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Friday 2 June 2017
Lowell Man Indicted for Passport FraudRead the Press Release
Boston – A Lowell man was indicted yesterday in federal court in Boston for passport fraud.
Jairus Devarie, 41, was indicted on one count of making false statements in a passport application. It is alleged that in November 2016, Devarie submitted an application for a U.S. passport and that during an interview with federal agents regarding the pending application, Devarie admitted that he submitted the application on behalf of another person.
The passport fraud charge provides for a sentence of no greater than 10 years in prison, three 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 and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lake Providence woman pleads guilty to stealing $5,000 in HUD fundsRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lake Providence woman pleaded guilty Thursday to stealing more than $5,000 from a housing development by falsifying receipts for work that was never performed.
Stephanie R. Threats, 46, of Lake Providence, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of conspiracy to commit federal program theft. According to the guilty plea, Threats worked for an Oak Grove, La., elderly housing apartment company, which received funds from the Office of Housing and Urban Development through Section 202 of the Federal Housing Program. From July 2009 until July 2012, Threats stole $5,000 from the program by creating false invoices for work performed for the benefit of the apartments and the HUD program recipients, when in reality no work had been performed.
Threats faces up to five years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for September 27, 2017.
The Office of Housing and Urban Development, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Jury Convicts Buffalo Man of Damaging Government PropertyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury found Justin Vazquez, 30, of Buffalo, NY, guilty of damaging government property. The charge carries a maximum penalty of one year in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on October 20, 2016, during a status conference prior to trial on a firearm’s charge, Vazquez carved a vulgar obscenity into a wooden table in the courtroom of Chief U.S. District Judge Joseph P. Geraci.
In May of 2017, defendant was convicted of the firearm charge and sentenced to 72 months in prison.
The verdict is the result of an investigation by the U.S. Marshal’s Service, under the direction of Marshal Charles Salina.Sentencing is scheduled for September 14, 2017, at 11:00 a.m. before Judge Geraci who presided over the trial.
Judge Sentences Erie County Man to 4 Years in Federal Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, has been sentenced in federal court to 48 months in jail, to be followed by 10 years of supervised release, and was ordered to make restitution in the amount of $2,500 on his conviction of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Ian Matthew Ahenger, 43.
According to information presented to the court, Ahenger possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Ahenger.
Indictment: Pizza Shop Owner Ran Drug Trafficking OperationRead the Press Release
TOPEKA, KAN. – A Topeka pizza shop owner and nine other people have been indicted on federal drug trafficking charges, U.S. Attorney Tom Beall said today.
A 35-count indictment unsealed Thursday alleges Adolfo Barragan-Rodriguez, owner of Pronto Pizza at 1121 SE 6th Ave. in Topeka, set up a trafficking organization that obtained methamphetamine from California and distributed it to buyers through a network of street dealers in Topeka.
The indictment alleges:
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Barragan-Rodriguez used his restaurant as a front for the drug trafficking organization. Investigators kept conspirators under surveillance as they came and went from Pronto Pizza with packages.
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Barragan-Rodriguez, who was known by the conspirators as Big Mike, managed the logistics of buying pounds of methamphetamine in California and shipping the drugs to Topeka, leaving other conspirators to handle street sales to users.
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Barragan-Rodriguez used Federal Express as a tool for his trafficking operation. For instance, a 4-pound package of meth and a package containing $14,900 in cash that were transported via Federal Express were seized during the investigation.
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Conspirators laundered drug proceeds through transactions at the Prairie Band Pottawattamie Casino north of Topeka.
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One of the defendants is charged with unlawful possession of 92 firearms.
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Some drugs were stored at a location within 1,000 feet of Mater Dei Catholic School.
Charges in the indictment include conspiracy, possession with intent to distribute methamphetamine, interstate transportation in furtherance of drug trafficking, use of a telephone in furtherance of drug trafficking, possession with intent to distribute methamphetamine within 1,000 of a school, money laundering and unlawful possession of firearms.
In addition to Barragan-Rodriguez, defendants named in the indictment include:
Michelle Belair, 34, Topeka.
Jose Medina-Benuto, 20, Topeka.
Michael Price, 42, Topeka.
Joseph Jones, 41, Topeka.
Linda Hardin, 48, Topeka.
Heather Hurley, 29, Topeka.
Daniel A. Rice, 57, Topeka.
Nicholas Casarona, 41, Topeka.
Jose Ruiz, 37, Topeka.
Upon conviction, the crimes carry the following penalties (see attached indictment for details):
Counts 1, 10, 11, 30, 32: Not less than 10 years in federal prison and a fine up to $10 million.
Counts 7 and 20: Not less than five years and not more than 40 years and a fine up to $5 million.
Counts 4, 6, 9, 13, 18 and 31: Up to 20 years and a fine up to $1 million.
Count 35: Not less than a year and not more than 40 years and a fine up to $2 million.
Count 12: Up to five years and a fine up to $250,000.
Counts 2, 3 and 5: Up to 20 years and a fine of more than $500,000.
Count 8: Up to 10 years and a fine of more than $500,000.
Counts 14-17 and 21-29: Up to four years.
Count 34: Up to 10 years and a fine up to $250,000.
Count 35: Up to 40 years and a fine up to $2 million.
The investigation was led by the Drug Enforcement Administration and the Topeka Police Department with assistance from the Shawnee County Sherriff’s Office, the Kansas Highway Patrol, the ATF, the FBI, and the Department of Homeland Security. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Independence Man Faces Additional Charges of Child Sexual ExploitationRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man previously charged with producing child pornography has been indicted by a federal grand jury on additional charges of child sexual exploitation of five additional child victims.
Travis Howard White, 24, of Independence, was charged in an 11-count indictment returned by a federal grand jury in Kansas City, Mo., on Thursday, June 1, 2017. The indictment replaces a federal criminal complaint filed against White on May 10, 2017.
White is charged with enticing a minor (identified as Minor Victim 1) to engage in illicit sexual activity from Feb. 5, 2016, to March 1, 2017. The indictment also charges White with two counts of using Minor Victim 1 to produce child pornography. White also is charged with two counts of transferring obscene material to Minor Victim 1, including numerous images depicting horses and dogs engaged in sexual activity with humans.
The indictment also charges White with one count of receiving child pornography over the Internet and five counts of transferring obscene material to a minor under the age of 16, which occurred from August 2016 to January 2017. These charges are related to five additional child victims.
According to an affidavit filed in support of the original criminal complaint, the investigation began when law enforcement agents learned Minor Victim 1 was living with White. She told investigators that she met White online in January 2016, when she was 13 years old and living in Kansas. They began “sexting” and exchanging sexually explicit nude photographs, she said. When she and her mother moved to Kansas City, Mo., in September 2016, they stayed at a hotel for a few days before her mother returned to Kansas and left her with White. The victim was placed in emergency police protective custody on March 1, 2017.
Investigators found numerous Facebook messages between White and the victim. Their conversations were of a sexual nature, the affidavit says, including instructions from White to the victim about what sorts of pictures to take and what sort of activity to engage in. The victim allegedly sent White several sexually explicit images of herself, the affidavit says, and White in turn sent her a nude image of himself. White also sent the victim approximately three dozen images depicting horses and dogs engaged in the sexually explicit abuse of females of varying and indeterminate age, according to the affidavit.
White told investigators he engaged in sexual activity with the victim at numerous locations in the metropolitan area, the affidavit says. White said he engaged in similar sexual discussions with approximately “50 to 100” other females, a number of whom were underage, via Facebook and other means.
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 Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Harrison County man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Steven A. Helms, II, 36, of Clarksburg, West Virginia was sentenced to 51 months incarceration for distributing heroin, Acting United States Attorney Betsy Steinfeld Jividen announced.
Helms pled guilty to one count of “Conspiracy to Possess With the Intent to Deliver Heroin” in November 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Fresno Man Charged with Sexual Exploitation of Children Through Musical.Ly, Kik, and other AppsRead the Press Release
FRESNO, Calif. — On Thursday, a federal grand jury returned a six-count indictment against Jacob Eric Blanco, 25, of Fresno, charging him with five counts of sexual exploitation of children and one count of distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Blanco is alleged to have used apps on his phone and computer, including Musical.ly and KIK, to target and communicate with girls under the age of 12 for the purpose of having the girls create and transmit images of themselves engaged in sexually explicit conduct. Blanco came to the attention of law enforcement after the parents of a six-year-old girl in Nassau County, New York stated to local police that someone using the app Musical.ly, alleged to be Blanco, had solicited sexually explicit images of the girl. Investigators are actively attempting to identify additional victims.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney David Gappa is prosecuting the case.
If convicted, Blanco faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison for each sexual exploitation count and 5–20 years in prison for the one count of distribution of child pornography. For all counts there is a potential $250,000 fine and lifetime supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Fredericksburg Hospitalist Group Pays $4.2 Million to Settle Civil Fraud CaseRead the Press Release
RICHMOND, Va. – Fredericksburg Hospitalist Group, P.C. (FHG), and 14 of its member shareholders have agreed to pay approximately $4.2 million to settle a federal False Claims Act (FCA) case brought under the qui tam whistleblower provisions of the FCA.
“Rooting out fraudulent billing by healthcare providers is a priority,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This office will continue to pursue such matters vigorously.”
The whistleblower complaint, which was originally filed under seal, alleged that FHG and its member hospitalists knowingly and intentionally upcoded evaluation and management (E&M) codes to the highest code levels in billing Medicare and other federal healthcare payors in connection with their providing hospitalist services to patients at Mary Washington Hospital and Stafford Hospital. After an investigation into the matter, the United States alleged that from January 2010 through April 2015, the defendants knowingly and intentionally increased the level of E&M codes to the highest code levels, resulting in increased reimbursement amounts paid by the federal healthcare payors to the billing defendants.
“Whether it’s upcoding, billing for undelivered services, or delivery of substandard care, our nationally renowned Medicaid Fraud Control Unit will never stop working to root out fraud, waste, and abuse that steals from taxpayers and weakens these important programs for Virginians who need these services,” said Mark Herring, Virginia Attorney General.
The whistleblower, also known as a “relator,” alleged that the defendants’ conduct violated the FCA. In such cases, the United States has an opportunity to investigate the claims. Under the FCA relators may be awarded up to 25 percent, or more, of amounts collected.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Virginia Medicaid Fraud Control Unit within the Office of the Virginia Attorney General, the Department of Health and Human Services, Office of Inspector General, the Defense Criminal Investigative Service, and the U.S. Office of Personnel Management, Office of the Inspector General.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh, and Assistant Attorney Generals Vincent J. Vaccarella and Adele M. Neiburg. The civil claims settled by this FCA agreement are allegations only; there has been no determination of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Fort Thompson Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, woman convicted of Child Abuse was sentenced on May 15, 2017, by U.S. District Judge Roberto A. Lange.
