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24 July 2017
North Bay Methamphetamine Trafficker Sentenced to Ten Years in PrisonRead the Press Release
SAN FRANCISCO – Jose Vasquez Bautista was sentenced today to 120 months in prison for possessing with the intent to distribute methamphetamine announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Thelton E. Henderson, U.S. District Judge, following the entry of Bautista’s guilty plea to the charge on February 27, 2017.
Bautista, 42, of Lodi, Calif., admitted that on June 3, 2015, he attempted to sell approximately four pounds (1.8 kilograms) of methamphetamine to an undercover officer in Napa. Court documents indicate that Bautista attempted to sell the methamphetamine for $5,300 per pound, for a total of $21,200, and wanted to establish a methamphetamine pipeline in Napa County. In addition, Judge Henderson found that Bautista maintained a storage unit in Lodi that contained approximately twenty-five pounds (11.3 kilograms) of methamphetamine and a large amount of liquid used to manufacture more of the drug. Further, Judge Henderson found that Bautista possessed three firearms in connection with his offense.
On January 5, 2016, a federal grand jury indicted Bautista and charged him with one count of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). Bautista pleaded guilty to the charge without a written agreement.
Judge Henderson ordered Bautista remanded to the custody of the U.S. Marshal Service today and Bautista will begin serving his sentence immediately. In addition to the prison term, Judge Henderson ordered Bautista to serve a five-year period of supervised release.
Assistant U.S. Attorneys Katherine Lloyd-Lovett and Helen Gilbert are prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation by the ATF and the Napa County Special Investigations Bureau.
Newark Police Officer Admits Conspiracy to Commit Fraud Against Housing Assistance ProgramRead the Press Release
NEWARK, N.J. – A Newark police officer today admitted conspiring to fraudulently obtain payments under the federal public housing assistance program known as “Section 8,” Acting U.S. Attorney William E. Fitzpatrick announced.
Luis Cancel, 50, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of agreeing with another individual to obtain Section 8 public housing benefits to which they were not entitled.
According to documents filed in this case and statements made in court:
The Section 8 Program is a federal public housing assistance program administered by the U.S. Department of Housing and Urban Development (HUD). It provides rent subsidies to qualified low-income individuals. HUD provided federal grant money to the Newark Housing Authority (NHA) for the Section 8 Program. Under the NHA’s Section 8 Program, a tenant’s rental assistance was based upon the tenant’s anticipated family gross income. Tenants receiving Section 8 assistance from the NHA had to inform the NHA of all members of the household and the annual household income.
From January 2010 to May 2015, Cancel, then a Newark police officer, lived with another person (Individual 1) who was receiving Section 8 benefits. Cancel and the other individual agreed not to disclose to the NHA that they were living together or that Cancel was a Newark police officer, and, also, a security guard with the Robert Treat Hotel. Individual 1 submitted fraudulent documents to the NHA that failed to disclose these facts. Cancel also submitted letters to the NHA falsely indicating that he lived at a separate residence. Based upon their misrepresentations, Cancel and Individual 1 received approximately $74,000 in Section 8 subsidies to which they were not entitled.
The count to which Cancel pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Joseph D. Rotella Esq., NewarkMexican National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Duane A. Evans announced that MIGUEL TERRAZAS-ORDONEZ, age 40, a citizen of Mexico, pled guilty last Thursday to a one-count Indictment charging him with illegal reentry of a removed alien.
According to court documents, TERRAZAS-ORDONEZ was found in the United States on May 11, 2017, after having been previously deported on December 28, 2000.
TERRAZAS-ORDONEZ faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for August 31, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Man from El Salvador sentenced to 11 months in prison for reentering the U.S. illegally for 2nd timeRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a citizen of El Salvador was sentenced last week to 11 months in prison for reentering the United States illegally.
Jose Edmundo Martinez-Ortiz, 24, of San Salvador, El Salvador, was sentenced Friday by U.S. District Judge Dee D. Drell on one count of illegal reentry of a removed alien. According to the April 17, 2017 guilty plea, Lake Charles police conducted a traffic stop on a vehicle containing illegal aliens on November 15, 2016. Martinez-Ortiz admitted to being in the United States illegally. Upon further investigation, law enforcement agents found that the defendant had been found guilty of armed robbery in Maryland on September 11, 2014 and had been removed from the United States in 2016.
United States Immigrations and Customs Enforcement and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Los Angeles Private Investigator Sentenced to Prison for Role in Violent Gambling OrganizationRead the Press Release
Assistant U. S. Attorneys Benjamin Katz (619) 546-9604, Andrew Young (619) 546-7981 or Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – July 24, 2017
SAN DIEGO – Daniel Portley-Hanks, a Los Angeles based private investigator, was sentenced today to 16 months in prison for his role in the gambling organization run by former USC football player Owen Hanson.
Portley-Hanks entered a guilty plea to Hobbs Act extortion on December 27, 2016. According to his plea agreement, he was paid $7,000 by Hanson to drive from Los Angeles to a Pennsylvania cemetery where the family burial plot of an individual who owed Hanson’s organization money was located. Once there, Portley-Hanks took photos of the family tombstone, splattered it with red paint, and later altered the photographs to add the targeted individual’s name and the words “Very Soon” as the date of death. Another photo was altered to include an image of a masked Hanson standing over the family grave with a shovel. The photos and other documents created by Portley-Hanks were then mailed to the individual along with a video depicting two beheadings.
The government’s sentencing documents attached numerous emails between Hanson and Portley-Hanks that showed that for a period of more than three years, Portley-Hanks assisted Hanson’s organization by running background and location checks on gamblers and law enforcement officers, conducting surveillance, and connecting Hanson with Jack Rissell, another co-defendant who served as an “enforcer” for Hanson’s enterprise.
Rissell – who also pleaded guilty to extortion – is scheduled to be sentenced on July 31, 2017. In total, 21 of 22 defendants charged in relation to Hanson’s enterprise have entered guilty pleas. The remaining defendant, Khalid Petras, is set for trial on August 29, 2017. He is accused of money laundering and running an illegal gambling business. The charges against this defendant are merely accusations, and he is considered innocent until proven guilty.
The case arose out of a joint investigation by FBI and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015, after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine.
DEFENDANT Case Number: 15CR2310-WQH
Daniel Portley-Hanks Age: 71
SUMMARY OF CHARGES
Hobbs Act Extortion, 18 U.S.C. § 1951
Maximum penalty: 20 years’ imprisonment, $250,000 fine, 3 years’ supervised release.
AGENCY
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Leader of Violent Bloods Street Gang Gets 12 Years in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A leader of the Sex Money Murder set of the Bloods street gang was sentenced today to 144 months in prison for his role in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Rajohn Wilson, a/k/a “1090,” 26, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count Two of a superseding indictment charging him with racketeering conspiracy. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.
Rajohn Wilson – who served as a “five-star general” of Sex Money Murder and is the younger brother of Narik Wilson, a/k/a “Spaz,” the leader or “O.G.” of the gang – admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives.
Rajohn Wilson admitted that he conspired with members of Sex Money Murder on Feb. 4, 2007, and Feb. 16, 2007, to murder rival gang members, and that he and others carried out drive-by shootings of two victims in and around Newark. Wilson also admitted conspiring to distribute more than one kilogram of heroin.
In addition to the prison term, Judge Wigenton sentenced Wilson to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge John B. Devito, for their assistance.
The government is represented by Assistant U.S. Attorney Dara Govan and Mary Toscano, Chief of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Howard Brownstein Esq., Union City, New Jersey
Lancaster Woman Sentenced to Prison for Theft of Social Security Benefit MoneyRead the Press Release
Carmen Perez, 40, of Lancaster, Pennsylvania, was sentenced today to 15 months in prison for theft of government funds, announced Acting United States Attorney Louis D. Lappen. The Honorable Edward G. Smith, United States District Judge, also ordered Perez to serve three years of supervised release after her prison term and pay full restitution of $78,768.06 to the Social Security Administration.
As the defendant admitted during her guilty plea hearing on February 28, 2017, during the commission of the charged offense, she was employed as a case manager for an organization that managed Social Security benefits for individuals who could not manage their own funds. a case manager for that organization, from March 2012 until July 2016, Perez stole Social Security benefits intended for the payment of financial obligations of 39 of her clients. Perez admitted further when she pleaded guilty, during the course of the scheme, she stole a total of approximately $78,768.06 in Social Security benefit money and used it for her own purposes.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
Kuna Man Pleads Guilty to Making False StatementsRead the Press Release
BOISE – Aaron G. Hynes, 27, of Kuna, Idaho, pleaded guilty today to making false statements to the United States Department of Transportation (“USDOT”), Acting U.S. Attorney Rafael Gonzalez announced. Pursuant to a written plea agreement filed with the court, Hynes pleaded guilty to a one-count criminal information.
According to the plea agreement, in August of 2015, Hynes solicited assistance from computer programmers to create a computer program that would automatically fill out at least 10,000 applications for USDOT numbers on the Federal Motor Carrier Safety Administration (“FMCSA”) website, using false and fictitious names, addresses, telephone numbers of applicants and company officials. The FMCSA issues USDOT numbers to commercial motor carriers to track safety or other operational violations. Hynes’s purpose was to fraudulently obtain the 10,000 USDOT numbers and sell them to motor carriers for a profit.
According to the plea agreement, in October of 2015, Hynes caused to be submitted to the FMCSA, through its website, approximately 2,100 applications for USDOT numbers, using names, addresses, telephone numbers of applicants and company officials he knew to be false and fictitious. The false and fictitious names, addresses, telephone numbers of applicants and company officials submitted to the FMCSA caused FMCSA to register the fictitious applicants and issue approximately 2,100 USDOT numbers.
According to the plea agreement, Hynes’s submission of the approximately 2,100 applications caused a loss of $51,389. $32,439 of this loss was attributable to the time and resources FMSCA expended to identify and deactivate the approximately 2,100 fraudulent USDOT numbers that it issued. The remainder of the loss related to the implementation of preventative measures by the FMCSA.
Sentencing is set for October 17, 2017, before Chief U.S. District Judge B. Lynn Winmill. A violation of making false statements to a government agency is punishable by up to five years in prison, a maximum fine of $250,000, a term of supervised release up to three years, and a $100 special assessment.
The case was investigated by the United States Department of Transportation, Office of the Inspector General.
Keene Man Sentenced to 87 Months for Possession of Child PornographyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Jeremiah Pless, 33, of Keene, New Hampshire, was sentenced to 87 months in federal prison for possessing child pornography. Pless was convicted by a jury on April 11, 2017.
