourage our citizens to continue to assist law enforcement by reporting criminal activity when they become aware of it.”
According to court documents, Williams is a Bloods street gang member and had been convicted at the state level in 2012 for facilitation of aggravated robbery and in 2014 he was convicted of aggravated assault with a deadly weapon. Williams was sentenced to prison on these charges and was released in March 2016.
In October 2016, Williams was arrested by Metropolitan Nashville Police Officers after fleeing a traffic stop near the East Community Center and the Explore! Community School in East Nashville. While fleeing from police, Williams discarded a jacket which held a loaded Kel-Tec 9mm pistol, cocaine, marijuana and digital scales.
On December 28, 2016, while out on bond for the October arrest, Williams was again arrested in the Cayce Homes area, after Nashville Police Officers found him with a loaded Ruger pistol in his pants. Officers had been monitoring surveillance cameras in the area after a Facebook Live video was forwarded to the Mayor’s Office, which showed several youths with multiple firearms in the Cayce Homes area. After this arrest, Williams again posted bond and was released from custody.
A subsequent review of the Williams’ charges and criminal history, as part of a joint effort by local and federal law enforcement to reduce violent crime in public housing areas, resulted in the federal indictment and Williams was held in federal custody without bond.
“Williams’ prior arrests and convictions over the years obviously did not dissuade him from continued criminal activity, which put persons in the Cayce community at risk,” Chief Steve Anderson said. “I am grateful to the United States Attorney’s Office and the ATF for their valued partnership as we address violent felons who pose a danger to our citizens.”
In imposing the 18-year prison sentence, Chief U.S. District Judge Waverly Crenshaw noted the prior convictions for violent offenses and the danger Williams posed to the public, due to his history of repetitive armed offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant U.S. Attorney Sunny A.M. Koshy.
Bakersfield Man with Sex Offense Priors Found Guilty of Receiving and Possessing Child PornographyRead the Press Release
FRESNO, Calif. — After a three-day trial, a federal jury found Colin Lovette Bosby, 50, of Bakersfield, guilty today of one count of receiving child pornography and two counts of possessing child pornography, U.S. Attorney Phillip A. Talbert announced. The trial was held before Chief U.S. District Judge Lawrence J. O'Neill.
According to evidence presented at trial, Bosby received child pornography through a peer-to-peer file-sharing program and possessed child pornography on thumb drives. Evidence at trial showed that the defendant sought out the child pornography by using search terms that are associated with the material.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Megan A. S. Richards and Vincenza Rabenn are prosecuting the case.
Bosby is scheduled to be sentenced by Chief Judge O'Neill on October 25, 2017. Bosby faces a maximum statutory penalty of 40 years in prison and a $250,000 fine for receipt and distribution of child pornography, and 20 years for each count of possession of child pornography. In addition, because Bosby has a prior sex offense, he faces mandatory minimum prison sentences of 15 years for receipt and 10 years for possession of child pornography. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Albuquerque Man Sentenced to Five Years for Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 68 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 31 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Dwayne Cunningham, 49, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison followed by five years of supervised release for his conviction on a methamphetamine trafficking charge.
Cunningham and his co-defendants, Devell Devoual, 35, and Cedric Laneham, 39, were arrested in July 2016, on an indictment charging them with conspiring to distribute methamphetamine between May 16, 2016 and June 2, 2016; Devoual and Laneham with distributing methamphetamine on May 17, 2016; and Devoual and Cunningham with possessing methamphetamine with intent to distribute on June 2, 2016. According to the indictment, the defendants committed the offenses in Bernalillo County, N.M.
On May 2, 2017, Cunningham pled guilty to distributing more than 50 grams of methamphetamine on May 17, 2016. Co-defendant Devoual also has entered a guilty plea and remains in custody pending his sentencing hearing.
Co-defendant Laneham has entered a not guilty plea and remains in custody pending his trial, which is scheduled for Sept. 1, 2017. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and was prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns.
Albuquerque Man Pleads Guilty to Federal Fraud, Identity Theft and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Ralph Eastman, 48, of Albuquerque, N.M., pled guilty yesterday in federal court to conspiracy, fraud, identify theft and theft of mail charges. Under the terms of Eastman’s plea agreement, he will be sentenced to 36 months in prison followed by a term of supervised release to be determined by the court.
Eastman and co-defendant Katie Carrillo, 26, also of Albuquerque, were charged in a 16-count indictment on Aug. 23, 2016, with conspiracy, ten counts of bank fraud, three counts of aggravated identity theft, and two counts of theft of mail. According to the indictment, the defendants committed the offenses from Dec. 2015 through April 2016, in Bernalillo County, N.M., by stealing mail and packages from cluster mailboxes located in apartment complexes. The mail stolen included checkbooks, checks, ATM cards, PIN numbers and personal identifiers of victims, which the defendants allegedly used to commit further crimes.
During yesterday’s change of plea hearing, Eastman pled guilty to the charges against him in the indictment, namely, conspiracy, eight counts of bank fraud, and two counts of theft of mail. Eastman also pled guilty to a felony information charging him with aggravated identify theft. In entering the guilty plea, Eastman admitted that from Dec. 2015 through April 2016, he conspired with others to steal mail and packages specifically to obtain financial information and forms of identification. Eastman further admitted that he and others altered checks and used them at local businesses in exchange for goods, services and online transactions. Eastman also admitted that he and others used stolen identifications and personal information to facilitate fraudulent transactions.
In his plea agreement, Eastman also acknowledged that he and others stole mail and packages from authorized depositories for the U.S. Postal Service through mailboxes located at an Albuquerque apartment complex on March 9, 2016 and March 12, 2016.
Carrillo has entered a plea of not guilty to the charges in the indictment. Charges in indictments are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The U.S. Postal Service, the Albuquerque Police Department and the Sandoval County Sheriff’s Office investigated this case, which is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei and Paul Mysliwiec.
