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26 July 2017
Alaskan Commercial Fishing Couple Charged with Willful Failure to Pay over $400,000 in Income Taxes on Income Earned for 13 YearsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Alaskan couple was charged in federal court in Juneau, Alaska, today with four counts of willful failure to pay their individual income taxes.
According to the Information, Archie W. Demmert III and Roseann L. Demmert, of Klawock, Alaska, earned income from commercial fishing. The Information alleges that Archie Demmert owned Vetta Bay LLC, which owned the Demmerts’ fishing vessel, the Emerald Beauty. The Information further charges that the Demmerts have a long history of not paying their taxes to the Internal Revenue Service (IRS). It alleges that the Demmerts did not pay their taxes for 13 separate tax years, for which they owed over $400,000, excluding penalties and interest.
The Demmerts face a statutory maximum sentence of one year in prison on each separate count, as well as a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Schroder recognized special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Andrea Steward and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting this case.
An Information is merely an accusation, and a defendant is presumed innocent unless proven guilty.
Accounting Manager Pleads Guilty to Stealing over $725,000 from Two Employers and Committing over $193,000 in Tax Fraud and Tax EvasionRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman pleaded guilty today to stealing more than $725,000 from two different employers, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Nicole Marie Graziano, 42, pleaded guilty to three counts of wire fraud, two counts of filing a false tax return, and one count of attempt to evade or defeat tax. She was charged by a criminal information on June 13, 2017. United States District Judge Kent J. Dawson scheduled sentencing for Nov. 21, 2017.
According to the plea agreement, between May 2009 through November 2015, Graziano worked as an Accounting Manager and Controller for two companies in Clark County. She used several schemes, including manipulation of her employers’ payroll tax records, to conceal the thefts. She would transfer the stolen funds by wire to her own personal bank accounts. Graziano used the money she stole to pay for luxury items for herself and family members, including cars and real estate.
Furthermore, Graziano admitted to filing false individual Federal income tax returns for tax years 2013 and 2014, and grossly underreporting her income and tax liability. She also failed to file an individual Federal income tax return for tax year 2015.
The maximum statutory penalty is three years in prison and a $100,000 fine for filing a false tax return; the maximum penalty is five years in prison and a $250,000 fine for attempt to evade or defeat income tax; and the maximum penalty is 20 years in prison and a $250,000 fine for wire fraud.
The case is being investigated by the IRS-Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Dan Cowhig.
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25 July 2017
Two Springfield Men Indicted on Federal Firearms and Drug ChargesRead the Press Release
BOSTON - Two Springfield men were charged today in federal court in Springfield with federal drug and firearms offenses.
Alexis Ayala, 40, and Wilfredo Perez, 38, were each charged with one count of distribution and possession with intent to distribute heroin. Ayala was also charged with two counts of being a felon in possession of a firearm.
According to court documents, in April 2015, Perez and Ayala distributed heroin in Hampden County, and in December 2015 and August 2016, Ayala, a previously convicted felon, was found in possession of a firearm.
The charge of distributing heroin provides for a sentence of no greater than 30 years in prison, a minimum of three years of supervised release and a fine of $1 million. The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James Neiswanger made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Weinreb’s Springfield Branch Office 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.
Two Mexican Nationals Facing Federal Drug Trafficking Charges Arising Out of Seizures of Significant Quantities of Cocaine at U.S. Border Patrol Checkpoints in New MexicoRead the Press Release
ALBUQUERQUE – Yesterday morning, a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support criminal complaints that separately charged Francisco Alberto Guerrero-Rodriguez, 20, and Noe Lucero-Ceniceros, 28, both Mexican nationals, illegally in the United States, with cocaine trafficking offenses. The charges against the two defendant arise out of seizures of large quantities of cocaine at two U.S. Border Patrol checkpoints in southern New Mexico. Guerrero-Rodriguez and Lucero-Ceniceros both were remanded into custody pending their trials, which have yet to be scheduled.
Border Patrol agents arrested Guerrero-Rodriguez on July 20, 2017, after they allegedly seized 8.8 kilograms (19.4 pounds) of cocaine from his vehicle. The cocaine was found during an inspection at the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo, N.M., in Otero County, N.M. According to the criminal complaint, the cocaine was contained in seven bundles that were concealed in an “after-market compartment above the gas tank” that was accessed through a trap door under the vehicle’s back seat.
Border Patrol agents arrested Lucero-Ceniceros on July 21, 2017, after they allegedly seized approximately 8.68 kilograms (19.14 pounds) of cocaine from his vehicle. The cocaine was found during an inspection at the U.S. Border Patrol checkpoint on Interstate 25 near Hatch, N.M., in Dona Ana County, N.M. According to the complaint, the cocaine was found in a concealed compartment that was accessible through a trapdoor that was only accessible after removing the vehicle’s rear passenger compartment.
If convicted of the charges in the criminal complaints, Guerrero-Rodriguez and Lucero-Ceniceros each face a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Mark A. Saltman is prosecuting the case against Guerrero-Rodriguez, and Assistant U.S. Attorney Dustin C. Segovia is prosecuting the case against Lucero-Ceniceros.
Two Men Sentenced to Federal Prison for Assault Resulting in DeathRead the Press Release
PHOENIX – Yesterday, Jerrison Begay, 33, was sentenced by Senior U.S. District Judge Susan R. Bolton to 96 months in federal prison, followed by three years of supervised release. Begay had previously pleaded guilty to assault with a dangerous weapon. In January, Begay’s co-defendant, Shelton Six, 28, of Sanders, Ariz., was sentenced by Judge Bolton to concurrent terms of 132 months and 78 months in federal prison, followed by three years of supervised release. Six had previously pleaded guilty to one count of voluntary manslaughter and one count of assault by strangling or suffocating, arising out of two separate cases.
On or between Dec. 2, 2015, and Dec. 3, 2015, Six became angry with the victim and began physically assaulting him. Begay participated in the assault. The victim, a member of the Navajo Nation, later died of blunt force injuries and suffocation and strangulation. Both Six and Begay are also members of the Navajo Nation.
On Feb. 14, 2016, Six assaulted a different victim, by threatening and strangling the victim with his hands, making it difficult to breathe. That victim is also a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Public Safety. The prosecution was handled by Dimitra Sampson and Christina Covault, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBERS: CR-16-8050-PCT-SRB
RELEASE NUMBER: 2017-063_Six_etal
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two Men Sentenced to 12 Months in Prison for Bringing in and Harboring Illegal AliensRead the Press Release
St. Thomas, USVI- King Leonard, 24, of Tortola and Michael Leonard, 21, of Pennsylvania, were sentenced today to 12 months in prison for bringing into and harboring illegal aliens in the United States, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced the two brothers to serve three years of supervised release, pay a $100 special assessment, and perform 350 hours of community service.
The two brothers recently pleaded guilty to bringing into and harboring illegal aliens in the United States. According to the plea agreements, between November 10-11, 2016, the two brothers attempted to smuggle six illegal aliens, nationals of the Dominican Republic, into the United States aboard the M/V Sole Mio, which they operated.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations with the assistance of U.S. Customs and Border Protection. It was prosecuted by Assistant U.S. Attorney David White.
Two Members of the 39ers Gang Sentenced to Life in PrisonRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the sentencing of two defendants convicted of gang-related offenses in February of 2017 following the six-week long 39ers racketeering and murder trial.
Today, U.S. Judge Jay C. Zainey sentenced TERRIOUES OWNEY, age 30, and MCCOY WALKER, age 26, as follows:
COUNT CHARGE DEFENDANT SENTENCE 1 Conspiracy to violate the Racketeer Influence and Corrupt Organization Act (RICO) OWNEY Each defendant received life imprisonment WALKER 2 Conspiracy to distribute controlled substances WALKER Life imprisonment 3 Conspiracy to use and carry and to possess firearms OWNEY Each defendant received 240 months WALKER imprisonment 14 Murder in aid of racketeering OWNEY Each defendant received a mandatory life sentence (Lester Green) WALKER 15 Causing death through the use of a firearm OWNEY Life imprisonment 16 Assault with a dangerous weapon in aid of racketeering (Jamal Smith) OWNEY Each defendant received 240 months imprisonment WALKER 17 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime OWNEY Received a consecutive sentence of 120 months (Jamal Smith) 18 Murder in aid of racketeering OWNEY Mandatory life sentence (Donald Daniels) 19 Causing death through the use of a firearm (Donald Daniels) OWNEY Life imprisonment 22 Murder in aid of racketeering OWNEY Mandatory life sentence (Elton Fields) 23 Causing death through the use of a firearm (Elton Fields) OWNEY Life imprisonment 24 Murder in aid of racketeering OWNEY Mandatory life sentence (Jerome Hampton) WALKER 25 Causing death through the use of a firearm OWNEY Both defendants received life imprisonment (Jerome Hampton and Renetta Lowe a/k/a Magnolia Shorty) WALKER 26 Murder in aid of racketeering OWNEY Both defendants received a mandatory life sentence(Renetta Lowe a/k/a Magnolia Shorty)
WALKERActing U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force, the New Orleans Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys Myles Ranier, David Haller, Brittany Reed, and Jeff Sandman were in charge of the prosecution.
Three Jersey City Police Officers Admit Conspiracy to Commit FraudRead the Press Release
NEWARK, N.J. – Three Jersey City police officers today admitted participating in a conspiracy to defraud Jersey City by obtaining compensation for off-duty work that they did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
James Cardinali, 38, of Jersey City, Victor Sanchez, 37, of Hasbrouck Heights, and Christopher Ortega, 29, of Brick, all pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to separate informations charging them with one count each of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Cardinali’s duties included serving as the “pick coordinator” for Jersey City’s South District, responsible for assigning police officers to off-duty details. On multiple occasions, Cardinali asked representatives of certain vendors who were performing work in the South District to sign Jersey City off-duty vouchers indicating that a police officer had completed an off-duty assignment for that vendor, even though no officer had in fact completed any assignment. Cardinali then falsely represented on these vouchers that a particular police officer had completed an off-duty assignment. These officers were paid for work they did not perform. Cardinali personally obtained from the officers some of the money that they were paid as a result of the fraudulent conduct.
Sanchez and Ortega defrauded Jersey City by consenting to the submission of false and fraudulent off-duty vouchers to Jersey City indicating that they had completed certain off-duty assignments that they had not, in fact, completed. Both were paid by the city for off-duty assignments that they did not actually complete.