The jury was presented with evidence that, in February 2015, the Hinsdale Police Department obtained a search warrant to search a residence in Hinsdale, New Hampshire, based on probable cause that the residence was connected to the downloading of child pornography. Chief Todd Faulkner and Commander Tom Grella assembled a team of specially trained officers from the Internet Crimes Against Children Task Force to assist in the search. While at the residence on February 18, 2015, the search team found evidence that Pless possessed child pornography that he had downloaded using the Shareaza file sharing program. A review of the hard drive taken from Pless’ computer later confirmed that the images of child pornography included images of known minor children.
Pless was also sentenced to ten years of supervised release which will begin after he is released from prison. During the period of supervised release, Pless’ conduct will be monitored by the United States Probation & Pretrial Services Office. Pless will also have to register as a sex offender.
The investigation was led by the Department of Homeland Security, Homeland Security Investigations, and the Hinsdale Police Department. The ICAC Task Force provided invaluable assistance in the investigation as did officers from the Portsmouth Police Department, the Manchester Police Department, the Nashua Police Department, the Hampton Police Department, the New Hampshire State Police and the Vermont Attorney General’s Office. This case was prosecuted by Assistant U.S. Attorney, Don Feith.
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Kansas Man Sentenced to 30 Years in Plot to Explode Car Bomb at Fort RileyRead the Press Release
WASHINGTON – John T. Booker Jr., 22, of Topeka, Kan., was sentenced today to 30 years in prison for attempting to detonate a vehicle bomb on the Fort Riley military base in Manhattan, Kan. On Feb. 3, 2016, Booker pleaded guilty to one count of attempted use of a weapon of mass destruction and one count of attempted destruction of government property by fire or explosion.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Tom Beall of the District of Kansas and Special Agent in Charge Darrin E. Jones of the FBI’s sKansas City Division made the announcement.
“With this sentence, John Booker is being held accountable for his plan to kill U.S. military personnel on American soil in the name of ISIS,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is countering terrorist threats and protecting American lives by bringing to justice those who plot to attack us. I want to thank the many agents, analysts, and prosecutors who made this result possible.”
“Violent extremism is a threat to America and all its people,” Acting U.S. Attorney Beall said. “Our goal is to prevent violent extremists and their supporters from inspiring, financing or carrying out acts of violence.”
“The investigation leading to today's sentencing illustrates the FBI's commitment to disrupting acts of terrorism,” said Special Agent in Charge Jones. “If Mr. Booker had been successful in detonating a car bomb, the results could have been dozens, if not hundreds, of casualties. The FBI and our law enforcement partners remain committed to protecting the citizens of the United States and thwarting acts of terrorism.”
In his guilty plea, Booker admitted he intended to kill American soldiers and to assist ISIS’s (Islamic State of Iraq and al-Sham) fight against the U.S. His plan called for constructing a bomb containing 1,000 pounds of ammonium nitrate. Booker intended to trigger the bomb himself and die in the process, and filmed a video he intended Americans to see after his death.
“You sit in your homes and think this war is just over in Iraq,” Booker said in the video. “Today we will bring the Islamic State straight to your doorstep.”
Unbeknownst to Booker, the bomb that he constructed was made with inert materials, and the two men working with him were undercover informants for the FBI.
The FBI began investigating Booker in March 2014 after he posted on his Facebook page that he wanted to commit jihad. Booker admitted that he tried to enlist in the U.S. Army in order to commit an insider attack against American soldiers like the one at Fort Hood in Texas, but his deadly plans were thwarted when he was denied entry into the Army. In October 2014, Booker began communicating with an undercover FBI informant. He told the undercover FBI informant that he dreamed of being a fighter in the Middle East, and proposed capturing and killing an American soldier.
In March 2015, Booker was introduced to another FBI informant who he believed would help him plan an attack. Booker said he wanted to detonate a suicide bomb because he couldn’t be captured, all the evidence would be destroyed, and he would be guaranteed to hit his target. On March 10, 2015, Booker made a video filmed at Freedom Park near Marshall Army Airfield at Fort Riley in which he pledged allegiance to Abu Bakr al Baghdadi, the leader of ISIS. That month, he rented a storage unit in Topeka where the bomb would be assembled.
On April 10, 2015, Booker and the informants drove to an area near Fort Riley that Booker believed to be a little-used utility gate where they could enter Fort Riley undetected. He was arrested when he made the final connections on the device that he believed would arm the bomb.
Mr. Boente and Mr. Beall commended the FBI Joint Terrorism Task Force for their investigation of this case. They also thanked Assistant Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorney Tony Mattivi of the District of Kansas, who prosecuted this case.
Kansas Man Sentenced 30 Years in Plot to Explode Car Bomb at Fort RileyRead the Press Release
John T. Booker Jr., 22, of Topeka, Kan., was sentenced today to 30 years in prison for attempting to detonate a vehicle bomb on the Fort Riley military base in Manhattan, Kan. On Feb. 3, 2016, Booker pleaded guilty to one count of attempted use of a weapon of mass destruction and one count of attempted destruction of government property by fire or explosion.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Tom Beall of the District of Kansas and Special Agent in Charge Darrin E. Jones of the FBI’s sKansas City Division made the announcement.
“With this sentence, John Booker is being held accountable for his plan to kill U.S. military personnel on American soil in the name of ISIS,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is countering terrorist threats and protecting American lives by bringing to justice those who plot to attack us. I want to thank the many agents, analysts, and prosecutors who made this result possible.”
“Violent extremism is a threat to America and all its people,” Acting U.S. Attorney Beall said. “Our goal is to prevent violent extremists and their supporters from inspiring, financing or carrying out acts of violence.”
“The investigation leading to today's sentencing illustrates the FBI's commitment to disrupting acts of terrorism,” said Special Agent in Charge Jones. “If Mr. Booker had been successful in detonating a car bomb, the results could have been dozens, if not hundreds, of casualties. The FBI and our law enforcement partners remain committed to protecting the citizens of the United States and thwarting acts of terrorism.”
In his guilty plea, Booker admitted he intended to kill American soldiers and to assist ISIS’s (Islamic State of Iraq and al-Sham) fight against the U.S. His plan called for constructing a bomb containing 1,000 pounds of ammonium nitrate. Booker intended to trigger the bomb himself and die in the process, and filmed a video he intended Americans to see after his death.
“You sit in your homes and think this war is just over in Iraq,” Booker said in the video. “Today we will bring the Islamic State straight to your doorstep.”
Unbeknownst to Booker, the bomb that he constructed was made with inert materials, and the two men working with him were undercover informants for the FBI.
The FBI began investigating Booker in March 2014 after he posted on his Facebook page that he wanted to commit jihad. Booker admitted that he tried to enlist in the U.S. Army in order to commit an insider attack against American soldiers like the one at Fort Hood in Texas, but his deadly plans were thwarted when he was denied entry into the Army. In October 2014, Booker began communicating with an undercover FBI informant. He told the undercover FBI informant that he dreamed of being a fighter in the Middle East, and proposed capturing and killing an American soldier.
In March 2015, Booker was introduced to another FBI informant who he believed would help him plan an attack. Booker said he wanted to detonate a suicide bomb because he couldn’t be captured, all the evidence would be destroyed, and he would be guaranteed to hit his target. On March 10, 2015, Booker made a video filmed at Freedom Park near Marshall Army Airfield at Fort Riley in which he pledged allegiance to Abu Bakr al Baghdadi, the leader of ISIS. That month, he rented a storage unit in Topeka where the bomb would be assembled.
On April 10, 2015, Booker and the informants drove to an area near Fort Riley that Booker believed to be a little-used utility gate where they could enter Fort Riley undetected. He was arrested when he made the final connections on the device that he believed would arm the bomb.
Mr. Boente and Mr. Beall commended the FBI Joint Terrorism Task Force for their investigation of this case. They also thanked Assistant Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section, and Assistant U.S. Attorney Tony Mattivi of the District of Kansas, who prosecuted this case.
Jury Convicts Buffalo Man of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that a federal jury has convicted Donte Lee, 44, of Buffalo, N.Y., of being a felon in possession of a firearm and possession of marijuana. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Paul C. Parisi, who handled the prosecution of the case, stated that on November 3, 2015, members of the U.S. Marshals Fugitive Task Force turned onto Sherman Street off Genesee Street to execute an arrest warrant when they observed a large group of people scattering in all directions. Officers observed Lee holding what appeared to be a black firearm in his hand while running in the area of Sherman and Johnson Streets. While on foot, the defendant tripped and fell. He got up, ran back to his vehicle, and headed down Sherman Street. Officers attempted to pull the defendant over, but he did not comply and a chase ensued. Lee attempted to drive through a vacant lot between Sherman Street and Fox Street where his vehicle crashed into a fence. Defendant got out of his vehicle and attempt to escape on foot. He was apprehended in the same area. Subsequently, officers recovered a 9mm pistol loaded with approximately 18 rounds of 9mm ammunition.
Since 1992, the defendant has been convicted of three separate felonies in state and local courts and is prohibited from legally possessing a gun.
The verdict is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
Sentencing for October 20, 2017, at 12:30 p.m. before U.S. District Judge Richard J. Arcara who presided over the trial of the case.Juneau Man Sentenced to Five Years in Federal Prison for the Distribution of Child PornographyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a Juneau man was sentenced to federal prison for the distribution of child pornography.
Gilberto Valadez-Garcia, 40, a citizen of Mexico, was sentenced by Chief U.S. District Judge Timothy M. Burgess. Valadez-Garcia was sentenced to five years imprisonment for a single count of distribution of child pornography. Upon the completion of his prison term, Valadez-Garcia must complete a 20-year term of supervised release.
Assistant U. S. Attorney Jack S. Schmidt, who prosecuted the case, informed the court that Valadez-Garcia became the subject of a federal investigation after federal law enforcement officials had downloaded child pornography from Valadez-Garcia through the use of a peer to peer (P2P) file sharing program. Agents downloaded 12 videos from the defendant containing images of prepubescent minors engaged in sexually explicit conduct. Agents executed a search warrant at the defendant’s employer, as Valadez-Garcia was actively downloading images of child pornography using the employer’s internet service. A subsequent search of Valadez-Garcia’s computer revealed 69 images and 47 videos of minors engaged in sexually explicit conduct. In an interview, Valadez-Garcia admitted to downloading the images and videos located on his computer and admitted to using a P2P program that distributed the images to others. Valadez-Garcia further admitted that he knew it was illegal to view, possess, and distribute child pornography, but that he did not expect that it would be investigated.
