Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 July 2017
“King of Death” Dealer Pleads Guilty to Heroin and Fentanyl DistributionRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today for his role in leading a drug trafficking conspiracy that resulted in more than a dozen overdoses and multiple deaths.
According to court documents, Erskine A. Dawson, 33, managed more than half a dozen individuals who sold between three and 10 kilograms of heroin from a motel off of Military Highway in Virginia Beach. Dawson’s source of supply, a New Jersey man named Kenneth Stuart, a/k/a “Bones,” used stuffed animals to conceal the narcotics as they were transported down the East Coast on commercial buses.
According to court documents, Dawson’s organization was known for its potent heroin and fentanyl, which was distributed in wax baggies stamped “King of Death,” “Last Call,” and “Steph Curry,” among many others. Dawson and his dealers knew that multiple individuals had overdosed and even died using the product, yet continued to sell it anyway.
According to the statement of facts filed with the plea agreement, after one heroin overdose death, Dawson called Stuart to inform him what had happened – and Stuart advised Dawson to continue selling the heroin, which he did. In December 2016, officers from Virginia Beach and Chesapeake Police Departments executed warrants on Dawson and his co-conspirators at two motels and recovered nearly 2,000 wax baggies containing heroin and fentanyl. In Dawson’s rooms, officers recovered multiple loaded firearms, a digital scale, several thousand dollars in cash, and a stuffed animal whose stitching had been pulled apart.
Dawson pleaded guilty to conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute heroin and fentanyl, distribution of fentanyl resulting in death, and possession of firearms during and in relation to a drug trafficking crime. Dawson faces a mandatory minimum sentence of 25 years and a maximum penalty of life in prison when he is sentenced on November 1.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; James A. Cervera, Chief of Virginia Beach Police; and Kelvin L. Wright, Chief of Chesapeake Police, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Daniel T. Young are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-61.
York Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Quan Leroy Gross, age 44, of York, Pennsylvania, pleaded guilty to possession of a firearm by a convicted felon before United States District Court Judge Sylvia H. Rambo.
According to United States Attorney Bruce D. Brandler, Gross admitted to possessing a loaded firearm while engaged in drug trafficking in York City. As a previously convicted felon, Gross is prohibited from possessing firearms.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Gross faces a mandatory minimum of fifteen years imprisonment. The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Wilmington Woman Arrested for Distribution of Heroin and Fentanyl That Resulted in DeathRead the Press Release
WILMINGTON – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announces that PORSCHE RENNE DILLARD was arrested yesterday, July 17, 2017.
DILLARD was named in an Indictment filed on April 27, 2017, charging her with distribution of a quantity of heroin and fentanyl resulting in serious bodily injury and death. If convicted, she would face a minimum term of imprisonment of 20 years and a maximum term of imprisonment of life, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case is being conducted by the Federal Bureau of Investigation’s (FBI’s) Coastal Carolina Criminal Enterprise Task Force, which is comprised of the FBI Charlotte Division’s Wilmington Resident Agency, the New Hanover County Sheriff’s Office, the Brunswick County Sheriff’s Office, the North Carolina State Bureau of Investigation and the Wilmington Police Department. The New Hanover County District Attorney’s Office has also assisted in the investigation. Assistant United States Attorney Lawrence J. Cameron is representing the government.
Wilkes-Barre Man Sentenced to 262 Months’ Imprisonment for Drug Distribution Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alfred Yale, age 37, a resident of Wilkes-Barre, Pennsylvania was sentenced today by United States District Court Judge Robert D. Mariani to serve 262 months’ imprisonment for drug distribution resulting in death.
According to United States Attorney Bruce D. Brandler, Yale pleaded guilty in May 2016, to conspiracy to distribute and possession with intent to distribute heroin laced with fentanyl to a 20-year old man, who overdosed and died on June 3, 2015. A co-defendant, Michelle Beagle, pleaded guilty to the same charge in March 2016, and is awaiting sentencing.
The charges were the result of an investigation conducted by the South Abington Police Department and the Drug Enforcement Administration - Scranton office. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
In addition to the prison term, Judge Mariani also ordered that a probation officer supervise Yale for three years following his release from prison, and that Yale pay restitution in the amount of $8,174.13.
# # #
Wichita Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty Tuesday to a federal marijuana trafficking charge, U.S. Attorney Tom Beall said.
Antoine Beasley, 37, Wichita Kan., pleaded guilty to one count of conspiracy to distribute marijuana and one count of unlawful possession of a firearm by a user of controlled substances.
In his plea, Beasley admitted that he and co-defendants were part of a drug trafficking organization that imported marijuana and distributed it to buyers in Wichita. Wichita police seized more than $250,000, checks and drug paraphernalia during a search of Beasley’s home. They also seized marijuana and a DPMS model A-15 rifle from a stash house Beasley controlled.
Beasley is set for sentencing Oct. 4. Both parties have agreed to recommend a sentence of 63 months in federal prison.
Co-defendants include:
Gerald Beasley, 62, Wichita, who is awaiting trial.
Charlotte Akogun, 55, Wichita, who is awaiting trial.
Carlos Beasley, 43, Wichita, who is awaiting trial.
Terry Beasley, 63, Wichita, who is awaiting trial.
Herbert Jones, 56, Wichita, who is awaiting trial.
Stephen Smallwood, 69, Wichita, who is awaiting trial.
Brandon Smith, 46, Wichita, who is awaiting trial.
Helen Beasley, 59, Wichita, who is set for sentencing Sept. 11.
Larry Reed, 58, Wichita, who was sentenced to 24 months.
Gerald Wilson, 46, Wichita, who is set for sentencing July 19.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal revenue Service, the Sedgwick County District Attorney’s Office, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Michelle Jacobs for their work on the case.
West Bloomfield Pharmacist Pleads Guilty to Unlawful Distribution of Prescription Pills to Patient Who DiedRead the Press Release
A pharmacist, who formerly practiced in Mt. Clemens, pleaded guilty yesterday to unlawfully distributing prescription drug controlled substances to a patient who took the drugs and died, announced Acting United States Attorney Daniel Lemisch.
Lemisch was joined in the announcement by Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Field Division.
Richard Messerly, 72, of West Bloomfield, entered a guilty plea to one count of unlawful distribution of methadone and one count of unlawfully distributing Xanax (alprazolam), before United States District Judge George Caram Steeh.
During a hearing Messerly admitted that on November 9, 2015, he unlawfully provided a patient with both methadone and Xanax, without having a valid prescription for the drugs. The patient took the drugs and died later that same day. The government contends that the patient’s death was caused by the methadone unlawfully distributed by the defendant. Under the terms of the plea agreement, the defendant reserves the right to argue at sentencing that the patient’s death did not result from the methadone.
In addition, Messerly admitted responsibility in his plea agreement to unlawfully distributing over 60,000 dosage units of controlled drugs such as oxycodone, hydrocodone and morphine sulfate. All of these drugs are in the opiate class of drugs.
Based on his guilty plea Richard Messerly is facing a maximum of twenty-five years in prison and a fine of up to $1,250,000. The plea agreement projects that the advisory sentencing guidelines for his offenses will range from 108-135 months.
Sentencing of Masserly was set for November 20, 2017 at 2:30 pm.m..
The case was investigated by agents with the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Michael Heesters.
United States Attorney’s Office in Chicago Creates New Unit to Prosecute Criminal Health Care Fraud ViolationsRead the Press Release
CHICAGO — Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, today announced the creation of a new unit dedicated to the prosecution of criminal health care fraud violations.
The newly created Health Care Fraud Unit will operate within the office’s Criminal Division. The unit will be tasked with prosecuting defendants in all types of health care fraud, from providers who engage in fraudulent billing schemes to doctors who falsify patients’ diagnoses to justify expensive tests or procedures that aren’t medically necessary.
“Every year, health care fraud causes millions of dollars in losses to Medicare and private insurers,” said Acting U.S. Attorney Levin. “Health care fraud also often exploits patients through unnecessary or unsafe medical procedures. Health care providers who cheat the system must be held accountable. Our office has successfully prosecuted numerous health care fraud cases in recent years. The new Health Care Fraud Unit will build on that success and bring even greater focus, efficiency and impact to our efforts in this important area.”
The unit will include five prosecutors, led by Assistant U.S. Attorney Heather McShain. Assistant U.S. Attorney Stephen Chahn Lee will serve as the unit’s Senior Counsel.
The office has a long history of prosecuting significant health care fraud cases, and the new unit is expected to expand on those efforts. Last week the office participated in the largest health care fraud enforcement action in Department of Justice history. The national takedown involved more than 400 defendants, including 15 individuals charged in the Northern District of Illinois.
Other significant health care fraud prosecutions include a north suburban chiropractor and his brother and father, each of whom was sentenced to prison in connection with a phony billing scheme that bilked insurance carriers out of more than $10.8 million. DR. VLADIMIR GORDIN JR., VLADIMIR GORDIN SR. and ALEXSANDER GORDIN used their chiropractic clinic, Gordin Medical Center S.C., to falsely bill for medical services that were either not provided or weren’t medically necessary. The Gordins were sentenced to prison terms earlier this year. Vladimir Gordin Jr. was sentenced to seven years; Vladimir Gordin Sr. was sentenced to two and a half years; and Alexsander Gordin was sentenced to two years.
The office also recently secured ten criminal convictions as part of a multi-year investigation into Sacred Heart Hospital in Chicago. For more than a decade, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that would be reimbursed by Medicare and Medicaid. The fraud scheme earned Sacred Heart millions of dollars from Medicare and Medicaid. The convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, chief operating officers; DR. VENKATESWARA R. “V.R.” KUCHIPUDI, a physician; as well as four other physicians. Sacred Heart closed in 2013.
Fraud in the home health care and hospice industries have also been the subject of prosecutions, and the Health Care Fraud Unit will continue those efforts. The office’s investigation of home health care fraud has resulted in convictions of doctors, nurses, marketers, and executives at multiple companies, including DIKE AJIRI, the former owner of Chicago-based Mobile Doctors; BANIO KOROMA, a physician at Mobile Doctors; and DIANA JOCELYN GUMILA, the former clinical head of Schaumburg-based Doctor at Home. An investigation of PASSAGES HOSPICE in Lisle recently resulted in prison sentences for multiple defendants, including owner SETH GILLMAN, who was sentenced earlier this year to six and a half years in prison; and ANGELA ARMENTA, Passages’ former director of certified nursing assistants, who was sentenced last month to 20 months in prison.
The Health Care Fraud Unit will also focus on prosecutions related to the diversion of controlled substances, which is an area of emphasis for the office as it continues to battle the opioid crisis. The office has previously prosecuted significant diversion cases, including procuring the guilty plea of DR. SATHISH NARAYANAPPA BABU, who formerly owned Anik Life Sciences Medical Corp. in southwest suburban Darien. Dr. Babu prescribed controlled substances, including OxyContin and Hydrocodone, to certain patients without having examined them. Dr. Babu was sentenced in 2015 to 18 months in prison.
