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20 July 2017
Federal Grand Jury Indicts 16 in Narcotics ConspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged sixteen individuals with charges related to distribution of fentanyl, maintaining drug-involved premises, firearms offenses and money laundering in a 45-count indictment filed here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ohio State Highway Patrol Superintendent Col. Paul A. Pride and Cincinnati Police Chief Eliot K. Isaac announced the indictment.
Those charged include:
Name
Also Known As
Age
City of Residence
*Keysean Dearis Dickey
“Mike”
25
Mason, Ohio
Edmond Christian Hurt
“Eddie”
24
Cincinnati
Rajah Amire Swain
21
Mason, Ohio
Chrisette Camilla Wade
25
Cincinnati
Ari Naiem Hodges
“Big Mike, Fat Mike, Bundles”
23
Cincinnati
Da’Marco Martez Browner II
“Baby D, Kid”
24
Fairfield, Ohio
Dominic Dashawn Davis
26
Cincinnati
Chaz Niko Jones
“Juice, Z”
26
Cincinnati
Christopher Javar Mathews
“Jay, Smash”
29
Cincinnati
Kiarra C. Thomas
27
Cincinnati
Mykeal Dawshawn Parker
24
Cincinnati
Devonte Shaunquinn Walker
23
Cincinnati
*Damyia L. Engram
31
Cincinnati
Thomesha Walker
25
Cincinnati
Shonda Denise Jones
44
Cincinnati
Sherica Lynnae Shields
24
Cincinnati
*Two defendants – Dickey and Engram – are currently fugitives.
The indictment alleges that the drug trafficking organization distributed more than 400 grams of fentanyl from September 2016 until agents executed search and arrest warrants on June 26, 2017.
Each of the defendants is charged with participating in a drug distributing conspiracy through various roles such as leader, supplier of drugs, packager, holder, intermediary, helper, stash house operator and launderer of drug proceeds.
Text messages sent to various defendants’ cell phones revealed communications asking about the quantity and quality of fentanyl. “Customers” allegedly texted the defendants complaining about getting “shorted” and asking for “fronts” on drugs.
For example, on August 13, 2016, Mathews received a text message stating “Chris ur … scale is off. I can take my grand a week else where!”
A message received a month later stated: “bro I cant barely move im so sick but no money yet today. Can I get a little bit on credit?”
Walker received a similar message from a user saying the user was “going out of town” and “just don’t want to be sick.”
Defendants also allegedly received text messages complaining about the quality of the drugs, including messages like “this…getting supppeerr weak btw kinda sucks a lil” and “…that was pure garbage. Did absolutely nothing. Big waste of $70! Pure waste.”
The indictment alleges multiple other conversations between defendants discussing drug transactions, undercover police, surveillance and other dealers selling bad dope and its effect on their business.
“This indictment charges sixteen people in a conspiracy to traffic fentanyl in and around Cincinnati over the last nine months,” said U.S. Attorney Glassman. “Six of the defendants are also charged with laundering thousands of dollars of their drug money by renting dozens of cars, which were in turn used to support the drug-trafficking operation.”
U.S. Attorney Glassman commended the investigation of this case by the DEA, ATF, Ohio State Highway Patrol and Cincinnati Police, as well as Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Federal Court Sentences Defendant for Failure to Pay Child SupportRead the Press Release
DES MOINES, IA – On June 19, 2017, Nicole Lynn Sanders, age 33, formerly of South Carolina, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to five years probation for failure to pay child support, announced United States Attorney Kevin E. VanderSchel. Sanders was sentenced to five years of probation for each of two charges of failure to pay child support, to be served concurrently. Sanders was ordered to serve six months of her probation in a halfway house, and six months in home confinement with GPS monitoring. Sanders was also ordered to pay restitution in the amount of the unpaid child support.
On March 17, 2017, Sanders pleaded guilty to two counts of failure to pay child support. Sanders admitted while she was living outside of Iowa, she failed to pay child support for two children for over two years. Sanders’ child support obligation for one of her children was over $10,000. Between June 2010 and January 2017, when she was arrested for these offenses, Sanders had made no child support payments for either child.
This investigation was conducted by the United States Department of Health and Human Services, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Farmington Man Sentenced to over 6 Years in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Howard Christopher Melton, age 36, of Farmington, was sentenced today to 80 months in federal prison followed by 10 years of supervised release on one count of Receipt of Child Pornography. Melton also was ordered to pay $3,600.00 in fines. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in August 2016, the Northwest Arkansas Internet Crimes Against Children Task-force received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) about an individual later identified as Howard Christopher Melton, was using a Twitter account to upload images of child pornography to the internet.
On September 12, 2016, law enforcement officers executed a search warrant of Melton 's residence in Farmington Arkansas. A search of a hard drive seized from Melton's residence yielded numerous images depicting child pornography.
On November 21, 2016, Agents with Homeland Security Investigations (HSI) interviewed Melton where he admitted to searching for, downloading, receiving and saving child pornography from the internet.
Melton was indicted in January 2017 and plead guilty in March 2017.
This case was investigated by the Department of Homeland Security Investigations and the National Center for Missing and Exploited Children. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
East Greenwich Resident Sentenced to 10 Years in Prison for Enticing a Minor to Engage in Sexual ActivityRead the Press Release
PROVIDENCE – Stephen T. Ferrante, 62, of East Greenwich, was sentenced today to 120 months in federal prison for attempting to persuade, induce, entice or coerce a minor to engage in sexual activity, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Ferrante to serve 5 years of supervised release upon completion of his term of incarceration. The U.S. Sentencing Guidelines range of imprisonment in this matter is 168-210 months. The government and defendant jointly recommended the court impose a sentence of 120 months in prison.
Ferrante pleaded guilty on April 26, 2017, to use of any facility or means of interstate or foreign commerce to persuade, induce, entice or coerce a minor to engage in sexual activity.
At the time of his guilty plea, Ferrante admitted to the court that in January 2017, he communicated online, by text message and by telephone with an individual he believed to be arranging for him to have sexual contact with an 8-year-old girl.
Ferrante was arrested by members of the Rhode Island State Police Internet Crimes Against Children Task Force and Homeland Security Investigations agents, on January 12, 2017, when he arrived at a pre-determined location in Warwick where he believed he would be meeting with that person.
Ferrante has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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East Greenbush Man Resentenced to 20 Years for FraudRead the Press Release
ALBANY, NEW YORK – Scott Valente, age 60, of East Greenbush, New York, was sentenced today to 20 years in prison for running a large investment fraud scheme. Valente was also ordered to pay $8,616,113.39 in restitution to his victims.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation, New York Field Office; and Special Agent in Charge Vadim D. Thomas, Federal Bureau of Investigation, Albany Field Office.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Valente’s release from prison.
Valente was originally sentenced, on November 20, 2015, to 20 years in prison after pleading guilty to charges of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws. In April 2017, the United States Court of Appeals for the Second Circuit vacated the sentence and remanded the case for resentencing. Valente has been in custody since his original sentencing date.
Valente, working out of Albany, Schenectady and Warwick, New York, operated an investment fraud scheme that began in December 2010 and ended on June 16, 2014.
Through his investment company The ELIV Group, LLC, Valente received more than $10.6 million from more than 100 individual investors, many of them residing in Upstate New York. He told them that he had achieved annual investment returns of 36.38%, 48.27%, 44.56% and 45.11% for the years 2010 through 2013, respectively. In fact, Valente lost money in each of those years.
Valente also took about $2.2 million in unauthorized management fees, which he used to enrich himself through cash withdrawals totaling $230,000, personal credit card payments totaling $443,000, and the purchases of real estate (including a $117,000 condominium in Vermont), $424,000 in home improvements, $35,000 worth of jewelry, and $20,000 worth of liquor. In addition to taking $2.2 million, Valente made substantial investments in non-public companies, contrary to what he told investors he would do with their money.
Valente also falsely represented to more than 30 ELIV investors that he or his company were authorized to accept, hold and manage Individual Retirement Accounts (IRA), which get preferential treatment under U.S. tax law. In fact, neither Valente nor ELIV was authorized by the IRS to accept, establish or maintain IRA accounts. In an effort to obstruct and impede the IRS by preventing the IRS from learning of his unauthorized acceptance, holding and management of IRA accounts, Valente altered ELIV investment statements to make it appear as though ELIV had properly received certain investors’ IRA rollover investments, that ELIV was holding the investments as an IRA, and that there should be no taxable distributions to the ELIV investors.
ELIV ceased operations on June 16, 2014, when the U.S. Securities and Exchange Commission, in a separate civil proceeding, obtained a preliminary injunction enjoining ELIV’s operations and freezing its assets.
This case was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss.
District Man Sentenced to 42 Months in Prison for 18th Street Gang CrimesRead the Press Release
WASHINGTON – Bryan Montesino, 19, of Washington, D.C., was sentenced today to a total of 42 months in prison for two attacks he carried out last year at the Columbia Heights Metro station, announced U.S. Attorney Channing D. Phillips, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
For one of the attacks, a jury found Montesino guilty of assault with intent to commit robbery while armed, criminal street gang participation, felony threats, and a weapons offense. That verdict was returned on May 17, 2017. On the following day, Montesino pled guilty to a charge of assault with a dangerous weapon for his role in the other offense.
Montesino was sentenced in the Superior Court of the District of Columbia by the Honorable Maribeth Raffinan. Following his prison term, he will be placed on five years of supervised release.
In the trial, the government’s evidence established that on Sept. 15, 2016, at about 5:45 p.m., a group of men approached the victim as he entered the Columbia Heights Metro station. The men, including Montesino, repeatedly told the victim that they were members of the 18th Street gang and accused him of being a member of MS-13, a rival gang.
The group demanded the victim’s belongings and surrounded him as he tried to get away. When the victim refused to give the group his belongings, Montesino threatened to stab the victim and gestured as if he had a weapon. Another member of the group punched the victim in the face before the group dispersed and the victim was able to flee to safety.