The charges against Valadez-Garcia are the result of an investigation conducted by the Federal Bureau of Investigation (FBI).
This prosecution is part of the Department of Justice ongoing Project Safe Child (PSC) initiative. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, identify and rescue victims and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
INTERPOL Washington Participates in Counter-ISIS WorkshopRead the Press Release
On July 12, 2017, officials from INTERPOL and INTERPOL Washington—the U.S. National Central Bureau-- participated in a gathering of the Small Group of the Global Coalition to Defeat ISIS who met at the U.S. Department of State to synthesize the senior level Global Coalition meetings and discuss priorities to build on the progress in Mosul and Raqqa. The Small Group consists of key coalition stakeholders who play a major role, whether military or non-military, in the campaign to defeat ISIS. The day before, the 72-member Global Coalition met to discuss how to speed up Coalition efforts to defeat ISIS in the remaining areas it holds in Iraq and Syria, and maximize pressure globally on its branches, affiliates, and networks. The Small Group meetings sought to assess the campaign and discuss ways to intensify pressure on ISIS in each of the critical areas of counter finance, foreign terrorist fighters, stabilization support, and communications.
INTERPOL Washington Assistant Directors Royce Walters and Scott Suitts discussed “INTERPOL Tools and Techniques” during a panel on “Radical Information Sharing.” This panel explored the critical role information sharing plays between countries seeking to detect and disrupt ISIS plotting and ISIS-inspired homegrown attacks. The session addressed both available and merging tools, as well as strategies to overcome barriers to information sharing that can slow progress. The goal for the panel was to encourage attendees from various agencies to discuss the latest policy and practical developments within their institutions.
Walters and Suitts emphasized the opportunities for additional information sharing on a case-by-case basis between agencies with diverse roles–within single countries and between different countries. Additional progress in this area would make it possible to build a more comprehensive, cross-cutting picture of known and potential terrorists, and possibly to flag a higher percentage of potential attacks earlier in their planning stages, they said.
In addition, they described current information-sharing architecture, including INTERPOL’s I-24/7 and Stolen and Lost Travel Documents (SLTD) databases. They underscored the importance of collating information from diverse sources and regions to obtain a more comprehensive picture of potential terrorist activity. For example, taken separately, known associations with violent extremists in one country, travel into areas of conflict in a second country, and suspect financial transactions in a third country may not provide sufficient grounds for heightened surveillance. However, taken together, these discrete activities may form a pattern that may indicate a connection with potential terrorist action.
According to Walters, “Many coalition partners expressed gratitude to the Iraqi government and military for the significant advances that have occurred over the last few months to defeat ISIS and liberate large areas of the country. It is clearly understood; however, that the fight is far from over. Some ISIS fighters will invariably attempt to blend in with the Iraqi population or try to enter another country. Coalition members recognize this and expressed a need for continued collaboration and tighter border controls to address this threat.”
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.
Heroin and Cocaine Vendor on AlphaBay Sentenced to 6.5 Years in PrisonRead the Press Release
FRESNO, Calif. — Abudullah Almashwali, 31, a Yemeni national formerly residing in Brooklyn, New York, was sentenced today to six and a half years in prison for conspiracy to distribute and distribution of heroin and cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Almashwali and co-defendant Chaudhry Ahmad Farooq, 24, a Pakistani national residing in Brooklyn, New York, were large-scale heroin and cocaine distributors on the dark web marketplace AlphaBay. Almashwali and Farooq used the vendor names “Area51” and “DarkApollo.”
According to the criminal complaint, Almashwali and Farooq accepted orders for heroin and cocaine on AlphaBay, and then mailed the narcotics from post offices in New York to customers throughout the United States. They received payment in Bitcoin. In May 2016, law enforcement officers made two undercover purchases of heroin from “Area51,” which were delivered to a post office box in the Eastern District of California. Postal records revealed that Almashwali purchased the postage for the two heroin parcels mailed to law enforcement, and that Farooq was involved in other mailings. Law enforcement agents were also able to determine that the encrypted email address used by “Area51” and “DarkApollo” was associated with actual Twitter, Instagram, and Facebook accounts used by Farooq.
Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) addresses of the computers accessing the network. They allow for payments to be made only in the form of digital currency, most commonly Bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.
Last week, the Justice Department announced that AlphaBay, the largest criminal marketplace on the internet, was shut down and that its creator and administrator was arrested following an indictment (1:17-cr-144-LJO), filed in Fresno on June 1. The indictment charged racketeering and various narcotics, identity theft, and money laundering offenses. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were proceeds of the AlphaBay organization’s illegal activities. A related civil forfeiture complaint has also been filed against numerous high value assets, including luxury vehicles, and real estate located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda.
U.S. Attorney Talbert stated: “The sentencing in this case is timely, as it closely follows our seizure and shut down of the AlphaBay criminal marketplace. That case resulted in an indictment filed in our district, but involved significant coordination and assistance from our partners in the Criminal Division’s Computer Crime and Intellectual Property Section, as well as the FBI and DEA. Although other markets are likely to open or continue to operate after AlphaBay’s demise, we have shown our ability to prosecute those who commit crimes using the dark web and to shut down the criminal enterprises that attempt to hide there. Today’s sentence highlights that people committing crimes on the dark web will be brought to justice.”
“Those who conduct criminal activity on the dark web under the guise of anonymity are mistaken, and this sentence serves as a reminder,” stated DEA Special Agent in Charge John J. Martin. “Recently, the DEA Fresno Resident Office worked tirelessly with our law enforcement counterparts to shut down the largest criminal marketplace on the internet, and we have no intention of stopping there. We will continue to investigate those who traffic drugs on the dark web or any place else.”
On January 17, 2017, Farooq pleaded guilty to conspiring to traffic heroin. According to the plea agreement, Farooq admitted to selling 636.5 grams of heroin on the dark web marketplace Alpha Bay in exchange for $145,807 in Bitcoin. He is scheduled to be sentenced on January 22, 2018. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is a product of an investigation by the Drug Enforcement Administration, with assistance provided by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), IRS Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Guatemalan National Charged with Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that VENACIO ORTIZ-LEON, age 29, a citizen of Guatemala, was charged last Friday in a one-count Bill of Information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326.
According to the Bill of Information, ORTIZ-LEON reentered the United States on or about June 3, 2017, after having been previously removed therefrom on or about January 27, 2011.
If convicted, ORTIZ-LEON faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year of supervised release after imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Greenfield Man Sentenced to 15 Years in Prison for Sexually Exploiting a 10-Year-Old BoyRead the Press Release
BOSTON – A Greenfield man was sentenced in federal court in Springfield today for sexually exploiting a 10-year-old boy.
Derek Lecompte, 27, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and 15 years of supervised release. In January 2017, Lecompte pleaded guilty to three counts of child exploitation.
Lecompte befriended a 10-year-old boy and his family and eventually spent time at their house and then alone with the boy. While alone with the child, Lecompte engaged in sex acts with the boy and took sexually explicit photos of the child, including photos of the two engaged in sex acts. Lecompte then distributed the photos on the internet. Lecompte faced state charges in connection with this case and has pleaded guilty in state court to aggravated rape and abuse of a child.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Northwestern District Attorney David E. Sullivan; and Greenfield Police Chief Robert H. Haigh Jr. made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Georgetown Indiana woman sentenced for stealing Social Security incomeRead the Press Release
Defrauded Social Security of over $114,000
PRESS RELEASE
New Albany –United States Attorney Josh J. Minkler announced today that a Georgetown, Indiana, woman was sentenced in federal court for defrauding the government of Social Security Income funds. Michelle A. South, 40, was sentenced to 10 months imprisonment by U.S. District Judge Tanya Walton Pratt after pleading guilty to Social Security Income fraud.
“SSI funds are designed to help the aged, blind and disabled, not able-bodied individuals,” said Minkler. “When funds are taken from those in most need, you can expect to face federal prosecution.”
From March 2001 through March 2016, South concealed the fact that she had been residing with her husband in their home in Georgetown, Indiana. She claimed on several federal government forms that she lived apart from her husband with three children and had no other sources of income. In reality, she lived with her husband who had income and would not have been eligible had she been truthful on her applications.
This investigation was conducted by the Social Security Administration-Office of the Inspector General.
“This sentence sends a clear message that there is no tolerance for egregious crimes committed against tax payer funded programs like SSI,” said Tracey Thanos, Special Agent in Charge, Social Security Administration-Office of Inspector General.
According to Assistant United States Attorney Kyle M. Sawa who prosecuted this case for the government, South must make restitution of $114,633 and serve three years of supervised release after her prison term.
Fresno Business Operator Sentenced to Prison for Tax EvasionRead the Press Release
FRESNO, Calif. — Jeffrey G. Vincent, 68, of Madera, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to four years and three months in prison for tax evasion, U.S. Attorney Phillip A. Talbert announced.
On April 7, 2017, a federal jury convicted Vincent on five counts of evading the assessment and payment of individual income taxes. According to evidence presented during the four-day trial, in 1991, Vincent began operating a Fresno-based engineering company called Veco Technologies, organized as Stafford Group Limited Partnership, for which Vincent was general partner. Vincent had not filed an individual income tax return since 1989, despite earning significant income from Stafford Group, including close to $500,000 between 2007 and 2010. Two federal tax liens were filed on Vincent’s assets in 1993 and 2000 when he failed to pay assessments made for earlier years’ tax delinquencies. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number. Vincent also funneled his income through various trusts and other entities.
“Mr. Vincent formed entities and trusts and funneled his income in a manner that enabled him to evade paying taxes,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “All taxpayers are required to follow the law and the law requires accurate reporting and timely payment of any tax due and owing. Today’s sentencing should send a clear message that those involved in these types of schemes will be held accountable for their crimes.”
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Christopher D. Baker and Kirk E. Sherriff prosecuted the case.
Former Tama Police Chief Sentenced to Federal Prison for Stealing Guns and Vehicles from Tama Police Department and Lying to Federal AgentRead the Press Release
The former chief of police of the Tama Police Department who stole and pawned a Tama police service weapon, two other guns held by the police department as evidence, multiple vehicles impounded by the police department, and then lied to a FBI Special Agent who was investigating those thefts was sentenced to federal imprisonment in federal court in Cedar Rapids.
Jeffrey Filloon, age 48, from Toledo, Iowa, received the prison term after a February 9, 2017, guilty plea to one count of possessing, selling, and disposing of a stolen firearm and one count of making false statements to a FBI Special Agent.