Acting Manhattan U.S. Attorney Announces Fraud Charges Against Former New York City Police Officer and Staten Island ManRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the United States Department of Homeland Security’s Homeland Security Investigations, announced today the unsealing of a criminal Complaint charging MICHAEL RIZZI and EDWARD MONAHAN with bank fraud and conspiracy to commit bank fraud, in connection with a scheme to submit false documentation to a bank to make RIZZI’s sale of property to his friend and business partner look like an “arm’s length” transaction. MONAHAN was arrested in Staten Island, New York, and is was presented in federal court. RIZZI is currently incarcerated in Federal Correctional Institute, Loretto in Pennsylvania, and is expected to be presented in federal court early next week.
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
RIZZI purchased a property (the “Rizzi Property”) in 2007 with the assistance of a mortgage (the “Mortgage”) The Mortgage was acquired by a bank (“Bank-1”) that same year. Over time, RIZZI stopped paying the Mortgage and, in 2009, the Mortgage fell delinquent. In 2015, RIZZI contacted Bank-1 and requested a short sale due to financial hardship (the “Short Sale”). Bank-1 advised RIZZI that the Short Sale was required to be an “arm’s length” transaction, meaning that the buyer could not have any personal, familial, or business connections with RIZZI.
Later that year, MONAHAN agreed to buy the Rizzi Property from RIZZI. In connection with the sale and closing of the Rizzi Property, RIZZI and MONAHAN both executed various documents in which they affirmed that the buyer and the seller were engaged in an “arm’s length” transaction, and the seller and buyer of the Rizzi Property did not have a personal or business relationship. RIZZI and MONAHAN were, in fact, friends and business partners. Among other things, RIZZI and MONAHAN were partners in the ownership of Nitecap Megastore, a Staten Island adult sex and smoke shop. MONAHAN also has posted photos and videos on social media, which depict RIZZI and MONAHAN socializing with each other.
As a result of this scheme, Bank-1 suffered more than $250,000 in losses.
* * *
RIZZI, 45, of Brooklyn, New York, and MONAHAN, 45, of Staten Island, New York, are each charged in the Complaint with one count of bank fraud and one count of conspiracy to commit bank fraud. Each charge carries a maximum sentence of 30 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.
Mr. Kim praised the investigative work of HSI’s El Dorado Task Force in this case, and thanked the New York City Police Department for its assistance.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
2 August 2017
Wyoming County man sentenced to federal prison for possessing child pornographyRead the Press Release
BECKLEY, W.Va. - A Wyoming County man was sentenced today to three years and four months in federal prison and 15 years of federal supervised release for a child pornography crime, announced United States Attorney Carol Casto. Eddie Dwaine Justice, Jr., 30, of Hanover, previously pleaded guilty to possession of child pornography. After finishing his prison sentence, Justice will also be required to register as a sex offender.
Justice admitted that in July 2016, 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 located on his personal computer found in his residence. The investigation also revealed that Justice was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“Those who choose to exploit children should be aware of the serious consequences associated with these crimes,” stated United States Attorney Carol Casto. “Protecting the children of our communities is a top priority of this office, and we will keep working with our law enforcement partners to hold these predators accountable.”
The FBI conducted the investigation. Assistant United States Attorney Eric Bacaj is in charge of the prosecution. United States District Judge Irene C. Berger 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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Wisconsin Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Carson Sibley, age 26, of LaCrosse, Wisconsin, has been charged with sexual exploitation of a child, enticement of a minor, travel for the purpose of engaging in illicit sexual conduct, and the commission of these offenses while being required to register as a sex offender. The charges are contained in an Indictment filed on July 19, 2017 in United States District Court in Cedar Rapids.
The Indictment alleges that, between April and June 2017, Sibley persuaded, induced, and enticed a minor to engage in sexual activity and to produce depictions of sexually explicit conduct, and that he traveled across a state line to engage in illicit sexual conduct. The Indictment also alleges that Sibley was convicted of offenses relating to the distribution and possession of child pornography in Hawaii in 2013, and it alleges that he was required to register as a sex offender this year.
If convicted, Sibley faces a possible maximum sentence of life imprisonment, a $1,000,000 fine, $20,400 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Sibley appeared on July 31 in federal court in Cedar Rapids and was held without bond. Sibley’s next appearance for trial is set for September 18, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, the Black Hawk County Sheriff’s Office, the Cedar Rapids Police Department, the LaCrosse Police Department, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-53.
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U.S. Attorney’s Office for Northern District of Texas Hosts 20th Annual Drug Education for Youth (DEFY) Summer CampRead the Press Release
DALLAS — The 20th Annual Drug Education for Youth (DEFY) Summer Camp was held last week at the Naval Air Station Joint Reserve Base (NAS JRB) in Fort Worth, Texas, where members of the U.S. Attorney’s Office for the Northern District of Texas, members of the military and local law enforcement worked together to host the one-week residential camp for at-risk youth. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
First Assistant U.S. Attorney Chad Meacham and Captain Jonathan R. Townsend of NAS JRB presented certificates to the 28 youth who attended this year’s DEFY summer camp at a graduation ceremony held Saturday morning, July 29, 2017, at NAS JRB. Camp attendees included at-risk youth from high crime and low income communities in the Dallas/Fort Worth Metroplex.
DEFY is a year-long, unique, comprehensive, and multi-phased program that reduces risk and strengthens protective factors that research has directly linked to adolescent alcohol and drug abuse, school failure, delinquency, and violence.
DEFY begins each year with the week-long, residential summer camp for selected at-risk youth, ages 10 - 11. At DEFY camp, the youth participate in a curriculum focused on healthy lifestyles to prevent drug abuse and gang involvement and resist negative peer pressure. To reinforce good practices learned at DEFY camp, DEFY continues throughout the year with classroom sessions, educational workshops and continued mentoring designed to provide the youth with additional life skills, training and tools to resist drugs and gangs.