Montesino was apprehended 15 minutes later, within blocks of the Metro station. He had a switchblade knife and a shank on his person at the time of his arrest. After his arrest and detention at the District of Columbia Jail, Montesino made a number of recorded jail calls, in which he referenced his involvement and participation in the 18th Street gang, as well as the gang’s rivalry with MS-13.
In his guilty plea, Montesino admitted that on Sept. 12, 2016, shortly after 4 p.m., he and six other men surrounded two victims after the victims got off a Metrobus at the Columbia Heights Metro station. They surrounded the victims and identified themselves as members of the 18th Street gang. Both victims observed Montesino pull out and display a black handgun before placing it back inside of a backpack. Montesino then approached one of the victims and threatened to kill him while gesturing towards his waistband as if concealing a weapon. Montesino explained that he was retaliating for an incident a couple of weeks earlier when he felt threatened by someone whom he believed to be a member of the rival MS-13 gang. Meanwhile, another assailant approached the second victim and demanded his belongings. Both victims were able to flee from the scene and notify police.
In announcing the sentence, U.S. Attorney Phillips, Chief Newsham, and Chief Pavlik commended the work of those who investigated the case from Metropolitan Police Department and the Metro Transit Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Daniel Lenerz, Fernando Campoamor-Sanchez, Kathryn Rakoczy, and Jennifer Kerkhoff; Victim/Witness Advocate Diana Lim; Paralegal Specialists Tiffany Fogle and Richard Cheatham; Criminal Investigators Mark Fitzgerald and Nelson Rhone, and Litigation Technology Specialist William Henderson.
Finally, they acknowledged the efforts of Assistant U.S. Attorneys Ahmed Baset, who prosecuted the case, and Monica Trigoso, who investigated and prosecuted the case.
Decatur Insurance Agent Sentenced for Fraud Scheme, Money LaunderingRead the Press Release
PEORIA, Ill. – Chief U.S. District Judge James E. Shadid today sentenced James P. Smith, an independent insurance agent, to 63 months in federal prison for defrauding his clients from February 2011 to July 2016. Smith, 61, of the 5400 block of Traughber Road, Decatur, Ill., was also ordered to pay $349,777 in restitution to victims of his crime. Upon release from prison, the court ordered that Smith remain on supervised release for three years. A condition of release is that Smith cannot work in insurance or other financial-related business.
On Mar. 23, 2017, Smith pled guilty to wire fraud (one count); mail fraud (two counts); and money laundering (one count.). Smith remains in law enforcement custody. Smith was previously charged in Macon County.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
Smith worked as an independent agent at the Prairie State Insurance Agency in Decatur. According to court documents and statements made in court, from at least February 2011 through July 2016, Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the scheme, Smith admitted that he falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, as promised, Smith used the money for his own benefit.
Smith requested that clients make payment to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually Main Street Marathon, a gas station in Mt. Zion, Ill., that Smith owned. Rather than use clients’ funds as represented, Smith used the money to finance the gas station and to make mortgage payments on his personal residence.
Smith also admitted he cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and then used the cash value and / or future premiums or payments for personal expenses. Smith admitted he used the money to pay his attorney’s fees, personal bankruptcy fees, and to make purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
Dark Net Vendor Indicted for Distributing Synthetic Fentanyl That Caused A Fatal OverdoseRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Jeremy Achey (43, Bethlehem, Pennsylvania) with conspiracy to distribute and distribution of controlled substance analogues. If convicted on all counts, he faces a maximum penalty of life in federal prison.
According to court documents, operating under the name “Etiking,” Achey distributed various synthetic substances over the Dark Net, an area of the Internet only accessible through the use of an encrypted browsing platform. In February 2017, a victim in Orange County, Florida died after ingesting tetrahydrofuran fentanyl, a synthetic substance similar to fentanyl, purchased from Achey on the Dark Net.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Nathan W. Hill.
DOJ Announces Today the Takedown of Alphabay, the Largest Online ‘Dark Market’Read the Press Release
The Justice Department today announced in Washington the seizure of the largest criminal marketplace on the Internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
Two matters investigated by the U.S. Attorney’s Office in Atlanta and the FBI-Atlanta Field Division have connections to the international investigation into AlphaBay announced today. First, an investigation conducted in Atlanta has identified an AlphaBay staffer living in the United States. That investigation is ongoing. Additionally, in 2016, the U.S. Attorney’s Office in Atlanta and FBI-Atlanta prosecuted Aaron Glende, a.k.a IcyEagle, who operated as a vendor on AlphaBay. Glende pled guilty to access device fraud and aggravated identity theft and was sentenced to four years and two months’ imprisonment on November 30, 2016.
On July 5, 2017, Alexandre Cazes, aka Alpha02 and Admin, 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-CR-00144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife's assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners – both domestically and abroad – IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Executive Director Rob Wainwright of Europol. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI, Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
Convicted Felon Sentenced to Fifteen Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Gregory Brown (28, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit a Smith & Wesson model SW40VE .40-caliber pistol and 14 rounds of ammunition traceable to the offense. Brown pleaded guilty on March 21, 2017.
According to court documents, on August 5, 2016, Tampa Police officers conducted a proactive check in the North Boulevard Homes in Tampa. As the officers arrived, they observed a male, later identified as Gregory Brown, start to run, reach into his waistband, and throw a loaded Smith and Wesson firearm behind a building. When interviewed, Brown admitted that the firearm belonged to him. Brown had previously been convicted of at least four felony offenses, including three drug trafficking offenses. As a result of these convictions, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, and Explosives. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Connecticut Man Indicted for Robbery of North Greenbush StoreRead the Press Release
ALBANY, NEW YORK – David Daniel Hunter, age 53, of Enfield, Connecticut, was arraigned today on charges of robbery and transporting a stolen motor vehicle in interstate commerce.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
According to the indictment and previously filed complaint, Hunter robbed a Dollar Tree store in the Town of North Greenbush, New York, on May 6, 2017. Hunter brandished what appeared to be a handgun, demanded money, and received about $1,200 from the store’s register and safe, according to the complaint. Also on May 6, Hunter transported a 2017 Dodge Charger that he knew had been stolen, according to the indictment.
The charges are merely accusations. The defendant is presumed innocent until proven guilty.
Hunter was arraigned today before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending trial.
If convicted on all charges, Hunter would face up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case is being investigated by the Federal Bureau of Investigation, the North Greenbush Police Department, and the Enfield (Connecticut) Police Department, and is being prosecuted by Assistant United States Attorney Sean O’Dowd.
Cleveland man indicted on child pornography chargesRead the Press Release
A Cleveland man was indicted on child pornography charges, said Acting U.S. Attorney David A. Sierleja.
Richard Nunez, 34, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Nunez knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between Dec. 17, 2016, through May 26, 2017. On June 22, 2017, Nunez also possessed a laptop computer and an external hard drive, each of which contained child pornography, according to the indictment.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Ohio Internet Crimes Against Children Task Force and the Cleveland office of the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man indicted for carjackingRead the Press Release
A Cleveland man was charged with carjacking, said Acting U.S. Attorney David A. Sierleja.
Shairon L. Motley-Lipscomb, 21, used violence on May 14 to take a 2008 Buick Enclave, according to the indictment.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the Cleveland Police Department and the Bureau of Alcohol, Tobacco and Firearms.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland man charged for failing to register as sex offenderRead the Press Release
A federal grand jury returned a one-count indictment charging Vernon L. Morris, 55, of Cleveland, with failure to register as a sex offender, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
The indictment charges that beginning on or about July 18, 2014, to on or about July 6, 2017, Morris failed to register, or update a registration, as a sex offender as required under the Sex Offender Registration and Notification Act, after having traveled in interstate commerce.
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.
The investigation preceding the indictment was conducted by the United States Marshals Service. The matter is being prosecuted by Assistant U.S. Attorney Brad J. Beeson.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to four years in federal prison for a gun crime, announced United States Attorney Carol Casto. Shon Wayne Cobbs, 45, previously pleaded guilty to a single-count indictment charging him with being a felon in possession of a firearm.
Cobbs admitted that on February 3, 2013, he discharged a .40 caliber pistol inside his kitchen three times during an argument with a woman who was standing in the kitchen doorway. The Kanawha County Sheriff’s Department arrested Cobbs at the residence without further incident. While executing a search warrant, deputies located a Beretta .40 caliber pistol, three spent shell casings, and bullet fragments from the kitchen. A spent bullet was also recovered from the adjacent living room. Furthermore, deputies seized an additional 16 firearms from several locations throughout the residence.
Cobbs was prohibited from possessing any firearm under federal law because he was convicted in 2008 of the felony offense of unlawful wounding in Kanawha County Circuit Court after a jury found him guilty of assaulting a woman and breaking her arm by twisting it behind her back.
In August 2013, Cobbs pleaded guilty to wanton endangerment in Kanawha County Circuit Court as a result of the same conduct giving rise to the federal prosecution. He was sentenced to home confinement.
The Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Carroll County Business Owner Pleads Guilty to Federal ChargesRead the Press Release
Abingdon, VIRGINIA – A Carroll County business owner, who paid his employees in cash to avoid paying taxes to the Internal Revenue Service and later lied in a bankruptcy proceeding, pled guilty today in federal court in Abingdon to federal conspiracy, tax and bankruptcy charges, Acting United States Attorney Rick A. Mountcastle announced.
Jones Keith Andrews, 62, of Galax, Va., pled guilty today, without the benefit of a plea agreement, in the United States District Court for the Western District of Virginia in Abingdon to one count of conspiracy to defraud the United States by impeding, impairing, obstructing and defeating the lawful function of the Internal Revenue Service, 17 counts of failure to pay or collect tax, and one count of bankruptcy fraud. Sentencing has been scheduled for December 17, 2017, at 2:30 p.m. At sentencing, Andrews faces a statutory maximum sentence of 95 years in prison and a fine of $4.25 million.