In announcing the new unit, Acting U.S. Attorney Levin acknowledged the cooperation and determination of the office’s investigative partners, including, among others, the Chicago offices of the Federal Bureau of Investigation, U.S. Department of Health and Human Services Office of Inspector General, U.S. Department of Labor’s Office of Inspector General, U.S. Food and Drug Administration, and U.S. Postal Inspection Service.
Two people convicted for their role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Two West Virginia residents were convicted today of their roles in a methamphetamine distribution operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
June Catherine Blanchek, 37, of Petersburg, West Virginia pled guilty to one count of “Conspiracy to Distribute Methamphetamine.”
John Wayne Crites, 45, of Moorefield, West Virginia, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.”
Blanchek and Crites admitted to working with others to distribute more than 50 grams of crystal meth in Grant County between September 2014 and December 2016.
Blanchek and Crites each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Two Bronx Men Sentenced in Manhattan Federal Court to 37 and 35 Years in Prison for Shooting of Innocent BystanderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced that KEVIN STERLING, a/k/a “Lion,” was sentenced to 37 years in prison and ALONZO VERNON, a/k/a “Zoe,” was sentenced to 35 years in prison today for the non-fatal shooting of a young woman who was an innocent bystander to a drug-related shooting, and for related crimes. They were each sentenced today in Manhattan federal court by U.S. District Court Judge Lewis A. Kaplan, who presided over a three-week jury trial in April 2017 at which STERLING and VERNON were convicted on all counts in the controlling indictment.
Acting U.S. Attorney Joon H. Kim said: “When a drug worker refused to pay a drug debt, Kevin Sterling and Alonzo Vernon hunted him down and Sterling shot at him, without any regard for his life or the lives of the innocent people nearby. One innocent bystander, a young woman in the wrong place at the wrong time, was shot and seriously injured, but thankfully lived. For their callous crimes, Sterling and Vernon will now serve lengthy prison sentences.”
According to the trial testimony and evidence as well as public court filings and statements made in connection with case:
STERLING and VERNON led a drug trafficking organization that brought crack cocaine and heroin from the Bronx to Ithaca, New York, to be sold at prices higher than the drugs would sell for in the Bronx. STERLING and VERNON recruited young men in the Bronx to sell drugs for them in Ithaca. Together with another member of the conspiracy, STERLING and VERNON provided drugs to their workers and collected their drug proceeds.
In about April or May 2015, VERNON informed one of their workers (“Victim-1”) that his money was “short” and that he owed more money. Victim-1 did not pay the claimed debt, and VERNON threatened to “f****[] him up” as a result.
On the night of May 31, 2016, STERLING saw Victim-1 on the street. VERNON and STERLING followed Victim-1 to the area of 219th Street and Willett Avenue in the Bronx in a car driven by VERNON. Victim-1 was on a porch with a group of friends. Next door, a young woman (“Victim-2”) was outside with her friends.
STERLING exited the car and pointed a gun at one of the group. Sterling shouted “where’s Melo?” – the street name used by Victim-1 – and shot once at Victim-1. He missed Victim-1 and hit Victim-2 in the elbow instead. The bullet shattered her elbow and entered her side. STERLING went back to the car, and VERNON drove him away. Victim-2 tried to run away and collapsed bleeding while her friend tied a tourniquet around her arm.
* * *
STERLING, 38, and VERNON, 39, both of the Bronx, New York, were each convicted after trial of conspiring to distribute and possess with the intent to distribute 280 grams and more of crack cocaine and 100 grams and more of heroin; discharging a firearm in connection with that drug trafficking crime, and aiding and abetting the same; and being felons in possession of ammunition. In addition to their prison terms, STERLING and VERNON were each sentenced to 10 years of supervised release.
Mr. Kim praised the outstanding investigative work of the New York City Police Department and thanked the U.S. Marshals Service, the City of Ithaca Police Department, and the Cornell University Police Department for their assistance.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Drew Skinner and Justina Geraci are in charge of the case.
Taunton Man Sentenced to 18 Years for Child Enticement and Child Pornography ChargesRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for coercing and attempting to coerce seven minors into sending him sexually explicit images and for producing and distributing child pornography.
Joseph Debrum, 40, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 years in prison and seven years of supervised release after pleading guilty in April 2017 to seven counts of coercion and enticement of a minor, six counts of sexual exploitation of children, and two counts of distribution of child pornography.
Between May 2014 and March 2015, Debrum assumed fictitious online identities of a 21-year-old woman and a 16-year-old girl, which he used to coerce seven 13-16-year-old girls living in six states to send him sexually explicit photos of themselves over the internet. On some occasions, Debrum coerced victims to perform sexual acts live online while he watched and took photos of the screen on his cell phone. He also coerced them to take and email him photos of themselves performing sexual acts.
For 10 months, Debrum preyed on vulnerable teens by meeting them in specific online chatrooms, such as Kidzworld and Teenspot, as well as on Skype and Kik Messenger, where he feigned those identities by lying about his true age and gender to each of the victims during chats. He befriended them, learned personal details, and then threatened to expose what they told him in confidence if they did not acquiesce to his demands to pose nude or perform sexual acts on themselves for him to watch. Debrum referred to at least one girl as his “slave,” and as he accumulated more compromising material, he used it as leverage to coerce more sexual acts by issuing further threats, including telling one child he would kill her if she did not perform a sexual act for him.
Debrum also disseminated some of the sexually explicit photos of the minors over the internet. He sent photos of one victim to another victim, and sent pictures of a victim to that victim’s mother, telling her that he would expose her daughter unless the mother became his sex slave. The mother subsequently contacted law enforcement.
On April 2, 2015, Debrum was interviewed by law enforcement and admitted to assuming fictitious female identities while communicating online with the victims. He also admitted to asking them to take sexually explicit pictures and to perform specific sexual acts.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was provided by the Taunton Police Department and Loudon County, Va., Sheriff’s Office. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
South Bend Man Found Guilty After 2-Day Jury TrialRead the Press Release
SOUTH BEND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Tyrone Miller, age 31, of South Bend, Indiana was convicted of being a felon in possession of a firearm, after a two-day jury trial before United States District Court Judge Robert L. Miller.
According to documents filed in this case, in February 2017, Tyrone Miller was in possession of a 9mm firearm with an extended magazine. Miller was previously convicted of a felony offense in St. Joseph County.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Frank E. Schaffer.
# # #
Slater Man Sentenced to Prison for Child PornographyRead the Press Release
Columbia, South Carolina –------- United States Attorney, Beth Drake, announced that Timothy Greer, age 52, of Slater, South Carolina, was sentenced yesterday to serve 36 months in federal prison for Possession of Child Pornography in violation of Title 18, United States Code, Section 2252A(a)(5)(B). The sentence was imposed by United States District Judge J. Michelle Childs, who also ordered that Greer be placed on supervised release for life. Judge Childs ordered as a condition of supervised release that Greer have his computer usage monitored and that he be placed on the Sexual Offender Registry.
U.S. Attorney Drake advised that Greer’s personal computer was searched and over 35,000 pornographic images of children were found. Many of these were of prepubescent children and some were sadistic in nature. Drake went on to say that there was no evidence that Greer was involved in manufacturing any of these images, rather he had obtained them from the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jamie Schoen and David C. Stephens of the Greenville Office.
# # # # #
Shawano Man Sentenced to 10 Years in Prison for Child Sexual Abuse on the Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 18, 2017, William Wilber IV (age: 35) of Shawano, Wisconsin, was sentenced to two concurrent terms of 10 years of imprisonment, followed by a 10-year term of supervised release. The sentence was the result of guilty pleas by Wilber on April 6, 2017 to two counts of Sexual Abuse of a Minor Under the Age of 16.
The investigation revealed that in May 2015, Wilber, engaged in a sex act with a then-13-year old girl at a location outside Keshena near Legend Lake on the Menominee Indian Reservation. Further investigation revealed that on or about July 4, 2016, Wilber engaged in a sex act with a then-14-year old girl near the same location. Law enforcement officials interviewed Wilber, who admitted sexually assaulting the victims. Additional investigation and interviews revealed several other occasions where Wilber took sexually inappropriate actions toward underage girls.
In sentencing Wilber, Chief United States District Judge William C. Griesbach pointed out the history of similar conduct by the defendant “preying” on underage girls. Chief Judge Griesbach referred to the defendant’s use of alcohol as a tool to overcome the resistance of the juvenile victims, and as a method by which the defendant rationalized his behavior. Chief Judge Griesbach noted the impact the defendant’s actions had on the victims, as well as a juvenile relative of the defendant who was present during some of the assaults.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation, with significant assistance from the Willow Tree Cornerstone Child Advocacy Center in Green Bay. The case was prosecuted by Assistant United States Attorney Andrew J. Maier.
# # # # #
San Ildefonso Pueblo Man Pleads Guilty to Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Jordan Roybal, 25, an enrolled member of the San Ildefonso Pueblo who resides in San Felipe Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Roybal was arrested on March 3, 2017, on a criminal complaint charging him with assaulting a federal officer. According to the criminal complaint, Roybal was arrested on tribal charges on Nov. 21, 2016, after he assaulted a law enforcement officer of the Bureau of Indian Affairs (BIA). Roybal committed the assault on San Ildefonso Pueblo in Santa Fe County, N.M., by resisting arrest and challenging the officer to fight. During the assault, Roybal bit the officer on the wrist. The officer also sustained skinned knees, a scrape on his left hand, swelling of his right knee and soreness to his left wrist as the result of the assault.
Roybal was subsequently charged in a two-count indictment on March 28, 2017, with assaulting a federal officer on Nov. 21, 2016 in Santa Fe County, and assaulting a federal officer on Jan. 26, 2017, in Rio Arriba County, N.M.
During today’s proceedings, Roybal pled guilty to Count 1 of the indictment charging him with assaulting a federal officer. In entering the guilty plea, Roybal admitted that on Nov. 21, 2016, he assaulted a BIA officer while the officer was attempting to arrest him on tribal offenses by lying about his identity, cursing at the officer, resisting arrest, throwing his elbow into the officer, biting the officer, and verbally threatening the officer.
At sentencing, Roybal faces a maximum penalty of 20 years in federal prison. Roybal remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Elisa Dimas is prosecuting the case.
Safeway Pharmacies Pay $3 Million to Resolve Allegations Chain Failed to Timely Report Drug DiversionRead the Press Release
The Department of Justice and Safeway (a division of Albertson’s Companies, Inc.) have reached a civil settlement of allegations the company failed to timely report controlled substances that were missing from pharmacies, announced U.S. Attorney Annette L. Hayes. Safeway will pay the United States $3 million and implement a compliance agreement reached with the Drug Enforcement Administration (DEA) to ensure such notification lapses do not happen again.
“As our community struggles with an epidemic of opioid abuse, we call on all participants in drug distribution to carefully monitor their practices to stem the flow of narcotics to those who should not have them,” said U.S. Attorney Annette L. Hayes. “Pharmacies have a key role to play in making sure only those with legitimate prescriptions receive these powerful and potentially addictive drugs, including by timely reporting losses of those drugs. Failure to do so hamstrings DEA’s investigative abilities and frustrates some of our best methods at curbing abuse.”