The DEFY program is just another example of the partnerships that community groups and law enforcement undertake to build mutual trust and make our communities a safer place for all of us to live.
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Suburban Man Charged with Arson for Allegedly Setting Fire to His Employer’s Auto DealershipRead the Press Release
CHICAGO — An employee of a Rosemont auto dealership has been charged with arson for allegedly setting a fire that heavily damaged the dealership’s vehicles and office equipment.
BRYANT CAMERON set the fire at Epic Motorsports, 9739 Farragut St. in Rosemont, on the evening of July 24, 2017, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Cameron poured gasoline in the front office, reception and warehouse areas, and lit it on fire with the embers from his cigarette, the complaint states. He then quickly drove away from the scene, according to the complaint.
Fire departments from five different municipalities worked to extinguish the blaze. One firefighter suffered injuries consistent with dehydration, the complaint states. The fire damaged multiple vehicles, tools, office equipment, files and miscellaneous goods, according to the complaint.
Cameron, 28, of Broadview, was arrested on July 27, 2017. The complaint charges him with one count of arson. The charge is punishable by a minimum sentence of seven years in prison and a maximum of 40 years. A detention hearing is set for Aug. 7, 2017, at 1:30 p.m. before U.S. Magistrate Judge Michael T. Mason in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Rosemont Public Safety Department; Chicago Police Department’s Bomb and Arson Unit; Chicago Fire Department’s Office of Fire Investigation; and the Broadview Police Department.
The government is represented by Assistant U.S. Attorney Aaron R. Bond.
According to the complaint, Cameron’s duties at Epic Motorsports involved cleaning and moving cars, and picking up vehicles from neighboring states. Cameron was the last person to leave the facility on the night of the fire, the complaint states. A court-authorized search of Cameron’s vehicle on July 27, 2017, revealed items that had been reported stolen from Epic Motorsports, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Storm Lake Tax Return Preparer Sentenced in Federal Court for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
A woman who formerly operated her own tax return preparation business and prepared and filed fraudulent federal tax returns was sentenced to four years’ probation and ordered to pay a fine and restitution in federal court yesterday.
Toui Lo, age 56, from Storm Lake, received the sentence after a April 3, 2017, guilty plea to one count of aiding and assisting the preparation and filing of a false and fraudulent tax return.
In a plea agreement, Lo, who operated a tax return preparation business in Storm Lake, admitted she prepared and filed a false tax return on behalf of a client, fraudulently increasing the amount of the client’s refund by falsely claiming business expenses and various itemized deductions. Lo further admitted she filed multiple other similarly false tax returns between 2009 and 2013. Finally, at sentencing, Lo admitted that the false and fraudulent tax returns she prepared and filed resulted in more than $60,000 in unwarranted refunds for her clients.
Lo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lo was sentenced to four years’ probation and fined $3,000. A special assessment of $100 was imposed, and she was ordered to make $61,137 in restitution to the Internal Revenue Service.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Internal Revenue Service Criminal Investigation Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4017.
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Staten Island Woman Sentenced to 12 Years’ Imprisonment for Illegal Distribution of OxycodoneRead the Press Release
Earlier today before United States District Judge I. Leo Glasser in Brooklyn, New York, Carolyn Richardson was sentenced to 12 years’ imprisonment, to be followed by three years of supervised release, for operating a sophisticated scheme to fraudulently obtain and distribute thousands of Schedule II controlled substances, particularly opioids such as oxycodone, without a medical license. Richardson had previously pled guilty to conspiring to distribute and possess with intent to distribute oxycodone. Her co-defendant, Doraymus Robinson, who also previously pled guilty, was sentenced to eight years’ imprisonment for his role in the conspiracy on June 28, 2017.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
Between January 2015 and July 2016, Richardson and Robinson operated a fraudulent scheme to illegally obtain oxycodone and other prescription narcotics using the DEA registration number of an active practicing physician. Richardson had the physician’s prescriber information printed on fraudulent prescription pads, along with a fake address and a phone number that routed back to Richardson’s cell phone. The defendants wrote false prescriptions, which contained fake patient identification information and signatures, and used the prescriptions to fraudulently obtain oxycodone from pharmacies. If a pharmacy called to verify a prescription, Richardson answered the phone feigning to be an employee at the doctor’s office. Additionally, the defendants sold the fraudulent prescription pads for cash. Prior to arresting the defendants, law enforcement executed a search warrant on the defendants’ storage unit and recovered thousands of prescription pills filled in false names, fake prescription pads, dozens of identifications and health care cards, and a firearm.
“Carolyn Richardson and Doraymus Robinson used fraud and deceit to fuel the opioid epidemic for their own gain and at immeasurable cost to the community,” stated Acting United States Attorney Rohde. “This Office and our partners at the DEA will continue to use all the tools at our disposal to solve the opioid crisis, including by holding offenders, like Richardson and Robinson, accountable to the fullest extent under the law.”
“This sentencing highlights how drug dealers infiltrate medical practices in order to divert controlled substances to street sales, increasing the supply of opioids in our communities,” stated DEA Special Agent-in-Charge Hunt. “However, law enforcement is doubling down on opioid traffickers; targeting traditional street dealers selling heroin and tracking down white collar criminals diverting prescription medication.”
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state, and local government partners, launched the Initiative to mount a comprehensive response to what the United States Department of Health and Human Services Centers for Disease Control and Prevention called an epidemic increase in the abuse of so-called opioid analgesics. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 19 health care professionals, taken civil enforcement actions against a hospital, a pharmacy, and pharmacy chain, removed prescription authority from numerous rogue doctors, and expanded information sharing among enforcement agencies to better target and pursue drug traffickers. The Initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Jennifer M. Sasso is in charge of the prosecution.
Statement by Attorney General Sessions on the Swearing in of FBI Director Chris WrayRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the swearing in of the new Federal Bureau of Investigation Director Chris Wray:
"Moments ago I had the honor of swearing in Chris Wray as our new Director of the Federal Bureau of Investigation.