In a plea agreement, Filloon admitted that, while serving as the Tama Police Chief from July 2013 through August 2015, he stole and sold property, including three guns and four vehicles that were in police impound, from the Tama Police Department for his own personal benefit. Filloon further admitted that he lied to a FBI Special Agent who was conducting an investigation into the missing property by claiming he had bought one of the impounded vehicles he took and sold when, in fact, Filloon had not bought it from the individual he claimed sold it to him.
Filloon was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Filloon was sentenced to two months’ imprisonment and fined $5,000. A special assessment of $200 was imposed, and he was ordered to make $1,625 in restitution to the victims of his crimes, including the City of Tama. He must also serve a two-year term of supervised release after the prison term.
Filloon was released on bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-95.
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Former Executive Sentenced for Embezzling from Family-Owned Business and Cheating on TaxesRead the Press Release
PORTLAND, Ore. – On Monday, July 24, 2017, U.S. District Court Judge Anna J. Brown sentenced Andrew Henry Jacobs, 50, to 24 months in federal prison for wire fraud in an embezzlement scheme and 15 months in prison for filing false tax returns. The sentences arose from a multiyear swindle in which Jacobs stole more than $352,000 from Pacific Seafood Group (PSG) and failed to disclose the proceeds of the crime to the Internal Revenue Service (IRS), thereby evading at least $81,901 in personal income taxes.
Court documents and the parties’ statements at the time of sentencing indicate that Jacobs worked at PSG for more than a decade, ultimately rising to be the Vice President of Employee Leadership and Development at the 2,500-employee family-run firm. PSG fired Jacobs in 2015 after an audit of his expense reports revealed that he repeatedly claimed suspicious and unverified expenses. PSG hired a forensic accounting firm to quantify the scope of the theft. The firm found Jacobs submitted more than $900,000 in dubious expenses in just his final four years with the company. Due to the lack of older records, the accountants could not assess the full scope of Jacobs’s crime.
Where records were available, PSG’s accountants and government investigators confirmed that Jacobs spent hundreds of thousands of dollars on prostitutes, luxury travel, personal electronics, firearms, and gold coins. When confronted by federal investigators, Jacobs admitted both the embezzlement and the tax fraud. He waived indictment, pleaded guilty, and promised to pay restitution of $352,441 to PSG and $81,901 to the IRS. At the sentencing hearing, Judge Brown also ordered Jacobs to pay PSG an additional $126,444.89 to reimburse the company for the cost of retaining the forensic accounting firm.
Summarizing all of the conduct, Judge Brown noted that Jacobs’s long-running criminal conduct was "shameful" but agreed that he posed little risk of committing such offenses again. To minimize that risk, Judge Brown required Jacobs to disclose to future employers that he has been convicted of wire fraud in relation to embezzling from a former employer.
"Mr. Jacobs stole from his employer, his colleagues, and the American taxpayers. The sentences imposed in this case reflect the seriousness of his crimes," noted Billy J. Williams, United States Attorney for the District of Oregon, "and today’s result will serve as an important reminder that the FBI, the IRS, and the United States Attorney’s Office will work with victims to put perpetrators of financial fraud and tax cheats behind bars."
IRS Criminal Investigations (IRS-CI) Special Agent in Charge Darrel J. Waldon said "Mr. Jacobs’ actions victimized not only his employer, but the taxpaying citizens as well, by not paying taxes on the funds he embezzled and converted to personal use. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners – FBI and DOJ."
Daniel C. Occhipinti, PSG’s General Counsel, represented the company at the sentencing hearing and also commended the outcome: "This was a rogue former employee who committed a crime against our company, our team members and our entire community. We are very grateful to the U.S. Attorney’s Office and the outstanding team at the FBI for seeing that justice was done."
This case was investigated by the FBI and IRS-CI and prosecuted by Ryan W. Bounds, Assistant United States Attorney for the District of Oregon.
Former Employee of Commercial Supply Company Admits Fraud, False Testimony Before Grand JuryRead the Press Release
TRENTON, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products to numerous public and private entities, today admitted his role in a scheme to defraud customers and lying to a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 43, of South River, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Counts 1 and 6 of an indictment charging him with conspiracy to commit wire fraud and making false declarations before a grand jury.
According to documents filed in this case and statements made in court:
Martignetti admitted that from 2011 through 2013 he conspired with others to defraud certain Bayway Lumber customers by providing free items to customers’ employees and then recouping the cost of the items (plus additional revenue for Bayway Lumber) by overbilling and fraudulently billing the customers. Martignetti also admitted to supplying lower-quality, less expensive plywood to a customer, but charging for the more expensive, higher-quality plywood the customer had ordered.
Martignetti gave a variety of personal items to employees of some of Bayway Lumber’s customers, including Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, president and partial owner of Bayway Lumber, Martignetti then overbilled and fraudulently billed those customers. Dattilo kept a running tally of how much Martignetti and others overbilled and fraudulently billed customers, which many at Bayway Lumber referred to as the “Bank,” to ensure that Bayway Lumber recovered the full cost of the free items. Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced in July 2016 to 48 months in prison and ordered to pay $708,386 in restitution.Martignetti also conspired to provide one Bayway Lumber customer, Consolidated Edison Co. of New York Inc. (Con Edison), with lower-quality wood than it ordered and paid for. When Con Edison ordered graded plywood, a type of plywood graded by mills that had met a certain set of specifications, Martignetti, at Dattilo’s instruction, routinely sent plywood that was of a lower grade or not graded at all, including “reject” plywood, but charged Con Edison for the higher-quality plywood that it ordered.
Martignetti also pleaded guilty to falsely testifying before a federal grand jury while appearing as a witness under oath in March 2013 that he had never given Bayway Lumber items to City of Elizabeth employees for free, and that Elizabeth was never charged for items that were for Elizabeth employees’ personal use.
The conspiracy to commit wire fraud charge to which Martignetti pleaded guilty carries a maximum penalty of 20 years in prison. The charge of knowingly making false statements before a grand jury guilty carries a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for Sept. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Michael Waters; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorney Barbara R. Llanes, Chief, General Crimes Unit, of the U.S. Attorney’s Criminal Division, in Newark.
Defense Counsel: Michael Armstrong Esq., Willingboro, New Jersey
Former Bank Vice President Pleads Guilty to Employment Tax ConspiracyRead the Press Release
A former bank vice president pleaded guilty today to conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Douglas Corriher, 68, was the Vice President at a South Carolina-based bank. From 2009 through 2010, Corriher extended several factoring loans, through nominee entities, to a bank customer who operated staffing companies in North Carolina. Through the use of nominees, he was able to circumvent federal regulations limiting the amount of money that can be loaned to a single entity.
The staffing company promised its clients that it would pay the payroll taxes for thousands of low-wage temporary workers that it supplied to its clients. The company issued Forms W-2 and filed employment tax returns showing that the funds had been withheld from the wages of the workers. In fact, the payroll taxes were not paid over to the Internal Revenue Service (IRS). Corriher was aware that the company owed more than $1 million in payroll taxes. Notwithstanding this, Corriher continued to make advances on the loans knowing that the fund of unpaid payroll taxes would enable the staffing company to repay the loan and allow the bank to continue collecting high rates of interest on the loan advances along with lucrative fees.
Corriher’s sentencing hearing is scheduled for Oct. 6 before U.S. District Judge N. Carlton Tilley. He faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS Criminal Investigation, FBI and Federal Deposit Insurance Corporation Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorneys Nathan Brooks and Jeffrey A. McLellan of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Bank Vice President Pleads Guilty to Employment Tax ConspiracyRead the Press Release
WASHINGTON – A former bank vice president pleaded guilty today to conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Douglas Corriher, 68, was the Vice President at a South Carolina-based bank. From 2009 through 2010, Corriher extended several factoring loans, through nominee entities, to a bank customer who operated staffing companies in North Carolina. Through the use of nominees, he was able to circumvent federal regulations limiting the amount of money that can be loaned to a single entity.
The staffing company promised its clients that it would pay the payroll taxes for thousands of low-wage temporary workers that it supplied to its clients. The company issued Forms W-2 and filed employment tax returns showing that the funds had been withheld from the wages of the workers. In fact, the payroll taxes were not paid over to the Internal Revenue Service (IRS). Corriher was aware that the company owed more than $1 million in payroll taxes. Notwithstanding this, Corriher continued to make advances on the loans knowing that the fund of unpaid payroll taxes would enable the staffing company to repay the loan and allow the bank to continue collecting high rates of interest on the loan advances along with lucrative fees.
Corriher’s sentencing hearing is scheduled for Oct. 6 before U.S. District Judge N. Carlton Tilley. He faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS Criminal Investigation, FBI and Federal Deposit Insurance Corporation Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorneys Nathan Brooks and Jeffrey A. McLellan of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Five Members of Fraudulent Debt Collection Company Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Five members of a fraudulent debt collection scheme, including the company’s owner and operator, were sentenced today by U.S. District Judge Robert J. Conrad, Jr., to sentences ranging from 42 to 18 months, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina joins U.S. Attorney Rose in making today’s announcement.
Cedrick Clark, 36, of Concord, N.C. was sentenced to 42 months; Michael Boughner, 49, of Charlotte, was sentenced to 41 months; Cynthia Martinez, 37, of Charlotte, was sentenced to 36 months; Felicia Shaw, 46, of Gastonia, was sentenced to 24 months; and Humberto Gonzalez, 31, of Charlotte, was sentenced to 18 months. In addition to the prison terms imposed, each defendant was ordered to serve three years of supervised release. A sixth co-defendant, Benjamin Murray, 28, of Charlotte, is currently awaiting sentencing.
According to information contained in filed court documents and today’s sentencing hearings, Clark was the sole owner, operator, and leader of the fraudulent debt collection company operating as Capital Solutions Agency, and/or Berkeley Hughes and Associates, and/or the Vortex Group, collectively “BHA.” Clarks’ five co-conspirators, Boughner, Martinez, Murray, Shaw and Gonzalez served as both collectors and team leaders or supervisors.
According to court records, from November 2011 through May 2015, BHA operated in Mecklenburg County and allegedly defrauded thousands of debtors throughout the United States of approximately $6 million. Using a number of interconnected fraudulent debt collection companies, the co-conspirators executed their scheme to defraud by coercing purported debtors to pay money, some of which was not even owed, by providing false information and using harassing and abusive tactics.
Court documents indicate that BHA’s collectors used prepared scripts that contained false and misleading information designed to scare targeted victims into paying monies, including threats to bring criminal charges if the purported debtor did not pay his/her debt by the end of the telephone call. According to court documents and today’s sentencing hearings, false statements made included telling purported debtors that the company’s systems were “integrated with the court system” and that criminal charges would be filed in specific county courts.