According to the settlement agreement, the investigation began in April 2014, when the DEA learned that Safeway pharmacies in North Bend, Washington and Wasilla, Alaska did not notify DEA of losses of tens of thousands of hydrocodone tablets until months after Safeway discovered the pills were pilfered by employees. DOJ’s investigation was later widened to review practices at all Safeway pharmacies nationwide between 2009 and 2014. The investigation revealed a widespread practice of Safeway pharmacies failing to timely report missing or stolen controlled substances. Today’s settlement resolves the allegations with Safeway acknowledging and accepting responsibility for failing to report the missing medications in a timely fashion.
DEA Special Agent in Charge Keith Weis was pleased with the settlement adding, “At this crucial juncture in our efforts to combat abuses of prescription drugs, it is imperative that pharmacies notify DEA immediately when drugs are stolen or missing. A quick response to such reports is one of the best tools DEA has in stopping prescription drug diversion.”
By law, pharmacies and other drug providers are required to notify the appropriate Field Division of the DEA of the theft or significant loss of any controlled substance within one business day of the discovery of the theft or loss.
This is the third DOJ settlement in the last year in the Western District of Washington involving lax pharmacy controls and inconsistent adherence to DEA requirements. In January 2017, DOJ reached an $11.75 million settlement with Costco and in July 2016 DOJ reached a settlement with Seattle Cancer Care Alliance over pharmacy control failures.
The case was investigated by the DEA’s Seattle Field Office, DEA’s Drug Diversion and Regulatory Litigation Section and the U.S. Attorney’s Office for the Western District of Washington. The settlement agreement was negotiated by Assistant United States Attorney Christina Fogg.
Roswell Woman Indicted on Federal Charges for Counterfeit Oxycodone Pills Containing Fentanyl and Synthetic OpioidsRead the Press Release
ATLANTA - Cathine Lavina Sellers of Roswell, Georgia, has been arraigned on federal charges of possession with the intent to distribute fentanyl, and two synthetic opioids, furanyl-fentanyl and U-47700. A search warrant affidavit in the case alleges that Sellers was selling counterfeit 30mg Roxicodone (oxycodone) pills out of her residence in Roswell.
In conjunction with this arrest, the U.S. Attorney’s Office and Atlanta DEA are issuing a public warning regarding these counterfeit pills through their public affairs offices as well as through the North Georgia Heroin Working Group, https://www.justice.gov/usao-ndga/heroinopioid-working-group. A similar warning was issued just last month when fake Percocet pills caused numerous overdoses in the Macon, Georgia area. Five overdose deaths have been linked to the fake Percocet pills.
“This defendant allegedly sold counterfeit pills that were deliberately designed to look like normal Roxicodone tablets when they were actually laced with fentanyl and two synthetic opioids,” said U. S. Attorney John Horn. “These pills are especially dangerous because they may be more than 50 times more potent than normal oxycodone. Anyone who consumes these pills faces a substantially higher risk of overdose.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Combating the explosion of synthetic drugs continue to be one of DEA’s top priorities. Substances like U-47700, also known as “Pink,” which is a synthetic opioid 7.5 times stronger than morphine, continues to wreak havoc on our society. DEA will continue to work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to bring dangerous ‘pill pushers’ to justice.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: On June 13, 2017, Sellers allegedly sold approximately 100 pills for $1,400 in cash from her Roswell townhouse to a confidential source working with the DEA. A field test of the pills was positive for the presence of furanyl-fentanyl, which is an analog of fentanyl, similar to morphine but more potent.
Later that night, DEA agents searched Sellers's home and retrieved the money from the earlier transaction. There, DEA agents found more pills, similar to those purchased, which also contained furanyl-fentanyl, concealed in a dietary supplement bottle. Agents also found a loaded Glock handgun and two magazines. DEA agents arrested Sellers that night.
An affidavit submitted by a Sandy Springs Police officer, who is sworn as a DEA task force officer, recounts a conversation between Sellers and the confidential source during which Sellers acknowledged that the counterfeit pills contained fentanyl. Sellers said that several customers had returned the counterfeit pills because they were too strong, but later came back to get the pills.
investigation revealed that Sellers and her boyfriend have been selling the counterfeit pills for some time before DEA arrested her. The counterfeit pills are described as similar in appearance to a legitimate 30mg Roxicodone tablet, except that they are a slightly lighter color of blue than the regular pills.
Cathine Lavina Sellers, 38, of Roswell, Georgia, is charged with possession with the intent to distribute a controlled substance, involving fentanyl, a Schedule II controlled substance, and furanyl-fentanyl and U-47700, both of which were designated by DEA as a Schedule I controlled substance on an emergency basis in 2016. Sellers was indicted by a federal grand jury on July 11, 2017.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration together with the Sandy Springs Police Department.
Assistant U.S. Attorney John DeGenova is prosecuting the case.
The U.S. Attorney’s Office in Atlanta has convened a regional working group to address the threats from opioid abuse and addiction, and more information about the working group can be found at https://www.justice.gov/usao-ndga/heroinopioid-working-group and https://www.facebook.com/NDGAHWG . The U.S. Attorney’s Office further recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Roswell Man Sentenced to Ten Years for Drug Trafficking Conviction and Violating Supervised Release ConditionsRead the Press Release
ALBUQUERQUE – Richard G. Thyberg, 28, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by four years of supervised release for his conviction on heroin and methamphetamine trafficking charges and for violating the conditions of his supervised release on a prior conviction.
Thyberg was arrested on Nov. 4, 2016, on a criminal complaint charging him methamphetamine and heroin trafficking offenses in Chaves County, N.M. According to the complaint, Thyberg sold 15.4 grams of methamphetamine to an individual working with law enforcement on May 18, 2016. The complaint further alleges that on June 28, 2016, law enforcement agents found 319.4 grams of methamphetamine, 91.5 grams of heroin, Suboxone strips, marijuana, $4,033.95 in cash, and drug paraphernalia inside Thyberg’s vehicle while executing a search warrant. At the time of the offenses, Thyberg was on supervised release for a federal conviction in 2009.
On March 8, 2017, Thyberg pled guilty to a felony information charging him with possession of methamphetamine and heroin with intent to distribute and violating the terms of his supervised release for his prior conviction. In entering the guilty plea, Thyberg admitted that on June 28, 2016, he possessed the methamphetamine and heroin officers found in his vehicle, and that he intended to sell the drugs to others. Thyberg also admitted violating the conditions of his supervised release, which included prohibitions against committing another federal, state or local crime and unlawfully possessing a controlled substance by possessing methamphetamine and heroin with the intent to distribute on June 28, 2016.
This case was investigated by the HIDTA Chaves County Metro Narcotics Task Force which is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case was prosecuted by Assistant U.S. Attorney Selesia Winston of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Rochester Man Sentenced on Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zaylik Harrison, 21, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 135 months in prison and eight years supervised by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between September 30, 2016, and October 6, 2016, Harrison recruited a teenaged girl to engage in commercial sex acts at the Gates Motel, on Buffalo Road in Gates, NY. The defendant then posted advertisements for the minor on Backpage.com. Harrison rented rooms in the motel where the victim was forced to engage in prostitution activities over several days with adult males. The defendant kept the proceeds of those activities.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn; the Erie County Sheriff’s Office, under the direction of Timothy Howard; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County District Attorney’s Office, under the direction of Sandra Doorley; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Rapper's Bodyguard Arrested on Gun Charges Related to Little Rock Shooting; Hampton Appears in CourtRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Jeffrey B. Reed, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and Kenton Buckner, Chief of Little Rock Police Department (LRPD), announced today the arrest of Kentrell Dominique Gwynn, 25, of, Memphis, in connection with shootings in Forrest City and Little Rock, Arkansas. The arrest of Gwynn, who served as rapper Ricky Hampton’s bodyguard, marks the first charges filed in connection with the mass shooting at the Power Ultra Lounge in Little Rock.
ATF agents and LRPD officers arrested Gwynn on a federal complaint early Tuesday morning in Memphis. Gwynn pleaded not guilty Tuesday afternoon in Little Rock before United States Magistrate Judge Jerome Kearney to multiple firearms-related charges. According to the criminal complaint filed Tuesday, Gwynn is charged with providing a firearm to convicted felon or an unlawful user of a controlled substance, in violation of 18 U.S.C. § 922(d)(1) and (3), providing armed security to a convicted felon, in violation of 18 U.S.C. § 922(h)(1) and (2), and conspiracy to commit those crimes, in violation of 18 U.S.C. § 371.
Also on Tuesday, Hampton, 25, of Memphis, who goes by the stage name “Finese2Tymes,” appeared before Judge Kearney on a federal indictment charging him with being a felon in possession of a firearm, in violation of 18 U.S.C. 922(g)(1). Hampton was originally charged in a criminal complaint alleging the same charge on July 3, 2017. The indictment is connected to a shooting that occurred at Club Envy in Forrest City on June 25, 2017. Hampton was also on stage at Power Ultra Lounge in Little Rock in the early-morning hours on July 1, 2017, when 25 people were shot. A shell casing found at the scene of the Power Ultra Lounge shooting has been preliminarily matched to a firearm in Gwynn’s possession on July 2, the date Hampton was arrested.
“With gun violence continuing to rise in our communities, the United States Attorney’s office is firmly committed to removing these criminals from the streets as quickly as possible,” Harris said. “The shooting at Power Ultra Lounge was a horrific event that no community should have to experience. As the investigation into the events of that night continues, people associated with the shooting, including Kentrell Gwynn, will be brought to justice.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Little Rock Field Office and the Little Rock Police Department in conjunction with ATF Memphis Field Office arrested Kentrell Gwynn on Federal firearms charges associated with the mass shooting at the Power Ultra Lounge located in Little Rock, Arkansas and the shooting incident that transpired in Forrest City, Arkansas,” ATF RAC Reed said. “This is in keeping with ATF’s continued efforts to bring alleged armed violent offenders to justice. ATF remains committed to its law enforcement partners and the citizens of Arkansas in these endeavors.”
“The collective efforts between the Little Rock Police Department and our federal partners led to the arrest of a dangerous criminal and another illustration of the benefit of state, local and federal agencies working together to get these individuals off the street,” LRPD Chief Buckner said. “By no means does this arrest signal the end of the investigation into the shooting at Power Ultra Lounge, but rather it demonstrates our commitment to bringing those involved to justice whenever possible.”
Tuesday’s complaint alleges that Gwynn was with Hampton on July 2, 2017, when Hampton was arrested in Birmingham, Alabama, on state felony charges related to the Forrest City shooting. Gwynn, who was driving a vehicle with Hampton as a passenger, was wearing a Springfield XD, .40-caliber pistol in a thigh holster. The firearm was loaded with nine rounds of Sig Sauer .40-caliber ammunition.
Also on the seat with Gwynn was a Glock 23, .40-caliber pistol. In the backseat was a loaded Century Arms RAS47, 7.62 x 39 mm, AK-style pistol, similar to the one seen in videos of the Forrest City shooting. Gwynn claimed ownership of all three firearms. Gwynn also told investigators that he was Hampton’s bodyguard, and was with him on stage at the Power Ultra Lounge concert during the shooting.