Bonita Keeble, a/k/a Bonita Hare, age 35, was sentenced to 14 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Keeble was indicted by a federal grand jury on April 13, 2016. She pled guilty on February 21, 2017.
The conviction stems from an incident on July 27, 2015, when an officer with the Bureau of Indian Affairs was flagged down by Keeble standing in front of a residence. Keeble stated she was drunk and needed a ride home. The officer agreed to give her a ride, but Keeble then wanted to stop by her babysitter's house who was keeping her 24-day old son. The officer agreed to stop by the residence. The babysitter agreed to let Keeble in as long as she would go to sleep. When Keeble went into the home, her son was asleep in his car seat in a back bedroom with the babysitter. Keeble, who when interviewed, indicated she was very intoxicated, took her son, woke him up and tried to unsuccessfully nurse him. Keeble then got into the top twin bunk bed with him in her right arm. They eventually went to sleep. Keeble woke up the next morning, and her son was not breathing, and had her hair clenched in his fist. He was pronounced dead at the clinic. Keeble consented to a blood draw which indicated a BAC of .098% several hours after assuming care for her child.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Keeble was immediately turned over to the custody of the U.S. Marshals Service.
Former General Secretary of Guatemalan Soccer Federation Pleads Guilty to Wire Fraud ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Héctor Trujillo, general secretary of the Guatemalan soccer federation (the “federation”) from 2009 to 2015 and a former judge of the Constitutional Court of Guatemala, pleaded guilty to one count of wire fraud conspiracy and one count of wire fraud in connection with his participation in a scheme to accept hundreds of thousands of dollars in kickbacks. Trujillo also agreed to forfeit $175,000. Trujillo faces a maximum sentence of 20 years’ imprisonment for each count. Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assisting Director in Charge, FBI New York Field Office; and Special Agent in Charge R. Damon Rowe, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Trujillo and other officials of the federation agreed to accept hundreds of thousands of dollars in kickbacks from Media World, a sports marketing company based in Miami, in exchange for media and marketing rights to the Guatemalan soccer team’s home World Cup qualifier matches leading up to the 2018 and 2022 World Cup tournaments. Over a period of years, Media World transmitted these kickbacks from its U.S. bank accounts. After Media World wired some of the kickback money to a United States bank account controlled by Trujillo’s associate, the associate wired the money from that account to an account in Guatemala, where Trujillo received his share.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Paul Tuchmann, Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
HÉCTOR TRUJILLO
Age: 63
Nationality: Guatemala
E.D.N.Y. Docket No. 15 CR 252 (S-1)
Former Firearms Dealer Sentenced to Prison for Illegally Possessing a MachinegunRead the Press Release
ERIE, Pa. – A former resident of Port Allegany, Pennsylvania, has been sentenced in federal court to 21 months in jail, to be followed by 3 years of supervised release on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on James William McMichael, 72.
According to information presented to the court,McMichael possessed a machinegun not registered to him in the National Firearms Registration and Transfer Record. McMichael, who was a former federally licensed firearms dealer, ordered various firearm parts which were then fully assembled into a functioning machinegun. The machinegun was then hidden in the ceiling of McMichael’s Port Allegany home.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Port Allegany Police Department for the investigation leading to the successful prosecution of McMichael.
Former Federal Prison Guard Sentenced to One Year in Prison for Lying to Federal Agents Investigating His Inappropriate Behavior with InmatesRead the Press Release
HONOLULU – Diego Contreras, 31, formerly of Haleiwa, was sentenced to one year in prison on June 1, 2017, and ordered to pay a $5,000 fine. Contreras pleaded guilty in federal court to Making False Statements during an investigation into his inappropriate behavior with inmates.
Acting United States Attorney Elliot Enoki said that, according to information presented to the court, on June 1, 2016, the United States Department of Justice Office of the Inspector General (DOJ OIG) interviewed Contreras, who was then employed as a guard with the Federal Bureau of Prisons. DOJ OIG was investigating Contreras for having inappropriate relationships with two female inmates of the Federal Detention Center at Honolulu (FDC). Contreras lied to investigators, by denying, among other things, that he had contacted the inmates through the use of alias e-mail addresses while they were incarcerated, and by claiming that he had not had contact with one of the inmates after her release from the FDC. One of the relationships was discovered after a photo of Contreras and the former inmate was posted to her Facebook page.
In imposing sentence, United States District Judge Helen Gillmor pointed to Contreras’ "abuse of power," and emphasized the importance of sending a message of deterrence by remarking, "[o]ther people in positions of trust need to know that if they violate that trust there will be repercussions."
This case was investigated by DOJ OIG and was prosecuted by Assistant United States Attorney Jill Otake.
Former Bath Man Pleads Guilty to Interstate Travel to have Sex with a MinorRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that David Miller, 54, of Flushing, Michigan (and formerly of Bath, Maine) pleaded guilty yesterday in U.S. District Court to transportation of a minor with intent to engage in criminal sexual activity.
Court records reveal that during the summer of 1995, Miller, then 33, was working as a long-haul truck driver. In June and July of 1995, Miller took a thirteen-year-old relative with him on two interstate trips. During these trips, he engaged in sexual activity with this relative. Federal agents began investigating Miller in 2015 when the relative reported the abuse to authorities after seeing a Facebook photograph of Miller with a five-year-old child sitting on his lap. In October 2016, Miller was interviewed by federal agents in Michigan and admitted sexually abusing his relative during the 1995 interstate trips.
Under federal law, the statute of limitations for the offenses did not expire before Congress extended it to the life of the child in 2003. Where a statute of limitations has been extended by Congress, it may be applied to crimes that preceded enactment so long as the prior statute of limitations has not expired.
The defendant faces a sentence of between 10 years and life in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Bath Police Department and the Federal Bureau of Investigation. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Financial Advisor Sentenced for $1.1 Million Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Mark F. Speakman, 60, of Grove City, Ohio, was sentenced in U.S. District Court today to 60 months in prison for an investment fraud scheme that defrauded his clients out of more than $1.1 million.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, and Grove City Police Chief Jeff Pearson announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, between 2000 and 2015, Speakman was a financial advisor at Ameriprise Financial, and between 2002 and 2015 he defrauded his clients by misappropriating their funds.
Speakman persuaded his clients to remove their funds from their Ameriprise Financial accounts and invest them in Centrax, a fraudulent real estate investment trust. Rather than investing the funds in real estate, he stole the money. He took $870,000 from seven victims for the real estate scheme and used the money to pay his own expenses.
For example, Speakman persuaded one victim to move $125,000 outside of her normal Ameriprise account and invest instead in Centrax. He did not invest the funds in Centrax, but instead used them for his personal benefit. The victim later developed terminal cancer, and she detailed her physical decline in emails to Speakman and instructed him to write checks to an estate-planning attorney and to a “local crematorium and burial society” where she was pre-purchasing cremation services.
The dying victim told Speakman she counted on the Centrax trust to avoid placing a burden on her family members when she died and intended to use her Centrax investment in order to pay off the mortgage on her home.
Because the Centrax trust did not in fact exist, Speakman convinced the victim not to liquidate her purported Centrax investment and upon her death tried to convince the victim’s family to do the same. When he could no longer postpone their wishes to liquidate, he avoided communication with the family altogether.
As part of his scheme to defraud, Speakman stole from others to avoid detection by a client he had previously defrauded. In 2014, one of his clients who had previously agreed to invest in Centrax told Speakman that he wanted to cash out his investment. Speakman had already misappropriated those funds and had no way to pack back his client.
As a result, Speakman convinced another client and three of his family members to invest in gold coins. Speakman did not invest in gold coins and instead diverted the money in order to pay back the previous victim.
In total, Speakman received nearly $1.2 million from others in furtherance of his fraudulent scheme.
In addition, Speakman filed a false federal income tax return with the IRS for the 2014 income tax year on which he omitted $275,000 in income generated by his illegal conduct. The total tax loss to the IRS for 2002 through 2014 was approximately $300,000.
Speakman pleaded guilty in December 2016 to one count each of wire fraud, money laundering and filing a false federal income tax return with the IRS. As part of his plea, he agreed to pay nearly $1.2 million in restitution to the victims of his investment fraud scheme and approximately $300,000 in restitution to the IRS.
“Mark Speakman committed a serious fraud that lasted more than a decade,” U.S. Attorney Glassman said. “He used his position as a financial advisor to take advantage of clients. Appallingly, he even lied about the final financial wishes of a client who was dying of cancer. The sentence he received today reflects the seriousness of his illegal actions.”
“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Frank S. Turner II, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office. “Today's sentencing demonstrates how the IRS, U.S. Attorney’s Office, and the Grove City Police Department banded together to help put an end to the criminal behavior of Mr. Speakman who preyed on investors for his own personal financial gain.”
U.S. Attorney Glassman commended the investigation of this case by the IRS and the Grove City Police Department, and Assistant U.S. Attorney Peter K. Glenn-Applegate, who is prosecuting the case.
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Eritrean National Indicted for Visa FraudRead the Press Release
PLATTSBURGH, NEW YORK – Mohammed Nurey Ibrahim, age 41, an Eritrean national and resident of Riyadh, Saudi Arabia, appeared yesterday on an indictment charging him with presenting a fraudulently obtained visa to a Border Patrol Agent.
The announcement was made by United States Attorney Richard S. Hartunian and Acting Director Christian J. Schurman of the State Department’s Diplomatic Security Service.
According to the indictment, on January 5, 2017, Ibrahim presented a fraudulently obtained United States non-immigrant tourist visa to a United States Border Patrol Agent in Champlain, New York. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Ibrahim will be arraigned Tuesday in Plattsburgh, New York, before United States Magistrate Judge Gary L. Favro. He is detained pending arraignment and a detention hearing.
If convicted, Ibrahim would face up to 5 years in prison and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the Department of State Diplomatic Security Service, United States Customs and Border Protection, United States Border Patrol, and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
El Paso Drug Trafficker Sentenced to 293 Months in Federal PrisonRead the Press Release
In El Paso, an El Paso man was sentenced to 293 months in federal prison for conspiring to distribute thousands of kilograms of marijuana announced United States Attorney Richard L. Durbin, Jr. and Drug Enforcement Administration Special Agent in Charge Will R. Glaspy, El Paso Division.
In addition to the prison term, United States District Judge Philip R. Martinez ordered 56-year-old David Lopez to pay a $50,000 fine. Judge Martinez also ordered that Lopez forfeit to the Government proceeds and property derived from his drug transportation business including $2.4 million in U.S. Currency, various tractor trailers, personal vehicles, and his residence.