Court documents show that to evade detection, disguise the fraudulent nature of the scheme and to scare their victims into paying, the collectors changed the name or the nature of the business from which they were purportedly calling. In some instances, the collectors falsely represented that they were law firms, that they had attorneys on staff to consult, and/or that the collectors themselves were attorneys. In other instances, they falsely represented themselves to be members of law enforcement, and even played a police scanner in the background. In addition, filed court documents and statements made in court today indicate that BHA collectors often engaged in other scare tactics to fraudulently induce victims into paying the alleged debts, including harassing family members, including their children, and friends and calling places of employment purportedly regarding service of process.
In handing down today’s sentences, Judge Conrad characterized the defendants’ conduct as “reprehensible,” noting that they were “targeting desperate debtors” and using “brutal tactics involving threats of jail” and “bullying techniques.” Judge Conrad further noted the “predatory” nature of the conduct defendants engaged in and the “serious, heinous nature of the circumstances of the offense.”
Each of the six defendants previously pleaded guilty to one count of engaging in a fraudulent debt collection conspiracy to commit mail and wire fraud. Clark pleaded guilty to an additional count of money laundering. The five defendants sentenced today will be ordered to report to the Federal Bureau of Prisons upon designation of federal facilities. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose commended the FBI for leading the investigation.
Assistant United States Attorney Maria K. Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Firearms Crime ReportRead the Press Release
Dominick Brooks, 29, was indicted by a federal grand jury for felon in possession of a firearm.
Robert Cooper, 46, was indicted by a federal grand jury for felon in possession of a firearm.
Olugbenga Folarin, 27, was indicted by a federal grand jury for felon in possession of a firearm.
Anthony Kirksey, 30, was indicted by a federal grand jury for felon in possession of a firearm.
Joseph Lee Miles, 31, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Nunley, 41, was indicted by a federal grand jury for felon in possession of a firearm.
James Cortes Smith, 33, was indicted by a federal grand jury for felon in possession of a firearm.
Christopher Starks, 36, was indicted by a federal grand jury for felon in possession of a firearm.
Chester Wilkerson, 56, was indicted by a federal grand jury for felon in possession of a firearm.
Cameron Bryant, 22, was indicted by a federal grand jury for felon in possession of a firearm, possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Kirk K. Darden, 23, was indicted by a federal grand jury for possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Jalen C. Sherrell, 21, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime.
Steven Gains, 26, pled guilty to one felony count of felon in possession of a firearm.
Glenn Hamer, 35, pled guilty to one felony count of felon in possession of a firearm.
Deshaum L. Ceruti, 42, pled guilty to one felony count of felon in possession of a firearm.
Cary Washington, 46, pled guilty to one felony count of felon in possession of a firearm.
Federal jury finds Bastrop man guilty of defrauding USDA over fake farm benefit schemeRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Bastrop farmer guilty last week of creating shell farms so he could receive more than $1.6 million in subsidy payments to which he was not entitled.
Brad A. McIntyre, 33, of Bastrop, La., was found guilty of one count of conspiracy to commit mail fraud, five counts of mail fraud and four counts of money laundering related to engaging in monetary transactions in property derived from specified unlawful activity. United States District Judge S. Maurice Hicks Jr. presided over the trial, which started July 10 and ended Friday, July 21. The jury returned a guilty verdict after deliberating for approximately five hours.
Evidence admitted at trial revealed that McIntyre, a fourth generation farmer and the owner of Delta Agriculture and Company, sought to avoid the Farm Service Agency direct program payment limitation of $40,000 per year per farm entity member. From August 2009 until February 2013, McIntyre conspired to create fictitious farm operations. When applying for FSA’s direct program payments, McIntyre listed the names of his relatives and employees as the owners of these entities when in fact he controlled and managed all of these farming entities. FSA’s Supplemental Revenue Assistant (SURE) and Crop Assistance Program (CAP) payments were each limited to $100,000 per person who experienced a qualifying crop loss because of disaster. These fake farms also fraudulently received disaster program payments from FSA.
When the Farm Service Agency mailed agricultural subsidy checks to the entities, they went to Post Office boxes in Mer Rouge established and controlled by McIntyre. He unlawfully received more than $1.3 million during the course of the scheme.
“I want to thank the U.S. Attorney’s office, OIG special agents and our investigative partners for their hard work on this investigation,” USDA-Office of Inspector General ASAC Dax Roberson stated. “When the integrity of USDA’s farming programs is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.
“Crimes involving the laundering of monies fraudulently obtained remain a priority for the special agents of IRS–Criminal Investigation,” IRS Special Agent in Charge Jerome R. McDuffie stated. “It is imperative to the achievement of the IRS mission that these cases are investigated and prosecuted to the fullest extent of the law. I want the law abiding taxpayers to know that we are working diligently to ensure that these individuals are held accountable for their misdeeds with regards to violating the laws enforced by the criminal division of the IRS.”
McIntyre faces 20 years in prison for the conspiracy count, 20 years for the mail fraud counts and 10 years for the money laundering counts. He also faces five years of supervised release, forfeiture of more than $1 million in property and a $250,000 fine for each count. Sentencing has been set for October 4, 2017.
The USDA-OIG and IRS-Criminal Investigation conducted the investigation. Supervisory Assistant U.S. Attorney Cytheria D. Jernigan and Assistant U.S. Attorney Tiffany E. Fields are prosecuting the case.
Federal Alien Smuggling Charge Filed Against Driver of Tractor-TrailerRead the Press Release
In San Antonio, 60–year-old James Matthew Bradley, Jr., is charged with one count of transporting illegal aliens, announced United States Attorney Richard L. Durbin, Jr., and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
A federal complaint filed this morning, alleges that Bradley unlawfully transported aliens in violation of law, resulting in the death of ten of the aliens transported. The tenth alien, an adult male, died overnight at a hospital. Upon conviction, the offense is punishable by life imprisonment or death, a $250,000 fine, and three years of supervised release.
According to the complaint affidavit filed by HSI Special Agent James Lara, San Antonio Police Department (SAPD) Officers responded to a call at the Wal-Mart store located at 8538 Interstate 25 Access Road in San Antonio shortly after midnight on Sunday, July 23. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. Bradley said he was transporting the trailer from Schaller, Iowa, to Brownsville, Texas. He denied knowing there were people in the trailer, and discovered them only when he exited the vehicle to relieve himself. He said he attempted to administer aid to them. Law enforcement officers from SAPD reported they found eight deceased persons and 30-40 others, all undocumented aliens. The driver, Bradley, was taken into custody.
During questioning, Bradley said he was traveling from Laredo to San Antonio, after having the tractor-trailer washed and detailed at a truck stop near Laredo. He intended to take the trailer to Brownsville to deliver it to someone who had purchased it. He stopped at the Wal-Mart and heard banging and shaking in the trailer. He was surprised when “he was run over by ‘Spanish’ people and knocked to the ground,” according to the affidavit. He realized that at least one person was dead. He said he knew the trailer refrigeration system did not work and that the four vent holes probably were clogged. He said he called his wife, but he did not call 911. He said about 30 to 40 people ran from the trailer.
Several of the undocumented aliens taken from the trailer and interviewed by HSI Special Agents described how they had been smuggled across the Rio Grande River near Laredo at different times and as part of different groups. They were harbored in one or more stash locations, and on Sunday, the groups were assembled in the trailer. One alien said his group of 24 had been in a “stash house” in Laredo for 11 days before being loaded into the trailer. They estimated the trailer contained between 70 and 180 to 200 people during transport. They described differing fees for being transported.
"To maximize their criminal profits, these human smugglers crammed more than 100 people into a tractor trailer in the stifling Texas summer heat resulting in ten dead and 29 others hospitalized," said Acting ICE Director Thomas Homan. "Human smugglers have repeatedly demonstrated that they have absolutely no regard for human life. Our ICE agents and officers, working closely with our law enforcement partners, will pursue these smugglers and bring them to justice."
An initial appearance for Bradley is scheduled before U.S. Magistrate Judge Elizabeth S. Chestney at approximately 11:00 a.m., today.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations, the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol.
Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Essex County, New Jersey, Man Sentenced to 41 Months in Prison for Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, man was sentenced today to 41 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Rickie Horvath, 56, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug-trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Horvath as a member of the drug trafficking organization.
Horvath admitted that from Feb. 5, 2014 to Aug. 13, 2014, he personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled, and sold the pills to members of the conspiracy and others. He said that on a single day in June 2014, he traveled to a doctor’s office in Livingston, New Jersey, where he and two conspirators each obtained a prescription for 60 Endocet pills. Horvath and his conspirators dropped off the three prescriptions to be filled by a pharmacy in East Orange, New Jersey. Horvath admitted that he and his two conspirators then found a fourth conspirator to buy the 180 Endocet pills. Horvath and his conspirators traveled to the East Orange pharmacy with the third conspirator buyer, where Horvath used the fourth conspirator’s money to purchase the filled prescriptions. Horvath and his conspirators then sold the 180 Endocet pills to the fourth conspirator.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and sold by Horvath each contained 10 milligrams of oxycodone.In addition to the prison term, Judge Salas sentenced Horvath to three years of supervised release.
Of the 16 people that have been charged in this conspiracy, 13 have been convicted, including the leader, Victoria Horvath, who was sentenced Oct. 20, 2016 to 92 months in prison. Charges against a defendant who died in April 2014 have been dismissed.
Acting U.S. Attorney Fitzpatrick credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. The principal mission of the OCDETF program, under which this investigation was conducted, is to identify, disrupt and dismantle the most serious drug-trafficking, weapons-trafficking and money-laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Damian Conforti Esq., Newark
Employee of New Jersey-Based Trucking Company Gets 33 Months in Prison for Stealing More Than $3 Million from Her EmployerRead the Press Release
TRENTON, N.J. – A former employee of a New Jersey based-trucking company was sentenced today to 33 months in prison for stealing more than $3 million by issuing company checks for her own benefit, Acting U.S. Attorney William E. Fitzpatrick announced.
Tracey Perrigan, 55, of Sparta, Tennessee, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count One of an indictment charging her with wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
Perrigan was an employee of a company identified in the indictment as “Company A,” the corporate parent of several subsidiary trucking, rigging, and transportation companies. Company A was headquartered in Oceanside, New York, and had a Branchburg, New Jersey, facility where Perrigan worked.