"Chris has the experience and the strength of character that the American people want in an FBI Director and I congratulate him for being overwhelmingly confirmed to that post and look forward to working with him every day to keep America safe.
“As a former federal prosecutor and head of the Department of Justice's Criminal Division, Chris Wray has successfully prosecuted terrorists, drug kingpins, and white-collar criminals. He has earned the respect of his colleagues at DOJ, receiving our highest honor, the Edmund Randolph award, and bipartisan support in the Senate.
"I am confident that the FBI, the premier investigative agency in the world, is in great hands with Director Chris Wray at the helm."
Statement by Attorney General Sessions on the RAISE ActRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the RAISE Act:
“This proposal will help the Department of Justice perform its duties to uphold our nation's immigration law and end the unlawful abuse of our public benefits program that undermine U.S. taxpayers. The higher entry standards established in this proposal will allow authorities to do a more thorough job reviewing applicants for entry, therefore protecting the security of the U.S. homeland. The additional time spent on vetting each application as a result of this legislation will also ensure that each application serves the national interest.
“The American people deserve a lawful immigration system that promotes our national interest. The RAISE Act would give us a more merit-based immigration system that admits the best and the brightest around the world while making it harder for people to come here illegally. The bill would end programs known to be rife with fraud and abuse and finally improve the vetting process, making our country--and working-class wages--much safer and stronger."
Springfield Woman Sentenced for Stolen Mail, FraudRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman responsible for mail thefts from at least 40 victims in three counties, was sentenced in federal court today.
Lisa Beatrice Gee, 29, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole. The court also ordered Gee to pay $10,994 in restitution to her victims.
On March 15, 2017, Gee pleaded guilty to passing a forged check, credit card fraud and stealing mail. Gee admitted that she was in possession of stolen mail between Jan. 8 and March 17, 2016. When Gee was arrested on March 17, 2016, she was in possession of mail stolen by herself, or others at her direction, from at least 40 different individuals in Greene, Christian and Polk Counties. Gee admitted that she took checks, credit cards, Social Security cards and personal identification cards belonging to those mail theft victims. Gee used the contents of the stolen mail to engage in fraudulent criminal acts.
Gee admitted that she fraudulently conducted financial transactions with credit cards, debit cards, identification cards and personal identification numbers. Gee also passed a forged check on Jan. 23, 2016. Gee altered the check, which had been mailed from one person to another, to make it payable to a third person and deposited the check in that person’s bank account. Shortly thereafter, Gee withdrew the same amount of money from the account in the form of ATM cash withdrawals.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department, the Nixa, Mo., Police Department and the Ozark, Mo., Police Department.
Springfield Man Sentenced to 15 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for using a minor to produce child pornography.
Tyler Coons, 26, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. The court also sentenced Coons to 15 years of supervised release following his incarceration.
On Jan. 30, 2017, Coons pleaded guilty to one count of using a minor to produce child pornography and one count of receiving and distributing child pornography.
The investigation began when the father of an 11-year-old girl filed a report with the Greene County Sheriff’s Department on June 3, 2014, after his daughter received inappropriate Facebook messages from Coons. When he signed into his daughter’s Facebook account, he saw messages from Coons and set up a meeting with him, pretending to be his daughter. The father met Coons on the playground of a local elementary school and told him to have no further contact with his daughter.
On June 20, 2014, a search warrant was obtained for Coons’s Facebook account and Facebook provided investigators with more than 8,000 pages of private messages exchanged between Coons and others. Many of the messages were from young girls between the ages of 11 and 17. Coons asked several of the girls to send him pictures of themselves without clothes on.
During numerous Facebook conversations with girls claiming to be under the age of 18, Coons refers to exchanging naked pictures via social media, including Snapchat, Instagram and Kik. Frequently, during the conversations, Coons refers to the females as “jailbait” and indicates that he is aware he is engaging in illegal activity.
On July 10, 2014, detectives from the Greene County Sheriff’s Department executed a search warrant at Coons’s residence. Coons was inside the residence with a 17-year-old female, who was identified as one of the minors who had sent him several pornographic images of herself. Coons admitted that he and the 17-year-old victim were sexually active, and that they could have been sexually active while she was still 16 years old. Coons also admitted that he sent a naked picture of himself to her.
In an interview with investigators, the 17-year-old victim said that she and another minor, whom she believed to be 15 years old, had engaged in sexual activity with Coons at his residence on the night before the search warrant was executed.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Greene County, Mo., Sheriff’s Department.
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."
Six Indicted on Federal Drug ChargesRead the Press Release
BOSTON – Six individuals were charged in an indictment unsealed today for their roles in a Worcester-based heroin and cocaine distribution operation.
Vito Nuzzolilo, 44, of Worcester; Kristin Little, 33, of Worcester; Thomas Walker, 43, of Pemaquid, Maine; Melissa Rock, 39, of Pemaquid, Maine; and Ricardo Ortega-Vasquez, 42, a Dominican national residing in New York City, were each charged on Thursday, July 27, in an indictment unsealed today with one count of conspiring to distribute, or to possess with the intent to distribute, heroin and cocaine. Nuzzolilo and Little were arrested on May 23, 2017, on a criminal complaint, and the three other defendants were already in custody on state charges.
Ryan Flynn, 35, of Leicester, was charged in a separate indictment with conspiring with Nuzzolilo to distribute cocaine and with possessing marijuana with intent to distribute. Flynn was arrested today and will be detained pending a hearing on Aug. 7, 2017.
According to court documents, Nuzzolilo and Little distributed heroin and cocaine from their apartment on Grafton Street in Worcester, where someone suffered a fatal heroin overdose. A federal wiretap revealed numerous communications in which Nuzzolilo directed various customers to the Grafton Street apartment, or to a separate space that Nuzzolilo maintained on Webster Street in Worcester, for the purpose of obtaining heroin or cocaine.