On January 26, 2017, a jury convicted Lopez of one count of conspiracy to possess over 1,000 kilograms of marijuana and one count of possession of over 100 kilograms of marijuana. Evidence presented at trial revealed that David Lopez had been transporting marijuana from El Paso, Texas to cities in the United States from August 2001 until August 2015. Lopez utilized commercial tractor trailers driven by himself and other hired drivers. In total, the DEA was able to connect significant marijuana seizures in Sierra Blanca (TX), Abilene (TX), Alamogordo (NM), and Pratt County (KS), totaling over 3,300 kilograms of marijuana, to Lopez. Additional evidence was presented that Lopez attempted to hire a confidential source and an undercover officer to transport marijuana for him.
Furthermore, in 2010, Lopez was stopped in Clark County, KS. After a K-9 alerted to his vehicle, officers found $130,000 in his suitcase. Lopez denied any knowledge of the cash, though the cash was packaged similar to the $53,000 cash found in his safe after a search of his residence in 2015.
Lopez has remained in federal custody since his arrest on June 3, 2016.
“With this conviction, DEA and our law enforcement partners are working together to have a positive impact at the local level. We are sending a strong and unified message that drug dealing, at all levels, will not be tolerated, and, in turn, we are making our communities safer,” said Will R. Glaspy, DEA Special Agent in Charge.
This case resulted from an investigation conducted by DEA El Paso, DEA Kansas City, El Paso County Sheriff’s Office, El Paso Police Department, Anthony Police Department, United States Border Patrol, Kansas Highway Patrol, Clark County Kansas Sheriff’s Office, Kansas Bureau of Investigation, and Homeland Security Investigations with the assistance of The Document and Media Exploitation (DOMEX) El Paso Branch.
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Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston to illegal reentry after deportation.
Jimmy Jonathan Sanchez-Moreta, 40, pleaded guilty before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Sept. 12, 2017. In April 2013, Sanchez-Moreta was deported from the United States. Federal authorities encountered Sanchez-Moreta in January 2015 and determined him to be unlawfully present in the U.S.
Sanchez-Moreta faces a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. He is subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Heroin and Fentanyl ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to supplying heroin and fentanyl to traffickers in Taunton and surrounding communities.
Jonathan Ruiz, 33, a Dominican national residing in Lawrence, pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. U.S. District Court Judge George A. O’Toole Jr. has not yet scheduled sentencing.
In April 2016, Ruiz was arrested and charged in a superseding indictment along with 25 others, who had been charged the previous October, in connection with a heroin trafficking ring operating primarily in southeastern Massachusetts. Ruiz trafficked in narcotics from Lawrence, supplying distributers in Taunton, Fall River and other locations. The charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton and surrounding communities, which have seen a steep increase in overdoses and related deaths since 2013.
Ruiz and co-defendants, Dedwin Cruz-Rivera, a heroin supplier based in Taunton, Manuel Romero-Gonsalez, a heroin supplier based in Providence, R.I., and Eric Matos, a heroin and fentanyl supplier based in Lawrence, supplied co-conspirators, Oniel Rivera, Cory Nickerson, and Maria Elena Ocasio, among others, with heroin and occasionally fentanyl for distribution. Ruiz also supplied fentanyl and heroin to Cruz-Rivera.
More than half of the conspirators charged have pleaded guilty, including Matos, Ocasio, and Nickerson, whose sentencings are scheduled throughout June 2017; and eight of the defendants have already been sentenced, including Romero-Gonsalez. Cruz-Rivera pleaded not guilty and is awaiting trial.
The charge of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Ruiz will be subject to deportation upon completion of his sentence. 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 Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorneys Thomas E. Kanwit, Karen Beausey, Katherine Ferguson and Ann Taylor of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged yesterday in federal court in Boston with illegally reentering the United States after being deported.
Rafael Tejeda, 54, was deported in April 2013, and in May 2017, federal agents in Boston discovered Tejeda and found him to be illegally present in the United States.
Tejeda faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged yesterday in U.S. District Court in Boston with a federal immigration crime.
Manuel Bienvenido Pimentel-Pimentel, 54, was charged with illegally reentering the United States after being deported. Pimentel-Pimentel was deported in August 2010, and in May 2017, federal agents discovered Pimentel-Pimentel and found him to be illegally present in the United States.
Pimentel-Pimentel faces a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. He will also be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged yesterday in U.S. District Court in Boston with illegally reentering the United States after being deported.
Sandy Saul Pena, 35, was deported in February 2012, and in December 2016, federal agents in Boston discovered Pena and found him to be illegally present in the United States.
Pena faces a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. He will also be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged yesterday in federal court in Boston with a federal immigration crime.
Victor Melo, 49, a Dominican national residing in Boston, was charged with illegally reentering the United States after being deported.
According to the indictment, Melo was deported in March 1991 for unlawfully entering the United States. In May 2017, federal agents in Boston discovered Melo and found him to be again illegally present in the United States.
The charge of illegal reentry after deportation provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Melo will be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Pleads Guilty to Sexually Assaulting Six of His StudentsRead the Press Release
WASHINGTON – Manuel Fernandez, 35, of Washington, D.C., pled guilty today to sexually assaulting six of his students while working as a teacher at the Latin American Montessori Bilingual Charter School (L.A.M.B.), announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Fernandez pled guilty in the Superior Court for the District of Columbia to two charges of Second Degree Child Sexual Abuse, one charge of Attempted Second Degree Child Sexual Abuse, and three charges of Misdemeanor Sexual Abuse of a Child. The plea, which is contingent upon the Court’s approval, calls for a prison term of 1.5 to 8 years. Upon release, Fernandez would be required to register as a sex offender for the remainder of his life. The Honorable Judith Bartnoff scheduled sentencing for September 7, 2017 at 2:00 pm.
According to the plea documents, while Fernandez was a teacher at L.A.M.B., he touched multiple students on their genitalia while in his classroom and in the school basement. He touched both male and female students, both under and over their clothing.
In announcing the plea, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Tracy Owusu, Lezlie Richardson and Elsa Maltese, all of the Victim/Witness Assistance Unit, former Intern Emma McArthur, and Assistant U.S. Attorneys Jessi Camille Brooks and J. Matt Williams, who prosecuted the case.
Detroit One Collaboration Leads to Lengthy Sentences for Detroit Gang MembersRead the Press Release
The collaboration of local, state, and federal law enforcement under the Detroit One program continued its aggressive pursuit of local street gangs by obtaining a 30- year sentence for Victor Vasquez, a/k/a “Vic,” a leader of the Latin Count street gang and a 20-year sentence for Michael Gardner, a/k/a "Sosa," a member of the Vice Lord street gang announced Acting United States Attorney Daniel L. Lemisch.
Lemisch was joined in the announcement by David Gelios, Special Agent in Charge of the Federal Bureau of Investigation (FBI), S. Robin Shoemaker, Special agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Steve Francis, Special Agent in charge of Homeland Security Investigations (HSI), and Detroit Police Chief James Craig whose departments led the collaborative investigation into these violent street gangs.
Over the past several years, FBI, ATF, HSI agents, Detroit Police detectives and officers, other law enforcement agents, the Wayne County Prosecutor’s Office, and the United States Attorney’s Office have worked collaboratively to bring to justice members of both of these gangs for their varied criminal misconduct, including murders, racketeering activity, armed robberies, drive-by-shootings, assaults with dangerous weapons and narcotics distribution.
On May 31, 2017, Victor Vasquez, 26, of Detroit, was sentenced to 30 years in federal prison on his conviction for Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. As part of his plea to RICO conspiracy, Vasquez took responsibility for causing the death of Mustafa Al-Yasiry at the Big Apple Market in southwest Detroit on April 18, 2014. According to the indictment, several Latin Counts assaulted Al-Yasiry, at Vasquez’s direction, while another Latin Count came up from behind and shot and killed Al-Yasiry. Four other gang members have also pleaded guilty for their roles in this murder.
According to the racketeering indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleges that eleven defendants committed assaults, murder, selling illegal narcotics and stolen firearms, breaking and entering homes and businesses and robbery. The indictment alleges that the gang uses violence to stake out its “turf” and intimidate both rival gang members and the citizens of southwest Detroit.
On June 1, 2017, Michael Gardner, 21, of Detroit and Radcliff, Kentucky, was sentenced to 20 years in federal prison on his convictions for sex trafficking a minor (using force, fraud and coercion) and production of child pornography. Evidence produced during his trial in October 2016 showed that Gardner used violence to force a minor victim to engage in commercial sex acts. Gardner also published explicit photographs of the minor in the prostitution advertisements that he created. Moreover, Gardner used his status as a Vice Lord gang member to intimidate the minor to continue to engage in prostitution and to put her in fear of reporting the activity. These convictions are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of over two dozen Vice Lords leaders and members over the last few years.
These investigations stem from the Detroit One initiative—a combined effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state and federal law enforcement are striving to maximize their ability to identify and arrest the persons and groups initiating the violence in Detroit. Since Detroit One started in 2013, this effort has had led to significant indictments, convictions, and sentences against a number of street gangs who are responsible for much of the violent crime in Detroit, including members of the Latin Counts, Vice Lords, and many others. The current convictions and sentences are a tangible and significant result of this joint effort.
Victor Vasquez was prosecuted by Assistant United States Attorneys Matthew Roth, Andrea Hutting, and Louis Crisostomo. Michael Gardner was prosecuted by Sara Woodward and Benjamin Coats.
Couple Charged with Wire Fraud for Investment Fraud SchemeRead the Press Release
SUNG HONG, 45, and HYUN JOO HONG, 41, a Clyde Hill, Washington couple were arrested this morning on federal charges they defrauded multiple clients out of hundreds of thousands of dollars, announced U.S. Attorney Annette L. Hayes. SUNG HONG, aka LAURENCE HONG or LAWRENCE HONG, and his wife, HYUN JOO HONG, aka GRACE HONG, held themselves out as experienced investment advisors with a track record of performance in order to solicit investor funds for their hedge fund, Pishon Holdings, and for management through separately managed accounts. Authorities are still assessing the total amount of fraud in the case, but since 2011, the HONGs have solicited several million dollars in investor funds from numerous clients, and the losses to just three victims exceed $500,000. The HONGs will make their initial appearance in U.S. District Court in Seattle at 2:00 today.
According to records filed in the case, the HONGs recruited investors using religious organizations and shared religious beliefs. The couple claimed that LAURENCE HONG privately invests money for wealthy Korean families and that GRACE HONG holds a Series 65 securities license and previously worked for a large international investment firm. None of these statements appear to be true. Nor was LAURENCE HONG’s past history disclosed. The couple sent potential customers misleading and false investment prospectuses that contained an inaccurate record of their past investment performance and other plagiarized investment outlooks. They further misled investors as to the advisor fees they would charge and the amount of their funds that would be at risk.