All three officers face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Cardinali is required to forfeit the $39,587; Sanchez is required to forfeit $21,583; and Ortega is required to forfeit $18,336. Sentencing for all three defendants is scheduled for Nov. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Cardinali: Matthew E. Beck Esq., West Orange, New Jersey
Sanchez: Joel Silberman Esq., Jersey City, New Jersey
Ortega: Henry Klingeman Esq., Newark, New JerseyTampa Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Senior U.S. District Judge James S. Moody, Jr. has sentenced Moses Wilcox to three years and four months’ imprisonment for his role in a stolen identity refund fraud scheme. The Court also entered a money judgment for $129,854.17, the amount of fraudulent income tax refunds that Wilcox had received directly into a bank account in his name.
Wilcox pleaded guilty to conspiracy and theft of government funds charges on February 27, 2017.
According to court documents, the conspiracy involved the filing of false and fraudulent income tax returns in the names of deceased individuals and other unwitting taxpayers. In these returns, the conspirators represented that they were entitled to receive the refunds for those unknowing taxpayers and requested that the IRS direct refunds in varying amounts to accounts that Wilcox and others had established at local financial institutions in their own names. As a result of this activity, the conspirators caused the IRS to issue fraudulent and unauthorized refunds totaling $389,479.07. In addition, the conspirators sought to obtain an additional $562,791.29 in fraudulent refunds that the IRS was able to block before payment was made.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stratford Man Pleads Guilty to Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY LEE PAROWSKI, 30, of Stratford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of distribution of heroin.
According to court documents and statements made in court, in March 2017, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Milford Police Department received information that PAROWSKI was distributing heroin to numerous individuals. In April 2017, investigators conducted two controlled purchases of heroin from PAROWSKI, the second of which occurred in a Milford motel room that PAROWSKI had rented. On April 20, investigators approached PAROWSKI as he exited the motel carrying a cardboard box. PAROWSKI dropped the box and ran, and was observed discarding items as he ran. He was apprehended after a brief pursuit. A search of PAROWSKI’s person, the cardboard box and the area of the chase revealed approximately 190 dose bags of heroin, 66 grams of additional heroin, and items used to process and package heroin for street sale. A subsequent search of PAROWSKI’s Stratford residence revealed $32,210 in cash.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
PAROWSKI has been detained since his federal arrest on April 25.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Springfield Man Sentenced to Prison for Bankruptcy FraudRead the Press Release
Yesterday afternoon, in federal court in East St. Louis, IL, Mark A. McFarland, 58, of Springfield, IL, was sentenced to one year in prison for his convictions on two counts of bankruptcy fraud, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. McFarland was indicted on February 2, 2016, as part of the U.S. Attorney’s effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
Evidence presented at the sentencing hearing yesterday established that McFarland is a serial bankruptcy filer. Serial bankruptcy filers repeatedly file bankruptcy petitions with no intention of following through with their cases. Instead, they simply file the petitions in order to stop their creditors from collecting on the debts they owe.
On October 6, 2014, McFarland filed a chapter 11 bankruptcy case on behalf of his business, Second Chance of Springfield, Inc. ("Second Chance.") McFarland filed this case in the United States Bankruptcy Court for the Southern District of Illinois in East St. Louis, IL. Prior to filing that case, McFarland had filed ten separate bankruptcy cases in the United States Bankruptcy Court for the Central District of Illinois in Springfield. All but one of those cases had been dismissed due to McFarland’s failure to comply with the Bankruptcy Court’s orders. In the last case, the Bankruptcy Court barred McFarland from filing any more bankruptcy cases in the Central District of Illinois for 180 days. The Bankruptcy Court also barred McFarland from filing any additional bankruptcy petitions in the Central District of Illinois for three years unless he paid the full filing fee (approximately $300) upfront.
Shortly after that order was entered, McFarland filed his bankruptcy case on behalf of his business, Second Chance, in the Southern District of Illinois. When he filed this case, McFarland lied on his bankruptcy petition by claiming that his business was located in the Southern District of Illinois. An attorney from the U.S. Trustee’s Office subsequently pointed out that the case did not belong in the Southern District of Illinois, because the street address of Second Chance was located in Springfield. As a result, the case should have been filed in the Central District of Illinois in Springfield. McFarland then lied again on an amended bankruptcy petition, stating that Second Chance had a business address in Alton, IL. In support of this claim, McFarland provided a lease to the Bankruptcy Court that was fraudulently backdated to September 25, 2014. Then, as McFarland admitted during his plea hearing, he falsely testified under oath that he had signed that lease on September 25, 2014. He also falsely testified under oath that he had reached an oral agreement with the landlord for the rental of the Alton property in September 2014.
During the hearing yesterday afternoon, U.S. District Judge Nancy J. Rosenstengel stated that she hoped the prison sentence would send a message to other would-be serial filers. Specifically, Judge Rosenstengel pointed out that individuals who attempt to use the federal bankruptcy courts to defraud their creditors and make false statements under oath will face very serious consequences. In addition to sentencing McFarland to prison, Judge Rosenstengel also ordered McFarland to serve three years of supervised release after his prison sentence is concluded, with the first six months under home confinement. The judge also fined McFarland $3,000 and ordered him to pay a $200 Special Assessment.
"Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system," stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois. "I am grateful to U.S. Attorney Boyce and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by yesterday’s sentencing." The U.S. Trustee Program is the component of the U.S. Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, IN, and Peoria, IL.
The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"), in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
South Sioux City Man Sentenced to More Than 12 years in Prison after Pleading Guilty to Methamphetamine and Firearm ChargesRead the Press Release
Acting United States Attorney, Robert C. Stuart, announced that Jose Luis Sandoval, 47, was sentenced on July 24, 2017, to 147 months in prison by the Honorable Laurie Smith Camp, United States District Judge. Sandoval had previously pled guilty to Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Relation to a Drug Trafficking Crime. Sandoval’s sentence included a consecutive 5 year term of imprisonment because he possessed a firearm while trafficking methamphetamine.
During the course of this investigation, law enforcement utilized a cooperating witness who made several multiple ounce purchases of methamphetamine from Sandoval inside of his South Sioux City, NE residence. Thereafter on May 9, 2016, law enforcement executed a search warrant on Sandoval’s residence and recovered four firearms, a security monitor, a flak jacket, drug distribution paraphernalia, and quantities of methamphetamine.
This case was the result of an investigation by the South Sioux City Police Department and DEA Tri-State Drug Task Force.
Shreveport resident pleads guilty to driving while intoxicated for the fifth timeRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Shreveport man pleaded guilty to driving while intoxicated on Barksdale Air Force Base.
Jesus J. Maldonado, 30, of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of driving while intoxicated, fifth offense. According to the guilty plea, a Barksdale security officer pulled over Maldonado’s vehicle on April 13, 2017 after it was seen driving erratically and bearing signs of being in a wreck. He was found to have been driving under the influence of alcohol. He was also found to have been convicted on four previous occasions of driving while under the influence on October 20, 2007 in Bossier City, La.; on June 21, 2009 in Los Angeles, Calif.; on March 8, 2013 in Shreveport; and on May 16, 2013 in Shreveport.
Maldonado faces up to 30 years in prison and a $5,000 fine. The court set a sentencing date of November 3, 2017.
The FBI and U.S. Air Force Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath and Special Assistant U.S. Attorney Col. John Odom, U.S. Air Force-retired, are prosecuting the case.
Sex Offender Sentenced to 15 Years for Possessing Child Pornography While on Supervised ReleaseRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Jonathan Pates (28, Rockledge) to 15 years in federal prison for possessing child pornography while on federal supervised release. The Court also ordered him to forfeit the smart watch he used to commit the offense, and to serve 20 years of supervision following his release from prison.
Pates pleaded guilty on April 25, 2017.
According to court documents, on January 6, 2010, Pates was convicted of receiving child pornography and sentenced to 6 years and 6 months in federal prison, followed by 10 years of supervised release. Eight months after his release from federal prison and while on supervised release, Pates obtained a smart watch with an SD card and transferred 3 videos and 76 graphics depicting the sexual abuse of young children to the watch. His probation officer saw him wearing the watch during a sex offender treatment meeting and arranged to inspect it later. Pates abandoned the watch, but two individuals found it discarded in a park and turned it into law enforcement.
“This repeat offender criminal did not learn his lesson after his first prison term for child pornography,” said acting Special Agent in Charge of HSI Tampa Ivan J. Arvelo. “This sentence stops this predator from continuing to cause harm to children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Karen L. Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Antonio Man Pleads Guilty for His Role in a “Foreclosure Rescue Scheme”Read the Press Release
DALLAS — Richard Bruce Stevens, 52, of San Antonio, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma Carrillo Ramirez and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Stevens faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. Restitution could also be ordered. Stevens will remain on bond pending sentencing, which is set for October 30, 2017.
A federal grand jury in Dallas returned an indictment in December 2016 charging Stevens and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, is scheduled for trial August 28, 2017. Bruce Kevin Hawkins, 52, of Desoto, Texas, and Christina Renee Caveny, 37, of Dallas, both pleaded guilty to their role in the scheme and are awaiting sentencing.
According to documents filed in the case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Stevens and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Stevens and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes prosecuted as a result of the Bankruptcy Fraud Initiative in the Northern District of Texas. These prosecutions are identified following a careful review of many criminal referrals sent by the Office of the United States Trustee in Dallas to the United States Attorneys Office. Since May 2013, a total of 26 defendants have been charged as part of that initiative. To date, 23 defendants have been convicted, one resulted in a mistrial, and two are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Retired Fulton County Jailer Sentenced to 87 Months in Prison for Receiving Kickbacks Tied to 3.3 Million Construction Project on Fulton County Detention CenterRead the Press Release
Ricky Parnell and co-defendants responsible for $154,000 restitution
PADUCAH, Ky. – Retired Fulton County Jailer Ricky Parnell was sentenced today in United States District Court by Senior Judge Thomas B. Russell, to serve 87 months in prison for his role in a conspiracy to the defraud Fulton County, Kentucky, citizens through kickbacks and inflated costs associated with the $3.3 million 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal prison system.
“Public corruption simply cannot be tolerated,” stated United States Attorney John Kuhn. “Corrupt public officials erode the fairness and integrity of our public institutions, and they undermine the public’s trust in our government. I hope this conviction and ordered for restitution will reassure the public that the Department of Justice will hold elected officials to the highest standards of honesty and integrity – and that we will seek repayment of every tax dollar spent corruptly by public officials,” stated U.S. Attorney Kuhn. “Further, today’s sentencing should assist in restoring the community’s trust in the fairness and integrity of our public institutions.”