The wiretap further revealed that Nuzzolilo coordinated with a New York-based source of supply for the delivery of significant quantities of narcotics to Worcester, including an order of a kilogram of cocaine and 400 grams of heroin in April 2017. On May 7, 2017, law enforcement seized approximately 300 grams of cocaine from Ortega-Vasquez, who was riding in Nuzzolilo’s vehicle after Nuzzolilo ordered additional cocaine from his New York source. In addition, Walker and Rock arranged for the purchase of cocaine from Nuzzolilo and Little on credit, with Walker explaining that his “workers” had the cash to pay for it.
Flynn and Nuzzolilo also allegedly discussed a substantial drug debt owed by Nuzzolilo to Flynn, with Nuzzolilo explaining that he had given cocaine to Walker and was expecting cash in return, but that his timetable was disrupted when Walker was arrested. Nuzzolilo conveyed to Flynn that he had plenty or heroin but was out of cocaine, and then acquired additional cocaine from Flynn at Flynn’s residence in Leicester on May 1, 2017. Court records also show large cash deposits into Flynn’s bank account dating back to 2014. At least $8,110 was deposited in April 2017, at least $6,400 was deposited in March 2017, and at least $12,258 was deposited in February 2017.
Nuzzolilo faces a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. The remaining defendants face sentences of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Flynn also faces a charge of possession with intent to distribute marijuana, which provides for a sentence of up to five years in prison, a minimum of two years and up to life 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.
Additional defendants involved with this drug trafficking organization are being prosecuted by the Massachusetts Attorney General’s Office.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Six Arrested in Registry of Motor Vehicles Identity Theft SchemeRead the Press Release
BOSTON –Six individuals, including four RMV clerks, were arrested today in connection with a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles. Some of the false identities and addresses were used to fraudulently register to vote in the City of Boston.
Evelyn Medina, 56, of Boston; Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; Bivian Yohanny Brea, 41, of Boston; and John Doe, a/k/a Flako, a/k/a Miguel, a/k/a Pablo D. Gonzalez Lopez, a/k/a Rafael R. Bonano, 32, whose identity and nationality has yet to be determined, were charged today in federal court in Boston with aggravated identity theft. The defendants are expected to appear in federal court this afternoon.
At the time of their arrest, Medina, Gracia, Jordan, and Brimage were employed as clerks at the Haymarket Registry of Motor Vehicles. Brea and Flako conspired with the RMV clerks to operate the scheme.
In October 2015, the Massachusetts State Police received an anonymous letter alleging that a corrupt RMV employee was providing stolen identifications and drivers’ licenses to individuals seeking false identifications. An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were allegedly working with Brea, who acted as the document vendor, and Flako, who acted as the document dealer, to provide licenses and identification cards to illegal aliens for cash.
The scheme involved several steps. First, it is alleged that Flako, the document dealer, sold a Puerto Rican birth certificate and U.S. Social Security card to Brea, the document vendor, for approximately $900. Brea, in turn, sold the stolen identities for over $2,000 to clients seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges.
After Flako sold Brea the false identification papers, Brea typically used the counterfeit documents and false identities and addresses to fraudulently register the clients to vote in the City of Boston. Then, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted cash to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.
The charge of aggravated identity theft provides for a mandatory minimum of two years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation into the corruption and identity theft scheme is ongoing.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux City Man Sentenced to Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced August 2, 2017, to more than one year in federal prison.
Daniel Virgil Kleve, age 32, from Sioux City received the prison term after a March 20, 2017, guilty plea to one count of failure to register as a sex offender.
At the guilty plea, Kleve admitted that as the result of a 2007 conviction for possession of child pornography by a United States Army Court Martial, he was required to register as a sex offender under federal law. Between October 2015, and May 2016, he traveled in interstate commerce from Nebraska to Iowa, and failed to update his sex offender registration to reflect his employment in Iowa, as required by federal law.
Kleve was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Kleve was sentenced to 12 months’ and 1 day imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Kleve is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy Duax and investigated by United States Marshals’ Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4081.
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Seven Aliens Indicted on Illegal Reentry Charges, Passport Fraud, Social Security Fraud, and Illegal Possession of FirearmsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging EDUARDO AREVOLO, age 40, of Honduras, JOSE DAGOBERTO FUNEZ-PAGOADA, age 40, of Honduras, FELICIANO PACHECO-BAUTISTO, age 47, of Mexico, and JOSE SEVILLA-CRUZ, age 35, of Honduras, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned indictments charging MARIA MAGDALENA FRANCISCO-ABREU, age 55, of the Dominican Republic, with Passport Fraud, LUIS ANTONIO OSORIO-CEVALLOS, age 38, of Mexico, with Illegal and Unlawful Alien in Possession of Firearms, and ESAU RODRIGUEZ-CALDERON, age 34, of Honduras, with False Representation of a Social Security Account Number, and Fraud and Misuse of Visas, Permits, and other Documents.
If convicted of Illegal Reentry of a Deported Alien, FUNEZ-PAGOADA and SEVILLA-CRUZ, both found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
AREVOLO, found in Johnston County, and PACHECO-BAUTISTO, found in Wake County, are alleged to have been previously deported subsequent to aggravated felony convictions (sexual misconduct, and possession of counterfeit documents and document-making implements, respectively). Therefore, if convicted, they would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal and Unlawful Alien in Possession of Firearms, OSORIO-CEVALLOS, found in Robeson County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, and Fraud and Misuse of Visas, Permits, and other Documents, RODRIGUEZ-CALDERON, found in New Hanover County, would face maximum penalties of thirty years’ imprisonment, a $500,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations, Homeland Security Investigations, and the Department of State’s Diplomatic Security Service.