The HONGs used investor funds for their own benefit. One church in California invested $1 million with the HONGs and lost about $300,000 on a single trade. Still, despite the steep losses and a fee arrangement based on investment gains, the HONGs withdrew almost $150,000, ostensibly as advisor fees, from the church’s account. Another couple allowed the HONGs to manage their $180,000 in retirement funds only to lose $100,000 within less than a year. After meeting with the HONGs, that couple then invested their remaining retirement funds in the HONGs’ hedge fund, only for those funds to be redirected into GRACE HONG’s personal account. The HONGs used those funds to pay credit card bills and other personal expenses, including a $16,000 payment to a resort in the Bahamas for a HONG family vacation.
Investigators have identified over $2 million in additional losses in several other investor accounts managed by the HONGs. The financial investigation to date has revealed investor money was used to pay for the HONGs’ extravagant lifestyle, which included a 9,000 square foot rental home in Clyde Hill; a 45-foot yacht; multiple high-end vehicles, such as BMWs, a Maserati, and a Lamborghini; and lavish vacations.
The FBI is investigating the case and is still determining the number of victims and the amount of fraud loss. Those who believe they have information about this case, please contact [email protected] or call 206-622-0460.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Wire fraud is punishable by up to 20 years in prison.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Steven Masada.
Connecticut Business Owner Pleads Guilty to Export ViolationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that IMRAN KHAN, 43, of North Haven, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to violating U.S. export law.
According to court documents and statements made in court, from at least 2012 to December 2016, KHAN and others were engaged in a scheme to purchase goods that were controlled under the Export Administration Regulations (“EAR”) and export those goods without a license to Pakistan, in violation of the EAR. KHAN conducted business as Brush Locker Tools or as Kauser Enterprises-USA. When asked by U.S. manufacturers about the end-user for a product, KHAN either informed the manufacturer that the product would remain in the U.S., or he completed an end-user certification indicating that the product would not be exported.
After the products were purchased, they were shipped by the manufacturer to KHAN’s North Haven residence or Cerda Market in New Haven, a business owned by KHAN. The products were then shipped to Pakistan on behalf of either the Pakistan Atomic Energy Commission (“PAEC”), the Pakistan Space & Upper Atmosphere Research Commission (“SUPARCO”), or the National Institute of Lasers & Optronics (“NILOP”), all of which were listed on the U.S. Department of Commerce Entity List. KHAN never obtained a license to export any item to the designated entity even though he knew that a license was required prior to export.
KHAN pleaded guilty to one count of violating the International Emergency Economic Powers Act. In pleading guilty, KHAN specifically admitted that, between August 2012 and January 2013, he procured, received and exported to PAEC an Alpha Duo Spectrometer without a license to do so.
KHAN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 25, 2017, at which time he faces a maximum term of imprisonment of 20 years. KHAN has been released on a $100,000 bond since he was arrested on December 13, 2016.
“The U.S. Attorney’s office in Connecticut is committed to working with our law federal law enforcement partners to ensure that sensitive technology, manufactured in the U.S. and elsewhere, does not fall into the wrong hands,” said U.S. Attorney Deirdre Daly. “Repeated violations of our export laws will be prosecuted to the full extent of the law.”
“The illegal exportation of sensitive technology to prohibited entities such as PAEC, SUPARCO and NILOP, poses a significant threat to our national security,” said Leigh-Alistair Barzey, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office. “Today’s guilty plea demonstrates DCIS’s ongoing commitment to work in partnership with the DOJ, FBI, HSI, Commerce Export Enforcement and the Postal Inspection Service, to protect our national security by prosecuting those who violate our export laws.”
This matter is being investigated by the Defense Criminal Investigative Service, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service and the U.S. Department of Commerce’s Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
Chicago Man Sentenced to 9 Years in Prison for Conspiring to Murder U.S. Citizen in Bali, IndonesiaRead the Press Release
A Chicago man was sentenced to serve nine years in prison, and four years supervise for conspiring with his cousin and his cousin’s girlfriend to kill a U.S. citizen at an Indonesian resort in 2014.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joel R. Levin of the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division made the announcement.
Robert Ryan Justin Bibbs, 26, of Chicago, was sentenced before U.S. District Judge Rebecca R. Pallmeyer of the Northern District of Illinois. On Dec. 13, 2016, Bibbs pleaded guilty to one count of conspiracy to commit the foreign murder of a U.S. national.
According to admissions made in connection with his plea agreement, in 2014, Bibbs’s cousin Tommy Schaefer informed Bibbs that Heather Mack, Schaefer’s girlfriend, had offered Schaefer approximately $50,000 to kill her mother, Sheila Von Wiese. In approximately late July or early August 2014, Mack told Bibbs that she wished her mother was dead and she asked Bibbs whether he knew someone who would kill her mother in exchange for money. Bibbs knew that Von Wiese was wealthy and that she and Mack were taking a vacation in Indonesia in early August 2014. Schaefer had conveyed to Bibbs that Mack was planning to kill her mother while they were overseas and that Schaefer intended to travel to Indonesia to join Mack.
According to the plea agreement, while Schaefer waited for his flight to depart O’Hare International Airport, he exchanged text messages with Bibbs, which Bibbs understood to mean that Von Wiese’s murder was imminent, that Schaefer expected to receive millions of dollars as a result of the murder, and that Schaefer would spend some of this money on Bibbs. According to the plea agreement, after Schaefer arrived in Bali, he informed Bibbs that Mack had unsuccessfully attempted to kill Von Wiese. Bibbs then provided advice to Schaefer via text message on alternative ways to kill Von Wiese, including by drowning or suffocation. In addition, Bibbs admitted that he counseled Schaefer that he should murder Von Wiese as long as no cameras were present, that he counseled Schaefer to be careful, and that he further encouraged his cousin to kill Von Wiese.
A short time later, Schaefer bludgeoned Von Wiese to death, then, with Mack, stuffed Von Wiese’s body into a suitcase, placed the suitcase into a taxi cab and fled the resort. Schaefer and Mack were subsequently arrested and convicted in Indonesian court, and are serving respective 18-year and 10-year sentences in prison.
Deputy Chief Hope Olds and Trial Attorney Christine Duey of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Bolling Haxall of the Northern District of Illinois prosecuted the case. The FBI investigated the case. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter as well.
Chicago Man Sentenced to 9 Years in Prison for Aiding His Cousin and Heather Mack in the Murder of Mack’s Mother in Bali, IndonesiaRead the Press Release
CHICAGO — A Chicago man was sentenced today to nine years in federal prison for aiding his cousin and Heather Mack in the 2014 killing of Mack’s mother at an Indonesian resort.
ROBERT RYAN JUSTIN BIBBS, also known as “Ryan Bibbs,” admitted in a plea agreement last year that he advised his cousin, Tommy Schaefer, and Mack about how to kill Mack’s mother, Sheila A. Von Wiese. Von Wiese, 62, was bludgeoned to death in her hotel room at the St. Regis Bali resort on Aug. 12, 2014.
Bibbs acknowledged in his plea agreement that he was aware of the couple’s plot to carry out the murder, and he counseled Schaefer on how to get away with it. Bibbs believed Schaefer would gain access to Von Wiese’s estate through Mack, and that Schaefer would share a portion of the inheritance with him, according to the plea agreement.
Bibbs, 26, pleaded guilty to one count of conspiracy to commit the foreign murder of a U.S. national. U.S. District Judge Rebecca R. Pallmeyer imposed the nine-year sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. Indonesian law enforcement provided valuable assistance.
“Repeatedly, the prospect of Von Wiese’s killing was broached and defendant elected to push the plot forward, rather than stop it or extricate himself from it,” Assistant U.S. Attorney Bolling Haxall argued in the government’s sentencing memorandum. “When Schaefer stood at the precipice, defendant provided a push forward.”
Evidence revealed that Bibbs, Schaefer and Mack discussed the murder during a meeting in Bibbs’ Chicago home prior to Mack and Schaefer traveling to Indonesia. Mack and her mother shared a hotel room in Bali, and Schaefer arrived at the resort on the morning of the murder. Soon after his arrival, Schaefer sent a text message to Bibbs, who was in the United States. The message stated that Mack had unsuccessfully attempted to kill Von Wiese, Bibbs’ plea agreement states. Bibbs replied with advice about alternative ways to carry out the murder, including by drowning, the plea agreement states.
Later that morning Schaefer sent a text message to Bibbs, stating, in part, “She wants me to right now… While she snoozing,” which Bibbs understood to mean that Mack had asked Schaefer to help her kill Von Wiese, the plea agreement states. Bibbs texted back to Schaefer, “Go sit on her face wit a pillow then,” according to the plea agreement. Bibbs intended this message to mean that Schaefer should go and suffocate Von Wiese, the plea agreement states. Subsequent messages from Bibbs encouraged Schaefer to kill Von Wiese but to be careful while doing so, the plea agreement states.
A short time later, Schaefer entered the hotel room occupied by Mack and Von Wiese and bludgeoned Von Wiese to death, Bibbs’ plea agreement states. Schaefer and Mack subsequently stuffed Von Wiese’s body into a suitcase, placed the suitcase in a taxicab and fled the resort, the plea agreement states.
Schaefer and Mack were arrested the following day by police in Indonesia. An Indonesian court in 2015 convicted Schaefer and Mack of charges related to Von Wiese’s murder. Schaefer was sentenced to 18 years in an Indonesian prison, while Mack was sentenced to ten years.
The government in Bibbs’ case is represented by Mr. Haxall, as well as Christine Duey, a trial attorney in the U.S. Department of Justice’s Human Rights and Special Prosecutions Section.
Cedar Rapids Man Charged with Distribution, Receipt, and Possession of Child PornographyRead the Press Release
Scott Ristine, age 40, of Cedar Rapids, Iowa, has been charged with distribution, receipt, and possession of child pornography. The charges are contained in an Indictment unsealed on May 30, 2017 in United States District Court in Cedar Rapids.
The Indictment alleges that, in 2015, Ristine distributed child pornography, received child pornography, and possessed child pornography on a cell phone, a memory card, a computer, and two flash drives. The Indictment also alleges that Ristine was convicted of receipt of child pornography in the Northern District of Iowa in 2002.
If convicted, Ristine faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 180 years’ imprisonment, a $1,750,000 fine, $35,700 in special assessments, and at least five years and up to life on supervised release following any imprisonment.
Ristine appeared today in federal court in Cedar Rapids for a detention hearing and was held without bond. Ristine’s next appearance for trial is set for July 31, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-37.