Parnell, 59, of Hickman, Kentucky, is jointly and severally liable with the codefendants for the full amount of restitution due totaling $154,000. Co-defendant Michael Homra paid restitution of $32,500 and Danny Larcom paid restitution of $22,000 at the time of their respective sentencing. The remaining $100,000 balance is due by Parnell and co-defendant Ron Armstrong.
Parnell previously pleaded guilty to Honest Services Fraud and multiple counts of Wire Fraud for using his official position to enrich himself by soliciting and accepting gifts and payments from defendant contractors, in exchange for influencing the Fulton County Fiscal Court to award the defendants contracts on the project.
Parnell admitted to directing Ronald D. Armstrong, of Dresden, Tennessee; Jimmy Boyd, of South Fulton, Tennessee; Michael Homra, of Fulton, Kentucky; and Daniel C. Larcom, of Union City, Tennessee, to intentionally overcharge Fulton County for services and supplies provided as part of jail projects. Parnell presented the inflated invoices and contracts to the Fulton County treasurer for payment to the defendants and their respective companies. In turn, the defendant contractors would use the excess proceeds to pay kickbacks, in the form of both cash and checks, to Parnell. Parnell received at least $175,000 in money and other things of value.
In addition, defendants Armstrong, Homra, and Larcom took steps to cover up their activities and dealings with Parnell, including using cash to provide Parnell with kickbacks, structuring withdrawals from banks to use for these kickbacks, and creating false and inflated invoices for services and materials in order to satisfy the cash kickbacks demanded by Parnell.
Contract defendants Larcom, Armstrong and Homra pleaded guilty in United States District Court to charges including Honest Service Wire Fraud and Wire Fraud for their individual roles in this conspiracy. Armstrong was sentenced to 35 months in prison and Larcom and Homra were sentenced to serve 2 years of probation.
The charged activity took place between April 2015 and August 2016. Parnell served as the Fulton County Jailer from 1990 until late last year.
This case was prosecuted by Assistant United States Attorney Nute Bonner and was investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Quincy Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Quincy man pleaded guilty today in federal court in Boston to bank robbery.
Perry C. Learning, 36, pleaded guilty to one count of unarmed bank robbery before U.S. District Court Judge Indira Talwani, who scheduled sentencing for Oct. 27, 2017.
On Dec. 15, 2015, an individual entered a branch of Citizens Bank in Quincy and demanded money from a teller. The teller gave the individual $1,480 from her drawer, and the individual exited the bank. The bank’s surveillance cameras captured images of the individual, and surveillance cameras on neighboring businesses captured images of the robber walking away. Photographs of the individual were then disseminated to law enforcement who recognized the individual as Perry Learning. On Jan. 11, 2016, Learning was arrested.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Philadelphia Woman Pleads Guilty to Charges of Causing False Statements to the Federal Election CommissionRead the Press Release
A Philadelphia woman pleaded guilty to a criminal information unsealed today charging her with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.
According to the plea memorandum filed today, Carolyn Cavaness, 34, engaged in a falsification scheme involving payments to a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives. According to the plea memorandum, those payments came from the campaign committee of the candidate’s political opponent for the purpose of removing the candidate from the 2012 Democratic race for Pennsylvania’s First Congressional District. Cavaness was a member of the candidate’s campaign staff.
As set forth in the criminal information and the government’s plea memorandum, Cavaness admitted that in or about February 2012, her candidate withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay the candidate $90,000 from his campaign funds to be used to repay the candidate’s campaign debts. Cavaness admitted that she was aware that under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election, and that the FEC required campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period. However, in order to conceal the fact that his opponent’s campaign committee paid his campaign debts, according to the plea memorandum, the candidate instructed Cavaness to create a company whose sole purpose would be to receive the funds from his opponent’s political campaign and repay the candidate’s campaign debts. As described in the plea memorandum, Cavaness admitted that she did so, and that the payments were then routed through two political consultants, who created false invoices to generate a paper trail intended to justify the payments from the candidate’s opponent’s campaign committee.
According to the plea memorandum, Cavaness used the money from the opponent’s campaign committee to repay the candidate’s campaign debts and for personal expenses, but failed to disclose this information to the FEC. Instead, according to the plea memorandum, Cavaness knowingly and intentionally caused the candidate’s campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed and falsely listed the same debts owed by the candidate’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to the candidate by his opponent’s campaign committee.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Philadelphia Woman Pleads Guilty to Charges of Causing False Statements to the Federal Election CommissionRead the Press Release
Carolyn Cavaness, age 34, of Ardmore, Pennsylvania, pled guilty to a criminal information unsealed today charging her with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election. Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
According to the plea agreement, Cavaness engaged in a falsification scheme involving payments to a candidate for the Democratic Party’s nomination for Member of the U.S. House of Representatives, identified in the information as Candidate B. According to the plea agreement, those payments came from Candidate B’s political opponent, identified in the information as Candidate A, for the purpose of removing Candidate B from the 2012 Democratic race for Pennsylvania’s First Congressional District. Cavaness was a member of Candidate B’s campaign staff.
Pursuant to the plea agreement, the defendant admitted that in or about February 2012, Candidate B withdrew from the primary election pursuant to an agreement with his opponent, Candidate A, who promised to pay Candidate B $90,000 from his campaign funds to be used to repay Candidate B’s campaign debts. Cavaness admitted that she was aware that under the applicable law, a contribution from one authorized campaign to another could not exceed $2,000 for the primary election, and that the FEC required campaigns to file periodic reports itemizing the campaign’s contributions and expenditures during the reporting period. However, in order to conceal the fact that Candidate A’s campaign committee paid Candidate B’s campaign debts, according to the plea agreement, Candidate B instructed Cavaness to create a company whose sole purpose would be to receive the funds from Candidate A’s political campaign and repay Candidate B’s campaign debts. Admissions in the plea agreements revealed that Cavaness did so, and that the payments were then routed through two political consultants, who created false invoices to generate a paper trail intended to justify the payments from Candidate A’s campaign committee.
According to the plea agreement, Cavaness used the money from Candidate A’s campaign committee to repay Candidate B’s campaign debts and for personal expenses, but failed to disclose this information to the FEC. Instead, according to the plea agreement, Cavaness knowingly and intentionally caused Candidate B’s campaign committee to file false reports with the FEC which did not disclose or reference the funds received from Candidate A’s campaign committee, did not mention the companies of the political consultants through whom the payments were routed, and falsely listed the same debts owed by Candidate B’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Candidate B by Candidate A’s campaign committee.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Pharmacist Pleads Guilty to Health Care Fraud Charges for Role in $192 Million Compounded Medication Scheme; Pharmacy Marketer Also Pleads GuiltyRead the Press Release
The Pharmacist in Charge of a Hattiesburg, Mississippi compounding pharmacy pleaded guilty today to health care fraud charges for his role in a scheme that defrauded TRICARE and private insurance companies out of at least $192 million in payments for medically unnecessary compounded medications.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson Division, Special Agent in Charge Jerome R. McDuffie of the Internal Revenue Service – Criminal Investigation’s New Orleans Field Office and Special Agent John F. Khin of the Defense Criminal Investigative Service Southeast Field Office made the announcement.
May, 40, of Lamar County, Mississippi, pleaded guilty to one count of conspiracy to commit health care fraud and money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Sentencing has been scheduled for October 17 before Judge Starrett.
As part of his guilty plea, May admitted that he conspired with others to select compounded medication formulas based on profitability, rather than on effectiveness or patient need. He further admitted that he conspired with co-owners of the pharmacy to circumvent fraud prevention measures, such as collecting copayments, so that patients were incentivized to receive, and continue to receive, medically unnecessary medications. According to plea documents, May dispensed these medically unnecessary compounded medications and caused fraudulent claims to be submitted to TRICARE, a health care program that benefits members of the U.S. armed forces, and other health care benefit programs. Based on these fraudulent claims, May and his co-conspirators received at least $192 million in reimbursements.
In a related case, Gerald Schaar, 46, of Biloxi, Mississippi, pleaded guilty to one count of conspiracy to commit health care fraud for his role in the scheme to defraud TRICARE. According to plea documents, Schaar admitted to soliciting physicians and other medical professionals to write prescriptions without seeing patients for medically unnecessary compounded medications dispensed by the pharmacy. According to the plea documents, Schaar further admitted to conspiring with others to falsify patient records to make it appear as though medical professionals had seen patients prior to the date prescriptions were written, when in reality, no examinations had occurred. As a result of the fraudulent prescriptions obtained by Schaar, and ultimately forwarded to the pharmacy, TRICARE reimbursed approximately $2.3 million in false and fraudulent claims submitted by the pharmacy. Sentencing for Schaar has been scheduled for October 17 before Judge Starrett.
This case was investigated by the FBI Jackson Division's Hattiesburg Resident Agency, the IRS Criminal Investigation, the Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, the Mississippi Bureau of Narcotics, and other government agencies. Trial Attorneys Dustin Davis and Katherine Payerle of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Peoria County Man Pleads Guilty to Concealing Assets in BankruptcyRead the Press Release
PEORIA, Ill. - A Brimfield, Ill., man, Thomas L. Bledsoe, 52, today pled guilty to concealing insurance policies valued at more than $100,000 from the U.S. Trustee and creditors in his bankruptcy petition. Bledsoe entered his plea before U.S. District Judge Joe Billy McDade. Sentencing is scheduled on Nov. 22, 2017.
According to court documents and statements during today’s hearing, on Mar. 18, 2009, Bledsoe filed a voluntary petition under Chapter 13 of the U.S. Bankruptcy Code. On April 2, 2009, Bledsoe, a life insurance agent, filed a Schedule B form which required that he disclose any interest he owned in any insurance policies, to name the insurance company for each policy and to itemize the surrender or refund value of each policy, to which Bledsoe answered “none.”
On April 30, 2009, at a meeting of creditors, Bledsoe testified under oath that the voluntary petition and schedules were correct. After a creditor filed an objection, during a hearing on Oct. 26, 2009, Bledsoe testified that he owned a life insurance policy with a cash value of $5,000. Bledsoe subsequently amended the Schedule B form to indicate that he owned a single life insurance policy with a cash value of $3,000.