Investigators determined that Gwynn purchased the Century Arms pistol on May 26, 2017, in Memphis. A pawn ticket in the vehicle showed that Gwynn purchased the Glock 23 in Memphis on July 1, 2017. Both firearms were purchased at the American Loan Company, a Federal Firearms Licensee in Memphis. According to the complaint affidavit, investigators viewed security footage from American Loan Company. The video showed Hampton and Gwynn enter the gun store and pick out a firearm. Gwynn completed the paperwork on the firearm while Hampton stood close to him. Hampton can be seen leaning close into Gwynn and saying something to him as Gwynn counts out money for the purchase of the Glock 23 and .40-caliber ammunition.
Additionally, investigators viewed multiple Facebook posts of Hampton in possession of a firearm consistent in appearance with the Century Arms pistol, purchased by Gwynn. When he was arrested on July 2, Hampton stated that during the Forrest City shooting he “pulled out the Draco,” referring to the AK-style pistol purchased by Gwynn, but did not shoot it.
According to the complaint, spent .40-caliber Sig Sauer brand casings were recovered from the stage of Power Ultra Lounge after the shooting on July 1. An Arkansas State Crime Lab Firearm and Toolmark examiner has since examined shell casings fired from the Springfield XD 40, .40-caliber pistol recovered from Gwynn on July 2, as well as a spent .40-caliber round recovered from the Power Ultra Lounge shooting in Little Rock. It was determined that there is a preliminary match of the shell casings.
The penalties for providing a firearm to convicted felon or an unlawful user of a controlled substance, providing armed security to a convicted felon, or being a felon in possession of a firearm is not more than 10 years’ imprisonment, not more than three years supervised release, and not more than a $250,000. The penalties for federal conspiracy is not more than five years’ imprisonment, not more than three years supervised release, and not more than a $250,000 fine.
The Hampton and Gwynn cases are being prosecuted by Angela Jegley and Chris Givens. A complaint or indictment contain only allegations. A defendant is presumed innocent unless and until proven guilty.
Gwynn Filed Complaint, Affidavit Hampton IndictmentPunta Gorda Man Sentenced to Prison for Failing to Register as A Sex OffenderRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Eric David Erdmann (45, Punta Gorda) to 21 months in federal prison for failing to register as a sex offender. A federal jury found him guilty of the offense on March 23, 2017.
According to testimony and evidence presented at trial, Erdmann was required to register as a sex offender following a July 13, 2010, sex offense conviction in Oregon. He registered as a sex offender in Oregon but then absconded, traveling to Cambodia. In December 2010, Oregon authorities issued a warrant for his arrest.
Cambodian authorities subsequently arrested Erdmann in April 2016, after the U.S. State Department had revoked his passport. Erdmann agreed to depart Cambodia voluntarily and arrived in Florida later that month. He took up residence in Lee County and failed to register as a sex offender.
This case was investigated by the U.S. Marshals Service, U.S. Immigratoin and Customs Enforcment’s Homeland Security Investigations, the Florida Department of Law Enforcement, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia Attorney Sentenced to 42 Months in Prison for Laundering Drug Proceeds and Witness TamperingRead the Press Release
July 18, 2017 Contact BAILEY DRUMM
FOR IMMEDIATE RELEASE at (410) 209-4854
www.justice.gov/usao/md
Greenbelt, Maryland – James Michael Farrell, age 65, of Wenonah, New Jersey was sentenced to 42 months in prison followed by 18 months of supervised release by U.S. District Judge Roger W. Titus. Judge Titus also imposed a $15,000 fine. A federal jury had convicted Farrell on February 2, 2017 for money laundering, witness tampering, and obstruction of official proceedings in connection with his activities on behalf of a drug trafficking organization.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration – Philadelphia Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
“The jury’s verdict and the evidence that supported it show that James Farrell not only aided drug traffickers but betrayed his professional obligations as a member of the bar and officer of the Court,” said Acting U.S. Attorney Stephen M. Schenning.
According to the evidence presented at his 15-day trial, Farrell was admitted to practice law in Pennsylvania and New Jersey, and maintained a law office in Philadelphia, Pennsylvania. Matthew Nicka, Gretchen Peterson, David D’Amico, and others were part of an extensive drug trafficking operation discovered by the DEA when a search warrant was executed at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, 30 cell phones, and tally sheets showing over $14 million in marijuana sales, among other items.
Trial testimony showed that beginning in 2009 and continuing through at least April 2013, Farrell conspired with Nicka, D’Amico, Peterson and others to conduct financial transactions using the proceeds of the Nicka Organization in order to conceal the source and control of the drug proceeds. Testimony showed that Farrell received drug proceeds in the form of cash. Farrell then deposited some of the cash into his commercial bank accounts, recording the deposits as payments in the names of individuals who had not provided the cash to Farrell. Using the drug proceeds, Farrell wrote checks and disbursed cash to pay for the legal representation of grand jury witnesses and individuals under investigation in connection with the activities of the Nicka Organization, which included payments to two Baltimore area attorneys. Trial evidence also established that Farrell used drug proceeds to purchase money orders, which he directed to be sent to the inmate account of an incarcerated individual who was part of the Nicka organization.
According to trial evidence, in February 2011, Farrell met with a member of the Nicka organization to discuss filing a claim with the DEA to seek the return of certain property DEA had seized upon arrest. Farrell advised that individual not to disclose to the DEA that drug co-conspirator Anthony Marcantoni, had given him an expensive luxury watch for a “good year”. On February 28, 2011, Farrell caused four affidavits in support of the forfeiture of the property to be filed with the DEA that contained the forged signature of this individual and the forged signature of the notary public.
According to trial evidence, on July 11, 2012, Farrell met with another member of the Nicka organization who Farrell knew was represented by other counsel. During the recorded meeting, Farrell advised the member of the Nicka organization to meet with federal law enforcement officers and federal prosecutors, but to only tell them what they already knew, rather than sharing all the information about the drug and money laundering conspiracy. According to trial evidence, Farrell had previously laundered $10,000 in cash by obtaining a check from this person so that Farrell’s books would falsely reflect he had received $10,000. Farrell acknowledged in the recorded meeting, that he had given $10,000 in cash to this person in exchange for the check. In the recording, Farrell said he would get $25,000 to assist with that person’s legal expenses because “the sources of the cash” would feel “a whole lot better subsidizing” the person’s attorney if that attorney was “comfortable” with Farrell.
District Judge Roger W. Titus previously sentenced: David D’Amico, age 52, of Baltimore, to 10 years in prison; Matthew Nicka, age 46, of Baltimore, to 188 months in prison; and Gretchen Peterson, age 37, of Kennett Square, Pennsylvania, to seven years in prison. D’Amico, Nicka and Peterson pleaded guilty on January13, 2016, to conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. D’Amico, Nicka and Peterson were fugitives from the time the indictment was returned in December 2010, until Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America. Judge Titus also entered forfeiture orders requiring Nicka to pay a money judgment of $15 million; and D’Amico to pay a money judgment of $1 million, which represents the proceeds of the offense. In addition, the investigation resulted in the conviction of twelve other defendants.
Acting United States Attorney Stephen M. Schenning praised the DEA Washington and Philadelphia Field Offices, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Deborah A. Johnston, Leah J. Bressack, Mara Greenberg, and Sandra Wilkinson, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Penn Hills Felon Pleads Guilty to Federal Gun ChargesRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to charges of illegally possessing firearms and ammunition, Acting United States Attorney Soo C. Song announced today.
Erick Lamont Griffin, Jr., a/k/a Ericc Bucc, age 23, of Penn Hills, Pa, pleaded guilty to four counts before United States District Judge David Cercone.
In connection with the guilty plea, the court was advised that Griffin was previously convicted of felony drug dealing charges on November 18, 2013. Although federal law prohibits persons with a conviction for a crime punishable by more than 1 year of incarceration from possessing firearm or ammunition, Griffin accompanied a purchaser of firearms to a gun dealer on four separate dates: March 24, 2016; June 4, 2016; June 11, 2016; and June 13, 2016. In a scenario law enforcement officers call a “straw-purchase” of firearms, Griffin took possession of the two 9 mm and two 40 caliber semiautomatic pistols the same day that they were purchased and kept them until they were recovered by police.
On July 13, 2016, Special Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a federal search warrant at Griffin’s house and located items which included manufacturer’s boxes (complete with the serial numbers of the firearms), extra magazines for two of the pistols, a holster, ammunition, and indicia of residency for Mr. Griffin. Federal agents had previously located a picture of a Taurus pistol that Griffin illegally purchased just two weeks earlier when checking his Facebook page.
Judge Cercone scheduled sentencing for Friday, November 17, 2017, at 10 a.m. The law provides for a total sentence of up to 40 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of his crimes and the prior criminal history of the defendant.
Pending sentencing, the court remanded Griffin to the custody of the United States Marshal Service noting that Griffin was on probation in Allegheny County at the time of his crimes.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crimes Section is prosecuting this case on behalf of the government.
The ATF conducted the investigation that led to the prosecution of Griffin.
Pakistani Man Heads to Prison for Defrauding FedEx of Nearly $300,000Read the Press Release
HOUSTON ‐ A 32-year-old Pakistani national who resided in the local area has been ordered to federal prison following his convictions on six counts of mail fraud, announced Acting U.S. Attorney Abe Martinez. Babar Butt resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai, United Arab Emirates.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Butt a 21-month sentence. He was further ordered to pay $287,679 in restitution to FedEx. In handing down the sentence, Judge Ellison found that Butt was in the business of fencing stolen property and noted that Butt’s conduct was deplorable. Not a U.S. citizen, Butt is expected to face deportation proceedings following his release from prison.
Beginning in February 2015, Butt devised a scheme whereby he defrauded FedEx by opening various shipping accounts. He would ship one or more packages of cell phones and electronics to Dubai and elsewhere until the charges were declined and he could no longer ship on that account. He would then open new accounts to continue his scheme and would again not pay his shipping invoices, causing significant losses to FedEx.
Butt will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Owner of Commercial Supply Companies Gets 60 Months in Prison for Conspiring to Defraud Approximately 40 Companies of More Than $1 MillionRead the Press Release
CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., was sentenced today to 60 months in prison for his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, Acting U.S. Attorney William E. Fitzpatrick announced.
Keith B. Fisher Sr., 59, of Philadelphia, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a superseding information charging him with one count of conspiracy to commit mail fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.
Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. Fisher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.
In addition to the prison term, Judge Bumb sentenced Fisher to three years of supervised release and ordered him to pay restitution of $1,176,168.89.
Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General - Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker in Philadelphia, for conducting the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Keith B. Fisher Sr., Pro Se
Olyphant Man Sentenced to 10 Years in Prison for Attempted Enticement of A Minor for Sexual PurposesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian LaChance, age 28, of Olyphant, was sentenced to 10 years in prison today by Senior U.S. District Court Judge Richard P. Conaboy, for using a facility of interstate commerce to attempt to entice a minor to engage in illegal sexual conduct.
According to United States Attorney Bruce D. Brandler, LaChance previously pleaded guilty to using the internet and a cell phone to attempt to entice and persuade a 15-year-old female to send him sexually explicit photographs of herself. LaChance committed the offense in November 2015.