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Canadian Man Charged with Alien SmugglingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that yesterday the Grand Jury returned an indictment charging Viatcheslav Kim, of Montreal, with one count of transporting aliens in furtherance of their illegal presence in the United States. Court records show that agents of the United States Border Patrol apprehended Kim during the early morning of May 31, 2017 in Derby Line, Vermont, as he was driving two persons who appeared to have just illegally entered the U.S. from Canada, on foot. Neither of Kim’s passengers were U.S. citizens, and neither had permission to be inside the United States.
Kim is charged with violating section 1324(a)(1)(A)(ii) of Title 8 of the United States Code. Should Kim be convicted as charged he faces a maximum possible sentence of a five-year term of incarceration. Kim is presumed innocent unless and until he is convicted at trial or by plea.
The United States sought to detain Kim during the pendency of the prosecution based upon a risk of not appearing at future court proceedings. United States Magistrate Judge John M. Conroy denied the United States’ motion, and released Kim on conditions which included the posting of a $3000 cash bond.
“These arrests highlight the importance of our profession and display the unique talents Border Patrol Agents put forth to disrupt transnational criminal activity while securing our nation’s northern border,” said Chief Patrol Agent John C. Pfeifer.
The Assistant United States Attorney is Michael P. Drescher. Kim is represented by Elizabeth Quinn, of the Office of Federal Public Defender.
Burley Father and Son Found Guilty of Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE — A federal jury found father, Sergio Chavez-Verduzco, 42, and son, Sergio Chavez-Macias, 20, of Burley, Idaho, guilty yesterday evening of conspiracy to distribute methamphetamine, Acting U.S. Attorney Rafael Gonzalez, Jr. announced. Chavez-Verduzco was also convicted of participating in a continuing criminal enterprise. A third defendant, Armando Orozco-Guillen, 21, of Jerome, Idaho, was acquitted. The jury’s decision came after a five-day trial in United States District Court in front of Chief U.S. District Judge B. Lynn Winmill.
The evidence presented during the trial showed that in 2015 and early 2016, Chavez-Verduzco and Chavez-Macias were the source of supply to multiple large scale drug traffickers in the Treasure Valley. The evidence specifically identified Brian Weaver Cluff of Caldwell, Idaho, and James Piersol of Garden City, Idaho, as traffickers supplied by Chavez-Verduzco and Chavez-Macias. The evidence showed that Chavez-Verduzco and Chavez-Macias were sending double digit pound quantities of methamphetamine to both Cluff and Piersol on a regular basis in exchange for tens of thousands of dollars.
Chavez-Verduzco and Chavez-Macias’ sentencings are scheduled for August 25, 2017, before Chief U.S. District Judge B. Lynn Winmill. Because of Chavez-Verduzco’s conviction for participating in a continuing criminal enterprise, he faces a mandatory minimum sentence of 20 years in prison. Chavez-Macias faces a mandatory minimum sentence of ten years for his role in the conspiracy to distribute methamphetamine.
The case was investigated by the Ada County Sheriff’s Office, the Drug Enforcement Administration, the City County Narcotics Unit of Canyon County, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gooding County Sheriff’s Office, the Federal Bureau of Investigations, and the Idaho State Police.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. HIDTA in southwest Idaho is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Brazilian National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was charged yesterday in federal court in Boston with illegally reentering the United States after being deported.
Henrique Ortmayer, 23, a Brazilian national residing in Boston, was encountered by police in April 2017 and arrested on open state warrants. Ortmayer’s fingerprints revealed he was in the United States illegally and had been previously deported in November 2015.
The charge of illegal reentry after deportation provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Ortmayer will be subject to deportation upon completion of his sentence. 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The Danvers Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley County man indicted on heroin distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Berkeley County man was arraigned today after being named in an indictment returned by a federal grand jury in Martinsburg, West Virginia on May 16, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bradley Markley, age 31, of Hedgesville, West Virginia was indicted on one count of “Distribution of Heroin.” The crime is alleged to have occurred in October 2016 in Berkeley County.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Belle Fourche Woman Charged with Bank RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Belle Fourche, South Dakota, woman was charged in federal district court with Bank Robbery.
Kaycee Teppo, age 22, was charged on May 23, 2017. Teppo appeared before U.S. Magistrate Judge Daneta Wollmann on June 2, 2017, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Teppo robbing a bank in Spearfish on May 18, 2017. The charge is merely an accusation and Teppo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Spearfish Police Department. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Teppo was detained until further review. A trial date has not been set.
Thursday 1 June 2017
Two West Virginia residents sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Two individuals were sentenced today for their participation in a methamphetamine distribution operation that spanned two states and three North West Virginia counties, Acting United States Attorney Betsy Steinfeld Jividen announced.
The indictment alleged that 20 individuals from Virginia and West Virginia conspired with one another to operate a methamphetamine distribution ring in the region. Two were sentenced today in federal court.
Geniece Pancake, 36, of Belington, West Virginia was sentenced today to 120 months incarceration for assisting in the methamphetamine distribution operation. Pancake pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine” in January 2017.
David Maxwell, 32, of Elkins, West Virginia was sentenced today to 34 months for methamphetamine distribution. Maxwell pled guilty to one count of “Distribution of Methamphetamine” in January 2017. Maxwell sold crystal meth in Randolph County in April 2015.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Three Individuals Sentenced on Methamphetamine Distribution, Conspiracy, and Assault ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CODY LEE McCLENDON III, a/k/a Cody-Mac, age 36, of Tahlequah, Oklahoma was sentenced to 386 months imprisonment, followed by 5 years of supervised release for Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Grams Or More Of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A) and 96 months imprisonment, followed by 3 years supervised release for Assaulting an Officer of the United States in violation of Title 18, United States Code, Section 111(a)(1). Both sentences were ordered to run concurrently and a money judgement totaling $240,000.00 was also assessed.
MICHAEL DAVID LINCOLN, a/k/a Linc, age 40, of Tulsa, Oklahoma was sentenced to 330 months imprisonment, followed by 5 years of supervised release for Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Grams Or More Of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A). A money judgement totaling $240,000.00 was also assessed.
TIMOTHY BLAYN CROCKER, age 25, of Wilburton, Oklahoma, was sentenced to 37 months imprisonment, followed by 3 years supervised release for Conspiracy in violation of Title 18, United States Code, Section 371. A money judgement totaling $1,000.00 was also assessed.
Defendants, McClendon and Lincoln, were leaders within the McClendon Drug Trafficking Organization (DTO) primarily involved in the distribution of methamphetamine within the Eastern District of Oklahoma and elsewhere. McClendon, while serving a 20 year sentence for Robbery I, was incarcerated in the Oklahoma State Penitentiary (OSP), McAlester, Oklahoma, from September 26, 2008, until January 27, 2016. Lincoln, while serving a 30 year sentence for Manslaughter I, was incarcerated in the OSP, McAlester, Oklahoma, from October 10, 2006, until January 27, 2016. Beginning in or about the end of 2013 and continuing until on or about January 27, 2016, McClendon and Lincoln utilized cellular telephones illegally smuggled into the prison to coordinate the acquisition and distribution of at least 30 kilograms of methamphetamine within the Eastern District of Oklahoma and elsewhere. Crocker was employed as a corrections officer at OSP, during the month of December 2015, when law enforcement intercepted communications which led to identifying and arresting Crocker as a coconspirator in the McClendon DTO.
The Investigation revealed that McClendon and Lincoln, while inmates within OSP, used cellular phones they kept hidden on their person and inside their prison cells to facilitate the sale and distribution of methamphetamine. Both Defendants used these cellular phones to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. Law enforcement obtained a court order to intercept these communications. During the court-ordered 30-day interception period, law enforcement seized approximately 3 kilograms of methamphetamine and identified multiple coconspirators as a direct result of monitoring the cell phone conversations between McClendon, Lincoln, and other coconspirators. An additional 3 kilograms of methamphetamine was seized independent of the intercepted communications.
McClendon and Lincoln are also members of the Indian Brotherhood (IBH), a Criminal Gang whose members are primarily of Native American descent and which operates within and outside the Oklahoma Department of Corrections. The IBH has a defined structure as set out in a written set of by-laws which provides expectations and commands which must be followed for every IBH member. The IBH consists of numerous individual Tribes who are each controlled by a War Chief. The War Chief, with certain limitations, makes command decisions concerning actions to be taken by his Tribe. The IBH utilizes this structure to coordinate the distribution of controlled substances, collections of monies owed for controlled substances, and the protection by force, if necessary, of other IBH members and their drug trafficking interests within and outside the Oklahoma Department of Corrections.
McClendon and Lincoln are IBH War Chiefs and utilized their membership and associations within the IBH to contact other IBH members and associates to assist in the distribution of methamphetamine and other associated drug trafficking activities. While incarcerated, McClendon and Lincoln were able to enlist the aid of Crocker, a corrections officer, to obtain and provide them with contraband items. Crocker was arrested after law enforcement witnessed McClendon DTO coconspirators provide Crocker with approximately ½ kilogram of marijuana for eventual distribution inside OSP. A search of Crocker’s residence led to the seizure of an additional ¾ kilograms of marijuana and approximately 10 ounces of methamphetamine packaged for eventual distribution inside OSP.
McClendon and Lincoln are quick to utilize violence and threats of violence to further the goals and longevity of the IBH. During the investigation of the McClendon DTO, and through information obtained during wiretap intercepts, law enforcement became aware of two instances wherein McClendon sent IBH associates and fellow coconspirators to intimidate and harm other IBH associates. On one occasion, McClendon believed that a codefendant had hidden drugs and money from him and sent associates to beat the codefendant if necessary to locate the drugs and money. On another occasion, McClendon sent other codefendants to assault another individual because McClendon suspected that the individual had robbed a fellow IBH associate.
Close in time to McClendon’s initial appearance in federal court, he attempted to send a written communication from the Muskogee County Jail. In the communication, or note, McClendon specifically identified two coconspirators he believed were cooperating with law enforcement. In McClendon’s words on the note, one of them “ratted us all out, told the Feds everything, they got us all”. The two suspected coconspirators’ in the note have an “X” over their names which signifies an intent to harm or kill them.
Both McClendon and Lincoln have engaged in violent activity while incarcerated in the Muskogee County Jail awaiting disposition in their federal case. McClendon has threatened jail staff and the United States Marshal Service on numerous occasions, destroyed jail property, and assaulted a Deputy United States Marshal. Officers have seized multiple “shanks” or home-made knives from McClendon and Lincoln while they were incarcerated in the Muskogee County Jail, and McClendon has stabbed a fellow inmate with a “shank”.