In fact, as Bledsoe admitted during today’s proceeding, he owned four life insurance policies, with a combined cash value of more than $50,0000, from Northwestern Mutual Insurance Company, and three life insurance policies, with a combined cash value of more than $57,000, from Canada Life Insurance Company. In addition, Bledsoe admitted he failed to disclose possession of three cashier’s checks totaling more than $65,000, and a 2005 Montesa motorcycle. Bledsoe also falsely stated that he had not received any money from the sale of his residence, when in fact, he had received money from the sale of the residence as part of his divorce, approximately two years prior to the bankruptcy proceeding.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
“Together with Acting U.S. Attorney Hansen and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
The statutory maximum penalty for concealing assets in bankruptcy proceedings is up to five years in prison. The maximum statutory penalty is prescribed by Congress and is provided for informational purposes as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Orlando Man Sentenced to Ten Years for Attempted Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Derek Coleman Corker (27, Orlando) to 10 years in federal prison for attempting to entice a minor to engage in sexual activity.
He pleaded guilty on April 25, 2017.
According to court documents, on January 3, 2017, Corker posted an ad for sex on Craigslist that included a graphic photo of himself. An undercover agent responded to the ad, posing as the father of a 13 year-old girl. During their conversations, Corker repeatedly expressed explicit interest in having sex with the “daughter.” He told the “father” during a cellphone conversation that “cute little girls kinda always been a thing I’ve always wanted to try and do.”
On January 4, 2017, Corker traveled to Brevard County to meet the “father” and have sex with the “daughter.” When he arrived at the location, he was arrested. Agents recovered 10 condoms and a cigarette package containing 3 small baggies of marijuana from inside his vehicle. Corker later admitted that he was the one who posted the Craigslist ad.
“This predator tried to harm a child,” said acting Special Agent in Charge of HSI Tampa Ivan J. Arvelo. “HSI special agents, along with our partners at the Brevard County Sheriff’s Office, ensured that instead, he will be behind bars for that crime.”
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE.
Orlando Man Sentenced to 60 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II has sentenced Roy Thomas Phillips (47, Orlando) to 60 years in federal prison for sexually exploiting children. The Court also ordered him to forfeit the electronic devices he had used to commit the offense.
Phillips pleaded guilty on February 10, 2017.
According to court documents, from 2013 until his arrest in 2016, Phillips paid individuals in the Philippines to sexually abuse children and to livestream the abuse over the Internet. Phillips directed the live sexual molestations and recorded screen shots of the abuse from his office in Orlando. During a one-year period, Phillips wire transferred a total of $16,700 to one of the individuals in the Philippines to pay for the live sex acts perpetrated on children. The child victims were between the ages of 3 and 13.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio man pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – An Ohio man pleaded guilty yesterday to a federal drug crime, announced United States Attorney Carol Casto. Joshua L. Henderson, 27, of Dayton, entered his guilty plea to possession with intent to distribute fentanyl.
Henderson admitted that in early February 2017, he traveled from Dayton to Parkersburg several times a week to sell drugs. Using a confidential informant, the Parkersburg Police Department made multiple controlled purchases from Henderson of both heroin and fentanyl. On February 15, 2017, law enforcement obtained a search warrant for a residence where Henderson had been staying in Parkersburg. During the execution of the search warrant, Henderson attempted to flee by jumping from a second story window. Law enforcement caught Henderson and recovered over 13 grams of fentanyl and $1,800 in cash, as well as a Taurus 9mm pistol that had fallen from Henderson’s waistband during the jump. Additionally, law enforcement discovered more fentanyl, digital scales, small plastic baggies, and methamphetamine in or around Henderson’s bedroom.
Henderson was charged in a six-count indictment that accused him of federal drug charges and possessing a firearm in furtherance of a drug trafficking crime. As part of the plea agreement, Henderson admitted that he possessed the gun and that he sold all the drugs charged in the remaining counts of the indictment, which the Court may consider at sentencing.
Henderson faces up to 20 years in federal prison when he is sentenced on October 23, 2017.
The Parkersburg Police Department conducted the investigation. Assistant United States Attorney Eumi L. Choi is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. 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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North Franklin Man Sentenced to Prison for Tax FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 62, of North Franklin, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to three months of imprisonment, followed by one year of supervised release, for tax fraud.
According to court documents and statements made in court, SUDIK operated a general dentistry practice, and also served as the trustee of the Walter S. Sudik Trust, a trust his uncle created. The primary purpose of the Trust was to provide money to Walter Sudik’s living siblings or their spouses to ensure they were properly cared for in their remaining years. Walter Sudik died in July 2010. Following his uncle’s death and while serving as the trustee, SUDIK took more than $248,000 from the Trust without authorization and was paid $35,500 by the Trust for fiduciary fees for his services as trustee and reimbursement for closing his dental office to act as trustee. On his 2010 and 2011 federal tax returns, SUDIK willfully failed to report a total of $284,167 in unreported income and failed to pay $63,229 in income taxes.
On his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419. On his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.
Judge Arterton ordered SUDIK to pay $63,229, plus interest and penalties, to the Internal Revenue Service, and a total of $65,317 to three of the four beneficiaries of the Trust. The fourth beneficiary, SUDIK’s mother, did not wish to be part of a restitution order. SUDIK previously returned $116,488 to the four Trust beneficiaries after he learned he was under criminal investigation. Also, just prior the sentencing hearing, his attorney tendered each of the three beneficiaries a check in the amount of $10,000. The beneficiaries will receive restitution before the IRS.
On May 10, 2016, SUDIK pleaded guilty to one count of filing a false tax return. He was ordered to report to prison on or before September 26, 2017.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
New York Man Admits North Jersey Knifepoint Bank RobberyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted robbing a bank in Bergen County, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Andres Dominguez, 38, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court, Dominguez admitted that he robbed a Bank of New Jersey in Fort Lee, New Jersey, on Jan. 12, 2017, while brandishing a large knife.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 31, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
New Caney Man Charged with Producing Child PornographyRead the Press Release
HOUSTON – A 39-year-old resident of New Caney has been taken into custody on federal charges of sexual exploitation of a child, announced Acting U.S. Attorney Abe Martinez.
Joshua James Holmstedt is suspected of actively engaging in the sexual exploitation and sexual abuse of a minor female under the age of five, according to the charges. He was taken into federal custody today and made his initial appearance before U.S. Magistrate Judge Dena Hanovice Palermo at 10:00 a.m. At that time, he was temporarily ordered into custody pending a probable cause and detention hearing set for July 27 at 2:00 p.m.
According to the criminal complaint, Holmstedt engaged in conversations via a specific social media forum believed to be frequented by individuals who have a sexual interest in children. The service randomly pairs users in one-on-one chat sessions where they can chat anonymously. Users type in search words and the forum pairs them with random strangers who typed in the same search words. Holmstedt allegedly saw a post that contained terms commonly associated with the sexual exploitation of children and had responded to it.
During the course of the chats, Holmstedt allegedly claimed he was sexually active with a minor female and claimed he watched pornographic material with her. Holmstedt later sent an image and four videos he claimed were of the minor, some of which focused on her vagina, according to the charges. He also allegedly sent other videos of other prepubescent children engaged in sexual acts and masturbation.
If convicted, Holmstedt faces a minimum of 15 and up to 30 years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with assistance of the Montgomery County Precinct 4 Constable’s Office.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Muscatine Men Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA - On July 24, 2017, United States District Court Judge Stephanie M. Rose sentenced Aron Gaytan, 22, to 216 months in prison and Patrick Jay Plank, 51, to 120 months in prison for conspiracy to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. On July 25, 2017, Judge Rose sentenced Robert Owen Knapp, 25, to 80 months in prison for conspiracy to distribute methamphetamine. Each man was ordered to serve five years of supervised release following their imprisonment and to pay $100 to the Crime Victims’ Fund.
On February 13, 2017, Knapp pleaded guilty and was found responsible for distributing in excess of 300 grams of ice methamphetamine. Plank pleaded guilty on February 17, 2017, and was found responsible for distributing in excess of one kilogram of ice methamphetamine. On February 22, 2017, Gaytan pleaded guilty and was found responsible for distributing eight kilograms of ice methamphetamine.
The charges resulted from an investigation and the execution of multiple search warrants in Muscatine and Johnson Counties. Law enforcement seized approximately 1.5 kilograms of ice methamphetamine, approximately 2.5 kilograms of marijuana, approximately 27 grams of cocaine, 28 firearms, and $5,184 during the searches.
The Muscatine County Drug Task Force, Johnson County Drug Task Force, Muscatine Police Department and Muscatine County Sheriff’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Monterey Park Man Arrested on Federal Smuggling Charges Stemming from Shipment of Live King CobrasRead the Press Release
LOS ANGELES – A Monterey Park man was taken into custody late this morning on federal smuggling charges stemming from the seizure of a package that contained three king cobras hidden in potato chip canisters.
Rodrigo Franco, 34, was arrested this morning by special agents with the United States Fish and Wildlife Service (USFWS), Office of Law Enforcement after he was named in a criminal complaint filed on July 21.
Franco, who is charged with one count of illegally importing merchandise into the United States, is expected to make his initial appearance this afternoon in United States District Court.
According to the affidavit in support of the complaint, United States Customs and Border Protection on March 2 inspected a package sent from Hong Kong and discovered three live king cobra snakes – a protected and highly venomous reptile – each of which was approximately two-feet long. In addition to the three snakes, the parcel being sent through the United States Postal Service contained three albino Chinese soft-shelled turtles.
On the same date, Franco also mailed six protected turtles – desert box turtles, three-toed box turtles and ornate box turtles – from the United States to Hong Kong, but that shipment also was intercepted by the USFWS.
Because of the danger associated with the cobras, the snakes were seized from the package that had come from Hong Kong. The United States Postal Inspection Service made a controlled delivery of the soft-shelled turtles to Franco’s residence. Immediately after the package was delivered, agents with the USFWS and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at the residence.
While executing the search warrant, agents found the package that originated in Hong Kong in the children’s bedroom, in which, they also discovered a tank containing a live baby Morelet’s crocodile and tanks containing alligator snapping turtles, a common snapping turtle, and five diamond back terrapins – all of which are protected species, according to the affidavit.
During a subsequent interview with authorities, Franco admitted that he had previously received 20 king cobras in two prior shipments – but he said all of those snakes had died in transit.
During the ensuing investigation, authorities obtained evidence from Franco’s phone that revealed messages in which Franco and an individual in Asia discussed shipping turtles and snakes between the United States and Asia. According to the complaint, the messages indicate that Franco had previously received live cobras from his contact in Asia and was going to give five of the snakes to a relative of his contact.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The smuggling charge alleged in the complaint carries a statutory maximum sentence of 20 years in federal prison.