Between 2009 and March 2015, Andrews, and others, executed a scheme in which a portion of the wages paid to employees of Andrews Farming was paid via paycheck and the remainder was paid in cash. For each quarter from 2009 through 2014, the conspirators caused IRS Forms 941 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms 941 only listed the wages paid to employees via paycheck and did not include the amounts paid via cash.
In addition, for each year from 2009 through 2014, the conspirators caused Forms W2 to be sent to the United States Government that falsely underreported the wages paid to employees of Andrews Farming. The Forms W2 listed only wages paid via paycheck and not the wages paid in cash.
The cash paid to employees was obtained by cashing of personal and company checks. Over $1 million in cash was obtained by the cashing of those checks.
In addition, Andrews knowingly made a false statement, under oath, during a bankruptcy hearing in May 2016. Andrews claimed at a May 5, 2016, bankruptcy hearing that Andrews Farming had lost approximately $1.3 million due to “embezzlement of employee, Robert Donald Morgan, III,” when in fact Andrews knew that was not true and correct. Andrews knew that a significant portion of the amounts he attributed to embezzlement by Morgan were, in fact, used to pay cash wages.
Robert Donald “Donnie” Morgan previously pled guilty for his role in the criminal activity and was sentenced to imprisonment for a term of six months on March 29, 2016.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the United States Secret Service. The Blacksburg, Virginia, Police Department provided valuable assistance in forensically analyzing the computers seized in the case. Assistant United States Attorneys Zachary T. Lee, Jennifer Bockhorst, and Randy Ramseyer prosecuted the case for the United States.
Canton man indicted on child pornography chargeRead the Press Release
A Canton man was indicted on child pornography charges, said Acting U.S. Attorney David A. Sierleja.
Larry P. Smith, 65, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Smith knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct. This took place between Oct. 7 and 10, 2013, according to the indictment.
The indictment also charges that on or about November 20, 2013, Smith possessed several laptop computers, an Apple computer and several external hard drives, each of which contained child pornography.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik following an investigation by the Federal Bureau of Investigation and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Woman Sentenced to Eight Months for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – Okeyonna Njoku, 30, of Los Angeles, California, was sentenced today to eight months’ imprisonment and three years of supervised release for possession with intent to distribute marijuana, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also ordered Njoku to perform 300 hours of community service and pay a special assessment of $100.
On March 16, 2017, Njoku pleaded guilty to one count of possession with intent to distribute marijuana. According to the plea agreement, on October 15, 2016, at the Cyril E. King Airport on St. Thomas, a U.S. Customs and Border Protection (CBP) K-9 detected narcotics in a checked bag belonging to Njoku. Njoku had taken an American Airlines flight from Miami, Fla. to St. Thomas. CBP officers examined the contents of the bag, resealed the bag, and placed it on the carousel for retrieval. When Njoku retrieved the bag, CBP officers seized and field-tested approximately 5.9 kilograms of marijuana from Njoku’s bags.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Anna A. Vlasova.
California Resident Indicted for Impeding the Internal Revenue Laws and Filing False Tax Returns that Did Not Report Secret German and Israeli AccountsRead the Press Release
A Beverly Hills, California resident was indicted by a federal grand jury in the Central District of California for corruptly endeavoring to impede the internal revenue laws, filing false tax returns, filing false reports regarding his offshore bank accounts and making false statements to a federal agent, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra R. Brown for the Central District of California.
The indictment charges that from 2006 through 2014, Teymour Khoubian impeded the administration of the internal revenue laws. According to the indictment, Khoubian filed false individual tax returns with the Internal Revenue Service (IRS) for tax years 2005 through 2010 that did not report his financial interest in multiple Israeli and German bank accounts or the interest income that he earned from those accounts. He also allegedly falsely claimed refundable tax credits to which he was not entitled, including the Earned Income Tax Credit, which is intended for low-to moderate-income working individuals. In 2008, Khoubian is alleged to have held approximately $20 million in assets in his undisclosed accounts. The indictment charges that Khoubian also filed a false 2011 tax return that underreported the interest income he earned from his Israeli accounts and continued to fail to disclose that he held an account in Germany. Khoubian is also alleged to have filed false 2012 and 2013 Reports of Foreign Bank and Financial Accounts forms (FBARs) with the U.S. Department of Treasury that concealed his German account. U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file an FBAR disclosing the account.
In addition to filing false tax returns and FBARs, Khoubian allegedly provided his German bank with a copy of his Iranian passport and a residential address located in Israel to prevent the bank from disclosing the account to the IRS. He also allegedly sent a letter to Bank Leumi falsely claiming he was living in Iran when, in fact, he resided in Beverly Hills, California.
Khoubian is also charged with making false statements to an IRS Criminal Investigation (CI) special agent – denying that he owned an account in Germany between 2005 and 2010, stating that the German account was closed, when it was in fact still open, and stating that the funds had been transferred to the United States, when Khoubian had allegedly transferred over $600,000 from his German account to his accounts in Israel.
If convicted, Khoubian faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the internal revenue laws and each count of filing a false return and five years in prison for each count of filing a false FBAR and making a false statement. He also faces a period of supervised release, restitution and monetary penalties.
The charges contained in the indictment are only allegations. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brown thanked special agents of IRS CI, who conducted the investigation, and Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci of the Tax Division and Assistant U.S. Attorney Robert Conte, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
California Man, Woman Indicted for Transporting Multi-kilos of Meth, Fentanyl Through KCRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man and woman were indicted by a federal grand jury today for their roles in a conspiracy to distribute multi-kilos of methamphetamine and fentanyl (a synthetic form of heroin), which was confiscated during an interdiction at a local bus terminal.
Edgar Israel Reyes-Toscano, 44, and Vanessa Sanchez, 44, both of Bakersfield, Calif., were charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against both defendants on July 6, 2017.
The indictment alleges that Reyes-Toscano and Sanchez participated in a conspiracy to distribute methamphetamine and fentanyl. In addition to the conspiracy, Reyes-Toscano and Sanchez are charged together in one count of possessing methamphetamine with the intent to distribute and one count of possessing fentanyl with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, Reyes-Toscano and Sanchez were arrested on July 5, 2017, at a local bus terminal. They had traveled together, the affidavit says, on a bus that originated in Los Angeles, Calif. Reyes-Toscano’s bus ticket bore a final destination of St. Louis, Mo. A Kansas City, Mo., police detective searched his duffel bag and noticed a white cardboard box secured with clear package tape. Upon opening the lid of the box, the detective observed a large bundle wrapped in clear cellophane wrap. The detective also found a gift-wrapped package in the duffel bag that contained three bundles wrapped in clear cellophane wrap. According to the affidavit, those packages were later determined to contain a total of 2,380 grams of methamphetamine and 3,540 grams of fentanyl
Another Kansas City, Mo., police detective noticed Sanchez, carrying a bag on her shoulder, walk past while intensely staring at what was transpiring between Reyes-Toscano and the detective. The detective had seen Sanchez exit the bus with Reyes-Toscano, and noticed that the bag she carried over her shoulder appeared to have a heavy, rectangular-shaped box in it.
Sanchez entered the women’s restroom and when she came back out, her bag no longer appeared to have a heavy rectangular box within. Sanchez immediately exited the bus terminal, walked out to the loading platform and sat down on a bench. While the detective questioned Sanchez, a third detective searched the women’s restroom and found a rectangular gift-wrapped package in the trashcan. According to the affidavit, the package, wrapped in the same gift wrap as the package carried by Reyes-Toscano, contained three bundles wrapped in clear cellophane wrap for a total of 2,410 grams of methamphetamine.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
California Man Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A California man who participated in a large-scale cocaine trafficking conspiracy was sentenced today to 10 years in prison.
According to court documents, Daniel Rodriguez, 49, participated in the conspiracy with Marvin O’Neal Carter, Sr., 49, of Newport News, Michael Stephen Kuna, 42, of Canada, and his brother Hilario Rodriguez, 50, of California. Each man was charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises. In addition to the conspiracy charge, Daniel and Hilario Rodriguez were charged with interstate travel in aid of racketeering.
According to court documents, agents observed the arrival of a tractor trailer at a garage leased by Carter. With the assistance of Michael Kuna, who stopped traffic and directed the driver, the trailer was off-loaded next to the garage. Agents observed Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The men then worked together to unload cocaine from a hidden compartment located underneath the trailer. A short time later, Kuna left and returned with two large duffel bags which were taken underneath the trailer. Kuna left the location after loading the now-empty duffel bags into a vehicle. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which smelled of bulk currency.
According to court documents, as Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks, totaling nearly $1 million, were recovered. The search of the garage also led to the recovery of a firearm, a quantity of heroin and more cocaine, in addition to approximately $42,000 in cash from a safe.
The case was part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Blown Piston. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-76.
Businessman Indicted for Allegedly Stealing Employer’s Trade Secrets While Planning for New Job with Rival Firm in ChinaRead the Press Release
CHICAGO — A 30-year employee of a McHenry County manufacturing firm stole proprietary information from the company while planning to move to China to begin work for a rival firm, according to an indictment returned in federal court in Chicago.
On Sept. 13, 2015, ROBERT O’ROURKE allegedly downloaded electronic data belonging to his employer, a Woodstock-based manufacturer of cast-iron products. At the time, O’Rourke had already accepted a new job with a rival firm in Jiangsu, China, according to the indictment. Two days later he officially resigned from the Woodstock company, the indictment states. The following week O’Rourke packed up the proprietary information and went to O’Hare International Airport in Chicago to board a flight to China, the indictment states. Federal authorities intervened and seized the stolen electronic data, along with stolen paper documents, before O’Rourke traveled to China to begin work for the new firm.