In previous hearings, 18 codefendants were sentenced for their roles in the McClendon DTO. AMBER CLAPHAN, a methamphetamine distributor and drug and money courier, received a 46 months sentence of imprisonment. DONALD TRAMMEL, a methamphetamine distributor who also maintained large amounts of currency and methamphetamine for the organization, received a 168 months sentence of imprisonment. SAMANTHA SMITH, a methamphetamine distributor and drug and money courier, received a 63 month sentence of imprisonment. TERESA CHAGOLLA, a methamphetamine distributor who also maintained a residence where methamphetamine and currency were kept, received a 70 month sentence of imprisonment. JACOB HORTON MASTERS JR, a methamphetamine distributor who also kept currency for the organization, received an 84 month sentence of imprisonment. NATHAN ROWDEN GREEN, a methamphetamine distributor and drug and money courier, received a 100 month sentence of imprisonment. DUSTY ALLEN DRYWATER, a methamphetamine distributor and drug courier, received a 168 month sentence of imprisonment. ASHLEY NOEL STEELE, a methamphetamine distributor and drug courier, received a 60 month sentence of imprisonment. JIMMY W. SEQUICHIE JR., an enforcer for the DTO, received a 120 month sentence of imprisonment. REGINA ANN BALLARD, a methamphetamine distributor and drug courier, received a 77 month sentence of imprisonment. MATILDA KAY BIRDTAIL, a methamphetamine distributor and drug courier, received a 41 month sentence of imprisonment. FREDERIC PETERSEN BECK JR., a methamphetamine distributor and drug courier, received a 108 month sentence of imprisonment. GARY WAYNE WILDER, a methamphetamine distributor and drug courier, received a 60 month sentence of imprisonment. BRENDA AILEEN AIRINGTON, a methamphetamine distributor who maintained a storage unit for concealing and storing methamphetamine, received a 46 month sentence of imprisonment. BRYAN STEVEN LAFAVOR, a methamphetamine distributor and drug courier, received a 30 month sentence of imprisonment. THERESA JO DAVIS maintained bank accounts for the concealment of drug proceeds and received a 5 year sentence of probation. LATISHA DAWN ARNOLD, a methamphetamine distributor and drug courier, received a 46 month sentence of imprisonment. SHEENA CHANDEL MEIKLE, a methamphetamine distributor and drug courier, received a 46 month sentence of imprisonment.
The charges arose from a joint investigation entitled “Home of the Brave” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over all sentencing hearings. Defendants McClendon and Lincoln will remain in the custody of the United States Marshal Service pending transportation to their designated place of incarceration at which they will serve their nonparolable sentences.
Acting United States Attorney Douglas A. Horn stated, “the positive impact this investigation and subsequent prosecution has had on the communities within the Eastern District of Oklahoma will be felt for some time. The combined effort of multiple state, local, and federal agencies ensured that drug traffickers, no matter where they are located or how difficult it may be to target their activities, will be brought to justice and held accountable for the physical and mental anguish they inflict on the lives and families of those who find themselves involved in the downward spiral of drug use and addiction.”
Assistant United States Attorney Shannon L. Henson represented the United States.
Taunton Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for heroin distribution.
Nathan Pinho, 28, was sentenced by U.S. District Court Judge Richard G. Stearns to 57 months in prison and three years of supervised release. In October 2016, Pinho pleaded guilty to conspiracy to distribute heroin.
In August 2015, Pinho was arrested on state firearm and drug charges, and was accused of shooting six times at victims in a car in Taunton. Despite his arrest, Pinho began writing to his girlfriend, Adrianna Gerardi, from jail, instructing her to continue distributing heroin on his behalf. He directed her on how to obtain the drugs, how much to pay for them, how much to cut the product, and how much to charge. Pinho also wrote to Adilson Teixeira, his heroin supplier, thanking Teixeira for helping him and Gerardi.
Pinho’s letters were intercepted by authorities and used to conduct an undercover investigation. An undercover officer made controlled heroin purchases from Gerardi on five different occasions in December 2015 and January 2016. The operation culminated with the arrests of Pinho, Gerardi, and Teixeira on federal drug conspiracy charges in April 2016.
Gerardi pleaded guilty and was sentenced to two years of probation, to commence after her release from state custody. Teixeira pleaded guilty and was sentenced to 41 months in prison and three years of supervised release.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Taunton and Fall River Police Departments provided valuable assistance. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Tampa Man Pleads Guilty to Selling MethamphetamineRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Rarzell White, Jr. (30, Tampa) today pleaded guilty to distributing and possessing with the intent to distribute 50 grams or more of methamphetamine. He faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, throughout 2016, White engaged in a series of transactions with undercover detectives during which he sold them a variety of firearms, ammunition, and illegal narcotics. These transactions culminated on October 3, 2016, with the sale of approximately 55 grams of methamphetamine and a .40 caliber pistol to undercover officers.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Snoqualmie Washington Man Sentenced to Three Years in Prison for Defrauding Government Programs of More than $646,000Read the Press Release
A former Captain of the Idaho and Washington National Guard was sentenced today in U.S. District Court in Tacoma to three years in prison, three years of supervised release, and $646,300 in restitution for his lengthy scheme to defraud multiple government programs, announced U.S. Attorney Annette L. Hayes. DARRYL LEE WRIGHT, 48, who served as Chairman of the City of Snoqualmie Planning Commission, pleaded guilty to two counts of wire fraud in February 2016, admitting he defrauded the Veterans Administration, Social Security Disability, Washington State Employment Security, the Department of Commerce and others with his claims of being injured while serving in Iraq with the Army National Guard. In fact, WRIGHT lied about being injured in a rocket attack and submitted pictures of destruction which had no connection to his service in Iraq. At today’s sentencing hearing U.S. District Judge Benjamin H. Settle said Wright dragged “many people into a web of deceit . . . this was a complex and nefarious scam implemented over a long period of time . . . it was a continuous fraud. . . a very lucrative scheme.”
“This defendant brazenly lied about his combat history to get more than $600,000 in benefits he did not deserve,” said U. S. Attorney Annette L. Hayes. “His willingness to steal from a system meant to take care of those who have bravely served our country, or are otherwise in need, is an outrage. There is no question that the defendant earned the significant sentence he will now serve for his crimes.”
As early as 2006, WRIGHT began his scheme to defraud by submitting phony statements to the Army and to the Veterans Administration to create the false narrative that he had been injured in a rocket attack. As the scheme progressed over the years, WRIGHT made false and conflicting claims to various agencies in an effort to fraudulently obtain benefits. Government investigators estimate that WRIGHT’s frauds cost government programs some $737,539. The Army has stripped WRIGHT of his Purple Heart Medal and Combat Action Badge.
In an evidentiary hearing lasting six days, the government presented evidence that WRIGHT defrauded Veteran’s Benefit Administration of $261,719 in claiming he was disabled by a rocket attack that did not occur as he described. WRIGHT then defrauded a Veteran’s Caregiver program of $83,967 claiming he was so disabled he needed a full time caregiver even as he was traveling, playing basketball, caring for his child and serving on the Snoqualmie Planning Commission. He defrauded Social Security Disability of $181,438 claiming he was too injured to work even though at the time he was employed full time by the U.S. Department of Commerce. Later in the scheme, WRIGHT defrauded the Office of Personnel Management of some $48,226 by claiming disability from his job at the Department of Commerce. WRIGHT defrauded Washington State Employment Security by collecting $29,860 in unemployment benefits claiming he was able and willing to work while simultaneously claiming to the Social Security Administration that he was fully disabled and unable to be employed. WRIGHT further used his disability status to avoid repayment of more than $41,068 in student loans to the Department of Education. Finally, WRIGHT defrauded his employer, the Department of Commerce, by submitting fake orders claiming he was on military leave.
In all, pleadings indicate that Wright victimized 16 different federal, state, local, and private entities, including agencies, programs, organizations, individuals and benevolent institutions such as Disabled American Veterans.
“This conviction demonstrates the VA Office of Inspector General’s unwavering commitment to protect the programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge James Wahleithner, VA Office of Inspector General, Criminal Investigations Division.
“The primary mission of the Office of the Inspector General for the Social Security Administration is to investigate allegations of fraud, waste, and abuse in Social Security programs. In this charge, we are incredibly grateful for our law enforcement partnerships and for the collaborative approach to crime fighting demonstrated by the Wright investigative and prosecutorial team. The results of this powerful force-multiplier are quite evident given today’s sentencing, and will undoubtedly send a message to those who would otherwise attempt to defraud Social Security,” said Steuart G. Markley, Jr., Special Agent in Charge, SSA OIG, Seattle Field Division.
“Mr. Wright not only betrayed the trust of the American people and his fellow veterans by fraudulently accepting these military honors, he bilked Washingtonians who actually deserve this help out of nearly $30,000 in unemployment insurance benefit funds,” said Dale Peinecke, Commissioner of the state’s Employment Security Department, which administers the unemployment insurance system and serves veterans through the WorkSource system. “We are proud to help veterans with disabilities find employment and we’re pleased to be part of the team that brought this case to justice.”
“The Department of Commerce Office of Inspector General is dedicated to stopping fraudulent activities like this in programs designed to support America's deserving veterans,” said Inspector General Peg Gustafson. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving Justice.”
“We will continue to work with our law enforcement partners to hold accountable brazen fraudsters such as Mr. Wright,” said U.S. General Services Administration Inspector General Carol Fortine Ochoa.
“PTSD is a serious medical condition and it is unconscionable that Mr. Wright would fake such an injury for financial gain,” said Scott Rezendes, Special Agent in Charge of Office of the Inspector General, U.S. Office of Personnel Management. “I would like to thank the OPM OIG agents who worked on this case and our law enforcement partners for their diligent efforts to safeguard OPM’s retirement programs from fraud and abuse. Our office remains committed to ensuring that OPM’s disability payments are made only to those Federal annuitants who have a right to them.”
The case was investigated by multiple agencies led by the Social Security Office of Inspector General (SSA-OIG). The Office of Inspector General of these agencies were involved in the investigation: Veterans Affairs (VA-OIG), Department of Commerce (DOC-OIG), Office of Personnel Management (OPM-OIG), and General Services Administration (GSA-OIG). Also contributing to the investigation was the FBI, U.S. Army Criminal Investigation Division, the Washington National Guard, the Washington Employment Security Department and the Washington State Department of Social and Health Services.
The case is being prosecuted by Assistant United States Attorneys David Reese Jennings and Gregory A. Gruber.
Smith County Man Guilty in Drug Distribution ConspiracyRead the Press Release
TYLER, Texas – A 58-year-old Tyler, Texas man has pleaded guilty to federal drug conspiracy charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Saleem Jeffer Jiwani pleaded guilty to conspiracy to distribute and possession with intent to distribute Schedule I controlled substances, conspiracy to distribute and possession with intent to distribute controlled substance analogues, and engaging in monetary transactions. Jiwani entered his guilty plea on May 31, 2017 before U.S. Magistrate Judge K. Nicole Mitchell.