The prosecution is being handled by Assistant United States Attorney Erik M. Silber of the Environmental and Community Safety Crimes Section.
Meth Dealer Who Possessed over 20 Guns to Serve More Than 13 Years in Federal PrisonRead the Press Release
An Iowa man who sold methamphetamine for over a year and who possessed over 20 firearms, including a stolen firearm, was sentenced on July 24, 2017, to more than 13 years in federal prison.
Shawn Chevchuc, age 45, from Lime Springs, Iowa, received the prison term after a March 1, 2017, guilty plea to conspiracy to distribute methamphetamine and possession of firearms by a felon.
At the guilty plea, Chevchuc admitted he was involved with others in selling methamphetamine from 2015 through 2016. Information disclosed during the sentencing hearing indicated that, during this time period, Chevchuc was involved with selling over two kilograms of methamphetamine. He also possessed over 20 firearms, including one firearm that had been previously stolen during a burglary. Chevchuc had multiple prior burglary and drug convictions and was prohibited from possessing any firearms because he was a felon.
Chevchuc was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Chevchuc was sentenced to 160 months’ imprisonment. A special assessment of $200 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.
Chevchuc 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 Justin Lightfoot and investigated by the Division of Narcotics Enforcement (DNE), the Iowa Division of Criminal Investigation, the Iowa State Patrol, the Mitchell County Sheriff’s Office, the Hancock County Sheriff’s Office, the Winneshiek County Sheriff’s Office, the Decorah Police Department, and the Bureau of Alcohol, Tobacco, and Firearms (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2056-LTS.
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Massachusetts Man Who Conspired to Traffic Drugs in New Hampshire Sentenced to Ten Years in Federal PrisonRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that on July 24, 2017, Martin Gonzalez-Diaz, 34, formerly of Methuen, Massachusetts, was sentenced to ten years in federal prison after pleading guilty to conspiracy to distribute in excess of one kilogram of heroin and quantities of fentanyl and oxycodone.
An offer of proof made during court proceedings established that from approximately the Spring of 2014 through late January of 2016, Martin Gonzalez-Diaz and his co-defendant, Juan Alexis Diaz Pena, conspired to distribute kilogram quantities of heroin and lesser quantities of fentanyl and oxycodone in the Lawrence, Massachusetts, area to individuals who in turn sold the drugs to New Hampshire based drug customers for re-distribution in Rochester, New Hampshire.
Gonzalez-Diaz’s co-defendant, Pena, 31, also formerly of Methuen, Massachusetts, was previously sentenced to 96 months in prison on June 26, 2017, for his role in the drug conspiracy and for his unlawful possession of a firearm in furtherance of a drug trafficking crime.
As part of the investigation, in January 2016, the United States Drug Enforcement Administration (“DEA”) searched an apartment connected to Pena and located quantities of cocaine and heroin and items associated with drug trafficking. A loaded 9 mm semi-automatic handgun was recovered from under a mattress in a bedroom in close proximity to where the drugs were located.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin and fentanyl in New Hampshire. We will continue to target drug trafficking organizations that are responsible for the importation of large quantities of these drugs into New Hampshire from source cities like Lawrence, Massachusetts,” stated Acting United States Attorney John J. Farley.
After Gonzalez-Diaz completes serving his ten-year prison sentence, he will likely face deportation proceedings to remove him from the United States.
This investigation was conducted by the United States Drug Enforcement Administration, Tactical Diversion Unit, Portsmouth, New Hampshire; the Rochester, New Hampshire Police Department, and the Haverhill, Massachusetts Police Department. Assistant United States Attorneys Jennifer Cole Davis and Seth Aframe prosecuted the case.
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Major Investigation in West Memphis Results in Dozens of Defendants Charged with Multiple Drug and Gun Crimes in 25 IndictmentsRead the Press Release
WEST MEMPHIS—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Matthew Barden, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), William McCrary, Assistant Special Agent in Charge, New Orleans Field Division, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), and Scott Ellington, Prosecuting Attorney for the Second Judicial District of Arkansas, announced today the simultaneous unsealing of 25 federal indictments charging 43 defendants in a major operation aimed at curbing drug trafficking and gun violence in West Memphis and Crittenden County. The indictments were returned by a federal grand jury on July 6, 2017 and July 11, 2017, and were unsealed today following a coordinated roundup of the charged defendants.
In total, including defendants charged in state courts, law enforcement obtained arrest warrants for 50 defendants, and arrested 26 individuals early Tuesday morning. Eleven defendants were already in state custody. Thirteen defendants, including 11 federal fugitives, remain at large.
“Drug and gun crime has been overrunning the entire Arkansas Delta for some time, and the epidemic has hit West Memphis and Crittenden County hard,” Harris said. “Law enforcement at all levels is committed to helping rid this community of drugs, and is working together to find and stop these criminals. Our collective goal is to return these communities to their law-abiding citizens. Today’s major operation is a huge step toward this goal, but know that our commitment to helping this part of the state will continue long after today.”
The Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named Money Don’t Sleep, began in 2015, with a goal to target steadily increasing drug and gun crime in Crittenden County. Early Tuesday morning 200 law enforcement officers, including more than 300 tactical officers, helped execute the arrest warrants in a targeted takedown that resulted in the arrests of these defendants on multiple federal firearm and drug charges. Most of the defendants are residents of West Memphis (see attachment for complete list of defendants and charges).
“Nothing is more important than the safety and security of our communities,” said Stephen G. Azzam, Special Agent in Charge of DEA’s New Orleans Field Division, which includes the Eastern District of Arkansas. “This operation is one of the largest Domestic Cartel Initiative DEA has conducted and represents one of the most powerful attacks we have launched against a drug trafficking organization, having an immediate impact in this region. The resulting arrests clearly demonstrate the combined strength that federal, state and local law enforcement agencies bring to bear in the battle against these domestic cartels and strike a significant blow to their drug trafficking organizations. By working together, we are leveraging our respective resources and expertise to achieve results that we could not accomplish on our own. Our combined, concentrated efforts are making communities in West Memphis, Arkansas, and across the nation, safer by disrupting the flow of dangerous drugs to our neighborhoods.”
From September 2015 through May 2017, agents with the DEA and West Memphis Police Department coordinated more than 50 controlled purchases of controlled substances, resulting in the acquisition of more than six pounds of methamphetamine and 11 illegally possessed firearms, several of which were stolen. Also, more than 10 ounces of crack cocaine and 20 ounces of cocaine were purchased in the investigation. A majority of the 43 federal defendants are convicted felons, many with violent histories.
“The men and women of ATF are extremely proud of the outcome of today’s collaborative law enforcement efforts to make West Memphis and the surrounding areas of Crittenden County a safer place,” ATF Asst. Special Agent in Charge McCrary said. “ATF is committed to working with our partners to address the violence that plagues these communities.”
“I want to thank Chief Oakes and the West Memphis Police Department for their investment in time and willingness to work with our federal partners in bringing this operation to fruition,” Scott Ellington said. “I also want to thank the Arkansas State Police, Highway Police, and Arkansas Community Corrections for their assistance and manpower in today’s major operation. Our community is worth fighting for, and I believe in West Memphis and Crittenden County. Cleaning up this community begins with holding people accountable for their actions. Today, with the help of the DEA and other federal and state partners, we took a big step toward taking back our community from the criminals who choose to sell drugs and guns, rather than contribute to it in a positive manner.”“Today, the West Memphis Police Department, along with federal, state, and local law enforcement partners, conducted an enforcement operation targeting violent drug traffickers operating in West Memphis,” West Memphis Police Captain Robert Langston said. “This operation was conducted by over 300 law enforcement personnel, with many of them coming from Little Rock, St. Louis, New Orleans, and Atlanta. The arrest of these violent drug dealers will make West Memphis a safer place for our citizens, said of the West Memphis Police Department.”
During the investigation, with assistance from the U.S. Postal Inspection Service, agents also intercepted more than six pounds of methamphetamine being sent to defendants through the mail.
“The U.S. Postal Inspection Service is committed to the safety and security of the mail, postal employees and customers through disruption of narcotics trafficking using the U.S. Mail,” Thomas L. Noyes, Inspector in Charge of the Fort Worth Division said. “I want to commend the U.S. Attorney’s Office, West Memphis Police Department, DEA and our law enforcement partners involved in this investigation for their tenacious efforts to prevent illegal substances and related violence from invading our neighborhoods.”
The counts in today’s unsealed indictments include conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to possess with intent to distribute crack cocaine and cocaine, possession with intent to distribute crack cocaine and cocaine, distribution of crack cocaine and cocaine, use of a firearm in relation to a drug trafficking crime, felon in possession of a firearm, felon in possession of ammunition, selling firearm to a felon, and theft of mail by a United States Postal Service employee. (See attached defendant/indictment list)
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Jerome T. Kearney beginning at 10 a.m. on Thursday.
The investigation was conducted by DEA, in partnership with the ATF, and the West Memphis Police Department. Tuesday’s arrest operation included the assistance of DEA, ATF, Federal Bureau of Investigation, United States Probation and Parole, United States Postal Inspection Service, United States Postal Service Office of Inspector General, United States Marshall Service, Arkansas Highway Police, Arkansas National Guard Counter Drug Unit, Arkansas State Police, Arkansas Community Corrections, and the West Memphis Police Department.
The 40 indictments are being prosecuted by a team of multiple Assistant United States Attorneys, headed by Liza Jane Brown and Michael Gordon. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
Money Don't Sleep Federal Indictments/DefendantsLong Island Investment Advisor Pleads Guilty to Insider TradingRead the Press Release
Earlier today in federal court in Brooklyn, Tibor Klein, a registered investment advisor, pleaded guilty before United States District Judge Joan M. Azrack to one count of conspiracy to commit securities fraud.
Today’s guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS).
According to court documents, Klein had received material, non-public information regarding the pending merger between Pfizer, Inc., and King Pharmaceuticals, Inc., from his client and friend, Robert Schulman, a former partner of a Richmond-based global law firm. Schulman had learned of the information through his representation of King Pharmaceuticals. Klein and another co-conspirator then used that material, non-public information to engage in securities transactions ahead of the merger announcement that resulted in more than $400,000 in illegal profits.
At sentencing, Klein faces a maximum sentence of five years’ imprisonment. Schulman was convicted of securities fraud and securities fraud conspiracy following a jury trial in March 2017.
Ms. Rohde thanked the USPIS for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David C. Pitluck, Julia Nestor and Patrick T. Hein are in charge of the prosecution.