Judge Conaboy also ordered that LaChance be placed on supervised release for 10 years following his prison sentence. LaChance must also register as a sex offender, receive sex offender treatment, and comply with sex offender notification provisions.
The case was investigated by the Federal Bureau of Investigation and U.S. Army criminal investigators. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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."
# # #
North Carolina Man Pleads Guilty to Enticing and Traveling to Pensacola for Sex with a MinorRead the Press Release
PENSACOLA, FLORIDA – Nicholas G. Peacock, 33, of Salisbury, North Carolina, pled guilty yesterday in the U.S. District Court in Pensacola to enticement of a minor and interstate travel for illicit sexual activity. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In April 2016, S.S. reported that her twelve-year-old granddaughter was missing and that she believed the child had met someone online and left with him. When law enforcement visited S.S.’s residence, the child had returned home. The child said she traveled to North Carolina for the weekend with a white male named “Nick,” who was later identified as Peacock.
S.S. later told officers that she found information on a laptop that she had allowed her granddaughter to use that led S.S. to believe the child had been sexually active with Peacock. In interviews with investigators, the victim disclosed that she had been sexually active with Peacock over the weekend while they were in North Carolina, that she had met Peacock online via Skype, and that Peacock had transported her to North Carolina and then back to Florida after Peacock had found a missing person report.
In addition to telephone and hotel records, investigators reviewed thousands of Skype chats on the laptop from the time period of December 2015 through April 2016, which revealed many sexually explicit conversations, images, and videos exchanged between the victim and Peacock.
For the enticement charge, Peacock faces a maximum of life and a minimum of 10 years in prison. For the sex traveling charge, Peacock faces a maximum of 30 years in prison. The sentencing hearing is scheduled for October 11, 2017, at 2:00 p.m. at the United States Courthouse in Pensacola.
The case is being investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, and other members of the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Navajo Man from Churchrock Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Randy Payton, 35, an enrolled member of the Navajo Nation who resides in Churchrock, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. Payton entered the guilty plea under a plea agreement that recommends that he be sentenced to a term of imprisonment within the range of seven to 13 years followed by a term of supervised release to be determined by the court
Payton was arrested on Oct. 19, 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in McKinley County, N.M., on Oct. 14, 2016. According to the criminal complaint, Payton killed the victim by hitting and kicking him repeatedly during a fight. Payton was subsequently indicted on the same charge on Nov. 15, 2016.
During today’s proceedings, Payton pled guilty to the indictment and admitted killing the victim during a fight on Oct. 14, 2016. Payton remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Navajo Nation Department of Public Safety and was prosecuted by Assistant U.S. Attorney Novaline Wilson.
More Charges Against Former Corrections Officers, Others Indicted for Corruption at Detention CenterRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that additional charges have been filed against two former corrections officers at the Jackson County Detention Center and three others indicted by a federal grand jury today related to conspiracies to smuggle contraband cell phones and other items to inmates.
Andre Lamonte Dickerson, 26, Carlos Laron Hughley, 32, Janikkia Lashay Carter, 36, and Marion Lorenzo Byers, also known as “Cuddy,” 35, all of Kansas City, Mo., and Jalee Caprice Fuller, 29, of Independence, Mo., were charged in two separate indictments returned by a federal grand jury in Kansas City, Mo. Today’s indictments replace a federal criminal complaint that was filed on June 21, 2017, and include additional charges and an additional defendant (Byers).
Dickerson and Fuller were corrections officers at the Jackson County Detention Center at the time of the alleged offenses. Hughley is an inmate at the detention center awaiting trial on charges of domestic assault, armed criminal action, resisting arrest and multiple counts of distributing controlled substances. Hughley is purportedly the father of Fuller’s recently born child. Carter and Byers are acquaintances of Fuller and Hughley.
Dickerson is charged in a four-count indictment; Hughley, Carter, Byers and Fuller are charged together in a separate 10-count indictment.
USA v. Dickerson
Today’s indictment alleges that Dickerson participated in a bribery and contraband smuggling conspiracy from May 2 to June 26, 2017, in violation of the Travel Act. Dickerson allegedly took money bribes to smuggle contraband to inmates at the Jackson County Detention Center. Dickerson allegedly made telephone calls and sent text messages to promote the conspiracy, and actually smuggled cell phones and other contraband to inmates at the detention center.
The indictment also alleges that Dickerson told an inmate in the detention center that he would ensure the inmate was the only inmate on the fifth floor to receive contraband cigarettes, narcotics, drugs and telephones if the inmate would pay Dickerson a monthly fee of $2,500.
The indictment cites an incident in which Dickerson allegedly took a $500 bribe to smuggle a cell phone, charger and cigarettes to an inmate at the detention center.
In addition to the conspiracy, Dickerson is charged with three counts of using a telephone in furtherance of the unlawful activity of acceding to corruption.
USA v. Fuller, et al
Today’s indictment alleges that Fuller, Carter, Hughley and Byers participated in a separate bribery and contraband smuggling conspiracy from May 2 to June 26, 2017, in violation of the Travel Act.
Fuller allegedly took money bribes to smuggle contraband to inmates at the Jackson County Detention Center. Fuller allegedly made telephone calls and sent text messages to promote the conspiracy, and actually smuggled cell phones and other contraband to inmates at the detention center.
The indictment cites an incident in which Fuller, assisted by Carter and Byers, smuggled a cell phone, charger and 15 Xanax pills to an inmate at the detention center. Hughley took possession of the 15 Xanax pills, the indictment says. According to the indictment, $300 was paid to smuggle the cell phone and charger to an inmate.
In addition to the conspiracy, each of the defendants is charged with using a telephone in furtherance of the unlawful activity of acceding to corruption. Fuller is charged with one count; Carter is charged with three counts; Hughley is charged with three counts; Byers is charged with two counts.
The Travel Act
The Travel Act makes it a crime to use a facility of interstate commerce (such as telephone calls) with the intent to further unlawful activity. The Travel Act’s definition of “unlawful activity” includes bribery in violation of the laws of a state. Missouri state law makes it a crime for a public servant to solicit or accept a bribe in return for violating a known legal duty. This crime is known under Missouri state law as acceding to corruption, and it is a companion or sister statute to the Missouri state statute that makes it a crime for someone to bribe a public servant. These two Missouri state statutes criminalize bribery conduct involving a public servant, both for the person paying the bribe and for the public servant taking the bribe.
The federal indictments charge each of the defendants with violating the Travel Act by using a facility of interstate commerce (a telephone) to facilitate the promotion of an unlawful activity, that is, acceding to corruption.
Larson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt.
These cases are being prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. They were investigated by the FBI and the Jackson County, Mo., Sheriff’s Department with assistance from the Missouri Department of Corrections, the Kansas City, Mo., Police Department and the Jackson County Detention Center.
Michael Anthony Benanti Sentenced to Serve Four Consecutive Life Sentences Plus 155 Years in Prison for Violent Bank Extortion and Robbery Spree Spanning Through Connecticut, Pennsylvania, North Carolina and TennesseeRead the Press Release
KNOXVILLE, Tenn. – On July 18, 2017, Michael Anthony Benanti, 45, of Lake Harmony, Pennsylvania, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve four consecutive life sentences plus an additional 155 years to be served consecutively in federal prison for his convictions involving a violent bank extortion and robbery spree spanning four states.
After a trial in February 2017, a jury convicted Benanti of one count of conspiracy to commit robbery and armed bank extortion, two counts of attempted armed bank extortion, one count of armed bank extortion, three counts of carjacking, three counts of kidnapping, three counts of being a previously-convicted felon in possession of a firearm, and 10 counts of using, carrying and brandishing a firearm during and in relation to a crime of violence.
“Often, severe federal penalties, such as mandatory minimum sentences, are the most effective tool to protect the American public from a violent criminal like Benanti. The consecutive sentences received by Benanti for firearms violations ensure he will never again be able to victimize families in east Tennessee or elsewhere. The U.S. Attorney’s office is and remains committed to prosecuting these crimes and seeking the highest penalties possible to help keep the American people safe,” said Nancy Harr, U.S. Attorney.
Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation stated, “Today’s sentencing demonstrates that the FBI is committed to investigating and pursuing prosecution of those who engage in a pattern of illegal activity. It is also one example of the close working relationship the FBI has with our law enforcement partners.”
Brian Scott Witham, 47, of Waterville, Maine, also charged in the case, pleaded guilty in March 2016. He is scheduled to be sentenced on August 17, 2017, in U.S District Court in Knoxville.
Agencies involved in this investigation included the Federal Bureau of Investigation, and numerous federal, state, and local law enforcement agencies in Tennessee, North Carolina, Pennsylvania, Connecticut, Virginia, and South Carolina. Assistant U.S. Attorneys David P. Lewen, Jr., Kelly A. Norris, and Steven H. Cook represented the United States.
###
Methamphetamine Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — Juan Leonardo Tello, 50, of Dallas, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor following his guilty plea in March 2017 to one count of conspiracy to distribute five grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge O’Connor sentenced Tello to 180 months in federal prison. Tello has been in custody since the time of his arrest in January 2017.
In May 2017, Judge O’Connor sentenced co-defendants Jackie Eugene Clayton, 38, to 235 months in federal prison, Juan Carlos Lopez, 53, to 100 months in federal prison and Rudy Roman Ramirez, 45, to 135 months in federal prison for their role in the methamphetamine conspiracy.
According to documents filed in Tello’s case, from December 2014 through December 3, 2015, Tello, on multiple occasions, obtained various amounts of methamphetamine to distribute to others. Tello distributed quantities of methamphetamine to numerous customers from Wichita Falls, including Ramirez and Lopez. Tello’s customers paid him for the methamphetamine in cash, by depositing money into bank accounts that Tello controlled, and by wiring money to Tello.
The case was investigated by the Texas Department of Public Safety, the Wichita County District Attorney’s Office, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.
# # #
Member of Trenton Drug Trafficking Organization Sentenced to 74 Months in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 74 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding area, Acting U.S. Attorney William E. Fitzpatrick announced today.
Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E,” 21, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part his guilty plea, Abdullah admitted to possessing one or more firearms during the conspiracy. Judge Wolfson imposed the sentence today in Trenton federal court.
In December 2016, Abdullah and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader and Elijah Abdullah’s brother, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Elijah Abdullah and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Elijah Abdullah.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with the narcotics conspiracy, Elijah Abdullah and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Abdullah to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Lawrence J. Panetta; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian A. Michael; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Michael A. Armstrong, Willingboro, New Jersey
McKinney Man Admits His Role in a $6.4 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — Craig Allen Otteson, 65, of McKinney, appeared today before U.S. Magistrate Paul D. Stickney and pleaded guilty to his role in a diamond investment scheme that the indictment alleged ran from approximately March 2011 to November 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Otteson pleaded guilty to one count of mail fraud. He faces a maximum penalty of not more than 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set before U.S. District Judge David Godbey on October 23, 2017.
Co-defendants Jay Bruce Heimburger, 58, of Dallas, and Christopher Arnold Jiongo, 56, of Houston, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.
The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.