The 13-count indictment was returned Wednesday in U.S. District Court in Chicago. It charges O’Rourke, 57, of Lake Geneva, Wisc., with theft of trade secrets. Arraignment is set for July 25, 2017, at 10:15 a.m., before U.S. District Judge Andrea R. Wood in Chicago.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
According to the charges, O’Rourke worked for the Woodstock company since 1984, holding the positions of plant metallurgist, quality assurance manager and salesperson. He also helped the company develop international business in, among other places, China, the indictment states. In December 2013, O’Rourke allegedly began discussions with a Chinese firm to take a similar job there. After several months of discussions and negotiations, O’Rourke accepted the position of Vice President at the Chinese company, the indictment states.
O’Rourke initially advised the Woodstock company on Aug. 12, 2015, that he intended to resign, according to the indictment. At that time, O’Rourke did not mention that he was negotiating employment with the Chinese firm, and he continued to work for the Woodstock company for another month, the indictment states. During that month he purchased his plane ticket to China and stole the proprietary trade secrets, the charges state.
The indictment does not identify the name of the Woodstock company or the Chinese firm.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of the indictment is punishable by a maximum penalty of ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Shoba Pillay.
Buffalo Man Sentenced on Drug ChargeRead 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 James Thayer, 32, of Buffalo, NY, who was convicted of possession with intent to distribute and distribution of 28 grams or more of crack cocaine, was sentenced to 87 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that in May 2015, the defendant sold one ounce of crack cocaine to an individual for $1,400. On July 22, 2015, Thayer arranged to sell another ounce of crack cocaine to the same individual. While driving to meet the individual to complete the sale, the defendant was pulled over by special agents with the Drug Enforcement Administration. Agents searched Thayer and found an ounce of crack cocaine at which time he was arrested. During a subsequent search of the defendant’s Chadduck Avenue home, agents recovered approximately two ounces of crack cocaine base, a digital scale with white residue, drug packaging material and approximately $7,000 in U.S. currency.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Buffalo Man Sentenced for Theft of Government MoneyRead 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 Dwayne Brice, 37, of Buffalo, NY, who was convicted of theft of government money, was sentenced to three years probation, 100 hours of community service at Veterans Affairs, and ordered to pay full restitution by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that the Department of Veterans Affairs appointed Brice as a fiduciary for his elderly father-in-law who received veteran’s benefits for his service in the United States Marine Corps. As fiduciary, it was Brice’s duty to manage these funds and pay for his father-in-law’s living expenses. Between August 2013 and September 2015, the defendant stole approximately $38,904 in veteran’s benefits, gambling much of the money at local casinos.
The sentencing is the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves.
Brooklyn Man Engaging in Illicit Sexual Contact with A MinorRead the Press Release
Sandro G. Zhinin, 33, of Brooklyn, New York, was charged today by Indictment with crossing state lines to have sexual contact with a minor less than 12, travel to engage in illicit sexual conduct, and the production and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of lifetime incarceration, a mandatory minimum thirty years’ imprisonment, a mandatory minimum five years’ supervised release up to lifetime supervised release, a $2,000,000 fine, a $500 special assessment and an additional $25,000 Justice for Victims special assessment.
The case was investigated by Pennsylvania State Police and the Department of Homeland Security, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Boston-Area Physician Arrested for Insider TradingRead the Press Release
BOSTON – A Boston-area physician was arrested and charged with securities fraud for allegedly trading on inside information he learned from his wife, who worked at a Cambridge-based pharmaceutical company.
Harold L. Altvater, 55, of North Reading, was arrested today and indicted on three counts of securities fraud. He is scheduled to appear in federal court in Boston this afternoon.
According to the indictment, Altvater’s wife was a senior drug safety executive at Ariad Pharmaceuticals Inc., which was acquired earlier this year by Takeda Pharmaceutical Co. Ltd. From September 2013 to January 2014, Altvater’s wife shared nonpublic information with him concerning ponatinib, a drug used to treat certain forms of leukemia that was then in clinical trials. Ponatinib is marketed under the brand name Iclusig.
Without her knowledge, Altvater allegedly traded on the information regarding Ariad’s discussions with the Food and Drug Administration (FDA) concerning Iclusig’s label and the clinical trials. For example, the indictment alleges that on Oct. 2, 2013, Altvater’s wife met with FDA officials in Washington, D.C., who expressed concern about the incidence of adverse events that had been reported among patients enrolled in trials of the drug, which they noted were unprecedented in magnitude for a drug in Iclusig’s class. Over the next two days, after Altvater’s wife returned from her meeting, Altvater allegedly sold approximately 6,000 Ariad shares in his personal brokerage accounts. On or about Oct. 9, 2013, Ariad publicly announced that, in the wake of adverse events experienced by patients in clinical trials of Iclusig, it was pausing enrollment in clinical trials of the drug and reducing dosages for patients already enrolled in such trials. That same day, Ariad’s stock price declined by approximately 66 percent. The indictment alleges that by selling his Ariad shares prior to the October 9th announcement, Altvater avoided a loss of more than $75,000.
Altvater was previously sued by the Securities and Exchange Commission (SEC) in connection with the same conduct. Altvater’s wife settled charges with the SEC in connection with trades in Ariad securities executed in accounts in her name in 2012.
The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the SEC. Assistant U.S. Attorney Stephen E. Frank, Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Firearms OffensesRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston on a federal firearms charge.
Ruben Osorio, 32, was charged with being a felon in possession of a firearm and ammunition. According to court documents, in the early morning hours of March 27, 2017, law enforcement officers recovered three rounds of ammunition on Osorio, as well as a firearm and three additional rounds of ammunition from his vehicle.
The charge of possession of a firearm and ammunition after being convicted of a felony provides for a mandatory minimum sentence of 15 years and up to life in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was indicted today in federal court in Boston for failing to register as a sex offender.
Rodney Anderson, 45, was indicted on one count of failing to register as a sex offender. Anderson has been in custody since his arrest on July 12, 2017.
Anderson is required to register as a sex offender in Massachusetts based on a North Carolina state court conviction for second degree rape in 1986. According to court documents, shortly following his release from custody in 2014 for his 1986 conviction, Anderson left North Carolina for Massachusetts. When he arrived, he failed to report to authorities, but was tracked to a residence in Boston.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and up to a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; U.S. Marshal John Gibbons of the District of Massachusetts; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Beverly Hills Man Indicted for Impeding the Internal Revenue Laws and Filing False Tax Returns That Did Not Report Secret German and Israeli AccountsRead the Press Release
LOS ANGELES – A Beverly Hills resident was indicted today by a federal grand jury for corruptly endeavoring to impede the internal revenue laws, filing false tax returns, filing false reports regarding his offshore bank accounts and making false statements to a federal agent, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra R. Brown for the Central District of California.
The indictment charges that from 2006 through 2014, Teymour Khoubian impeded the administration of the internal revenue laws. According to the indictment, Khoubian filed false individual tax returns with the Internal Revenue Service (IRS) for tax years 2005 through 2010 that did not report his financial interest in multiple Israeli and German bank accounts or the interest income that he earned from those accounts. He also allegedly falsely claimed refundable tax credits to which he was not entitled, including the Earned Income Tax Credit, which is intended for low-to moderate-income working individuals. In 2008, Khoubian is alleged to have held approximately $20 million in assets in his undisclosed accounts. The indictment charges that Khoubian also filed a false 2011 tax return that underreported the interest income he earned from his Israeli accounts and continued to fail to disclose that he held an account in Germany. Khoubian is also alleged to have filed false 2012 and 2013 Reports of Foreign Bank and Financial Accounts forms (FBARs) with the U.S. Department of Treasury that concealed his German account. U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file an FBAR disclosing the account.
In addition to filing false tax returns and FBARs, Khoubian allegedly provided his German bank with a copy of his Iranian passport and a residential address located in Israel to prevent the bank from disclosing the account to the IRS. He also allegedly sent a letter to Bank Leumi falsely claiming he was living in Iran when, in fact, he resided in Beverly Hills, California.
Khoubian is also charged with making false statements to an IRS Criminal Investigation (CI) special agent – denying that he owned an account in Germany between 2005 and 2010, stating that the German account was closed, when it was in fact still open, and stating that the funds had been transferred to the United States, when Khoubian had allegedly transferred over $600,000 from his German account to his accounts in Israel.
If convicted, Khoubian faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the internal revenue laws and each count of filing a false return and five years in prison for each count of filing a false FBAR and making a false statement. He also faces a period of supervised release, restitution and monetary penalties.
The charges contained in the indictment are only allegations. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brown thanked special agents of IRS CI, who conducted the investigation, and Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci of the Tax Division and Assistant U.S. Attorney Robert Conte, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Belmont County, Ohio man sentenced for oxycodone distributionRead the Press Release
WHEELING, WEST VIRGINIA – Brent M. Gorshe, 28, of Martins Ferry, Ohio, was sentenced today to 84 months incarceration for distributing oxycodone, Acting United States Attorney Betsy Steinfeld Jividen announced.
Gorshe pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Oxycodone” in February 2017. The crime took place in Ohio County and elsewhere from 2013 to 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Avondale, PA Man Charged with Illegal Reentry After DeportationRead the Press Release
Pedro Mendez-Zavala, a/k/a “Pedro Zavala Mendez,” a/k/a “Luis Medina Bedolla,”of Avondale, Pennsylvania, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about February 22, 2017, Mendez-Zavala, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 18, 1998, April 10, 2013, and December 21, 2014.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Kevin Jayne.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Augusta Man Sentenced to 117 Months in Federal Prison for Armed Bank Robbery of West Columbia BankRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Callus LeFont Latimore, age 42, of Augusta, Georgia was sentenced yesterday in federal court for various charges stemming from the February, 9, 2017, armed robbery of First Reliance Bank in West Columbia, South Carolina. On April 19, 2017, Latimore entered a guilty plea before Senior United States District Court Judge Cameron M. Currie. Latimore pled guilty to armed bank robbery and use/possession/brandishing of a firearm in connection with a crime of violence, all in violation of Title 18, United States Code, Sections 2113(a), 2113(d) and 924(c). Judge Currie sentenced Latimore to a total of 117 months imprisonment with 5 years of supervised release to follow.