The Defendant:
Name: TIBOR KLEIN
Age: 43
Residence: Melville, New York
E.D.N.Y. Docket No. 16-CR-442 (JMA)
Local Crime Boss and Crew Headed to Federal PrisonRead the Press Release
LAREDO, Texas – A convicted heroin smuggler who was also the leader of an alien smuggling operation has been ordered to federal prison along with several members of his organization, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting Deputy Chief Patrol Agent Joel Martinez from the Laredo Sector Border Patrol. Mariano De La Cruz, 32, aka “Rayo” and “El Pelon,” of Laredo, pleaded guilty April 13, 2016, to two different indictments charging him with conspiring to possess with the intent to distribute heroin and the alien smuggling conspiracy, respectively.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a combined sentence of 206 months in federal prison. Also sentenced today were David Cuevas, 25, and Sara Rodriguez, 40, both of Laredo, and Juan Gerardo Rodriguez-Mantos, 34, an undocumented alien from Mexico living in Laredo who was the brother of Rodriguez. They had also pleaded guilty for their respective roles in the alien smuggling conspiracy. Cuevas received a sentence of 60 months in prison, while Rodriguez was ordered to serve 84 months. In sentencing Rodriguez-Mantos, the court considered the fact that he had sexually assaulted some of the victims. He received a 252-month-term of imprisonment for the alien smuggling conspiracy and for being an illegal alien in the United States after deportation. De La Cruz and Cuevas will also serve five years on supervised release following completion of their sentences, while Rodriguez was ordered to serve a three-year-term. Not a U.S. citizen, Rodriguez-Mantos is expected to face deportation proceedings following his release from prison.
“HSI is dedicated to working closely with all of our law enforcement partners to effectively in identify, arrest and prosecute individuals involved in exploiting people,” said Folden. "Criminals who illegally smuggle people into and throughout the country place personal profit ahead of public safety. For this reason, HSI will continue to utilize its broad authorities to dismantle human smuggling organizations.”
“I commend the men and women of the Department of Homeland Security representing the Joint Task Force-West South Texas Corridor Laredo Area Team who worked tirelessly to dismantle this organization,”said Joel Martinez. “Their joint efforts represents our commitment in disrupting and dismantling criminal organizations in South Texas.”
In addition to arranging for the shipment of almost two kilograms of heroin from Laredo to Rhode Island, De La Cruz led a multi-city organization that transported at least 140 undocumented aliens from Laredo and Hebbronville to San Antonio and other locations over a one-year-period from late 2014 until his arrest in late 2015. Cuevas was De La Cruz’s second in command. In that role, he relayed messages to and from De La Cruz, who was running the organization from prison. Rodriguez operated stash houses in Laredo for De La Cruz and also transported aliens to the brush where smugglers would then guide them around Border Patrol checkpoints.
Rodriguez-Mantos assisted his sister in running the stash houses, maintained order among the aliens and was a part-time foot guide. During that time, he sexually-assaulted some of the undocumented female aliens and brutalized other aliens who refused to comply with his orders. At times, he demonstrated his authority with a baseball bat and threatened them with a rifle that he claimed was a “BB” gun.
Cuevas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. De La Cruz and the others have been and will remain in custody.
Three others who also pleaded to the alien smuggling conspiracy were sentenced previously to terms ranging from 24-36 months in prison.
In the drug conspiracy, Juan Contreras, 29, of La Vernia, received a 60-month-term of imprisonment for physically transporting the heroin to Rhode Island.
HSI and Border Patrol conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Las Vegas Man Sentenced to over Six Years in Prison for Possession of Nearly 8,000 Images of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 78 months in prison to be followed by lifetime supervision for possession of over 7,915 images and videos of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
James Karman Ryan, 49, pleaded guilty on April 18, 2017, to one count of possession of child pornography.
According to the plea agreement, on Jan. 14, 2014, during the execution of a search warrant by the Las Vegas Metropolitan Police Department, Ryan barricaded himself in his room and began to delete files on his computer. He eventually surrendered and admitted that he was attempting to delete child pornography from his computer as the SWAT team was making entry into his house. After a forensic examination of his computer, hard drives, and other storage devices, over 7,915 images and videos were found to contain child pornography. Of the 7,915 images and videos, approximately 4,687 images and videos were deemed to be child sexual abuse.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Frank Coumou and Lisa Cartier-Giroux.
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 and for information about internet safety education, visit www.usdoj.gov/psc.
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Kewa Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Chad L. Lovato, 23, an enrolled member of Kewa Pueblo from Santo Domingo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Lovato’s plea agreement recommends a sentence of a year and a day in prison followed by a term of supervised release to be determined by the court.
Lovato was arrested on Feb. 4, 2017, on a criminal complaint charging him with assaulting three Kewa Pueblo tribal members with a firearm on Jan. 23, 2017, on the Kewa Pueblo in Sandoval County, N.M. According to the complaint, Lovato assaulted the tribal members by brandishing a firearm at them while a tribal official was transporting Lovato to the Governor’s Chambers in Kewa Pueblo. The complaint further alleges that Lovato engaged in a lengthy standoff in the Governor’s Chambers before law enforcement officers were able to take Lovato into custody safely.
During today’s proceedings, Lovato pled guilty to an information charging him with assault with a dangerous weapon. In entering the guilty plea, Lovato admitted that on Jan. 23, 2017, he assaulted a Kewa Pueblo tribal official with a BB gun with intent to do bodily harm. Lovato admitted that he pointed and aimed the BB gun at the victim, and then barricaded himself in the Tribal Governor’s office until he was apprehended by law enforcement. A sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.
Kankakee Man Sentenced to Seven Years in Prison for Gun PossessionRead the Press Release
URBANA, Ill. - A Kankakee, Ill., man has been sentenced in federal court for illegal possession of a firearm by a felon. On July 24, U.S. District Judge Colin S. Bruce sentenced Brandon Shoffner to 84 months (7 years) in federal prison, to be followed by three years of supervised release. Shoffner, 29, of the 700 block of Hammes Ave., has been in law enforcement custody since his arrest on Aug. 13, 2016. Judge Bruce found that during his arrest, Shoffner struck an officer, a factor the court accepted to increase Shoffner’s sentencing guidelines.
On Feb. 24, 2017, Shoffner pled guilty to the indictment which charged him with possession of a SAR Arms 9mm handgun. At the time Shoffner possessed the gun, in August 2016, he had prior felony convictions in Kankakee County.
The case was investigated by the Kankakee Area Project Safe Neighborhoods Task Force, and prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Justice Department Sues Puerto Rico Business for Violating Employment Rights of United States Army ReservistRead the Press Release
The Justice Department filed a complaint today alleging that Farmacia Lugo, Inc. (Farmacia Lugo), a business based in Puerto Rico, violated the employment rights of U.S. Army Reservist Anna J. Santiago under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). Santiago has served her country as a member of the Army Reserves since 2012. She currently holds the rank of Private 1st Class and serves as a culinary specialist.
According to the complaint, filed in the United States District Court for the District of Puerto Rico, Santiago’s military service was a motivating factor in Farmacia Lugo’s decision to terminate her employment. The Department claims that, in 2014 and 2015, Santiago served multiple periods of military duty which caused her to be absent from her job as a pharmacy technician. The complant alleges that during and after Santiago’s periods of military service, the owner of Farmacia Lugo began making negative statements about Santiago and her military service obligations. This pattern of disparagement of Santiago’s military service by her employer was ongoing and continued through November 2015 after she returned from military training. The complaint further alleges that, on November 11, 2015, the owner of Farmacia Lugo terminated Santiago in front of other employees and customers. The complaint alleges that during the termination, the employer told PFC Santiago that it was appropriate that it occurred on Veterans Day because her military service was the cause of her termination.
“The men and women who bravely wear our nation’s uniform need to know that they will be protected from unjust terminations when they return from periods of military service,” said Acting Assistant Attorney General Thomas Wheeler. “The Department of Justice is committed to aggressively enforcing USERRA to protect our brave service members, whose rights do not end with their first day back on the job.”
“USERRA guarantees the rights of those who serve our nation with honor and distinction to return to civilian employment upon returning from military service,” said Rosa E. Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. “This lawsuit demonstrates our steadfast commitment to leverage every resource and tool at the federal government’s disposal to protect the rights of the men and women who defend our freedom and safeguard our way of life.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
The lawsuit seeks damages equal to the amount of Santiago’s lost wages and benefits caused by Farmacia Lugo’s failure to comply with USERRA, as well as liquidated damages (in an amount equal to lost wages) for what the Department alleges is Famacial Lugo’s reckless disregard for USERRA. It also seeks orders requiring Farmacia Lugo’s compliance with all provisions of USERRA and requiring Farmacia Lugo to pay all related litigation fees.
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being jointly handled by the the U.S. Attorney’s Office for the District of Puerto Rico and the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of Army Reserves servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Jefferson County man indicted heroin distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA - A Charles Town, West Virginia man has been indicted by a federal grand jury on a heroin distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Ryan Jackson, age 39, is charged with one count of “Distribution of Heroin.” Jackson allegedly distributed a mixture of heroin and fentanyl in Jefferson County in October 2016.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ivorian Man Pleads Guilty in Manhattan Federal Court to Conspiring to Provide Material Support to the FARCRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Raymond Donovan, Special Agent in Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced that FAOUZI JABER, a/k/a “Excellence,” pled guilty to conspiring to provide material support to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”), a designated foreign terrorist organization. JABER pled guilty earlier today in Manhattan federal court before U.S. Magistrate Judge Katherine H. Parker.
Acting U.S. Attorney Joon H. Kim said: “Faouzi Jaber arranged to traffic millions of dollars’ worth of lethal weapons and narcotics in support of the FARC’s efforts to violently overthrow the government of Colombia and terrorize U.S. forces stationed there. In a series of meetings that took him around the world, Jaber was willing to do whatever it took to help this foreign terrorist organization achieve its violent and undemocratic goals. Our Office will continue to prosecute those who conspire to provide material support to the FARC and other dangerous terrorist organizations to the fullest extent of the law.”
DEA Special Agent in Charge Raymond Donovan said: “DEA’s number one priority is going after individuals and organizations that pose a direct threat to the safety and security of the American people. Faouzi Jaber demonstrated how willing he was to do business with some of the world’s most deadly terror networks that wish harm on innocent Americans and the rule of the law. We must continue to attack these potentially deadly networks globally, no matter where they hide.”