Company A used the “Comchek” system, which enables clients to authorize and monitor fuel and repair expenditures by drivers in remote locations. As part of her duties, Perrigan was responsible for authorizing Comcheks drawn on Company A’s bank account. From March 2007 through August 2015, Perrigan diverted $3.25 million from her employer to an entity identified as “Company B,” a trucking and towing company based in Tennessee that she owned with another person. Company B never conducted any business with Company A.
In addition to the prison term, Judge Sheridan sentenced Perrigan to three years of supervised release. Perrigan must also pay restitution of $3,251,419.65.
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 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
Empire Resident Indicted for Deepwater Horizon Settlement FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TONY RILEY, age 48, of Empire, Louisiana, was charged Friday in a one-count Indictment for committing mail fraud in relation to the BP settlement fund for the Deepwater Horizon oil rig explosion.
According to the indictment, RILEY submitted false documents to the Gulf Coast Claims Facility (GCCF) and the Deepwater Horizon Economic Claims Center (DHECC), in which he claimed that he suffered lost income in relation to his seafood business. As a result of those false claims, RILEY received $221,681.62 in reimbursement to which he was not entitled.
If convicted, RILEY faces a maximum sentence of 20 years in prison, a $250,000 fine, and up to three years of supervised release.
Acting U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Secret Service New Orleans Field Office. Assistant United States Attorney Matthew Payne is in charge of prosecution.
El Paso Man Pleads Guilty to Using Interstate Communications to Threaten Las Cruces Police OfficersRead the Press Release
ALBUQUERQUE – Sean Stinson, 33, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to using interstate communications to threaten the lives and safety of Las Cruces Police Department (LCPD) officers.
Stinson was arrested on Sept. 2, 2016, for making telephone calls from El Paso to individuals in Las Cruces during which he threatened the lives of LCPD officers. According to the criminal complaint, Stinson had several telephone calls, some of which were recorded, with LCPD officers during which Stinson threatened to shoot, kill and otherwise injure specific officers.
Stinson subsequently was indicted on Sept. 21, 2016, and charged with seven counts of transmitting interstate communications with intent to threaten to injure another person. According to the indictment, Stinson committed the crimes between Aug. 24, 2016 and Sept. 2, 2016.
During today’s proceedings, Stinson pled guilty to the indictment and admitted that on Aug. 24 and 25, 2016, he made several telephone calls from El Paso to the LCPD during which he threatened to injure an LCPD officer. Stinson acknowledged that he intended his calls to be perceived as threats.
At sentencing, Stinson faces a statutory maximum penalty of five years in prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the LCPD. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
DeKalb Tax Preparer Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
Jackson, Miss. – Christopher Lashawn Chamberlin, 40, of DeKalb, Mississippi, was sentenced on July 20, 2017, on charges that he conspired to defraud the government by preparing and filing false tax returns using stolen identities provided to him by others, announced Acting U.S. Attorney Harold Brittain and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie.
Chamberlin, who owned and operated C & T Tax Services in De Kalb, pled guilty on April 11, 2017, to conspiracy to defraud the government. U.S. District Judge Tom S. Lee sentenced Chamberlin to serve 30 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay over $11 million dollars in restitution to the government.
The investigation revealed that Chamberlin knowingly submitted false claims to the IRS by preparing and submitting false U.S. Individual Income Tax Returns, Forms 1040, using stolen identities provided to him by a co-conspirator. The fraudulent returns would have directed the refunds to be deposited into the accounts of other co-conspirators, but IRS-Criminal Investigation was able to stop the payments before they were made, thanks to the swift action of the De Kalb, Mississippi Police Department in investigating and reporting the scheme.
Chamberlin also admitted to preparing tax returns for other individuals that included exaggerated losses which resulted in fraudulently increased refunds. He was ordered to pay restitution of over $11 million dollars for these fraudulently obtained refunds.
IRS Criminal Investigation Special Agent in Charge, Jerome R. McDuffie, stated, "We are pleased with the sentence imposed by the court in this matter. We want the individuals who engage in these schemes to know that we will pursue prosecution and seek to hold them accountable for their corrupt endeavors to rob the nations’ taxpayers. IRS – Criminal Investigation is particularly appreciative of the partnership we enjoy with our local law enforcement agencies, and the Office of the United States Attorney in the investigation and prosecution of identity theft related tax crimes."
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant United States Attorney Dave Fulcher.
Dallas man sentenced to 65 months in prison for role in southwest la methamphetamine conspiracyRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that the last defendant in a drug conspiracy was sentenced last week to more than five years in prison for his role in a methamphetamine distribution scheme that stretched from Mexico to Texas to southwest Louisiana.
Raul Perez-Mendoza, 26, a Dallas Texas resident, originally from San Luis Potosi, Mexico, was sentenced Friday by U.S. District Judge Dee D. Drell on one count of conspiracy to posses with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. Perez-Mendoza and seven other defendants conspired to distribute methamphetamine in southwest Louisiana from January 2012 to July 2013.
In addition to Perez-Mendoza, seven other defendants were indicted. They are: Mario Barazza-Corral, 42, and Omar Ivan Barazza-Corral, 33, of Chihuahua, Mexico, who are brothers; Sergio Reyes Castillo, 51, of Mexico City, Mexico; Jessica Kristin Clark, 43, of Houston, Texas; Lazaro Perez Cribeiro, 53, of Cuba; Brian Keith Hebert, 55, of Ragley, La.; Billy Washington Hyatt, 47, of Singer, La.; and Jarrid James Hargrave, 35, of Abbeville, La. Omar Ivan Barazza-Corral was not arrested and is still being sought for prosecution. These rest of the defendants previously pleaded guilty and were sentenced as shown below:
Defendants Prison term Supervised release Counts* Date Mario Barazza-Corral 108 months — 1, 2-8, 10 Jan. 13, 2016 Omar Barazza-Corral — — — — Sergio Reyes Castillo 120 months 5 years 1 Dec. 10, 2015 Jessica Clark 60 months 5 years 1 Dec. 10, 2015 Lazaro Perez Cribeiro 70 months — 1, 3-8 Jan. 12, 2016 Bryan Hebert 87 months 5 years 1,9 Feb. 25, 2016 Billy Hyatt 120 months 5 years 1 Jan. 11, 2016 Jarrid Hargrave 57 months 5 years 1 July 16, 2015*Count 1 is conspiracy to distribute and possess with intent to distribute methamphetamine, counts 2-8, 10 and 11 are distribution of methamphetamine, and count 9 is possession with intent to distribute methamphetamine.
According to Perez-Mendoza’s March 9, 2017 guilty plea, Mario Barazza-Corral was the leader of the conspiracy and imported methamphetamine from Mexico. He would then transport the drugs to points in Texas and then either transport them himself or arrange for others to transport the drugs to Vinton, La. He would supply his brother Omar Ivan Barazza-Corral who lived in Vinton with drugs, and his brother would distribute them to others. Perez-Mendoza assisted the brothers with transporting and distributing 500 grams to 1.5 kilograms of a mixture or substance containing methamphetamine.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Havana Speed.” Homeland Security Investigations, DEA, Calcasieu Parish Sheriff’s Office, Vinton Police Department and Allen Parish Sheriff’s Office conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Kelly P. Uebinger and Jamilla A. Bynog are prosecuting the case.
Cohoes Man Sentenced to 151 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Paul A. Light, age 47, of Cohoes, New York, was sentenced today to 151 months in prison for distributing, receiving, and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his March 27, 2017 guilty plea, Light admitted that between March, 2015 and October, 2015 he used the Internet and a peer-to-peer file sharing program to receive and distribute multiple child pornography files. Light further admitted that he used various electronic storage devices to possess hundreds of child pornography video files and thousands of child pornography still image files.
Senior United States District Judge Gary L. Sharpe also imposed a 10-year term of supervised release, which will start after Light is released from prison. Judge Sharpe also ordered Light to pay a total of $142,500 in restitution to 15 victims whose images Light possessed. As a result of his conviction, Light will be required to register as a sex offender after leaving prison.
This case was investigated by Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Rick Bellis.
Chinese national living in Massachusetts arrested and charged with distributing opioids that were shipped from China to the U.S. and ultimately to OhioRead the Press Release
A Chinese national living in Massachusetts was arrested and charged with distributing opioids and other drugs that were shipped from China to the United States and ultimately to Ohio, law enforcement officials said.
Bin Wang, 42, operated Cambridge Chemicals, Wonda Science, and other companies from a warehouse in Woburn, Massachusetts.
Law enforcement began investigating shipments of carfentanil, fentanyl and other opioids in August 2016, after a series of fatal overdoses in Northeast Ohio, according to a criminal complaint filed in the case.
That investigation led them to several Chinese web sites, which they learned were selling kilogram amounts of fentanyl and fentanyl analogues, which were shipped via private carriers such as FedEx. One of the web sites was used to purchase acetylfentanyl that caused the overdose deaths of two Summit County residents in 2015, according to the affidavit.
Beginning in November 2016, undercover agents began ordering opioids and other drugs from a man in China identified at “Gordon Jin.” The agents wired money to China using Western Union or MoneyGram. Investigators learned Jin sent the drugs Wang in Massachusetts, who in turn mailed the drugs domestically, including to locations in Northeast Ohio, according to the affidavit.
The affidavit details numerous sales and shipments of drugs from China to Massachusetts to Ohio from November 2016 through this month.
“Increasingly, the opioids that are killing our friends and neighbors are being sent here from China,” said Acting U.S. Attorney David Sierleja. “Shutting down this pipeline will help in our efforts to turn the tide on the opioid epidemic. We will focus on prevention, education, and aggressive law enforcement, both here and around the world.”
DEA Special Agent in Charge Timothy J. Plancon said: “The importation of opioids and other synthetic drugs from China has played a significant role in America’s current drug use epidemic. Over 60,000 people a year die from drug overdoses in this country, and halting all methods of drug trafficking, including by way of the Internet is a top priority of the DEA. This investigation makes clear that geographic and technological hurdles will not stop DEA and our partners from bringing to justice those responsible for the illegal distribution of drugs in the U.S.”
“As opioids and other dangerous drugs continue to plague our communities in Ohio, a unified law enforcement community is the only way to stem the tide of this dangerous and deadly epidemic,” said Steve Francis, special agent in charge HSI Detroit, which covers Michigan and Ohio. “In order to have a significant impact, these organizations must be attacked from the street-level dealer to the wholesale distributor.”
“This investigation is a great example of a collaborative effort of federal agencies and a local drug task force working together to identify and track down people and organizations that are responsible for the ever-increasing shipments of very powerful synthetic opiates into Ohio,” said Don Hall, director of the MEDWAY Drug Enforcement Agency.