On Aug. 4, 2016, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Plano, Carrollton, Dallas and Tyler, Texas as a result of a joint investigation by the U.S. Drug Administration, Plano Police Department, Internal Revenue Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and Smith County Sheriff’s Office.
According to information presented in court, from at least April 2013, Jiwani and his co-defendants, conspired to distribute synthetic drugs at two retail establishments in the Eastern District of Texas: Minute Stop/Valero Gas Station located at 11874 Hwy 64 West in Tyler, Texas and Ashes Smokes and Tattoos located at 1428 Avenue K in Plano, Texas. Jiwani and four others were indicted by a federal grand jury on Aug. 3, 2016
Under federal statutes, Jiwani faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by DEA, Plano Police Department, IRS, ATF, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
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Six from Greater Cleveland indicted for firearms offensesRead the Press Release
Six people from Greater Cleveland were indicted in federal court for firearms crimes, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Indicted are: Donte L. Harris, 35, of Cleveland; Michael T. Tarter Jr., 36, of Cleveland; Creason Graham, 22, of Cleveland; Deon McGregor, 32, of Cleveland Heights; Lamar Brownlee, 18, of Cleveland, and Christopher Howse, 26, of Elyria.
Harris was charged with being a felon in possession of a firearm and ammunition and with possessing a firearm with an obliterated serial number.
Harris on May 4 possessed a Charter Arms, Model Undercover 38 Special, .38 caliber revolver, which had an obliterated serial number, and 28 rounds of 9mm ammunition, after having been convicted in the Cuyahoga County Court of Common Pleas of attempted robbery, aggravated assault, drug trafficking and burglary, according to the indictment.
The Harris case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
Tarter was charged with being a felon in possession of a firearm and ammunition and possession with intent to distribute cocaine.
Tarter on April 18 possessed a Taurus .45 caliber semi-automatic pistol and ammunition, after having been convicted twice of drug trafficking in the Cuyahoga County Court of Common Pleas and trafficking in heroin and trafficking in cocaine in the Lorain County Court of Common Pleas. He also possessed with the intent to distribute cocaine, according to the indictment.
The Tarter case was investigated by the ATF and the Middleburg Heights Police Department. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
Graham was charged with being a felon in possession of a firearm and ammunition. On May 15, Graham possessed a Sturm Ruger, Prescott, 9mm pistol, and ammunition, after having been previously convicted of aggravated robbery and having a firearm under disability in the Cuyahoga County Court of Common Pleas.
The case was investigated by ATF and is being prosecuted by Assistant U.S. Attorney Ranya Elzein.
McGregor on April 29 possessed five round of 9 mm ammunition after having twice been convicted of drug trafficking and once having been convicted of aggravated assault in Cuyahoga County Common Pleas Court, according to the indictment.
The McGregor case was investigated by ATF and is being prosecuted by Assistant U.S. Attorney Megan Miller.
Brownlee was charged with theft of a firearm from a federal firearms licensee. Brownlee stole a Glock, Model 43, 9mm pistol from a federal firearms licensee located in Lyndhurst on April 19, according to the indictment.
The Brownlee case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney Ranya Elzein.
Howse on March 9 possessed a Taurus 9 mm handgun despite prior convictions in Lorain County Common Pleas Court for aggravated robbery and kidnapping, according to the indictment.
The Howse case was investigated by the Elyria Police Department and FBI and is being prosecuted by Assistant U.S. Attorney Robert F. Corts and Vasile Katsaros.
The cases are unrelated.
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.
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.
Senator Dianne Feinstein Honors Mariposa County Sheriff’s Deputy with the Congressional Badge of BraveryRead the Press Release
FRESNO, Calif. — Senator Dianne Feinstein today awarded the Law Enforcement Congressional Badge of Bravery to Mariposa County Sheriff’s Deputy Rudy Mirelez who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.
U.S. Attorney Phillip A. Talbert and Mariposa County Sheriff Doug Binnewies attended the presentation today in Fresno at the Doubletree Hotel.
“Deputy Rudy Mirelez is a worthy recipient of the Law Enforcement Congressional Badge of Bravery,” said U.S. Attorney Talbert. “It is an honor for the U.S. Attorney’s office to support the nomination of Deputy Mirelez. He now joins the ranks of law enforcement officers across the nation who stood in the front lines to fight against crime and violence.”
Sheriff Binnewies stated: “It is a privilege to count Deputy Rudy Mirelez as a partner in our mission to protect the people of Mariposa County. He fearlessly responded when his fellow deputy was in danger. We will never know how many lives he may have saved by his courageous actions that day. I congratulate him on this well-deserved honor. His bravery will always be remembered and will serve as an inspiration to us all.”
Every day, federal, state, and local law enforcement officers engage in exceptional acts of bravery while in the line of duty. Often, such acts place the officers involved at personal risk of injury or result in their sustaining a physical injury. To honor these acts of bravery, Congress passed the Law Enforcement Congressional Badge of Bravery Act of 2008, creating the Federal Law Enforcement Congressional Badge of Bravery and the State and Local Law Enforcement Congressional Badge of Bravery. The act establishes an award to honor exceptional acts of bravery in the line of duty by federal, state, and local law enforcement officers. The medals are awarded annually by the U.S. Attorney General and are presented by the recipients' Congressional representatives.
On Thursday morning, October 1, 2015 at 5:44 a.m. veteran Mariposa County Sheriff’s Deputy Rudy Mirelez logged on early for duty, At approximately 6:01 a.m., Deputy Mirelez and Deputy Justin Sponhaltz heard radio traffic from another deputy involved in a vehicle pursuit heading in their direction. The pursuing deputy indicated that the suspect vehicle passed him traveling at speeds of 90 miles per hour. As the suspect vehicle approached their location, Deputy Sponhaltz pulled onto State Route 49 to prepare to support the pursuing deputy. The fleeing vehicle was approaching Deputy Sponholtz’ position at an extremely high rate of speed. The suspect vehicle then appeared to lose control and or intentionally collided into Deputy Sponhaltz’ patrol vehicle. This collision forced Deputy Sponhalz’ vehicle off of the highway up an embankment. The suspect vehicle was rendered disabled and spun to a stop in the middle of the lane.
Witnessing the collision, Deputy Mirelez pulled to a stop between Deputy Sponhaltz’ vehicle and the suspect vehicle in an attempt to protect the life of his partner. Deputy Mirelez exited his vehicle and was confronted by a 35-year-old man armed with a pistol. After a brief verbal exchange, ordering the driver to drop the pistol, gunfire erupted between the suspect and Deputy Mirelez. During the firefight, Deputy Mirelez sustained a direct gunshot wound to the face from the suspect’s .45-caliber gun. This traumatic injury caused Deputy Mirelez to fall to his knees. Knowing his partner and the community was in danger, Deputy Mirelez got back up and continued to engage the suspect with fire. Deputy Mirelez was then struck in the upper torso. The bullet passed above his ballistic vest panels and caused critical internal injuries.
Deputy Mirelez was able to keep the suspect engaged until his fellow deputies, Deputy Sheriff Tim Lemmons and Deputy Sheriff Michael King contacted and apprehend the suspect.
Sustaining life-threatening injuries, Deputy Mirelez was flown to a trauma hospital in Modesto where a surgery team was waiting. Less than 24 hours after this incident, Deputy Mirelez, barely alert, began asking about his partners. Due to the significant and critical injuries sustained, Deputy Mirelez was not able to speak and was unable to move without excruciating pain. Fighting through his pain, he asked for paper and a pen and wrote “Sponholtz.” He then held his hand up showing the number four, the universal law enforcement code for Code 4, meaning “no further assistance needed.” Throughout his recovery, Deputy Mirelez would focus more on healing those around him than his own being.
Less than 30 days after being shot twice Deputy Mirelez spoke to the Mariposa County Board of Supervisors and community. Appearing in public, with his wife and family, with his facial injuries and protruding medical devices that held his jaw in place, he spoke about healing the community, thankfulness and his desire to get back to work protecting and serving the people of Mariposa County. Five months after having received multiple life-threatening injuries and having undergone multiple surgeries, Deputy Rudy Mirelez remains strong for his family and peers.
The investigation into the shooting, revealed the suspect was a well-trained U.S. combat veteran who served three tours in Iraq. The suspect, reportedly was “on a mission” to kill an unsuspecting Mariposa County resident unrelated to this event. Due to the courageous actions of Deputy Mirelez, at least one, and possibly many citizens’ lives were saved that morning.
Go to www.bja.gov/CBOB to learn more about the Law Enforcement Congressional Badge of Bravery.
School Security Guard Charged in White Plains Federal Court with Four Murders in Connection with Cocaine Distribution ConspiracyRead 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”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), and Peter J. Graziano Jr., Chief of the Village of Chester Police Department (“Chester PD”), announced the arrest of JOSEPH BIGGS, a security guard at a school in Hastings-On-Hudson, New York, for a quadruple murder committed in Chester, New York in April 2016. BIGGS was charged in a 17-count Superseding Indictment, along with NICHOLAS TARTAGLIONE, a retired police officer who was previously arrested and charged in this case, for their participation in a conspiracy to distribute five kilograms and more of cocaine and for the murders of Martin Luna, Urbano Santiago, Miguel Luna, and Hector Gutierrez in furtherance of that conspiracy. The new indictment also includes firearms and kidnapping charges against both defendants in connection with the murders.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, Joseph Biggs, a school security officer, participated in the brutal drug-related kidnapping and murder of four people in a bar in Chester, New York. Biggs allegedly committed these cold-blooded crimes with Nicholas Tartaglione, a retired police officer. Murders are always frightening, but when allegedly committed by people entrusted with the safety of others, it is all the more disturbing.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “The FBI and our law enforcement partners in this investigation are following leads wherever they take us, and we will continue to search out any information that will help us solve the case. We are purposefully methodical, and careful about gathering facts and evidence, and we won’t stop until we bring to justice all of those responsible for the murders of these four men.”
NYSP Superintendent George P. Beach II said: “I praise the work of law enforcement in bringing these two suspected men to justice. Illicit drugs can not only be fatal to their users, but the crimes that surround these illegal operations are deadly and dangerous to our communities. With these two alleged actors charged, dangerous drugs are not making it to our streets, and those streets are now safer. The State Police pledge to continue to work and partner with other law enforcement agencies. The work we are doing will make a difference in the lives of the people we serve.”
Village of Chester Police Chief Peter J. Graziano Jr. said: “We are fortunate and humbled to be able to work with such talented people as a team in the arrest of Mr. Biggs in connection with the unspeakable and callous murder of these victims. That Mr. Bigs is alleged to be involved in a case such as this and be entrusted with the safety of children defies explanation.”