Evidence presented in court established that on the February 9, 2017, armed with a Hi-Point 9mm caliber handgun and wearing a construction vest, fishing hat, and fake beard, Latimore entered First Reliance Bank. After a bank employee asked Latimore if he needed assistance, Latimore brandished the Hi-Point pistol jumped on the counter and demanded money. Latimore then reached over the counter, took $10,300.00 in currency, and fled the scene.
Unbeknownst to Latimore, in the currency he stole was a bundle of funds equipped with a hidden GPS tracker. After responding to the scene, Deputies with the Lexington County Sheriff’s Office were informed of the tracker, and within an hour, Deputies located Latimore off exit 119 on Interstate 26. After arresting Latimore, deputies recovered the Hi-Point 9mm handgun, GPS tracker, and all $10,300.00 of the stolen currency.
The case was investigated by the Lexington County Sheriff’s Department and the FBI. Assistant United States Attorney William C. Lewis of the Columbia office handled the case.
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AlphaBay, the Largest Online “Dark Market,” Shut DownRead the Press Release
SACRAMENTO, Calif. — The Justice Department today announced the seizure of the largest criminal marketplace on the internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
On July 5, Alexandre Cazes aka Alpha02 and Admin, age 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-cr-144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife’s assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“The seizure and shut-down of the AlphaBay criminal marketplace and the indictment and arrest of its founder should send a clear message,” said Eastern District of California U.S. Attorney Phillip A. Talbert. “If you choose to become involved in administering a site like AlphaBay on the dark web, or decide to use it to engage in criminal transactions, you will have federal law enforcement and United States Attorney offices from every District and State across the nation pursuing you. We are thankful for the invaluable assistance we received from our partners in the Criminal Division’s Computer Crime and Intellectual Property Section, and I particularly want to recognize the incredible skill and dedication displayed by the FBI and the DEA in turning the lights on in the dark web and shutting down the world’s largest black market.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners—both domestically and abroad—IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Europol Executive Director Rob Wainwright. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
An investigation conducted by FBI Atlanta and the U.S. Attorney’s Office in the Northern District of Georgia identified an AlphaBay staffer living in the United States. That investigation is ongoing.
The investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, 2017, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, 2017, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI; Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Assistant U.S. Attorney Kevin C. Khasigian of the Eastern District of California handled the asset forfeiture. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
AlphaBay, the Largest Online 'Dark Market,' Shut DownRead the Press Release
The Justice Department today announced the seizure of the largest criminal marketplace on the Internet, AlphaBay, which operated for over two years on the dark web and was used to sell deadly illegal drugs, stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms, and toxic chemicals throughout the world. The international operation to seize AlphaBay’s infrastructure was led by the United States and involved cooperation and efforts by law enforcement authorities in Thailand, the Netherlands, Lithuania, Canada, the United Kingdom, and France, as well as the European law enforcement agency Europol.
On July 5, Alexandre Cazes aka Alpha02 and Admin, 25, a Canadian citizen residing in Thailand, was arrested by Thai authorities on behalf of the United States for his role as the creator and administrator of AlphaBay. On July 12, Cazes apparently took his own life while in custody in Thailand. Cazes was charged in an indictment (1:17-CR-00144-LJO), filed in the Eastern District of California on June 1, with one count of conspiracy to engage in racketeering, one count of conspiracy to distribute narcotics, six counts of distribution of narcotics, one count of conspiracy to commit identity theft, four counts of unlawful transfer of false identification documents, one count of conspiracy to commit access device fraud, one count of trafficking in device making equipment, and one count of money laundering conspiracy. Law enforcement authorities in the United States worked with numerous foreign partners to freeze and preserve millions of dollars’ worth of cryptocurrencies that were the subject of forfeiture counts in the indictment, and that represent the proceeds of the AlphaBay organization’s illegal activities.
On July 19, the U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife's assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).
According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors. Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.
“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net. The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”
“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates. We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.”
“The so-called anonymity of the dark web is illusory,” said Acting Administrator Chuck Rosenberg of the DEA. “We will find and prosecute drug traffickers who set up shop there, and this case is a great example of our commitment to doing exactly that. More to come.”
“AlphaBay was the world’s largest underground marketplace of the dark net, providing an avenue for criminals to conduct business anonymously and without repercussions,” said Chief Don Fort of IRS-CI. “Working with our law enforcement partners – both domestically and abroad – IRS-CI used its unique financial and cyber expertise to help shine a bright light on the accounts and customers of this shadowy black marketplace, and we intend to continue pursuing these kinds of criminals no matter where they hide.”
“This ranks as one of the most successful coordinated takedowns against cybercrime in recent years,” said Executive Director Rob Wainwright of Europol. “Concerted action by law enforcement authorities in the United States and Europe, with the support of Europol, has delivered a massive blow to the underground criminal economy and sends a clear message that the dark web is not a safe area for criminals. I pay tribute to the excellent work of the United States and European authorities for the imaginative and resourceful way they combined their efforts in this case.”
AlphaBay operated as a hidden service on the “Tor” network, and utilized cryptocurrencies including Bitcoin, Monero and Ethereum in order to hide the locations of its underlying servers and the identities of its administrators, moderators, and users. Based on law enforcement’s investigation of AlphaBay, authorities believe the site was also used to launder hundreds of millions of dollars deriving from illegal transactions on the website.
An investigation conducted by FBI Atlanta and the U.S. Attorney’s Office in the Northern District of Georgia identified an AlphaBay staffer living in the United States. That investigation is ongoing.
The investigation into AlphaBay revealed that numerous vendors sold fentanyl and heroin, and there have been multiple overdose deaths across the country attributed to purchases on the site.
According to a complaint affidavit filed in the District of South Carolina against Theodore Vitality Khleborod and Ana Milena Barrero, an investigation into an overdose death on February 16, in Portland, Oregon, involving U-47700, a synthetic opioid, revealed that the drugs were purchased on AlphaBay from Khelborod and Barrero. According to another complaint affidavit filed in the Middle District of Florida against Jeremy Achey, an investigation into a fentanyl overdose death in Orange County, Florida, on February 27, revealed that the lethal substance was purchased on AlphaBay from Achey.
Charges contained in an indictment and/or complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation to seize the AlphaBay site coincides with efforts by Dutch law enforcement to investigate and take down the Hansa Market, another prominent dark web market. Like AlphaBay, Hansa Market was used to facilitate the sale of illegal drugs, toxic chemicals, malware, counterfeit identification documents, and illegal services. The administrators of Hansa Market, along with its thousands of vendors and users, also attempted to mask their identities to avoid prosecution through the use of Tor and digital currency. Further information on the operation against the Hansa Market can be obtained from Dutch authorities.
The operation to seize AlphaBay’s servers was announced by Attorney General Jeff Sessions; Deputy Attorney General Rod Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Phillip A. Talbert for the Eastern District of California; Acting Director Andrew G. McCabe of the FBI, Acting Administrator Chuck Rosenberg of the DEA and Europol Executive Director Robert Mark Wainwright.
The case is being investigated by the FBI including FBI Sacramento Field Office and DEA, with substantial assistance from the IRS-CI. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations also assisted in the investigation. The case against Cazes was prosecuted by Assistant U.S. Attorneys Paul A. Hemesath and Grant B. Rabenn of the U.S. Attorney’s Office for the Eastern District of California, and Trial Attorneys Louisa K. Marion and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and Special Operations Division. Additionally, the following foreign law enforcement agencies provided substantial assistance in the operation to seize AlphaBay’s infrastructure: Royal Thai Police, Dutch National Police, Lithuanian Criminal Police Bureau (LCPB), Royal Canadian Mounted Police, United Kingdom’s National Crime Agency, Europol, and French National Police.
Albuquerque Man Pleads Guilty to Armed Robbery of Pizza Delivery PersonRead the Press Release
ALBUQUERQUE – Xavior Akina, 20, of Albuquerque, N.M., entered a guilty plea today in federal court to violating the Hobbs Act by robbing a pizza delivery person on March 7, 2016.
Akina was charged in a three-count indictment filed on May 10, 2016, with violating the Hobbs Act on March 6, 2016, by robbing a Domino’s Pizza employee at gunpoint, and on March 7, 2016, by robbing a Papa John’s Pizza employee at gunpoint, and violating the firearms laws by brandishing a firearm during those crimes of violence. According to the indictment, Akina committed the offenses in Bernalillo County, N.M.
During today’s proceedings, Akina pled guilty to Count 2 of the indictment charging him with violating the Hobbs Act and to Count 3 of the indictment charging him with brandishing a firearm during a crime of violence. In entering the guilty plea, Akina admitted that on March 7, 2016, he threatened the victim with a firearm and demanded money from the victim while the victim was delivering pizza.
At sentencing, Akina faces a maximum penalty of 20 years in federal prison on the Hobbs Act charge, and a mandatory seven-year prison sentence for brandishing a firearm, which must be served consecutive to any sentence imposed on the Hobbs Act charge. Akina remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Eva Fontanez.
Akron men indicted for trafficking crystal methamphetamineRead the Press Release
Two Akron men were indicted for trafficking crystal methamphetamine, said Acting U.S. Attorney David A. Sierleja.
Gary G. Hite, Jr., 48, and Ugunda Giovanni Sanders, 44, were both charged with one count each of h possession of approximately 500 grams of crystal methamphetamine and conspiracy to possess and distribute approximately 500 grams of crystal methamphetamine.
Hite and Sanders were arrested on June 28, 2017, after being stopped by the Ohio State Highway Patrol in Summit County. A canine alerted on the vehicle during the traffic stop. More than 500 grams of crystal methamphetamine were located in several pieces of luggage in the trunk, according to the indictment.
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.