Schenectady Man Sentenced to 67 Months on Firearms ChargesRead the Press Release
NEW YORK – Keeshawn Nesbitt, a/k/a Keesshawn A. Nesbitt, a/k/a Big Homie, age 37, of Schenectady, New York, was sentenced today to 67 months in prison for unlawfully possessing three firearms and ammunition.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
The sentence arose out of three separate incidents in which Nesbitt, who was legally prohibited from possessing firearms because of prior felony convictions, unlawfully possessed and sold firearms in Schenectady and unlawfully possessed ammunition in the Bronx. Specifically, on May 2, 2014, Nesbitt unlawfully possessed and sold two firearms, a Springfield Armory, Model XD, .40-caliber pistol and a Raven Arms Model MP25, .25-caliber pistol, and on May 14, 2014, Nesbitt unlawfully possessed and sold a Norinco Model 54-1, .762-caliber pistol in Schenectady. On March 8, 2015, Nesbitt unlawfully possessed seven 9-millimeter ammunition cartridges in the Bronx.
Nesbitt pled guilty to the Bronx conduct on July 7, 2016 and to the Schenectady conduct on March 15, 2017. The Bronx case was brought by the United States Attorney’s Office for the Southern District of New York, and was transferred to the Northern District of New York to be resolved with the Schenectady case.
Senior United States District Judge Lawrence E. Kahn also imposed a 3-year term of supervised release, which will start after Nesbitt is released from prison.
The case was investigated by the Federal Bureau of Investigation, the Schenectady Police Department, the Schenectady County District Attorney’s Office, and the New York City Police Department, and was prosecuted by Assistant United States Attorney Sean O’Dowd in the Northern District of New York and Assistant United States Attorney David Zhou in the Southern District of New York.
Rosebud Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Annie Rose Gassman, age 33, was indicted on June 14, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2015, and June 14, 2017, Gasman knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled Substance, within South Dakota.
The charge is merely an accusation and Gassman is presumed innocent until and unless proven guilty.
This case is being investigated by the Rosebud Sioux Tribe Law Enforcement. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Gassman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.Richmond Man Sentenced to 108 Months in Prison for Possession of Child PornographyRead the Press Release
OAKLAND– Dumaka Hammond was sentenced to 9 years in prison for possession of child pornography, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable James Donato, U.S. District Judge.
According to papers filed with the court, Hammond, 40, of Richmond, admitted using an internet tool known as Tor to access and download child pornography. Hammond acknowledged that some of the images he downloaded depicted sadistic or masochistic content and some images and videos involved prepubescent children. Additionally, Hammond acknowledged that law enforcement found and removed from his home a laptop computer that contained more than 300 child pornographic images. On March 10, 2016, a federal grand jury indicted Hammond, charging him with possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). Hammond pled guilty to the charge on March 8, 2017.
In addition to the prison term, Judge Donato ordered Hammond to serve a fifteen year period of supervised release to follow his custodial sentence. Hammond was also ordered to pay $3,000 in restitution to a child victim depicted in his collection. Hammond has been in custody since his arrest in March 2016.
Assistant U.S. Attorney Thomas Green is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the FBI.
Members of the public with information regarding suspected child predators or suspicious activity may contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Rapid City Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on July 17, 2017, by U.S. District Judge Roberto A. Lange.
Jonah Burning Breast, a/k/a Jonah Jarrett Burning Breast, a/k/a Jonah Jared Burning Breast, a/k/a Jonah Jared Big Crow, age 23, was sentenced to 12 months and 1 day in custody, 3 years of supervised release, a fine of $500, forfeiture of $506, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Burning Breast was indicted by a federal grand jury on February 15, 2017. He pled guilty on April 25, 2017.
On September 2, 2016, in Todd County, South Dakota, Rosebud Sioux Tribe Law Enforcement Services performed a traffic stop on a vehicle driven by Burning Breast. Found in the vehicle during the stop was 8 grams of methamphetamine, a Schedule II controlled substance, separated into five small plastic baggies, two scales, baggies, a torch-style lighter, and syringes, one of which was filled with methamphetamine. Burning Breast admitted that he intended to distribute the methamphetamine. Also found during the traffic stop was $506 in Burning Breast’s wallet.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Burning Breast was immediately turned over to the custody of the U.S. Marshals Service.
Promise Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Promise, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 24, 2017, by U.S. District Judge Roberto A. Lange.
Emmett Delaine Traversie, age 21, was sentenced to 57 months in custody, 3 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on October 12, 2016, for Distribution of a Controlled Substance. A Superseding Indictment was returned on March 15, 2017, charging Traversie with Conspiracy to Distribute Methamphetamine. He pled guilty on May 2, 2017.
Between June 1, 2015 and March 15, 2017, Traversie knowingly and intentionally conspired with others to distribute methamphetamine in South Dakota. Traversie admitted he received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Traversie with methamphetamine knew that he intended to engage in further distribution. Traversie admitted that more than 350 grams of methamphetamine was distributed during the course of the conspiracy.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.Prior Felon from Albuquerque Sentenced to Eight and a Half Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Lucas James Maldonado, 35, of Albuquerque, N.M., was sentenced today in federal court to 102 months in prison for violating federal firearms laws. Maldonado will be on supervised release for three years after completing his prison sentence.
Maldonado was indicted on Dec. 3, 2014, and charged with being a felon in possession of a firearm on Feb. 20, 2014. The indictment was superseded on July 30, 2015, and charged Maldonado with a second felon in possession of a firearm and ammunition charge, and with being a violent felon in possession of body armor on June 10, 2015. The superseding indictment alleged that Maldonado committed the offenses in Bernalillo County, N.M. According to superseding indictment, Maldonado was prohibited from possessing firearms and ammunition because of his prior felony convictions for aggravated battery, false imprisonment, criminal damage to property and conspiracy to commit residential burglary.