As alleged in the Indictment filed today in White Plains federal court[1]:
From at least in or about June 2015 up to and including April 2016, NICHOLAS TARTAGLIONE, JOSEPH BIGGS, and others conspired to sell five kilograms or more of cocaine. In April 2016, NICHOLAS TARTAGLIONE and JOSEPH BIGGS participated in the killing of Martin Luna, Urbano Santiago, Miguel Luna, and Hector Gutierrez in furtherance of that cocaine distribution conspiracy. Specifically, on April 11, 2016, TARTAGLIONE and BIGGS lured Martin Luna to a bar called the Likquid Lounge in Chester, New York under false pretenses, where he was held captive and killed. The other three victims – Urbano Santiago, Miguel Luna, and Hector Gutierrez – accompanied Martin Luna to the bar, where they were then held captive, shot, and killed.
* * *
JOSEPH BIGGS, 55, of Nanuet, New York, was taken into federal custody this morning. BIGGS was presented in White Plains federal court today before U.S. Magistrate Judge Judith McCarthy and ordered detained. His case has been assigned to United States District Judge Kenneth M. Karas. NICHOLAS TARTAGLIONE was previously arrested on December 19, 2016, and has been detained in federal custody since that date.
A chart containing the charges and maximum penalties the defendants face is attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI, the New York State Police, and the Village of Chester Police Department. Mr. Kim also thanked the City of Middletown Police Department for its assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey and Michael Gerber are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
United States v. Nicholas Tartaglione and Joseph Biggs, S3 16 Cr. 832 (KMK)
COUNT
CHARGES
MAXIMUM PENALTIES
1
Conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
Life in prison
Mandatory minimum:
10 years in prison2
Murder of Martin Luna in furtherance of a conspiracy to distribute 5 kilograms or more of cocaine.
Life in prison or death
Mandatory minimum:
20 years in prison3
Murder of Urbano Santiago in furtherance of a conspiracy to distribute 5 kilograms or more of cocaine.
Life in prison or death
Mandatory minimum:
20 years in prison
4
Murder of Miguel Luna in furtherance of a conspiracy to distribute 5 kilograms or more of cocaine.
Life in prison or death
Mandatory minimum:
20 years in prison
5
Murder of Hector Gutierrez in furtherance of a conspiracy to distribute 5 kilograms or more of cocaine.
Life in prison or death
Mandatory minimum:
20 years in prison
6
Use of a firearm in furtherance of drug trafficking crime resulting in the death of Urbano Santiago.
Life in prison or death
Mandatory minimum:
10 years in prison
7
Use of a firearm in furtherance of drug trafficking crime resulting in the death of Miguel Luna.
Life in prison or death
Mandatory minimum:
10 years in prison
8
Use of a firearm in furtherance of drug trafficking crime resulting in the death of Hector Gutierrez.
Life in prison or death
Mandatory minimum:
10 years in prison
9
Kidnapping conspiracy.
Life in prison
10
Kidnapping resulting in the death of Martin Luna.
Life in prison or death
Mandatory minimum:
Life in prison
11
Kidnapping resulting in the death of Urbano Santiago.
Life in prison or death
Mandatory minimum:
Life in prison
12
Kidnapping resulting in the death of Miguel Luna.
Life in prison or death
Mandatory minimum:
Life in prison
13
Kidnapping resulting in the death of Hector Gutierrez.
Life in prison or death
Mandatory minimum:
Life in prison
14
Travel or use of interstate facility with intent to commit crime of violence, resulting in death of Martin Luna.
Life in prison
15
Travel or use of interstate facility with intent to commit crime of violence, resulting in death of Urbano Santiago.
Life in prison
16
Travel or use of interstate facility with intent to commit crime of violence, resulting in death of Miguel Luna.
Life in prison
17
Travel or use of interstate facility with intent to commit crime of violence, resulting in death of Hector Gutierrez.
Life in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Salem Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
Roanoke, VIRGINIA – A Salem man, who directed his then-girlfriend to sell a machine gun, pled guilty this week in the United States District Court for the Western District of Virginia in Roanoke to a federal firearms charge, Acting United States Attorney Rick A. Mountcastle announced.
Billy James Carter, 45, of Salem, Va., pled guilty this week to one count of unlawfully transferring a firearm.
According to evidence presented by Assistant United States Attorney Ashley B. Neese, in April 2016, Carter directed his then-girlfriend to sell an AK-47 style rifle to a friend in Montgomery County, Virginia for $1,900. The rifle featured both semiautomatic and automatic fire styles.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montgomery County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Rutland Town Woman and Shrewsbury Man Sentenced to 24 Months Imprisonment for Narcotics Distribution in Rutland AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Andi Majka, 28, of Rutland Town, and Young Lim, 35, of Shrewsbury, have been sentenced to imprisonment for their respective roles in distributing crack cocaine and heroin in the Rutland area over a few year period. Both had previously pled guilty to distribution of crack cocaine and, according to court records, both also sold heroin.
Judge Geoffrey W. Crawford of the United States District Court in Rutland sentenced both Lim and Majka to twenty-four months imprisonment. Judge Crawford also imposed a three-year period of supervision by the United States Probation Office, i.e. “Supervised Release,” which begins after each is released from prison.
According to court records, Lim and Majka sold crack and heroin in the Rutland area for a few year period ending in October 2015, when they were arrested on federal drug distribution charges. According to court records, at one point in 2015 they were obtaining up to ten grams of heroin and one ounce of crack cocaine per day from out-of-state dealers. They then sold a significant portion of their narcotics to support their own drug addictions.
For several months in 2016, Majka and Lim were participating in the Federal Drug Court Program in Rutland. Federal defendants are potentially eligible for this program depending on a variety of factors including whether their offenses were addiction driven and whether their offense conduct involved violence. If Lim and Majka had successfully completed the Federal Drug Court Program, both would have received a probationary sentence. However, after both repeatedly used drugs during the program and misrepresented their conduct to the Probation Office and before the Drug Court, Judge Crawford suspended them from the program and ordered them detained.
This case was investigated by the Vermont State Police Drug Task Force and the Federal Bureau of Investigation, with assistance from the Rutland Police Department. The United States is represented by Assistant U.S. Attorney Joe Perella. Majka is represented by David Watts, Esq. of Burlington. Lim is represented by Kevin Henry, Esq. of Burlington.
Rutland Attorney John Canney III Pleads Guilty to Filing False Tax ReturnsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John R. Canney III, an attorney in Rutland, Vermont, pleaded guilty today in United States District Court in Burlington to charges of filing false tax returns. Chief U.S. District Judge Christina Reiss released Canney on conditions pending sentencing, which has been set for September 21, 2017.
- May 15, 2017, the United States filed a criminal information charging Canney with one count of filing a false individual income tax return for tax year 2011, and one count of filing a false corporate tax return for tax year 2011, the charges which he admitted today.
Mr. Canney is the sole owner of John R. Canney III, P.C., a Rutland law firm. The firm has two principal bank accounts: an operating account and a client trust account, also known as an IOLTA account. Mr. Canney used the trust account to maintain client retainer fees and funds held in trust. Upon earning fees through legal services, rather than transferring his professional remuneration from the IOLTA account to the operating account where it would be subject to accounting oversight for tax purposes, Mr. Canney instead transferred this earned income from the client trust account to his personal bank account.
- preparation for filing both the corporation income tax return and his personal income tax return for tax year 2011, Mr. Canney provided his return preparer with documentation of transactions from the firm’s operating account, but not transactions from the client trust account. Because the return preparer used only operating account financial records to determine the firm’s net income, and because those records excluded the IOLTA diversions, the corporate tax return did not include the diverted funds as corporate gross receipts. Therefore, the gross receipts of the corporation for tax year 2011 were substantially higher than the gross receipts listed on the filed corporation income tax return. Likewise, the operating account financial records did not reflect the deposits from the IOLTA account into Mr. Canney’s personal bank account. Therefore, the personal tax returns that the preparer completed for Mr. Canney omitted the income derived from the IOLTA account. Consequently, the adjusted gross income for tax year 2011 was substantially higher than the adjusted gross income listed on the filed individual income tax return.
Canney faces up to three years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to the federal Sentencing Guidelines.
This case was investigated by the Internal Revenue Service. Canney is represented by Tristram J. Coffin of Downs Rachlin Martin PLLC in Burlington. The prosecutor is Assistant U.S. Attorney Kevin J. Doyle.
Rock Island Man Indicted on Cocaine ChargeRead the Press Release
ROCK ISLAND, Ill. – Trial has been set for July 31, 2017, for a Rock Island man charged with possession of cocaine with intent to distribute. Jeffrey Terrell Moore, 29, of the 600 block of 7th Street, appeared in federal court today for arraignment before U.S. District Judge Sara L. Darrow.
A federal grand jury in Peoria returned the indictment on May 23, that charges Moore with attempted possession of at least 500 grams of cocaine with intent to distribute on May 4, 2017, in Rock Island.
Moore was previously charged in a criminal complaint. According to the affidavit filed in support of the complaint, Moore was arrested on May 4, 2017, as he allegedly attempted to purchase multiple kilograms of cocaine.
During a court appearance on May 9, before Judge Darrow, Moore was ordered detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty is a minimum mandatory sentence of 10 years to life in prison.
The charge is the result of an investigation by the Rock Island Police Department, assisted by the Quad Cities MEG and the U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Don Allegro.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Reading Man Charged with Illegal Reentry after DeportationRead the Press Release
Luis Villa De Leon, of Reading, PA, 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 December 14, 2016, Villa-De Leon, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about October 10, 1999, July 26, 2000, and September 27, 2006.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Prineville Oregon Man Sentenced to 135 Months in Prison for Distributing Child PornographyRead the Press Release
EUGENE, Ore. – On May 31, 2017, Ryan Babcock, 35, was sentenced by United States District Court Judge Ann Aiken to 135 months in federal prison for distribution of child pornography. Upon his release from prison, Babcock will have a lifetime of supervised release.
According to court documents, in 2015, Oregon State Police received information that Babcock was distributing child pornography via email. Law enforcement searched Babcock’s residence and found over 600 child pornography images from the internet on his computers and hidden camera recordings taken in Babcock’s bathroom. Babcock had installed the hidden camera and then videotaped two minor females, both under the age of 12, undressing and taking a bath at his house. Babcock is also seen in the video masturbating while washing one girl’s hair. From the video and subsequent investigation, it has been determined that the victims were unaware of what Babcock was doing.
This case was investigated by the Oregon State Police and the Bend Office of the FBI. It was prosecuted by Amy Potter, Assistant United States Attorney for the District of Oregon with assistance from the Crook County District Attorney’s Office.