According to the allegations contained in the Superseding Indictment, statements made during the plea proceeding, and other documents in the public record:
From the fall of 2012 through early 2014, JABER participated in a conspiracy to provide material support to the FARC, a guerilla group that, as of that time period, was dedicated to the violent overthrow of the democratically elected government of Colombia, had engaged in acts of violence against U.S. citizens and interests in Colombia and elsewhere, and was one of the world’s largest suppliers of cocaine. JABER engaged in a series of meetings, in locations such as Accra, Ghana, and Warsaw, Poland, with individuals who identified themselves as representatives and associates of the FARC, but who were, in fact, confidential sources (the “CSes”) working for the DEA. In the course of those meetings, which were recorded, JABER introduced the CSes to two of his associates, a weapons trafficker based in Ukraine and a narcotics trafficker based in West Africa, in furtherance of his efforts to assist the FARC. Working together with those associates, during the meetings with the CSes, JABER agreed to provide weapons – including surface-to-air missiles, assault rifles, grenade launchers, and grenades – to the FARC, at a total price of over $8 million, with the understanding that those weapons would be used by the FARC against U.S. forces in Colombia. JABER also agreed to assist the FARC with the transportation and storage of FARC-owned cocaine in West Africa, and with the laundering of cocaine proceeds for the FARC, including by moving the cocaine proceeds through bank accounts in New York.
In April 2014, JABER traveled to Prague, Czech Republic, to meet with certain of the CSes to continue negotiating and arranging the weapons and narcotics-trafficking transactions in support of the FARC. On April 5, 2014, JABER was arrested in Prague by Czech authorities based on the charges in this case, at the request of U.S. authorities. JABER was later extradited to the United States to face the charges against him.
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JABER, 61, of the Ivory Coast, pled guilty to one count of conspiring to provide material support and resources to a designated foreign terrorist organization, i.e., the FARC, which carries a maximum sentence of 15 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for November 8, 2017, at 4:00 p.m. before Chief U.S. District Judge Colleen McMahon.
Mr. Kim praised the outstanding efforts of the DEA’s Special Operations Division and DEA’s Vienna, Austria Country Office; DEA’s Warsaw, Poland Country Office; DEA’s Accra, Ghana Country Office; and DEA’s New York Field Division. Mr. Kim also thanked Czech law enforcement authorities, the Counterterrorism Section of the Department of Justice’s National Security Division, and the Department of Justice’s Office of International Affairs for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney George D. Turner is in charge of the prosecution.
INTERPOL Washington Participates in AMBER Alert SymposiumRead the Press Release
INTERPOL Washington has provided more than 6.6 million investigative leads regarding child sexual exploitation and abuse to NCMEC.INTERPOL Washington-U.S. National Central Bureau-recently participated in the “National Symposium for AMBER Alert Coordinators and Clearinghouse Managers Symposium” hosted by AMBER Alert Training and Technical Assistance Program, at the National Criminal Justice Training Center at Fox Valley Technical College. Held June 27-29, in Minneapolis, Minnesota, the symposium served as an opportunity for those involved with the AMBER Alert program across the United States and overseas to participate in practical training and develop relationships with each other.
Supervisory INTERPOL Washington Analyst Michelle Ford-Stepney participated in a panel on cross-border child abductions, focusing her remarks on International Parental Abductions. Even though INTERPOL Washington does not participate directly in the AMBER Alert system, the agency does partner with law enforcement to seek the return of missing children to their homes of origin. INTERPOL Washington also works with the National Center for Missing and Exploited Children (NCMEC) to provide law enforcement officials urgent and timely leads and information to prevent child sexual exploitation and abuse.
INTERPOL’s I-24/7 secure messaging system is the tool used to quickly and effectively make available the information and leads to investigative law enforcement entities around the world. Foreign Universal Resource Locators (URL) Internet leads received by INTERPOL Washington are provided to NCMEC. Images and other forms of media containing actual evidence are provided to U.S. law enforcement agencies for potential action. Today, more than 6.6 million reports have been made available through INTERPOL’s I-24/7.
The training was presented by the leadership of the U.S. Department of Justice, Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention, and the AMBER Alert Training and Technical Assistance Program in partnership with the NCMEC. The objective was to learn current AMBER Alert strategies from partners nationwide by identifying AMBER Alert successes, lessons learned, and current training and technical assistance resources and needs.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Hunting Guide from Elk County Pleads Guilty to Lacey Act ViolationsRead the Press Release
WICHITA, KAN. - A Kansas hunting guide pleaded guilty and was sentenced Tuesday for routinely violating state and federal hunting laws while taking clients on $300-a-day hunting trips, U.S. Attorney Tom Beall said.
Jerad Stroot, 26, Colwich, Kan., an employee of Eagle Head Outfitters, LLC, pleaded guilty to one count of conspiracy to violate the Lacey Act. In his plea, Stroot said his work included transporting hunters and their equipment to the field, directing hunters when to shoot, retrieving birds killed by hunters and keeping track of the number of birds killed by hunters and daily bag limits.
Stroot admitted:
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Placing corn, wheat and soybeans around ponds as bait for waterfowl.
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Helping hunters to exceed their daily bag limits by offering to say he shot some of the birds they shot.
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Failing to tag, process and transport birds as required by state and federal law.
Stroot was sentenced to five years on probation during which he may not hunt, trap or guide and a $5,000 fine
Co-defendant Josh Hedges, 35, Grenola, Kan., owner of Eagle Head Outfitters, is set for a change of plea hearing July 31.
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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Houston Father and Son each Sentenced to Federal Prison for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A Houston father and son were each sentenced to federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rolando Delarosa, Sr., 43, and Rolando Delarosa, Jr., 22, both pleaded guilty on Feb. 27, 2017, to conspiracy to possess with intent to distribute methamphetamine and were sentenced to 120 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, between December 2013 and June 2015, the Delarosas were involved in a drug trafficking conspiracy that was responsible for trafficking methamphetamine through Houston and into the surrounding areas. An investigation began after a co-conspirator, Jesus Silva, made four deliveries to an undercover officer in Houston and Cleveland, Texas. After each of these deliveries, Silva was followed back to a home known to be owned and occupied by Rolando Delarosa, Sr.
Wiretaps confirmed that Delarosa, Sr. was Silva's supplier and that he intended to distribute, and distributed more than 2 ½ kilograms of methamphetamine. Silva continued to provide methamphetamine to an undercover officer and introduced Rolando Delarosa, Jr. to confidential sources as a supplier of methamphetamine. Delarosa, Jr. agreed to sell three kilograms of methamphetamine to a confidential source. Agents followed Delarosa, Jr. back to Delarosa, Sr.'s house, where Delarosa, Jr. and his girlfriend also lived. The officers then noticed Delarosa, Jr. and his girlfriend leave the residence in the same vehicle with Delarosa, Jr. driving. A traffic stop was conducted on the vehicle and Delarosa, Jr. and his girlfriend were observed by the officers as switching seats before coming to a complete stop. The officers immediately recognized the smell of raw and burnt marijuana coming from the vehicle when they approached it as well as a small bag of marijuana in plain sight on the center console. A search of the vehicle revealed a bag containing a large amount of methamphetamine inside. Analysts at the DEA Crime Lab determined that this substance was, in fact, almost one pound of methamphetamine. Officers then went to the residence of Delarosa Sr. and were given consent to search the residence. Officers located two rifles and more methamphetamine in the residence.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Holyoke Man Indicted for Dealing CocaineRead the Press Release
BOSTON - Raul Ramos, 43, of Holyoke, was arrested today and charged in federal court in Springfield with one count of distribution and possession with intent to distribute cocaine.
According to court documents, Ramos possessed and distributed cocaine on Nov. 8, 2016. The charges are a result of a federal, state, and local law enforcement investigation into drug trafficking in Springfield and Holyoke.
The charging statute provides for a sentence of no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of $2 million dollars. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Weinreb’s Springfield Branch Office is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Harrison County man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher C. Cozad, of Mount Clare, West Virginia, was sentenced today to 46 months incarceration for illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Cozad, age 32, pled guilty to one count of “Unlawful Possession of a Firearm” in March 2017. Cozad, having previously convicted of felony fleeing from an officer in Harrison County in 2011, admitted to possessing a Smith & Wesson 5.56 caliber firearm in April 2016 in Harrison County.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Habitual Domestic Violence Offender Sentenced to 41 MonthsRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Tyson Heath, age 41, of Wellpinit, Washington, was sentenced today after having pleaded guilty on March 14, 2017, to the crime of Domestic Assault by a Habitual Offender. Senior United States District Judge Wm. Fremming Nielsen sentenced Heath to a 41-month term of imprisonment, to be followed by a three-year term of court supervision after he is released from federal prison. Of note, Heath stands over 6’5” and weighs close to 250 pounds.
According to information disclosed during the court proceedings, in January, 2017, within the boundaries of the Spokane Tribe of Indians Reservation, Heath assaulted a domestic partner. The victim was discovered after the assault with a large amount of bruising and swelling around her right eye and orbital bone. In addition, the victim’s right cheek displayed red and purple bruising in what appeared to be the shape of four fingers, as if someone had slapped or backhanded her very hard. The victim also suffered a ruptured eardrum. This case involved yet another domestic violence assault – Heath’s third such offense -- making him a habitual offender.
At the time of this assault, Heath had previously been convicted of Fourth Degree Assault (Domestic Violence) and Second Degree Assault (Domestic Violence) in the Spokane County Superior Court in 2010 and 2011 respectively. Heath’s 2010 domestic violence assault conviction stemmed from an argument with his girlfriend. The argument became physical and Heath began throwing his girlfriend around, ultimately throwing her into a bedroom wall face first and then refusing to let her leave the apartment. Heath’s 2011 assault conviction also involved a domestic partner. Heath had gone to his ex-girlfriend’s place of employment, in violation of a restraining order. She told him to leave; he did not and ultimately hit her in the face with a rock. The victim was found in a pool of blood on the floor. Heath was sentenced to four months in jail for the 2010 offense and three months in jail for the 2011 offense.
At sentencing, today Heath indicated he wished to apologize to the victim of the most recent assault. Judge Nielsen told Heath that when he drank alcohol he was a danger to the public and that society will not and cannot tolerate it. Judge Nielson then announced the 41-month sentence.
Joseph H. Harrington stated, “The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively domestic violence crimes that occur in this District over which federal jurisdiction exists, including Indian Country. I commend the excellent work of the Spokane Tribal Police and the FBI. Domestic violence in Indian Country demands the attention of law enforcement, families, social service programs, and the community at large.”