The matter is being prosecuted by Assistant U.S. Attorney Teresa L. Riley following an investigation by the Ohio State Highway Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting U.S. Attorney Dambruch Applauds Enactment of Legislation Allowing Improved Access to PDMP DataRead the Press Release
PROVIDENCE – Acting United States Attorney Stephen G. Dambruch today applauded the passage and enactment of legislation in Rhode Island that will permit a limited number of qualified federal law enforcement agencies and the Rhode Island Attorney General’s Medicaid Fraud Unit to receive information through the Rhode Island Department of Health from the Department of Health’s Prescription Drug Monitoring Program (PDMP).
The PDMP is an electronic database maintained by the Rhode Island Department of Health that catalogs data concerning prescriptions written and filled, including the drug and quantity prescribed. The stated purposes of the PDMP include “help[ing] detect overprescribing, and diversion or fraud related to prescription of controlled substances.”
The legislation signed into law by the Governor on Wednesday, permits the Department of Health to provide certain requested information from the PDMP to the U.S. Food & Drug Administration, the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, Office of Health and Human Services - Office of Inspector General, and the Attorney General’s Medicaid Fraud Unit. This legislation brings Rhode Island into line with almost thirty other states, including Massachusetts and Connecticut, where PDMP information has long been readily available to law enforcement.
Acting U.S. Attorney Stephen G. Dambruch commented, “The PDMP is an important tool in combating the opioid crisis; PDMP data will assist investigators with identifying, investigating and apprehending individuals or providers engaged in the unlawful diversion of prescription opiates.”
Acting U.S. Attorney Dambruch added, “Thousands of Rhode Islanders are being impacted by the scourge of drug addiction and a wave of drug overdose deaths that continues to sweep through our state and nation. Hundreds of our relatives, our friends, our neighbors are dying each year from this disease. Thousands more have been or are being treated. Countless more are in need of treatment. Better access to PDMP data is an important addition to the investigative tool box used to hold those accountable who knowingly and illegally make opioid prescription drugs readily available for abuse.”
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19 Charged with Federal Drug OffensesRead the Press Release
PITTSBURGH – Nineteen Western Pennsylvania residents have been charged with violations of the federal narcotics laws in three separate, but related, indictments returned on July 11, 2017 and unsealed today, Acting United States Attorney Soo C. Song announced.
“Through this prosecution, we are identifying and holding accountable individuals responsible for distributing fentanyl and carfentanil, two particularly deadly controlled substances,” said Acting U.S. Attorney Song. “These dangerous, powerful narcotics are being mixed with heroin to increase potency and profit, often with deadly consequences.”
“These arrests were the result of a year-long investigation conducted by the FBI's Greater Pittsburgh Safe Streets Task Force targeting a large-scale drug trafficking organization with roots in Butler, Beaver and Allegheny Counties,” said Special Agent in Charge Robert Johnson of the FBI's Pittsburgh Field Office. “Federal penalties for drug trafficking are severe, and the FBI will continue to work with our local, state, and federal partners to stop the flow illegal drugs and to dismantle the violent criminal enterprises that facilitate the flow, as we have done here today. We are extremely grateful to our law enforcement partners who worked tirelessly with us throughout this investigation and who are equally committed to keeping our neighborhoods safe.”
An eight-count indictment named:
- Shawn Hendrix, 41, of Cranberry Township, PA;
- Nikia Perkins, 42, of Monaca, PA;
- Adrian Jordan, 27, of Braddock, PA;
- Leroy George, 48, of Johnstown, PA;
- Khalifa Cochran, 47, of Pittsburgh, PA;
- Lawrence Devenshire, 49, of Aliquippa, PA;
- Thomas Hannon, 35, of Aliquippa, PA;
- Rance Vaughn, 21, of Beaver Falls, PA;
- Aleece Bowser, 31, of Monaca, PA;
- Ashley Miller, 32, of Aliquippa, PA;
- Carlisha Williams, 27, of Aliquippa, PA; and,
- Sheila Alford, 60, of Aliquippa, PA.
According to the Indictment, from in and around September 2016, continuing until in and around July 2017, the defendants conspired to distribute and possess with the intent to distribute 400 grams or more of fentanyl, and a quantity of heroin. In addition, on various dates during the course of the conspiracy, defendants Shawn Hendrix, Nikia Perkins, Adrian Jordan, Khalifa Cochran, Aleece Bowser, Ashley Miller, Carlisha Williams, and Sheila Alford are charged with the crimes of possession with the intent to distribute fentanyl or carfentanil, and/or attempts to possess with the intent to distribute fentanyl.The law provides for a maximum total sentence of not less than 10 and years up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
A three-count indictment named:
- Matthew Smith, 51, of Ambridge, PA;
- Che Turner, 38, of Aliquippa, PA;
- Timothy Protho, 41, of Monaca, PA;
- Eric Cansler, 46, of Wilkinsburg, PA;
- Rickee Dawkins, 50, of Aliquippa, PA; and
- Donte Williams, 44, of Aliquippa, PA.
According to the Indictment, from March 2017 to May 2017, in the Western District of Pennsylvania, Smith, Turner, Protho, Cansler, and Dawkins conspired to possess with intent to distribute and distribute 28 grams or more of cocaine base and a quantity of cocaine. Smith is also charged with possession with intent to distribute a quantity of cocaine base on May 3, 2017. Williams is charged with possession with intent to distribute 28 grams or more of cocaine base on April 8, 2017.The law provides for a maximum total sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
A four-count indictment charged Ahmad Flannigan, 26, of Aliquippa, Pennsylvania, with violating federal controlled substances and firearms laws.
According to the Indictment, on or about June 2, 2017, Flannigan, a convicted felon, was in possession of firearms and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition. The Indictment also charges Flannigan with possessing two of these firearms in furtherance of a drug trafficking crime. Further, the Indictment charges that on or about June 2, 2017, Flannigan possessed with the intent to distribute 28 grams or more of cocaine base and a quantity of cocaine.
For the controlled substances charges, federal law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. For the felon in possession charge, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. For the possession of firearms in furtherance of a drug trafficking crime charge, the law provides for a maximum total sentence of not less than 5 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting these cases on behalf of the government.
Operation NightStalker is a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United Sates Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
13 Charged in Manhattan Federal Court with Racketeering, Narcotics, and Firearms Offenses in Connection with the “Hot Boys” Robbery CrewRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging 13 defendants with various racketeering, narcotics, and firearms offenses, including the murder of Kelly Diaz on October 27, 2006. The defendants are charged in connection with their membership in a robbery crew known as the “Hot Boys,” in Upper Manhattan. The defendants will be presented in Manhattan federal court today before U.S. Magistrate Judge Sarah Netburn. The case has been assigned to U.S. District Judge Valerie E. Caproni.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, the ‘Hot Boys’ robbery crew terrorized victims for more than a decade, stealing all manner of drugs to sell on the streets of Washington Heights. When anyone got in their way, they allegedly resorted to violence, including the tragic murder of Kelly Diaz. Thanks to the dogged work of our partners in the FBI and NYPD, today’s arrests mark the end of the Hot Boys, and the beginning of justice for Diaz and his family.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “Our communities and country are facing a deadly epidemic of overdoses due to prescription and illegal drugs. Groups like the one rounded up in this case are allegedly using that epidemic to make money, and show their dominance through violence. The FBI and our law enforcement partners’ ultimate goal in these investigations is to go after the leadership of these enterprises, and to cut off the access to the substances that are killing people every day.”
NYPD Commissioner James P. O’Neill stated: “As alleged, these individuals were involved in a host of violent crimes including assault, robbery and murder. The investigation of these crimes is the type of precision policing that has led to nearly 100 fewer shootings and more than 30 fewer homicides so far this year. Thanks to the detectives, agents, and prosecutors whose work led to today’s racketeering charges.”
According to the Indictment unsealed today in Manhattan federal court[1]:
From 2006 up to 2017, in the Southern District of New York and elsewhere, STARLIN NUNEZ, a/k/a “Chino,” a/k/a “Lucky Star,” a/k/a “Junior,” RAMON MARTINEZ, a/k/a “Gordo,” ANDRE BELLIARD, a/k/a “Little Andy,” DAVID SANTIAGO, a/k/a “Bori,” SANDY CASTILLO, a/k/a “Fat Sandy,” ALVARADO DOMINGUEZ, a/k/a “Jochi,” STALIN CONTRERAS, a/k/a “Chaka,” WILFRED MEDINA, a/k/a “Papalin,” ALBERT BONILLA, a/k/a “Alski,” a/k/a “Biggie,” EDWIN ARAUJO, a/k/a “Charger Ed,” GUILLERMO ARAUJO, a/k/a “Jun,” SHAJONNY SANTANA, a/k/a “Giovanni,” a/k/a “G-Money,” and ESFRAIN SILVA, a/k/a “Boy,” were all members or associates of a racketeering enterprise known as the “Hot Boys.” In order to fund the enterprise, protect its interests, and promote its standing, members and associates of the Hot Boys committed, conspired, attempted, and threatened to commit acts of violence, including murder, assault, robbery and burglary; they obtained, possessed, and used firearms, including by brandishing them; and they distributed and conspired to distribute controlled substances, including cocaine, heroin, marijuana, and various prescription drugs.
During one robbery committed in furtherance of the Hot Boys enterprise, DOMINGUEZ, CONTRERAS, MEDINA, and BONILLA murdered, and aided and abetted the murder of, Kelly Diaz on October 27, 2006, who was shot and killed in his apartment in Washington Heights.
* * *
BELLIARD, CONTRERAS, MEDINA, and SANTANA were taken into federal custody this morning, and will be presented in Manhattan federal court today before U.S. Magistrate Judge Sarah Netburn. NUNEZ, SANTIAGO, DOMINGUEZ, EDWIN ARAUJO, GUILLERMO ARAUJO, and SILVA were already in custody on other charges. MARTINEZ and BONILLA remain at large.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the respective judges.