According to the plea documents signed by Otteson, during the period from February 2012 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises. In plea papers filed with the court, Otteson admitted that he and Heimburger engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. Otteson also admitted that as part of the scheme to defraud investors, Otteson and Heimburger caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.
The indictment alleged that during the period from 2011 through 2013, Otteson, Heimburger, and Jiongo caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors.
This case is one of many felony indictments of bankruptcy-related crimes prosecuted as part of the Bankruptcy Fraud Initiative (BFI), United States Attorney’s Office, Northern District of Texas. These prosecutions were the result of criminal referrals made by the United States Trustee’s Office in Dallas, Texas. Of the 26 defendants charged since 2013 as part of the BFI; 22 defendants have been convicted, 3 defendants are pending trial, and 1 defendant resulted in a mistrial.
The U.S. Postal Inspection Service is conducting the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #
Las Cruces Man Sentenced to Almost Seven Years for Assaulting Federal Law Enforcement OfficersRead the Press Release
ALBUQUERQUE – Richard Ruiz Leyva, 37, of Las Cruces, N.M., was sentenced today in federal court to 82 months in prison for assaulting federal law enforcement officers. Leyva will be on supervised release for three years after completing his prison sentence.
Leyva was arrested in Aug. 2016, and charged by a criminal complaint with assaulting and resisting local law enforcement officers who were federally commissioned by the U.S. Marshals Service (USMS). According to the complaint, Leyva assaulted the officers by using his vehicle as a weapon by repeatedly running into law enforcement vehicles as the officers attempted to conduct a traffic stop on Leyva. Leyva also drove his vehicle directly at an officer who had exited his vehicle after Leyva had rendered the officer’s vehicle inoperable by crashing into the law enforcement vehicle.
On March 22, 2017, Leyva pled guilty to a felony information charging him with two counts of assaulting, resisting and interfering with federal officers engaged in the performance of their official duties. In entering the guilty plea, Leyva admitted that on Aug. 19, 2016, he used his vehicle as a deadly weapon in an attempt to flee from federal and local law enforcement officers because of an outstanding warrant for his arrest. Leyva further admitted that he drove directly at an officer but turned away when the officer fired his weapon at Leyva in an effort to stop Leyva.
This case was investigated by the Las Cruces offices of the FBI and the USMS and the Las Cruces Police Department. Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Kalamazoo Man Sentenced to 8 Years for Stolen FirearmsRead the Press Release
Keondre McNeely is the sixth defendant sentenced in connection with firearms stolen from Outpost Guns
GRAND RAPIDS, MICHIGAN — Twenty-seven-year-old Keondre McNeely, of Kalamazoo, Michigan, was sentenced to 96 months in prison for possessing a stolen firearm, Acting U.S. Attorney Andrew Birge announced today. Along with codefendants Jorel Gefferard and Roscoe Manns, Keondre McNeely played a central role in transporting and trafficking 21 firearms that were stolen in November 2015 from Outpost Guns, a federally licensed firearms dealer (FFL) in Sturgis, Michigan. Of those 21 firearms, thirteen were assault rifles with large-capacity magazines.
In announcing the sentence, the Honorable Robert J. Jonker, Chief Judge of the U.S. District Court for the Western District of Michigan, noted that the defendant was a "key conduit" for putting the stolen firearms into circulation. Although the defendant had a limited criminal history, with no prior felony convictions, the Court emphasized the seriousness of the defendant’s conduct; by his involvement in moving and trafficking the stolen firearms, the defendant put a lot of people "in harm’s way."
In total, six people have been sentenced for their role in the theft, trafficking, or possession of firearms stolen from Outpost Guns:
Kenneth Williams, of Kalamazoo, was sentenced to 96 months in prison, following his conviction for possessing one of the Outpost Guns firearms as a previously convicted felon;
Jorel Gefferard, of Sturgis, was sentenced to 84 months in prison, following his conviction for stealing the firearms from Outpost Guns;
Ronald Dafney, of Kalamazoo, was sentenced to 72 months in prison, following his conviction for possessing one of the Outpost Guns firearms as a previously convicted felon;
Kevonte McNeely, of Kalamazoo, was sentenced to 60 months in prison, following his conviction for possessing one of the Outpost Guns firearms as a previously convicted felon;
Roscoe Manns, of Sturgis, was sentenced to 54 months in prison, following his conviction for his possession of firearms stolen from Outpost Guns.
Acting U.S. Attorney Birge commented that: "The U.S. Attorney’s Office is committed to investigating and prosecuting every link in the chain that leads to stolen guns on our streets—from those who steal from gun stores in the first place, to those who help conceal and move stolen firearms, to the sellers of stolen guns, and to the buyers." Stolen firearms are, by nature, crime guns, and they typically end up in the hands of people with criminal records, who are themselves prohibited from buying guns. "Keondre McNeely and his codefendants put 21 stolen guns on the street and there is no telling when one or more of those firearms might be used in a violent way. If you steal guns from an FFL, if you sell stolen guns, or if you buy or possess a stolen gun, this Office is going to do what it can to ensure a lengthy prison term that reflects the seriousness and dangerousness of these crimes."
"Stolen guns are being used in violent crimes that destroy not only families, but the fabric of our communities," said interim Special Agent in Charge Thomas Chittum. "ATF will use the full scope of our resources to find those responsible for the theft and trafficking of illegal firearms so they can be prosecuted to the fullest extent of the law."
The Sturgis Police Department, the Kalamazoo Department of Public Safety, and the ATF investigated the case. Assistant U.S. Attorney Kate Zell prosecuted the case.
END
Justice Department and Washington State Courts Partner to Ensure Access to State Court Services for Limited English Proficient IndividualsRead the Press Release
WASHINGTON - The Department of Justice (DOJ) announced today that the Washington State Supreme Court and the Washington State Court Administrator published a Model Language Access Plan (LAP) and accompanying Deskbook to assist its state courts in ensuring access for all limited English proficient (LEP) individuals to court services and programs. The LAP and Deskbook are the culmination of several years of collaboration between Washington State Courts and DOJ, through its Civil Rights Division and United States Attorney’s Office for the Western District of Washington, which provided technical and resource development assistance to the State.
Under Title VI of the Civil Rights Act of 1964 (Title VI), the Omnibus Crime Control and Safe Streets Act of 1968 (Safe Streets Act), and the regulations implementing these federal laws, all courts are required to provide language assistance services to all LEP individuals in civil and criminal court proceedings, and in all court-managed services and programs. The LAP and the Deskbook assist state courts in developing a written language access plan and creating or improving its language assistance services to meet federal civil rights obligations.
“We applaud the Chief Justice and the many contributing stakeholders for working collaboratively with us to ensure compliance with applicable civil rights laws that ensure that everyone – regardless of their national origin – is able to participate meaningfully, fully and fairly in all state court proceedings,” said United States Attorney for the Western District of Washington, Annette L. Hayes. “Providing effective language assistance services is essential to safeguarding the civil rights of court users and ensuring the integrity of our justice system and the rule of law.”
“Ensuring the integrity and fairness of court proceedings goes hand in hand with providing interpreters and other language assistance services,” said Acting Assistant Attorney General Thomas E. Wheeler II. “This joint effort demonstrates the Department of Justice and the Washington State Courts are committed to ensuring that court proceedings are administered as fairly and equitably as possible for individuals coming through the courthouse doors, regardless of national origin.”
The Justice Department’s initial engagement with the Washington State Courts began as a review of the King County Superior Court’s (KCSC) language assistance services program. In 2011 and 2012, the Justice Department received complaints from LEP individuals who alleged they did not receive interpreter services in KCSC civil cases. In response, DOJ opened a civil rights review to determine whether KCSC’s actions constituted national origin discrimination pursuant to Title VI, the Safe Streets Act, and their implementing regulations.
In early 2014, the KCSC agreed to provide language assistance services (including interpreter services) at no cost for LEP parties and persons in interest in court proceedings and operations, both civil and criminal. Until that time, KCSC had been providing these services without consideration of cost only in criminal cases. KCSC also agreed to provide DOJ information about the financial impact of extending its language services to civil cases. During that time, hundreds of additional LEP individuals received interpreter services in civil legal proceedings who otherwise may not have. In December 2015, KCSC agreed to continue to provide free language assistance services indefinitely. As a result, DOJ agreed to close its engagement with KCSC and, to replicate KCSC’s success, sought to work with the Washington State Administrative Office of the Courts, its Office of Court Innovation, and the Washington State Interpreter Commission, and its community partners, in developing the LAP and Deskbook for the Washington State Court system as a whole.
DOJ, through the Civil Rights Division and U.S. Attorney’s Offices, is responsible for investigating complaints of alleged violations of Title VI, as well as other federal laws, made against recipients of federal financial assistance from the Justice Department. When the Justice Department is unable to secure voluntary compliance with Title VI by a recipient, the Department has the authority to suspend or terminate financial assistance to a recipient provided by the Justice Department or to bring a civil suit to enforce the rights of the United States under applicable federal, state, or local law. The Justice Department also may provide technical and resource development assistance to recipients of federal financial assistance, as occurred here.
Both matters were handled by Assistant U.S. Attorneys J. Michael Diaz and Christina Fogg in the U.S. Attorney’s Office and Michael Mulé, Attorney in the Federal Coordination and Compliance Section (FCS) of the Civil Rights Division at the Justice Department.
For more information about FCS’s State Courts Language Access Initiative, a multi-pronged initiative focused on enforcement, technical assistance, outreach, resource development and policy efforts to ensure meaningful access to state courts receiving federal financial assistance, visit http://www.lep.gov or view the recent DOJ publication, “Language Access in State Courts.” To learn more about the LEP communities in Washington State or other parts of the United States, go to the Language Map App, available here. Further information about Title VI is available here.
wa_courts-v5_spanish_002.pdfJury Convicts Man for Being in United States IllegallyRead the Press Release
A man who was found illegally in the United States was convicted by a jury on July 18, 2017, after a 1 ½-day trial in federal court in Sioux City.
Ricardo, Cordova-Larios, 42, from Guatemala, was convicted of illegally residing in the United States. The verdict was returned this morning following about 30 minutes of jury deliberations.
The evidence at trial showed that Cordova-Larios was an illegal alien from Guatemala and was removed from the United States to Guatemala on or about March 4, 2014. Cordova-Larios was found in the United States on or about April 10, 2017, and did not receive the consent of the Secretary of Homeland Security to apply for readmission to the United States after his removal. The evidence also proved Cordova-Larios re-entered (likely in March 2014) the United States without permission after his removal.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Cordova-Larios remains in custody of the United States Marshal and will remain in custody pending sentencing. Cordova-Larios faces a possible maximum sentence of two years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by U.S. Immigration and Customs Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4033.
Follow us on Twitter @USAO_NDIA.
Jamaican National Sentenced for Scamming over $120,000 from Elderly WidowRead the Press Release
BOSTON – A Jamaican national was sentenced yesterday in federal court in Boston for running a false lottery scheme.
Kemal Barnes, 34, a Jamaican national residing in Malden, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison, three years of supervised release, and ordered to pay restitution of $118,367. Barnes will be subject to deportation upon completion of his sentence. On April 12, 2017, Barnes pleaded guilty to one count of mail fraud.