The investigation is ongoing.
This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cronin following an investigation by the DEA, Homeland Security Investigations and the Medway Drug Enforcement Agency, a drug task force serving Wayne County.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charlestown Woman Sentenced for Fraudulently Cashing 287 Tax Refund ChecksRead the Press Release
BOSTON - A Charlestown woman was sentenced today in federal court in Boston for fraudulently cashing 287 U.S. tax refund checks worth approximately $1.8 million.
Claudia Toribio, 35, was sentenced by U.S. District Court Judge Leo T. Sorokin to six months in prison, three years of supervised release, and ordered to pay $1,836,862 in restitution. On March 29, 2017, Toribio pleaded guilty to one count of theft of public money.
From February 2011 to Dec. 21, 2011, Toribio, who was employed by a check cashing business, was involved in a stolen identity refund fraud scheme in which she fraudulently cashed 287 U.S. tax refund checks totaling $1,836,862. When confronted by her employer in late 2011, she admitted her involvement in the scheme.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Celgene Agrees to Pay $280 Million to Resolve Fraud Allegations Related to Promotion of Cancer Drugs for Uses Not Approved by FDARead the Press Release
LOS ANGELES – Celgene Corp., a manufacturer of pharmaceuticals headquartered in Summit, New Jersey, has agreed to pay $280 million to settle fraud allegations related to the promotion of two cancer treatment drugs for uses not approved by the Food and Drug Administration, the Justice Department announced today.
Celgene agreed to pay the settlement to resolve a “whistleblower” lawsuit that alleged it had violated the federal False Claims Act by submitting false claims to Medicare. The lawsuit also alleged that Celgene violated the laws of 28 states and the District of Columbia by submitting fraudulent claims to state health care programs, including California’s Medi-Cal program.
Pursuant to the settlement, which was finalized last week, Celgene will pay $259.3 million to the United States and $20.7 million to the 28 states and the District of Columbia. California will receive $4.7 million, more than any other state.
The settlement resolves allegations brought in a “whistleblower” lawsuit that Celgene promoted two cancer drugs – Thalomid and Revlimid – for uses that were not approved by the FDA and not covered by federal health care programs. The allegations included the use of false and misleading statements about the drugs, and paying kickbacks to physicians to induce them to prescribe the drugs.
“Patients deserve to know their doctors are prescribing drugs that are likely to provide effective treatment, rather than drugs marketed aggressively by pharmaceutical companies,” said Acting United States Attorney Sandra R. Brown.
The whistleblower lawsuit was filed in United States District Court by Beverly Brown, who was employed as a sales manager by Celgene, under the qui tam provisions of the False Claims Act and similar laws of the District of Columbia and the 28 states included in the lawsuit. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The United States may intervene in the lawsuit, or, as in this case, the whistleblower may pursue the action.
“Today’s recovery again spotlights the importance of the False Claims Act in preserving precious government health plan resources,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This invaluable law enlists all in the battle against fraudulent health care schemes.”
The case, United States ex rel. Brown v. Celgene Corp., CV10-3165, was monitored by the United States Attorney’s Office, the Civil Division’s Commercial Litigation Branch, and HHS-OIG.
The claims settled by this agreement are allegations only, and the defendant did not admit liability in settling the action.
Career fraudster and identity thief sentenced to five years in federal prisonRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a life-long perpetrator of fraud and identity theft schemes. Catherine A. Demaree, 65, was sentenced to 61 months in federal prison by U.S. District Judge Tanya Walton Pratt after pleading guilty to charges of mail fraud and aggravated identity theft.
“For decades, Catherine Demaree wreaked havoc on Hoosiers’ financial lives,” said Minkler. “Identity theft is a particularly insidious crime, as it devastates people’s credit, which often takes years to repair. This Office will prosecute such crimes to the fullest extent of the law, particularly recidivists like Demaree. Today, her streak of fraud and identity theft comes to an end.”
Demaree’s criminal record began in 1978. Since then, she has been convicted 22 times, most of them felonies and most of them for fraud, forgery, and identity theft. For nearly 40 years, in multiple states and throughout Indiana, she has stolen people’s identities and checkbooks, applied for credit cards and loans in their names, and run up bills for her own personal purchases before being caught. In addition to the identities she stole, she has used over 30 aliases and a dozen false dates of birth and social security numbers throughout her life to conceal her own identity.
In this case, she was caught using Social Security numbers and other identifying information from over 20 individuals throughout southern Indiana. She used their information to apply for bank loans and over 100 credit cards, which she used to make cash withdrawals and personal purchases, such as groceries, gas, phone bills, rental cars, hotel rooms, pizza delivery, and weekly trips to the nail salon.
fact that she had a personal relationship with many of the victims did not deter her. She exploited that relationship to gain access to their personal information, something she had done in her prior offenses as well. Her victims in this case included her next-door neighbors, the owner of a tanning salon where she tanned, and a friend who took Demaree in after Demaree lied and told her that she was being abused by an estranged husband. In fact, Demaree had been arrested by local police for fraud and forgery and had just bonded out of jail. When the friend realized Demaree’s lie, she confronted her. Demaree fled, stealing credit cards and checkbooks belonging to her friend and her friend’s husband and sister.
Ultimately, Demaree made her way to Urbana, Missouri, where she approached an elderly woman who had advertised online for a companion and home health assistance. Demaree spent about a week with the Missouri woman before running off with her checkbook and personal information. Demaree was arrested in Kansas shortly thereafter with the Missouri woman’s checkbook, Social Security card, and Medicare card, along with similar documents for many of the Indiana victims.
Under federal law, Demaree will serve at least 52 months of her 61-month sentence – by far the longest sentence she has received to date.
According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Demaree will be closely supervised for 3 years following her prison time.
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Canton man sentenced to 10 years in prison for child pornography crimesRead the Press Release
A Canton man was sentenced to more than 10 years in prison for child pornography crimes, said Acting U.S. Attorney David Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Matthew Ungashick, 40, was sentenced to 121 months in prison. He knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct in July 2016. He also possessed a two external computer hard drives and numerous computer disks, each of which contained child pornography, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation and the Canton Police Department.
Beverly Hills Plastic Surgeon Pleads Guilty to Hiding Offshore Bank Account from the IRSRead the Press Release
LOS ANGELES – A Beverly Hills plastic surgeon who earned nearly $1.3 million while working in Dubai over a three-year period pleaded guilty today to failing to disclose a foreign bank account to the Internal Revenue Service.
Marc Edward Mani, 49, pleaded guilty before United States District Judge R. Gary Klausner.
Mani pleaded guilty to one count of failing to file a foreign bank and financial account report (FBAR) for the 2013 tax year.
According to the plea agreement filed in this case, while working as a plastic surgeon in Beverly Hills, Mani began to travel to Dubai in 2011 to perform plastic surgery for a foreign medical center. Mani’s accountant, who was aware that Mani was earning foreign income, informed him that he would be required to report any foreign bank accounts under his ownership or control to the IRS.
In 2012, Mani opened a bank account with a financial institution based in Dubai and began depositing income he earned from abroad into this account. By February 2013, Mani’s foreign bank account held more than $400,000. However, Mani willfully failed to file a FBAR to disclose his foreign bank account for the calendar years 2012 and 2013.
In addition to failing to disclose his interest in his foreign bank account, Mani also failed to report on his federal income tax returns the vast majority of the approximately $1.28 million in foreign income he earned in Dubai for the years 2012, 2013 and 2014.
United States citizens who have an interest in or authority over a financial account in a foreign country with assets over $10,000 are required to disclose and report the foreign financial account to the United States Department of Treasury for each year the financial account exists.
Mani is scheduled to be sentenced by Judge Klausner on February 5. The statutory maximum sentence he can receive is five years in federal prison.
This case is the product of an investigation by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Charles Parker and James C. Hughes of the Tax Division.
Athens Man Sentenced to Six Years for Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Steven Strang, Jr., 38, of Athens, Maine, was sentenced Friday in U.S. District Court by Judge John A. Woodcock, Jr. to 6 years in prison and 10 years of supervised release for possession of child pornography. Strang pled guilty on May 6, 2016.
According to court records, from about June 15, 2015 to about 20 August, 2015, Strang possessed dozens of video files depicting child pornography. Many of these videos, which he had purposely sought out and downloaded from the internet, depicted the sexual exploitation of prepubescent children under the age of 12.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Alleged Head of Wildlife Smuggling Ring Extradited from AustraliaRead the Press Release
Guan Zong Chen (“Graham Chen”), a Chinese national was arraigned today in federal court in Boston, Massachusetts on charges that he led a conspiracy to illegally export (smuggle) $700,000 worth of wildlife items made from rhinoceros horn, elephant ivory and coral from the United States to Hong Kong. Chen was arrested last year when he traveled from China to Australia and today’s hearing was his first court appearance on an indictment returned by a Boston grand jury in 2015 and unsealed in anticipation of the hearing.
According to the eight-count indictment, Chen purchased the wildlife artifacts at U.S. auction houses located in California, Florida, Ohio, Pennsylvania, New York and Texas. He conspired with another Chinese national, a recent college graduate in China to travel to the United States to pick up the purchased items and either hand carry or arrange for them to be mailed to another co-conspirator that owned a shipping business in Concord, Massachusetts. The shipper then repacked the wildlife items and exported (smuggled) them to Hong Kong with documents that falsely stated their contents and value and without obtaining required declarations and permits. In April 2014, Chen visited the United States and visited the shipper in Concord, Massachusetts. During the visit with the shipper, CHEN instructed the shipper to illegally export (smuggle) a sculpture made from elephant ivory to Hong Kong on Chen’s behalf and falsely declared it to be made of wood and worth $50.
The unsealing of the indictment and court appearance were was announced today by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney William D. Weinreb of the District of Massachusetts. In announcing the case today, Acting Assistant Attorney General Wood and Acting U.S. Attorney Weinreb expressed their appreciation to the Australian Federal Police and the Australian Attorney-General’s Department for their help in apprehending Chen and extraditing him to the United States.
Trade in rhinoceros horn, elephant ivory and coral have been regulated since 1976 under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 175 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Animals listed under CITES cannot be exported from the United States without prior notification to, and approval from, the U.S. Fish & Wildlife Service.
was apprehended as part of Operation Crash, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of and trafficking in protected species including rhinoceros and elephants.