Mr. Kim praised the outstanding investigative work of the FBI and the NYPD, and thanked the Manhattan District Attorney’s Office for its assistance in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hagan Scotten, David W. Denton, Jr., and Justina Geraci are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGES
DEFENDANTS
MAXIMUM PENALTIES
1
Racketeering Conspiracy
STARLIN NUNEZ,
RAMON MARTINEZ,
ANDRE BELLIARD,
DAVID SANTIAGO,
SANDY CASTILLO,
ALVARADO DOMINGUEZ,
STALIN CONTRERAS,
WILFRED MEDINA,
ALBERT BONILLA,
EDWIN ARAUJO,
GUILLERMO ARAUJO,
SHAJONNY SANTANA,
ESFRAIN SILVA
Life in prison
2
Murder in Aid of Racketeering
ALVARADO DOMINGUEZ,
STALIN CONTRERAS,
WILFRED MEDINA,
ALBERT BONILLA
Life in prison or death
3
Narcotics Conspiracy
STARLIN NUNEZ,
RAMON MARTINEZ,
ANDRE BELLIARD,
DAVID SANTIAGO,
SANDY CASTILLO,
ALVARADO DOMINGUEZ,
STALIN CONTRERAS,
WILFRED MEDINA,
ALBERT BONILLA,
EDWIN ARAUJO,
GUILLERMO ARAUJO,
SHAJONNY SANTANA,
ESFRAIN SILVA
Life in prison
Mandatory minimum of 10 years in prison
4
Use of Firearms Resulting in Death
ALVARADO DOMINGUEZ,
STALIN CONTRERAS,
WILFRED MEDINA,
ALBERT BONILLA
Life in prison or death
5
Using, Carrying, Possessing, and Brandishing Firearms
STARLIN NUNEZ,
RAMON MARTINEZ,
ANDRE BELLIARD,
DAVID SANTIAGO,
SANDY CASTILLO,
ALVARADO DOMINGUEZ,
STALIN CONTRERAS,
WILFRED MEDINA,
ALBERT BONILLA,
EDWIN ARAUJO,
GUILLERMO ARAUJO,
SHAJONNY SANTANA,
ESFRAIN SILVA
Life in prison
Mandatory minimum of seven years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
"Real Time": Marietta Man Sentenced to 92 Months in Federal PrisonRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Stephen Lewis McNeely, age 43, of Marietta, South Carolina, was sentenced Wednesday in federal court in Greenville, for felon in possession of a firearm, a violation of 18 U.S.C. 922(g). United States District Court Judge Timothy M. Cain sentenced McNeely to 92 months in federal prison.
Evidence presented by the government at sentencing and during the guilty plea hearing earlier this year established that on April 24, 2016, members of the Greenville County Sheriff’s Office received a tip concerning individuals in a vehicle in possession of illegal narcotics and a firearm. GCSO located the truck and approached the two occupants, one of whom was McNeely. As they engaged the occupants in conversation, GCSO observed drug paraphernalia in the cab of the truck. In a subsequent search, GCSO located a Ruger 9mm pistol, a Smith and Wesson .38 caliber pistol, a Ruger 10/22 caliber rifle, a Savage .22 caliber rifle, and a quantity of marijuana in the cab of the truck
McNeely was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate. In addition to the GCSO and ATF, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, FBI, DEA, the 13th Circuit Solicitor’s Office, and the US Attorney’s Office.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.” Since August of 2015, the initiative has resulted in the expedited federal prosecution of 118 defendants and seizure of 162 firearms as well as assorted ammunition from prohibited persons.
The Greenville County Sheriff’s Office along with ATF, investigated the case. Assistant US Attorney Max Cauthen prosecuted the case.
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19 July 2017
“2fly” Gang Member Sentenced to More Than 23 Years in Prison for 2013 Murder of Seventeen-Year-Old and 2012 Non-Fatal ShootingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JAQUAN MCINTOSH, a/k/a “BJ,” a member of the violent “2Fly YGz” (“2Fly”), a violent street gang that operated in and around the Eastchester Gardens public housing development (“ECG”) in the Bronx, was sentenced today to 280 months in prison for his role in a 2013 murder of a boy on his seventeenth birthday at ECG and a shootout with rival gang members in 2012, during which three victims – including a 14-year-old girl caught in the crossfire – were shot in a Bronx park. MCINTOSH pled guilty on November 7, 2016, in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn, MCINTOSH was sentenced today by U.S. District Court Judge Lewis Kaplan.
Acting U.S. Attorney Joon H. Kim said: “During a shootout in October 2013, Jaquan McIntosh, a member of the violent street gang operating in Eastchester Gardens, murdered a seventeen year-old on his birthday and also engaged in a 2012 shootout during which three victims, including a 14 year-old girl, were shot. Gang violence of the type McIntosh engaged in threatens the safety and security of all New Yorkers. We will continue to work with our law enforcement partners to prevent it and to bring to justice those who commit it.”
According to the Indictment and other documents filed in the case, as well as statements made during the public proceedings in this case:
MCINTOSH was a member of 2Fly, a subset of the “Young Gunnaz,” or “YG” street gang, which operated throughout New York City. 2Fly was based in the Bronx, within and around ECG and in an area called the “Valley” or the “V,” which is in the vicinity of Gun Hill Road. ECG is a rectangular complex of residential buildings bordered by Burke, Adee, Yates, and Bouck Avenues, in the middle of which is a playground. The gang war between 2Fly and rival street gangs led to an enormous amount of fatal and non-fatal violence between 2007 and 2016 in the Northern Bronx, including shootings, stabbings, slashings, beatings, and robberies. Members and associates of 2Fly controlled the narcotics trade at ECG, which took place in the open air at the playground and in apartments at ECG. 2Fly primarily sold marijuana and crack cocaine, but also sold powder cocaine and prescription pills, such as oxycodone. 2Fly members and associates stored guns at the playground or in nearby apartments or cars in order to protect the narcotics business and for protection against rival gangs.
As part of his involvement in 2Fly, MCINTOSH murdered Donville Simpson on October 5, 2013 – Simpson’s seventeenth birthday – during a shootout at ECG with rival gang members. MCINTOSH also participated with other 2Fly members in a shootout with rival gang members on August 7, 2012, in a public park in the Bronx. Three victims were shot, including a 14-year-old girl caught in the crossfire.
MCINTOSH was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, the Indictment captioned United States v. Laquan Parrish et al., 16 Cr. 212 (LAK) was unsealed, charging 57 members and associates of 2Fly with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 54 of these defendants have pled guilty.
* * *
Mr. Kim praised the outstanding work of NYPD’s Bronx Homicide Squad, NYPD’s 49th Precinct Detective Squad, NYPD’s Bronx Gang Squad, HSI, DEA, and ATF. He also thanked the Bronx County District Attorney’s Office and the Department of Investigation, NYCHA Inspector General’s Office for their ongoing support in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Skinner are in charge of the prosecution.
Young Meth Smuggler Ordered to Federal PrisonRead the Press Release
LAREDO, Texas – A Laredo federal judge has sentenced a 23-year-old Florida woman for smuggling liquid methamphetamine through the local port of entry, announced Acting U.S. Attorney Abe Martinez. Alyssa Lopez, 23, of Panama City, Florida, pleaded guilty June 6, 2016, to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine.
Today, U.S. District Judge Diana Saldaña ordered Lopez to prison for a total of 50 months. The sentence will be immediately followed by three years of supervised release.
On March 11, 2016, Lopez engaged in a conspiracy to smuggle 16.5 kilograms of liquid methamphetamine through the Gateway to the Americas Port of Entry International Bridge II in Laredo. Lopez was driving a blue Dodge Charger with Florida license plates. Inside, agents discovered three plastic horse shampoo bottles containing 16.5 kilograms of liquid methamphetamine.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Wethersfield Resident Sentenced to 46 Months in Federal Prison for Operating Investment SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY G. SCIARRA, 54, of Wethersfield, formerly of Marlborough, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded individuals and couples of more than $874,000.
According to court documents and statements made in court, from 2001 until May 2012, SCIARRA operated AGS Financial, through which he offered insurance, securities and other financial products. In approximately May 2012, the Connecticut Department of Insurance revoked SCIARRA’s insurance license.
Between approximately 2007 and July 2015, SCIARRA held himself out as a bona fide insurance agent and financial advisor when, in fact, he was not. Through AGS Financial, and later through an entity he described as “Westport Enterprises,” SCIARRA solicited investments from various victim-investors with promises of high annual investment returns ranging from 4 percent to 12 percent or more. SCIARRA falsely represented to investors that he would invest their funds in a bond fund or cigarette distribution business. Instead of investing any of the invested money as promised, SCIARRA diverted funds for his personal use, including to pay for restaurant meals and department store purchases, and to pay loans and other personal bills. The investigation revealed that SCIARRA made large cash withdrawals from ATMs and at Foxwoods Casino. SCIARRA also used some of the funds to make “interest” payments to other victim-investors.
During the scheme, SCIARRA made false statements to certain victim-investors, both in person and by e-mail, in an attempt to explain the various delays in the purported interest payments. In addition to telling victim-investors that their funds had been invested as represented, SCIARRA sought to prevent the discovery of the scheme by issuing payments to the victim-investors as a partial return of the principal and monies that were then due. Eventually, these payments stopped and the scheme was discovered.
Through this scheme, SCIARRA defrauded at least 12 victim-investors of $874,601.20
Judge Shea ordered SCIARRA to make full restitution.
On February 1, 2017, SCIARRA pleaded guilty to one count of wire fraud.
Judge Shea ordered SCIARRA to report to prison on August 30, 2017. SCIARRA is released on a $100,000 bond.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Connecticut Department of Banking, Securities Division. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Virginia Man Sentenced to 66 Months in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON - Scott Casoni, 47, of Alexandria, Va., was sentenced today to 66 months in prison for traveling interstate to engage in illicit sexual conduct with a minor and tampering with documents or proceeding, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Casoni pled guilty in April 2017 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. Following his prison term, Casoni will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 15 years.