On Feb. 9, 2017, Maldonado pled guilty to Count 2 of the superseding indictment charging him with being a felon in possession of a firearm and ammunition. In entering the guilty plea, Maldonado admitted that on June 10, 2015, law enforcement agents arrested him on several outstanding arrest warrants. Maldonado acknowledged that, during a search incident to arrest, the officer found a black semi-automatic handgun that was visible in the center console of his vehicle. Maldonado acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department and the New Mexico State Police. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Physician to Pay $120,000 to Resolve Comprehensive Drug Abuse Prevention Act Allegations Related to Controlled SubstancesRead the Press Release
Dr. George Cohlmia, a physician with offices in Tulsa and Tahlequah, entered into a settlement agreement to pay $120,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, announced Acting United States Attorney Loretta F. Radford of the Northern District of Oklahoma. The Comprehensive Drug Abuse Prevention Act of 1970 regulates the manufacture and distribution of controlled substances.
According to the settlement agreement, between April 2013 and June 2015, it was alleged that Dr. Cohlmia dispensed controlled substances outside of his DEA registered location and permitted employees to purchase and dispense controlled substances to themselves, other employees, and Dr. Cohlmia. It was further alleged that Dr. Cohlmia failed to keep an inventory and other required records concerning the ordering, receipt and dispensing of controlled substances.
This case was handled by Assistant United States Attorney Marianne Hardcastle. The claims asserted by the government are allegations only, and there has not been any determination of liability.
If you are aware of any illegal or unusual sales and/or distribution of prescription drugs, please contact the Drug Enforcement Administration at 1-877-792-2873.
Pennsylvania Man Pleads Guilty to Identity Theft and Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
A Pennsylvania man pleaded guilty to identity theft and conspiring to file fraudulent tax refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Despite not having a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this account. Zamor withdrew money from this account to provide to other co-conspirators, keeping a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.
Zamor is scheduled to be sentenced on Nov. 14 before U.S. District Court Judge John R. Padova. He faces a statutory maximum sentence of 10 years in prison on the conspiracy charge and 15 years in prison on the identity theft charge, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owners of Hudson County, New Jersey, Scrap Metal Company Charged with 17-Year Conspiracy to Defraud CustomersRead the Press Release
NEWARK, N.J. – The owners of Cinelli Iron & Metal Co. (CIMCO) were arrested today and charged with operating a 17-year conspiracy that defrauded customers out of millions of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Craig Cinelli, 47, of Allendale, New Jersey, and his brother, Joseph Cinelli Sr., 61, of Montvale, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud. They were arrested this morning and are expected to appear this afternoon before U.S. Magistrate Cathy L. Waldor in Newark federal court.
David Barteck, 53, of Wood Ridge, New Jersey, the former chief financial officer of CIMCO, pleaded guilty on July 26, 2017 before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Craig Cinelli, Joseph Cinelli Sr., Barteck and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul.
The wire fraud conspiracy and substantive wire fraud counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
During his plea hearing, Barteck admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million. His sentencing is scheduled for Oct. 30, 2017.
The charges and allegations contained in the indictment are merely accusations, and Craig Cinelli and Joseph Cinelli Sr. are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel:
Craig Cinelli: Ray Flood, Esq., Hackensack, New Jersey
Joseph Cinelli Sr.: Jonathan Goldstein, Esq., Newark, New Jersey
David Barteck: John J. Bruno Jr. Esq. and John F. Latoracca Esq., Rutherford, New Jersey
Owner of Hunting Guide Company Pleads Guilty to Lacey Act ViolationsRead the Press Release
WICHITA, KAN. – The owner of a hunting guide company in Elk County pleaded guilty and was sentenced Wednesday for violating state and federal laws while taking clients on hunting trips, U.S. Attorney Tom Beall said.
Josh Hedges, 35, Grenola, Kan., owner of Eagle Head Outfitters, LLC, pleaded guilty to one count of conspiracy to violate the Lacey Act and one count of violating the Migratory Bird Treaty Act. He was sentenced to five years on probation and ordered to pay $15,000 restitution to the Kansas Department of Wildlife, Parks and Tourism Restitution Fund. In addition, he was forbidden to hunt, trap or guide for 12 years. Hedges also agreed to divest himself of the company.
Hedges admitted directing his guides to:
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Place corn, wheat and soybeans around ponds as bait for waterfowl.
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Help hunters to exceed their daily bag limits by offering to say they shot some of the birds the hunters shot.
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Fail to tag, process and transport birds as required by state and federal law.
In addition, Hedges admitted that he shot a hawk from his vehicle while sitting on a county road near Grenola.
Beall commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
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Orange County Woman Guilty of Orange and Lake Charles Bank RobberiesRead the Press Release
BEAUMONT, Texas – A 51-year-old Vidor, Texas woman has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Eva Renee Powell pleaded guilty to bank robbery today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, on May 20, 2016, Powell entered the Capital One Bank in Orange, Texas wearing sunglasses, a bulky coat and a dark hat. Powell gave a note to the teller demanding money and threatening to blow up the bank if bank personnel did not comply or alerted authorities. Powell fled with an unspecified amount of cash. She was not identified as the Capital One bank robber until nearly a year later, on March 18, 2017, she was caught fleeing a remarkably similar bank robbery in Lake Charles, Louisiana. Investigators with the Orange Police Department were able to connect her to the Orange, Texas bank robbery. In a combined proceeding in Beaumont federal court, Powell also pleaded guilty to the Lake Charles, LA, bank robbery. In that case, as she was fleeing the bank with an undisclosed amount of cash, a concerned citizen followed her get-away car and called authorities. He was then able to block her car's escape from a parking lot long enough for the Lake Charles police to arrive and make the arrest.
Under federal statutes, Powell faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation, the Lake Charles Police Department, the Calcasieu Parish Sheriff’s Office, the Orange County Sheriff’s Office, and Orange Police Department and is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Operation “Real Time”: Greenville Man Pleads Guilty to Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated that Travis Sanchez Hunt, age 23, of Greenville, South Carolina, entered a guilty plea this morning in federal court in Greenville to Possessing Firearms in Furtherance of a Drug Trafficking Crime, in violation of Title 18 U.S.C. § 924(c). Senior United States District Judge Henry M. Herlong, Jr., accepted the guilty plea and will impose the sentence after United States Probation prepares a presentence report.