This investigation was conducted by the Federal Bureau of Investigation and the Spokane Tribal Police. The case was prosecuted by Alison L. Gregoire an Assistant United States Attorney for the Eastern District of Washington.
Grayson County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
SHERMAN, Texas – A 39-year-old Denison, Texas man has been sentenced to federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Mark Alan Bennett pleaded guilty on Mar. 29, 2017, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime and was sentenced to 241 months in federal prison today by U.S. District Judge Amos Mazzant.
According to information presented in court, between August and November 2016, Bennett was found to be in possession of methamphetamine on four occasions, two traffic stops and during the execution of two search warrants at his Denison residence. All together, 177.32 grams of methamphetamine was recovered from Bennett. During the execution of a search warrant on Sep. 23, 2016, law enforcement agents also recovered a short-barreled shotgun. Bennett was indicted by a federal grand jury on Dec. 21, 2016 and charged with drug trafficking violations.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Denison Police Department and the Wise County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney William R. Tatum.
Four Men Sentenced for Violent Crime Spree Last SummerRead the Press Release
Charlottesville, VIRGINIA – Four of the six individuals responsible for a crime spree in Albemarle and Greene counties last summer that included a series of armed robberies, kidnappings, an armed home invasion, and a carjacking were sentenced today in federal court in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
In separate hearings today in the United States District Court for the Western District of Virginia in Charlottesville, Terence Tyree, Kentavia Jones, Jaquarius Johnson and Isaiah Wilson were sentenced to federal prison time for their various roles in the conspiracy.
Tyree, 19, of Ruckersville, was sentenced to 360 months in federal prison. Jones, 19, of Earlysville, was sentenced to 225 months in federal prison. Johnson, 19, of Charlottesville, was sentenced to 126 months in federal prison. Tyree, Jones and Johnson were also ordered to pay $4,079 restitution joint and severally to the victims of these crimes. Wilson, 24, of Charlottesville, was sentenced today to 68 months in federal prison. Demetrius Steppe will be sentenced on Friday, July 28, 2017.
“This prosecution is an example of the application of Attorney General Sessions’ March 8, 2017 Memorandum announcing the Department of Justice’s Commitment to Targeting Violent Crime,” Acting United States Attorney Rick A. Mountcastle said today. “The Albemarle County Police Department, the Greene County Sheriff’s Office, and the Federal Bureau of Investigation worked together to identify and quickly apprehend these violent criminals before they could do more violence to our citizens. The Albemarle and Greene County offices of the Commonwealth’s Attorney worked together with our office to decide to bring this case in Federal court and our Assistant United States Attorneys ensured that these defendants received appropriate sentences under federal law so that they no longer present a danger to our citizens. The Department’s violent crime strategy targets violent criminals such as these in a common-sense way to make our communities safer for law-abiding citizens.”
“The facts of this case are egregious. These violent criminals – who terrorized our central Virginia communities with handguns, sawed-off shotguns, and even an assault rifle– thankfully, no longer pose a threat. The FBI is committed to the Department of Justice’s renewed emphasis on removing violent criminals like these from our streets,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division. “I want to thank our colleagues at the United States Attorney’s Office for the Western District of Virginia for their expert prosecution of this case and I want to thank our outstanding partners at the Albemarle County Police Department and the Greene County Sheriff’s Office for their collaboration. I’ve said this in similar FBI cases over the past year; Virginia is not a safe place for criminals to operate and victimize our citizens. We are mobilized against you and we will put you in prison for a long, long time.”
These four men were responsible for the armed robbery of five commercial establishments throughout June and July 2016. The targets were comprised of convenience stores and pizza restaurants in Albemarle and Greene Counties. In each armed robbery, the defendants – wearing masks, gloves, and dark clothing – entered local businesses and threatened the employees at gunpoint. They stole cash and cell phones from the employees, and fled the store.
This violent crime spree culminated with a home invasion, carjacking, kidnapping, and armed robbery, all of which took place on the evening of July 18, 2016. That night, defendants Tyree, Jones, and Johnson broke into an Albemarle County residence by throwing a propane tank through a sliding glass door. The homeowner was inside, alone, and heard the loud explosion. When he went downstairs, he saw three men – later identified as Tyree, Jones, and Johnson – in his living room, armed with a firearm. They forced the victim against the wall and struck him, and then ransacked the house. Afterwards, the defendants commanded the victim to enter his own vehicle in his garage, and they then drove him away from home -- at gunpoint -- to a nearby ATM located at the Wells Fargo bank at the intersection of Route 29 and Airport Road. At that location, the defendants spotted another victim, who was a passerby walking through the parking lot, having just come from the nearby airport with his luggage still in hand. The defendants abducted the man, forcing him into the car at gunpoint. When the first victim was unsuccessful at getting money from the ATM machine, the defendants again forced him back into the car. With the two kidnapping victims in the car, the defendants drove to a nearby 7-11 convenience store and robbed the employees at gunpoint. Soon thereafter, in a nearby neighborhood, the defendants stopped the car and told both victims to get out and both complied. The defendants later abandoned the vehicle, which was later recovered by law enforcement.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office, with assistance from the Albemarle County and Greene County Commonwealth Attorneys Offices. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh prosecuted the case for the United States.
Four Members of 39ers Gang Receive Life SentencesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the sentencing of four defendants convicted of gang-related offenses in February of 2017 following the 39ers racketeering and murder trial.
Today, U.S. District Judge Jay C. Zainey sentenced JASMINE PERRY, age 26; LEROY PRICE, age 31; ASHTON PRICE, age 26; and ALONZO PETERS, age 27. All four men were convicted of offenses related to their involvement with the 39ers gang in New Orleans from approximately 2007-14, and each defendant received life sentences. The Court imposed the following sentences on each defendant:
COUNT CHARGE DEFENDANTS SENTENCE 1 Conspiracy to violate the Racketeer Influence and Corrupt Organization Act (RICO) JASMINE PERRY Life Imprisonment LEROY PRICE Life Imprisonment ASHTON PRICE Life Imprisonment ALONZO PETERS 235 months imprisonment 2 Conspiracy to distribute controlled substances LEROY PRICE Each defendant received a sentence of life imprisonment Defendants were convicted of 1 kilogram or more of heroin and 280 grams or more of cocaine base ASHTON PRICE ALONZO PETERS 3 Conspiracy to use and carry and to possess firearms JASMINE PERRY Received 240 months imprisonment LEROY PRICE ASHTON PRICE ---------------- ---------------- ALONZO PETERS Received 235 months imprisonment 4 Murder in aid of racketeering JASMINE PERRY Each defendant received a mandatory sentence of life imprisonment (Kendall Faibvre) ASHTON PRICE 5 Causing death through the use of a firearm JASMINE PERRY Each defendant received a sentence of life imprisonment (Kendall Faibvre) ASHTON PRICE 6 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY Each defendant received a sentence of 240 months imprisonment (Jasmine Jones) ASHTON PRICE 7 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Each defendant received a consecutive sentence of 120 months imprisonment (Jasmine Jones) ASHTON PRICE 14 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment (Lester Green) 16 Assault with a dangerous weapon in aid of racketeering LEROY PRICE 240 months imprisonment (Jamal Smith) 18 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment (Donald Daniels) 22 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment (Elton Fields) 33 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Albert Hardy) 34 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Albert Hardy) 35 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Kelvin Baham) 36 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Kelvin Baham) 37 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Carrie Henry) 38 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Carrie Henry) 39 Murder in aid of racketeering JASMINE PERRY Mandatory life imprisonment (Gregory Keys) 40 Causing death through the use of a firearm JASMINE PERRY Life imprisonment (Gregory Keys) 41 Assault with a dangerous weapon in aid of racketeering JASMINE PERRY 240 months imprisonment (Kendrick Smothers) 42 Use and carrying of a firearm during and in relation to a crime of violence and a drug trafficking crime JASMINE PERRY Received a consecutive sentence of 300 months imprisonment (Kendrick Smothers) 45 Murder in aid of racketeering LEROY PRICE Mandatory life imprisonment for both defendants (Michael Marshall ASHTON PRICE 46 Causing death through the use of a firearm ASHTON PRICE Life imprisonment (Michael Marshall) 47 Murder of a federal informant LEROY PRICE Mandatory life imprisonment as to both defendants (Michael Marshall) ASHTON PRICEActing U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force, the New Orleans Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives in investigating this matter. Assistant U.S. Attorneys Myles Ranier, David Haller, Brittany Reed, and Jeff Sandman were in charge of the prosecution.
Four Members of “Manche Boy Mafia” Gang Sentenced in Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced four Tampa men to federal prison for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft. Brandon Lewis (22) and Terrance Cobb (22) were each sentenced to 5 years and 1 month in federal prison; Dontae Williams (24, Tampa) was sentenced to a term of 5 years and 10 months; and Davon Smith (21, Tampa) was sentenced to 5 years and 5 months’ imprisonment. The Court also ordered them to pay restitution of $113,490.54, which is traceable to proceeds of the offenses, and for Lewis and Williams to forfeit funds equal to the value of automobiles they purchased with the proceeds from the offenses.
On April 28, 2017, Lewis and Williams pleaded guilty to conspiracy to commit access device (credit card) fraud and aggravated identity theft, while Cobb and Smith pleaded guilty to access device (credit card) fraud and aggravated identity theft.
According to court documents and statements made in court, from at least January 2015 through November 2016, Lewis, Cobb, Smith, and Williams, along with others affiliated with the “Manche Boy Mafia” or “MBM” organization, conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, including some that used bitcoins as their currency. The conspirators then purchased or stole reloadable gift cards and scratched off or otherwise damaged the magnetic strips on the back of the cards so that they could not be read by merchants’ point of sale (POS) terminals. The conspirators used an embosser to emboss the stolen account numbers and their own names onto the front of these altered gift cards. In some cases, the conspirators used a label maker to affix the Card Verification Value (CVV) security code associated with the stolen account to the back of the counterfeit cards. The conspirators then used these counterfeit credit cards at various retailers around the Tampa Bay area. When the retailers’ POS terminals could not read the damaged magnetic strips, the conspirators advised the clerks to manually enter the stolen account information embossed on the front of the counterfeit cards to make the purchase. The conspirators typically purchased gift cards and electronics, which they kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards and had used and possessed thousands of stolen account numbers from individuals across the United States. In total, these individuals were held responsible for more than $600,000 in intended or attempted purchases.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Mandy Riedel.