An indictment contains allegations that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement and the Justice Department’s Environmental Crimes Section, with assistance from the U.S. Attorney’s Office for the District of Massachusetts and support on the extradition from DOJ's Office of International Affairs and the U.S. Marshals Services in the District of Massachusetts. The government is represented by Senior Litigation Counsel Richard A. Udell and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Albuquerque Man Sentenced to Prison for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – William Colbert, 38, of Albuquerque, N.M., was sentenced on July 21, 2017, in federal court to 41 months in prison followed by three years of supervised release for his conviction on bank robbery charges.
Colbert and co-defendants Joleen Sedillo, 42, and Abel Lopez, 31, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery charges. The criminal complaint alleges that Colbert, Sedillo, and Lopez robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Colbert, Sedillo, and Lopez were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
On April 5, 2017, Colbert pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Colbert admitted accompanying Sedillo and Lopez to the Bank of the West branches they planned to rob. Colbert further admitted that on July 14, 2016, he entered a Bank of the West branch while disguised with the intent to commit a robbery but left without obtaining any money.
On April 7, 2017, Lopez pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. Under the terms of his plea agreement, Lopez will be sentenced within the range of 27 to 33 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
On March 28, 2017, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. Sedillo was sentenced on July 14, 2017, to 27 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Alaska Man Sentenced to 90 Months for Role in Drug Conspiracy and Money LaunderingRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Brandon Johnson, 37, was sentenced by Senior U.S. District Judge Ralph R. Beistline to serve 90 months in prison, followed by three years of supervised release, for his role in a drug trafficking conspiracy that brought controlled substances, including heroin and methamphetamine, into Alaska.
Brandon Johnson was indicted with multiple co-conspirators including Hakim Giddins, Shakin Giddins, Markin Giddins, Tara McNutt, Kourtney Davis, and Briana Herndon. According to court documents, from 2014 to 2016, McNutt, Davis, and Herndon opened various mailboxes with Alaska addresses for the purpose of receiving heroin from California. This heroin was received and distributed in Alaska by Hakim Giddins and his co-conspirators. Brandon Johnson himself possessed heroin for distribution. As part of this case, Brandon Johnson also pled guilty to being a felon in possession of a firearm.
During this same time frame, Brandon Johnson and others also entered into an agreement to launder the proceeds obtained from the distribution of drugs brought into Alaska by the conspiracy. The cash proceeds from the sale of these drugs was laundered by making deposits into bank accounts located in Alaska in other people’s names. This money was then withdrawn in California. Cash was also shipped in bulk from Alaska to California. Hakim Giddins directed Brandon Johnson and others to make bank deposits on his behalf with money that he knew had come from drug trafficking. Hakim Giddins believed that by having the deposit made that way it would conceal his connection to the money as well as to the true source of the money.
Brandon Johnson is a twice-convicted felon who came to Alaska from California. In California he was convicted of burglary and imposed a suspended sentence. Shortly thereafter Johnson committed another burglary and was convicted and received a nine year sentence. Johnson later moved to Nevada where he committed another felony grand larceny and burglary.
Multiple conspirators were indicted for criminal conduct related to this drug conspiracy. The following defendants have pleaded guilty to criminal charges and have been sentenced to the following prison terms in the past three month:
• Brandon Johnson, sentenced to 90 months in prison on July 24, 2017
• Hakim Giddins, sentenced to 16 years in prison on May 24, 2017
• Shakin Giddins, sentenced to 6 years in prison on May 25, 2017
• Markin Giddins, sentenced to 5 years in prison on May 16, 2017
• Tara McNutt, sentenced to 42 months in prison on June 8, 2017
• Kourtney Davis, sentenced to 18 months in prison on May 16, 2017
• Briana Herndon, sentenced to 9 months in prison on May 24, 2017
The Alaska case was prosecuted by Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office for the District of Alaska, and was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the Anchorage Police Department (APD).
23 July 2017
Statement by United States Attorney Richard L. Durbin, Jr., Regarding Alien Smuggling Incident this MorningRead the Press Release
"San Antonio firefighters and police responded to a horrific scene this morning on the southwest side of town. They discovered an alien smuggling venture gone horribly wrong. Eight immigrants were found dead. At least twenty more were in serious condition. All were victims of ruthless human smugglers indifferent to the well-being of their fragile cargo. The South Texas heat is punishing this time of year. These people were helpless in the hands of their transporters. Imagine their suffering, trapped in a stifling trailer in 100-plus degree heat. The driver is in custody and will be charged. We will work with the Homeland Security Investigations and the local responders to identify those who were responsible for this tragedy."
Richard L. Durbin, Jr. United States Attorney
Western District of Texas
Statement Concerning the Tractor-Trailer of Undocumented Aliens Found in Southwest San Antonio on July 23, 2017Read the Press Release
For clarification the number of persons recovered from the trailer was 39, not the 38 reported earlier. The 39th person had been in the trailer but authorities found him this morning in a wooded area nearby. The number of individuals who have died has risen to nine. All of the deceased are adult males. Thirty others are being treated at area hospitals. At this time, investigators are making efforts to identify the victims and will seek to notify family and next of kin. Officials will not release the identities or alienage of victims until relatives can be notified.
A subject identified as James Mathew Bradley, Jr., age 60, from Clearwater, Florida, is being held in federal custody in connection with this incident. A criminal complaint will be filed in federal court in San Antonio on Monday morning. It is anticipated that Bradley will have an initial appearance shortly after that time.
The Department of Homeland Security/Homeland Security Investigations together with Immigration Customs Enforcement -- Enforcement and Removal Office, the San Antonio Police Department, the San Antonio Fire Department, the Bexar County Sheriff’s Office, the Border Patrol, U. S. Attorney’s Office, and the Bexar County District Attorney’s Office, are continuing the investigation.
Anyone having any information should call the ICE tip line at 866-347-2423. Any persons who were transported in the trailer should immediately seek medical attention.
It is important to note that the filing of a criminal complaint is merely a charge and should not be considered as evidence of guilt. A defendant is presumed innocent until proven guilty in a court of law.
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22 July 2017
Hawaii Soldier Indicted for Attempting to Provide Material Support to ISISRead the Press Release
An indictment was returned July 21 charging Ikaika Erik Kang, 34, an Army sergeant first class stationed at Schofield Barracks, Hawaii, with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Kang was previously arrested on July 8, and ordered detained pending further proceedings.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Elliot Enoki of the District of Hawaii and Special Agent in Charge Paul Delacorte of the FBI’s Honolulu Field Office made the announcement.
The grand jury indictment, which was filed on July 19, charged Kang with four counts of attempting to provide material support to ISIS, based on events that occurred in Hawaii between June 21 and July 8. The indictment and an earlier criminal complaint allege that Kang met with undercover agents of the FBI whom he believed to be affiliated with ISIS and provided military information, some of which was classified at the SECRET level. Kang is also charged with providing property (a drone,s military clothing and equipment) and training (instruction on combat techniques and weapons training which was videotaped for future use by ISIS) to undercover agents whom he believed to be affiliated with ISIS.
Kang will appear in court on July 24, for an arraignment and plea on the charges, at which time a trial date will be scheduled.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of the charges, Kang faces a maximum of 20 years in prison and up to a $250,000 fine for each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI and the U.S. Army Criminal Investigation Division. This case is being prosecuted by Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Ken Sorenson and Marc Wallenstein.
21 July 2017
Zeta Leader “Talivan” Sent to PrisonRead the Press Release
LAREDO, Texas - Ivan Velasquez-Caballero, aka Talivan or 50, has been sentenced to federal prison for 30 years following his convictions of conspiracy to possess with intent to distribute controlled substances and conspiracy to launder monetary instruments, announced Acting U.S. Attorney Abe Martinez.
Velasquez-Caballero was a plaza boss for Nuevo Laredo in 2004 under the Gulf Cartel and one of the leaders of the Zetas drug cartel from 2005 until his arrest by Mexican authorities in August 2012. He pleaded guilty April 7, 2014.
Today, U.S. District Judge Micaela Alvarez ordered Velasquez-Caballero to federal prison for 360 months and imposed a forfeiture order of $10 million. At the hearing, the court noted that here was sufficient evidence to show that the Zetas were probably responsible for starting the violence that still plagues Mexico today, stating that even though it has morphed into something different now, Velasquez-Caballero had some responsibility for that. Not a U.S. citizen, Velasquez-Caballero is expected to face deportation proceedings following his release from prison.
The charges stem from a Feb. 17, 2010, indictment charging Velasquez-Caballero and 33 others with 47 counts alleging drug conspiracy, kidnapping conspiracy, firearms conspiracy, money laundering conspiracy, conspiracy to kidnap and murder U. S. citizens in a foreign country, use of juveniles to commit a violent crime, accessory after the fact, solicitation, as well as substantive money laundering, drug trafficking and interstate travel in aid of racketeering charges.
At the hearing today, the court also heard from the father of a missing Laredo woman. He stated that Velasquez-Caballero had information about her disappearance and that he would like an opportunity to sit down with him to talk about that matter. While the court was not holding Velasquez-Caballero personally responsible for the murders that were committed in this case, the court noted that he was a ranking member when those murders were ordered. Judge Alvarez recounted each of the murders that were part of the indictment and reflected on the testimony of the mother of one of the victims. The court noted that the mother’s plea for information as to the location of her son’s body so he could be given a proper burial had stuck with the court.
The drug conspiracy involved the importation and distribution of 150 kilograms or more of cocaine and 1000 kilograms or more of marijuana from Mexico into the United States. Millions of dollars in drug proceeds and over 100 firearms were also exported from the United States to Velasquez-Caballero and others in Mexico.
To date, 15 others have been convicted by plea or trial.
Velasquez-Caballero, 47, of Nuevo Laredo, Tamaulipas, Mexico, has been in custody in the U.S. since he was extradited to Laredo on Nov. 21, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Laredo Police Department conducted the Organized Crime Drug Enforcement Task Force investigation with the assistance of Immigration and Customs Enforcement’s BEST task force, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, U.S. Marshals Service, Webb County District Attorney’s Office and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Westfield Man Indicted for Receipt of Child PornographyRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that a federal grand jury sitting in Hammond has returned an indictment against William Moit, age 70, who was formerly a resident of Rensselaer, Indiana but now resides in Westfield, Indiana.
According to documents in this case, Moit, who was convicted in Jasper County, Indiana in 2000 for possessing child pornography and contributing to the delinquency of a minor, was charged, in the federal indictment, with receiving child pornography.
If you have any information about Moit’s activities involving children, please contact Task Force Officer Jones at the Federal Bureau of Investigation at 219-942-4900.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Indiana State Police. The case is being prosecuted by Assistant U.S. Attorney Jill R. Koster.
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