According to the government's evidence, on June 6, 2016, Casoni contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the next few weeks, Casoni engaged in text messaging with the undercover officer. During this period of time, Casoni arranged with the undercover officer to meet in Washington, D.C. for the purpose of engaging in sexual acts with a female who was a minor. On June 30, 2016, Casoni traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested. He has been in custody ever since.
Additionally, on July 6, 2016, while Casoni was detained at the District of Columbia Department of Corrections, he contacted a family member in an effort to persuade the family member to change his password on all of his e-mail accounts, uninstall all of his messenger applications, and remove several electronic devices from the home.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director Vale, and Chief Newsham praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Criminal Investigator John Marsh, of the U.S. Attorney’s Office, and Assistant U.S. Attorney Lindsay Suttenberg, who prosecuted the case.
Vice President of Local Drywall Company Sentenced for Income Tax FraudRead the Press Release
COLUMBUS, Ohio – The Vice President of Porter Drywall and Black Star Drywall, Inc. was sentenced in U.S. District Court to five years of probation and ordered to pay more than $25,000 in restitution to the IRS for filing a false income tax return.
As a condition of his probation, Robert E. Porter, 53, of Westerville, Ohio, must ensure that Porter Drywall subscribes to proper governmental forms and otherwise complies with all tax, labor and immigration laws with respect to its employees.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, James Vanderberg, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Brad Geary, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General, and Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations, announced the sentence handed down yesterday by U.S. District Judge Michael. H. Watson.
According to court documents, Porter was Vice President of the companies between 2009 and 2013. Porter Drywall contracted to provide drywall installation and drywall supplies to residential and commercial contractors in Central Ohio. As well as being Vice President, Porter was a jobsite supervisor and estimator for Porter Drywall’s private and corporate clients.
Acting on behalf of Porter Drywall, Porter provided estimates for certain projects and assigned Porter Drywall’s employees and/or subcontractors to complete the work. He diverted numerous customer payments to his personal bank account while Porter Drywall incurred all of the costs for the projects – including labor and materials.
Shannon C. Boston, 44, of Sunbury, Ohio, was also charged in relation to this case and pleaded guilty to one count of failing to account for and pay over employment taxes to the IRS. Boston was sentenced on April 20, 2017 to five years of probation and was ordered to pay nearly $93,000 in restitution to the IRS.
While Boston was the Chief Financial Officer of Porter Drywall, Inc. in 2013, she submitted employer’s quarterly income tax returns for the company but failed to pay over their employees’ federal withholdings and Federal Insurance Contributions Act (FICA) – which includes Social Security and Medicare withholdings amounts – for the fourth quarter of 2013, totaling $120,406.
"Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone tries to manipulate our nation's tax system," said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS, U.S. Department of Labor, U.S. Department of Housing and Urban Development, and Homeland Security Investigations, and Assistant U.S. Attorney Daniel A. Brown, who prosecuted the case.
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U.S. Attorney's Office will Review Evidence from Tensing TrialsRead the Press Release
CINCINNATI – U.S. Attorney Benjamin C. Glassman announced today that in light of the Hamilton County Prosecutor’s decision not to pursue a second retrial of Raymond Tensing, the United States Attorney’s Office will now undertake to acquire and review the evidence from the state court trials in order to assess whether there are possible federal civil rights offenses warranting investigation and potential prosecution.
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Two University of Missouri Physicians Plead Guilty to Health Care FraudRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two physicians at the University of Missouri School of Medicine in Columbia, Mo., have pleaded guilty in federal court, in separate cases, to engaging in a health care fraud scheme that totaled more than $190,000.
Kenneth Loem Rall, 82, and Michael Edward Richards, 65, both of Columbia, Mo., each waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, July 18, 2017, to a federal information that charges him with one count of health care fraud.
Rall, who was employed at the university from July 1, 1998, until June 1, 2012, was chairman of the department of radiology at the School of Medicine until his resignation from that position on Dec. 20, 2011. Richards, who was head of mammography, was employed at the university from July 10, 2003, to June 1, 2012. Rall and Richards were both attending physicians in the university hospital, and teaching physicians and members of the faculty of the School of Medicine.
By pleading guilty, Rall and Richards each admitted that he signed interpretations of exams performed by residents at the hospital without actually viewing the images. Rall admitted that he caused more than $120,000 in fraudulent claims to be filed with federal health benefit programs from March 2010 through December 2011. Richards admitted that he caused more than $70,000 in fraudulent claims to be filed with federal health benefit programs from March 2010 through December 2011.
Federal health benefit programs (such as Medicare, Medicaid and Tricare) pay for the interpretation of diagnostic radiology and other diagnostic tests only if the interpretation is performed or reviewed by a teaching physician. If a resident prepares and signs the interpretation, the teaching physician must indicate that he or she personally viewed the relevant images and agrees with the resident’s interpretation, or edits the findings.
Rall and Richards admitted they falsely certified that they had viewed hundreds of files and records, when in fact they did not view the images. In each instance, the federal health benefit plan caused money to be paid, relying on their certification that they had done the work required by the pertinent regulations.
Under federal statutes, Rall and Richards are each subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorneys Lawrence E. Miller and Cindi S. Woolery. They were investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Defense Criminal Investigative Service and the FBI.
Two New York Men Charged with Conspiracy to Counterfeit United States CurrencyRead the Press Release
On July 18, 2017, two New York men were charged with Conspiracy to Counterfeit, and Passing Counterfeit United States currency, one of the men was also charged with making false statements, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Quincy Battice, 29, and Linvol R. Cummings, 34, both from New York were charged with Conspiracy to Counterfeit and Pass Counterfeit United States Currency. Quincy Battice was also charged with Making False Statements to an agent of the United States Secret Service.
The indictment alleges that in June of 2017, in the Southern District of Illinois and Eastern District of Missouri, Battice and Cummings conspired to counterfeit United States Currency. The indictment also alleges that Battice and Cummings passed counterfeited currency at multiple locations in the region. As alleged in a complaint filed against the two on June 29, 2017, the pair were arrested at a hotel in Troy, Illinois, where Secret Service and Troy Police located the printing device and sheets of uncut counterfeit currency.
The indictment alleges that when arrested, Battice gave false information to law enforcement, including a false name and personal information, causing agents to initially believe that he was another person. Battice was charged with making these false statements.
The Conspiracy to Counterfeit and Pass Counterfeit as well as, Making a False Statement each carry a maximum penalty of up to 5 years of imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation is being conducted by the United States Secret Service and the Troy, Illinois, Police Department. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Two More Defendants Plead Guilty in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national and a Texas man each pleaded guilty to conspiracy charges this week for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Montu Barot, 30, an Indian national most recently residing in Glendale Heights, Illinois, and Nilesh Pandya, 54, of Stafford, Texas, each pleaded guilty to one count of conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371. The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas. Barot agreed to deportation following his sentence. Sentencing dates are pending.
According to admissions made in connection with their respective pleas, Montu Barot, Nilesh Pandya, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to Barot’s guilty plea, beginning in or around June 2012, Barot served as a runner and coordinated the liquidation of victim scam funds by other runners per the instructions of conspirators from both India-based call centers and within the United States. Barot communicated via phone, text and email in furtherance of the criminal scheme with both domestic and India-based associates, and he and his conspirators used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions. Barot also admitted to sending financial ledgers to his conspirators detailing the movement of scam victim funds.
Based on admissions in Nilesh Pandya’s guilty plea, beginning in or around March 2014, Pandya served as a runner liquidating victim scam funds within the Southern District of Texas. At the direction of two of his co-defendants, Pandya used stored value cards that had been loaded with victim funds to buy money orders and then deposit them into various bank accounts.
To date, Montu Barot, Nilesh Pandya, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including this week’s pleas, a total of thirteen defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, Bhavesh Patel and Asmitaben Patel previously pleaded guilty on various dates between April and July 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Two Men Charged in Separate Bank RobberiesRead the Press Release
Oklahoma City, Oklahoma – DREW BLANTON, 35, and MARLAND GENE HADLEY, JR., 28, have been charged in separate indictments with bank robbery, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an indictment returned by a federal grand jury yesterday, Blanton robbed the Bank of America branch at 2101 West Memorial Road in Oklahoma City on June 21, 2017. He is also charged with conspiring to rob the bank. As described in an affidavit filed on June 23, 2017, Blanton led law enforcement on a short high-speed chase that ended when Blanton crashed into two unoccupied cars in a parking lot. A large amount of money was on the passenger floorboard, consistent with the $54,890 he allegedly took during the robbery. Blanton has been in custody since his arrest.
According to an indictment returned by a federal grand jury today, Hadley robbed Security National Bank at 210 North Oakwood Road in Enid, Oklahoma, on June 5, 2017. He is charged with using an air pistol that resembled a firearm. As described in an affidavit filed on June 15, 2017, Hadley held what witnesses described as a black handgun and yelled for everyone in the bank to "get on the floor." An audit determined the bank lost $26,353.40 as a result of the robbery. Hadley has also been in custody since his arrest.
If convicted of bank robbery, Blanton could be sentenced to twenty years in prison and three years of supervised release. He could also receive five years in prison and three years of supervised release for conspiring to rob the bank. If convicted, Hadley could be sentenced to 25 years in prison and five years of supervised release for robbing a bank with a dangerous weapon.
Reference is made to court records for further information. The public is reminded that Blanton and Hadley are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case against Blanton is the result of an investigation by the Federal Bureau of Investigation and the Oklahoma City Police Department and is being prosecuted by Assistant U.S. Attorney David McCrary. The case against Hadley is the result of an investigation by the Federal Bureau of Investigation and the Enid Police Department. It is being prosecuted by Assistant U.S. Attorneys Mark Stoneman and Nicholas Patterson.