In September 2015, Barnes contacted an elderly woman in Texas and convinced her that she had won a lottery prize of millions of dollars. Barnes informed her that in order to claim her prize she was required to send cash payments to “Mary Jones” and “Kenneth Wilson” in Malden, Mass. These payments totaled over $120,000, which Barnes claimed were for lottery taxes and fees. After making these payments, the victim’s son contacted law enforcement. After a two-month investigation, a federal search warrant was executed at Barnes’ Malden apartment. Cell phones – equipped with the “magicjack” voiceover application – and computers used in the fraudulent lottery scheme were seized during the search.
Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division, made the announcement today. Assistant U.S. Attorneys David G. Tobin and Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Jacksonville Veteran Indicted on Charges of Stealing $538,000 in Fraudulent Disability BenefitsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces the return of a two-count federal indictment charging Jose Calderon-Fuentes (62, Jacksonville) with stealing more than $538,000 in government property, specifically veterans’ disability benefits. The indictment notifies Calderon-Fuentes that the government intends to forfeit the alleged proceeds of the fraud.
The indictment alleges that from October 1997 through April 2013, Calderon-Fuentes stole veterans’ disability benefits by overstating the extent of his vision disability. Calderon-Fuentes claimed that he was unable to see any “better than hand motion or light perception,” when, in reality, he knew that statement was false. The indictment further alleges that he lied when interviewed by an investigator with the Department of Veterans Affairs - Office of Inspector General.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Department of Veterans Affairs, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jason Mehta.
Irish Citizen Sentenced for Attempted Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Michael A. Connors, age 36, and a citizen of Ireland, was sentenced today to time served (24 days in jail) for attempted illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
As part of his guilty plea, Connors admitted that he is a citizen of Ireland, and that he attempted to illegally return to the United States after he was removed to Ireland on June 15, 2011.
June 24, 2017, Connors was arrested as he attempted to enter the United States from Canada by car at the Champlain Port of Entry. Connors did not have permission to return to the United States following his prior removal.
Following the sentencing, Connors was remanded to the custody of the Department of Homeland Security for removal proceedings.
This case was investigated by United States Customs and Border Protection and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Hialeah Police Department Officer Sentenced to Five Years on Corruption, Access Device, and Identity Fraud ChargesRead the Press Release
Raul Castellon, 38, of the Hialeah Police Department, and Neilin Gonzalez Diaz, 32, of Hialeah, were sentenced today in Miami, Florida, by U.S. District Court Judge Federico A. Moreno of the Southern District of Florida, to 60 months and 81 months in prison, respectively, with an order for forfeiture and restitution in the amount of $64,500 to follow. Castellon and Gonzalez Diaz previously pled guilty to corruption, access device fraud, and identity theft charges.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
According to court documents, from on or about June 1, 2016, and continuing through on or about October 19, 2016, Castellon used his position as a law enforcement officer to access a confidential database and take screen shots from the database, which contained personal identifying information of other persons. Castellon sent over 25 screen shots depicting the personal identifying information of unsuspecting victims to Gonzalez Diaz in exchange for gifts. Gonzalez Diaz used the confidential information received from Castellon to assume the identities of the victims and fraudulently obtain merchandise from retail stores throughout Florida.
As a result of this matter, the Hialeah Police Department terminated Castellon’s employment as an officer.
Mr. Greenberg commended the investigative efforts of the FBI, including the Miami Area Corruption Task Force, ATF, Miami-Dade Police Department, and Hialeah Police Department. This case was prosecuted by Assistant U.S. Attorney Daniel Cervantes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hamburg Man Who Fled Country Pleads Guilty to Wire FraudRead 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 Michael Wilson, 30, formerly of Hamburg, NY, pleaded guilty to wire fraud before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen Jr., who is handling the criminal case, and Richard D. Kaufman, Chief of the U.S. Attorney’s Office’s Asset Forfeiture and Financial Litigation Unit, stated that Wilson defrauded investors out of more than $10,000,000 between June 2008 and July 2010. The defendant created several fraudulent investment companies known collectively as “New Frontier,” including such names as “Phantom Holdings” and others, all purportedly located at 6553 Boston State Road in Hamburg, adjacent to his residence. Wilson thereafter induced individuals and companies to invest in financial instruments with complex sounding names, such as “leveraging agreements,” that promised high-yield earnings and returns.
Rather than investing clients’ money, the defendant spent it on a variety of personal items, including $2,500,000 for a down payment for Boston State Road properties, automobiles - including a Hummer, a Corvette, two Land Rovers, and a Mercedes ML 500 - artwork, and other items. In addition, in January 2009, Wilson paid $1,800 to hire an actor from a talent agency to portray a person using the name of his alias “George Possiodis,” which name and persona the defendant used during his scheme.
As part of his plea agreement, Wilson will forfeit $5,617,750.00 in proceeds from his fraudulent activities along with any interest he has in several bank accounts in Canada, Singapore, New Zealand and the Grenadines. The defendant will also forfeit his interest in two condominiums in downtown Toronto as well as two villas he had built in Vietnam. Early on in the investigation, the Government seized and forfeited Wilson’s luxury automobiles and expensive artwork. This year, four accounts, which contained approximately $750,000, at the Euro Pacific Bank were forfeited by Judge Skretny. Finally, Wilson will transfer ownership to the Government of several computers and smart phones he used in his fraudulent investment schemes.
Wilson, a dual citizen of Canada, traveled to the Toronto area after learning he was under investigation. After being arrested in Canada in July 2013, Wilson was released on conditions and challenged extradition to the United States in Canadian Courts. Before his final appearance in Canadian Court, in February 2016, Wilson chartered a private jet and flew to Vietnam with his wife, mother, and three dogs. Wilson was arrested in Vietnam in June 2016, and returned to the United States in December 2016.
“This defendant went to great lengths not only to perpetrate his fraud but to avoid responsibility for his crime. However, this case demonstrates how this Office, together with our law enforcement partners, remains committed to going the distance in order to achieve justice,” said Acting U.S. Attorney Kennedy. “Though he defrauded investor victims out of millions of dollars, at this point, no amount of money will enable defendant to avoid the finish line which he set for himself through his actions. That finish will be a sentencing proceeding in federal district court."
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge, New York Field Office, James D. Robnett, Toronto Police Service, Vietnam Ministry of Public Security, and other law enforcement partners, including LEGAT, Seoul, Korea, and the U.S. State Department.
Sentencing is scheduled for October 25, 2017 at 11:00 a.m. before Judge Skretny.Greenville Man Enters Guilty Plea in Federal Court for Possession of a Firearm During a Drug CrimeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Johnny Ray Outz, age 26, of Greenville, South Carolina, pled guilty Monday in federal court in Greenville, to possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, § 924c. United States District Court Judge J. Michelle Childs of Greenville accepted the plea and will impose sentence after a presentence report is prepared by U.S. Probation. Outz faces a mandatory minimum of 5 years and a maximum of life in federal prison.
Evidence presented by the government during the plea established that on March 25, 2017, members of the Greenville County Sheriff’s Office, pursuant to an outstanding warrant, were searching for Outz in Mauldin, South Carolina. When GCSO located Outz, a search of his person revealed a MAC 11 pistol and methamphetamine in a book bag he was carrying.
Outz was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of 118 defendants and seizure of approximately 162 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen.
# # # # #
Greenville Felon Pleads Guilty to Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated that Anthony M. Valentine age 27, of Greenville, South Carolina, entered a guilty plea yesterday in federal court in Greenville to Possessing of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18 U.S.C. § 924(c).
United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will impose the sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.Evidence presented at the change of plea hearing established that on March 22, 2017, law enforcement executed a search warrant at Valentine’s residence. Valentine was found in the house along with a loaded Hi-Point 9mm handgun, two large bags of marijuana, digital scales, 49 rounds of ammunition, and $990 in cash.
Ms. Drake stated that the maximum penalty Valentine could receive is Life imprisonment and a fine of $1,000,000 dollars. The case was investigated by agents of ATF and the Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
#####
Four Individuals Charged with Interstate Gun Trafficking Conspiracies Spanning from Georgia to New JerseyRead the Press Release
NEWARK, N.J. - Three Georgia men and a New Jersey woman were charged today with conspiring to illegally sell numerous firearms bound for New Jersey, including an assault rifle with a 75-round magazine and multiple handguns with extended magazines, Acting U.S. Attorney William E. Fitzpatrick announced.
Tyheed Jefferson, 33, a/k/a “Solo,” of Albany, Georgia, Mathias Connor, 41, of Atlanta, Georgia, and Nakiya Glenn, 28, of Irvington, New Jersey, are charged by criminal complaint with one count of unlawfully selling firearms to an individual that they knew did not reside in their state of residence, namely Georgia. Tyheed Jefferson was also charged with three counts of possession of a firearm by a convicted felon and one count of methamphetamine distribution.
Carnell Jefferson, 25, of Albany, is charged in a separate complaint with conspiracy to engage in the business of unlicensed firearms dealing.
Tyheed Jefferson and Carnell Jefferson were arrested this morning and will appear this afternoon before U.S. Magistrate Judge Thomas Q. Langstaff in Albany federal court. Glenn will appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. Connor is still at large.
According to the complaints:
From January 2017 through July 2017, Tyheed Jefferson, Connor, and Glenn were part of a gun tracking ring that used “straw purchasers” to buy and transport firearms in Georgia. Connor allegedly assisted Tyheed Jefferson – the alleged leader of the ring – with the acquisition, transport and storage of the firearms in Georgia. On at least two occasions, the firearms were sold in Georgia, knowing that they were being transported to New Jersey. On at least five other occasions, the firearms were purchased in Georgia and then sold in New Jersey. Glenn stored some of those firearms at her residence in Irvington.
In addition, Tyheed Jefferson is charged with distributing methamphetamine, which he sold during a sale of five firearms on May 24, 2017.
From October 2014 through July 2016, Carnell Jefferson allegedly purchased numerous firearms at federally licensed firearms dealers in Albany and Leesburg, Georgia, on behalf of another conspirator, knowing that the firearms would be transported to New Jersey. Jefferson was paid $50 per firearm. Firearms purchased by Carnell Jefferson were later recovered in New Jersey in relation to criminal activity between December 2014 and January 2017.
In total, the investigation recovered 47 illegal firearms, including assault rifles, revolvers, semi-automatic handguns, a shotgun, and numerous rounds of ammunition.
The counts of conspiracy to deal in firearms without a license and conspiracy to engage in the business of unlicensed firearms dealing each carry a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of firearms by a convicted felon carries a maximum penalty of 10 years in prison and a $250,000 fine. The count of distribution of methamphetamine carries a maximum potential penalty of 20 years in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the ATF, under the direction of Acting Special Agent in Charge Lawrence J. Panetta, Newark Field Division, and Special Agent in Charge Wayne L. Dixie, Atlanta Field Division, as well as the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan and the N.J. State Parole Board, under the direction of Chairman James Plousis, with the investigation leading to today’s charges.
The government is represented by Senior Litigation Counsel Robert Frazer of the U.S. Attorney's Organized Crime/Gang Unit in Newark.