Evidence presented by First Assistant US Attorney Lance Crick at the change of plea hearing established that on Saturday, May 6, 2017, officers with the Greenville Police Department (GPD) responded to a dispute at a residence in Greenville. Witnesses alerted GPD that Hunt had a gun in his waistband before placing a firearm in a laundry hamper. A search of the hamper revealed two loaded 9mm pistols and multiple clear baggies containing substances that field-tested positive for cocaine and crack cocaine. GPD also found over $2600 in cash, two digital scales, and additional baggies in a stairwell leading to Hunt’s bedroom. In Hunt’s bedroom, GPD located additional baggies and another digital scale.
On Sunday, May 7, 2017, a GPD officer cross-designated as an ATF Task Force Officer pursuant to Operation “Real Time” interviewed Hunt in the Greenville County Detention Center. During the post-Miranda interview, Hunt stated that he moved a purple towel containing two firearms and “work” (a term referring to drugs) from a shelf in the laundry room to a laundry hamper. Hunt stated he did this because he knew the police were coming.
Hunt also stated that he placed one of the firearms into his waistband because he thought he may need to defend himself from the family. Hunt stated that moved the firearm from his waistband to the laundry basket as police arrived. Hunt, who was arrested on a number of state charges from this incident as well as on outstanding state bench warrants, said he knew he was going to jail because he had previously cut off his ankle monitor. A federal arrest warrant was signed for Hunt on Monday, May 8, 2017. Hunt remains in custody, detained since his arrest on May 6.
This case underscores GPD and ATF’s continuing “real time” identification of firearms cases for federal adoption by the US Attorney’s Office, working in concert with the 13th Circuit Solicitor’s Office. The goal of this partnership is to identify cases for federal prosecution involving individuals who continue to possess firearms despite significant criminal histories. Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 119 defendants and seizure of 163 firearms as well as assorted ammunition from prohibited persons.
In addition to GPD and ATF, Real Time’s core partners include the Greenville County Sheriff’s Office, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, United States Probation, Department of Homeland Security, FBI, DEA, 13th Circuit Solicitor’s Office, 7th Circuit Solicitor’s Office, and the US Attorney’s Office.
Hunt faces a mandatory minimum of five years in federal prison and a maximum of life. The case was investigated by ATF and the Greenville Police Department. First Assistant US Attorney Lance Crick is handling the prosecution.
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Ohio Man Sentenced to 20 Years in Prison for Soliciting Murder of U.S. Military MembersRead the Press Release
Terrence J. McNeil, 24, of Akron, Ohio, was sentenced today to 20 years in prison for soliciting the murder of members of the U.S. military. McNeil pleaded guilty earlier this year to five counts of solicitation to commit a crime of violence and five counts of making threatening interstate communications.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
“With this sentence, McNeil is being held accountable for disseminating ISIS’s violent rhetoric, circulating U.S. military personnel information and explicitly calling for the killing of American service members in their homes and communities,” said Acting Assistant Attorney General Boente. “The National Security Division will continue to investigate and prosecute those who use social media to threaten acts of violence against our military members and their families, on behalf of terrorist organizations.”
“This defendant was dedicated to attacking members of the military here in the United States,” Acting U.S. Attorney Sierleja said. “This kind of fanaticism is dangerous and will be aggressively prosecuted.”
“It is reassuring knowing that Terrence McNeil will spend a significant amount of time behind bars for the crimes he committed. The FBI will continue to aggressively defend First Amendment rights, however in this case, McNeil went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “The FBI will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to documents filed in the case:
McNeil professed his support on social media on numerous occasions for the Islamic State of Iraq and al-Sham, a designated foreign terrorist organization. On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch. The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
The defendant posted multiple other kill lists in late 2015, all of which repeated the same refrain, calling on others to seek out and murder U.S. servicemen and women.
McNeil also researched the price online of firearms for sale and possessed detailed bomb-making instructions, according to court documents.
The FBI’s Joint Terrorism Task Force in Cleveland investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Christos Georgalis and Michelle Baeppler of the Northern District of Ohio, with assistance from Trial Attorney Jennifer Levy of the Counterterrorism Section of the Justice Department’s National Security Division.
Oglala Tribal Member Sentenced for Involuntary ManslaughterRead the Press Release
POCATELLO – Ruben Wounded Head, III, 20, of Chubbuck, Idaho, was sentenced today to a total of 46 months imprisonment for involuntary manslaughter resulting from a drunk driving crash, Acting U.S. Attorney Rafael Gonzalez, announced. Wounded Head will serve 34 months in federal prison in addition to the 12 months he already served in Fort Hall Tribal Jail on the same charge, for a total of 46 months. Wounded Head pleaded guilty to the charges in federal court in May 2017.
According to the plea agreement, on November 13, 2015, Wounded Head drove with friends to buy alcohol, and his friends left the store with two bottles of Bacardi rum and went to an area on the Fort Hall reservation known as Ferry Butte. There, Wounded Head drank one bottle of rum. Wounded Head then drove his friends back to a residence on the reservation and then proceeded to drive home. At approximately 2:50 a.m., at the intersection of Hawthorne Road and Cemetery Road, Wounded Head’s 2005 Chevrolet Avalanche crossed the centerline and crashed head-on into a Chevrolet Tahoe, killing both occupants of the Tahoe. Wounded Head’s Avalanche was traveling between 59 and 61 miles per hour at the time of crash. The posted speed limit in the area is 45 miles per hour. Wounded Head’s blood alcohol level at the hospital was 0.216 percent, far in excess of the legal limit.
Chief U.S. District Judge B. Lynn Winmill also ordered Wounded Head to pay $13,480 in restitution to the victims’ families and ordered that Wounded Head be on supervised release for three years following his prison sentence.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Tribal Police.