The charges and allegations in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Fort Worth Woman Pleads Guilty in Child Sex Trafficking CaseRead the Press Release
DALLAS — Shatara Armstrong, 31, of Fort Worth, Texas, pleaded guilty today before U.S. Magistrate Judge Paul D. Stickney, to one count of use of a facility of interstate commerce in aid of a racketeering enterprise, announced U.S. Attorney John Parker of the Northern District of Texas.
Armstrong faces a maximum penalty of five years imprisonment and a $250,000 fine. Armstrong will remain on bond pending sentencing which is set for November 1, 2017.
In May 2017 a federal grand jury in Dallas returned an indictment charging Armstrong along with Marquist Fulcher, aka “Keezie,” 28, Chapoleon Fischer, aka “Kidd,” 28, Marcus Speed, 26, and Tiffany Gideon, 22 with conspiracy to engage in child sex trafficking.
According to plea documents filed in Armstrong’s case, beginning in approximately 2014, Fulcher began acting as a pimp over several young girls and women. He facilitated the commercial sex acts of: fourteen year old Jane Doe 1, seventeen year old Jane Doe 2 and seventeen year old Jane Doe 4, among others. In late 2015, Fulcher asked Armstrong to assist him in his prostitution enterprise, and she agreed to do so. Fulcher and Armstrong rented rooms at various hotels for Jane Doe l, Jane Doe 2 and Jane Doe 4, and others, to use to engage in commercial sex acts. Fulcher and Armstrong created and posted advertisements on the commercial sex website Backpage.com for the girls and women, who in turn gave the proceeds from their commercial sex acts to Fulcher. On some occasions, when Fulcher was not present at the hotel, the girls and women gave their commercial sex proceeds to Armstrong, who later gave them to Fulcher.
Fulcher and Armstrong worked with other pimps, including Speed and Fischer, as part of their prostitution enterprise. The organization recruited victims in various ways, including finding them on the internet. Members of the group would trade girls amongst themselves as well. Some of the victims were recruited from the Dallas area, including sixteen year old Jane Doe 3. Fulcher, Speed and Fischer often rented rooms at the same hotels at the same time for their girls to engage in commercial sex acts. In addition, Armstrong sometimes rented rooms for Fischer and his girls to use to engage in commercial sex acts.
The pimps in this organization often used violence and threats of violence as a means to control the victims. Fulcher was often violent towards Armstrong in front of the girls that were working for him. This violence was meant to send a message to the others about what would happen to them if they did not do what Fulcher asked.
The Fort Worth Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and Myria Boehm are in charge of the prosecution.
# # #
Former President of Fort Myers Dietary Supplement Company Sentenced to Prison for Misbranded FoodRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Derek Vest (52, Fort Myers) to 18 months in federal prison for introducing misbranded food into interstate commerce. As part of his sentence, the Court also entered a money judgment in the amount of $2.5 million, the proceeds obtained as a result of the offense.
Vest pleaded guilty on March 29, 2017.
According to court documents, from at least April 16, 2013, through November 28, 2014, Vest was the President of Gentech Pharmaceutical, a dietary supplement sales, marketing, and distribution facility located in Fort Myers. In that capacity, he controlled and oversaw the manufacture, marketing, and sale of purported dietary supplements including, AddTabz, PhenTabz, and PhenTabz-Teen. Vest’s company marketed and sold these dietary supplements over the Internet, in stores, and at various kiosks.
AddTabz were marketed as mental focus and performance tablets. They were advertised as a safe alternative to Adderall, and as a designer non-prescription pharmacological alternative that claimed to improve memory, learning, and overall brain function instantly. PhenTabz and PhenTabz-Teen were advertised as weight loss tablets. All of these products were sold throughout the United States and overseas. In addition, Vest authorized the use of amphetamine derivative DMAA (1,3-Dimethylamine) in the manufacture of various Gentech Pharmaceutical products including, AddTabz, PhenTabz, and PhenTabz-Teen. However, he did not disclose the presence of DMAA on the product labeling for the tablets.
During this time period, Vest’s company sold more than 2 million tablets that had been misbranded and shipped to consumers.
This case was investigated by the Food and Drug Administration. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former Owner of Bucks County Financial Consulting Firm Sentenced to Five Years in Prison for Bribing Foreign OfficialRead the Press Release
The former owner and president of Chestnut Consulting Group Inc. and Chestnut Consulting Group Co. (the Chestnut Group) was sentenced to 60 months imprisonment today for bribing an official at the European Bank for Reconstruction and Development (EBRD) in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Division made the announcement.
Dmitrij Harder, 45, of Huntingdon Valley, Pennsylvania, pleaded guilty on April 20, 2016, to two counts of violating the FCPA. In imposing sentence today, U.S. District Judge Paul S. Diamond also ordered Harder to forfeit $1.9 million.
Harder was the principal owner of Chestnut Consulting Group, based in Southampton, Pennsylvania. Between 2008 and 2009, the defendant paid approximately $3,500,000 in bribes to Andrej Ryjenko, an official and senior banker at the European Bank for Reconstruction and Development (EBRD), in exchange for Ryjenko referring EBRD clients to Chestnut, Harder admitted. Harder also admitted that he paid the bribes to Ryjenko through the Channel Island bank accounts of Ryjenko’s sister, Tatjana Sanderson. A British jury found both Ryjenko and Sanderson guilty of related corruption offenses in June 2017, and Ryjenko was sentenced to six years in prison.
The case was investigated by the FBI with significant assistance from U.K. law enforcement. Assistance was also provided by the Criminal Division’s Office of International Affairs. The case is being prosecuted by Assistant Chief Leo Tsao of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michelle L. Morgan of the Eastern District of Pennsylvania.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Former Hedge Fund Employee and Law School Graduate Convicted in Fraud, Aggravated Identity Theft, and Money Laundering SchemeRead the Press Release
On Friday, July 14, 2017, a federal jury in Miami convicted Gerti Muho, 33, of Ridgewood, New York, for devising and executing a three-year fraud scheme that targeted various banks, lenders, and companies, including his former New York-based hedge fund employer and numerous real person victims.
Benjamin Greenberg, Acting U.S. Attorney for the Southern District of Florida; Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division; Philip Bartlett, Special Agent in Charge, U.S. Postal Inspection Service, New York Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and John Brooks, Chief, Sunrise Police Department, made the announcement.
Following a three-week trial before U.S. District Judge Beth Bloom, a jury convicted Muho of 40 counts of bank and wire fraud, aggravated identity theft, and money laundering. Sentencing is scheduled before Judge Bloom on September 26, 2017 at 2:00 p.m.
According to the court record, Muho, a 2012 University of California Berkeley, School of Law graduate, was fired during May 2013 from his position at an international hedge fund company in New York. Thereafter, Muho absconded with a copy of all data and information on the company’s computer server, began creating numerous Delaware-based shell companies, and quickly attempted to syphon millions of dollars from various hedge fund bank accounts.
The evidence at trial showed that, during August 2013, after submitting a series of U.S. Securities and Exchange Commission and other corporate documents and materials, Muho falsely and fraudulently induced a bank in Monaco to wire him over $2 million. Thereafter, Muho fled to South Florida and quickly utilized the funds for his own personal use and benefit, including to gamble, shop, and purchase a new 2013 Maserati vehicle and an ocean-view downtown Miami condo. Muho also created and utilized various aliases and obtained driver’s licenses and identification cards from various states in order escape a civil judgment emanating from the Southern District of New York and further his fraud scheme. During 2014, Muho fraudulently obtained a $500,000 business loan, utilizing his Miami condo as collateral, which he promptly used to gamble, shop, and travel. During early 2015, Muho traded in his 2013 Maserati and also fraudulently obtained a $30,000 vehicle loan in order to purchase a new 2015 Jaguar vehicle. Utilizing the personal identifying and financial information of various employees, former interns, and others associated with his former employer, Muho unlawfully obtained and created additional fake identification cards and drivers licenses. He also fraudulently opened various bank accounts in Miami-Dade and Broward counties and created and cashed over $70,000 in false and fraudulent checks. Muho also falsely and fraudulently applied for another $250,000 in credit cards and vehicle, business, and student loans with numerous banks and other lenders. During 2016, facing eviction from his Miami condo, Muho fled South Florida and was ultimately arrested in Ridgewood, New York.
Mr. Greenberg commends the investigative efforts of the USPIS, FBI, and Sunrise Police Department in this matter. Mr. Greenberg also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Sean T. McLaughlin and Matthew Langley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Employee of U.S. Government Contractor in Afghanistan Pleads Guilty to Accepting over $250,000 in Kickbacks from SubcontractorRead the Press Release
A former employee of a U.S. government contractor in Afghanistan pleaded guilty today to accepting over $250,000 in illegal kickbacks from an Afghan subcontractor in return for his assistance in obtaining subcontracts on U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia, Special Agent in Charge John Khin of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, Atlanta Resident Agency, Special Inspector General for Afghanistan Reconstruction John F. Sopko, and Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU) made the announcement.
Nebraska McAlpine, 56, of Smyrna, Georgia, pleaded guilty in Atlanta before U.S. District Judge Mark H. Cohen to a one-count information filed on June 19, in the Northern District of Georgia, charging him with one count of accepting illegal kickbacks. Sentencing is scheduled for October 18.
In connection with his plea, McAlpine admitted that he maintained a principal place of residence within the Northern District of Georgia and was employed as a Project Manager for an American defense contractor in Kabul, Afghanistan (the Prime Contractor). McAlpine admitted that he and an Afghan executive agreed that in exchange for illicit kickbacks, McAlpine would ensure that the Prime Contractor awarded lucrative subcontracts to the executive’s companies. McAlpine repeatedly told his supervisors that these companies should be awarded “sole source” subcontracts, which allowed them to supply services to the Prime Contractor without having to competitively bid on them, he admitted. As a result of the kickback scheme, the Prime Contractor paid over $1.6 million to the subcontractor to assist with maintaining the Afghanistan Ministry of the Interior Ultra-High Frequency (“UHF”) radio communications system in Kabul, Afghanistan, McAlpine admitted.
McAlpine further admitted that the executive agreed to pay kickbacks to McAlpine totaling approximately 15% of the value of the subcontracts. In 2015 and 2016, McAlpine accepted over $250,000 in kickbacks from the executive, and he hid these kickbacks from his employer by storing the cash payments in his personal effects and then physically transporting them himself to the U.S., he admitted. McAlpine further admitted that he then deposited the majority of these funds in amounts less than $10,000 into his bank accounts at bank branches in the Atlanta metropolitan area.
DCIS, SIGAR and Army CID-MPFU investigated the case. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia are prosecuting the case.
Former Correctional Officer Sentenced to Prison for Accepting BribesRead the Press Release
BROWNSVILLE, Texas – A former correctional officer will now be on the other side of prison bars following his conviction of accepting bribes in his capacity as a public official, announced Acting U.S. Attorney Abe Martinez. Stephen Salinas, 23, of Edcouch, pleaded guilty Jan. 3, 2017.
Today, U.S. District Judge Andrew S. Hanen handed Salinas an 18-month sentence to be immediately followed by three years of supervised release. The term includes upward adjustments in his calculated sentencing guideline range because he received more than one bribe, was in a high level or sensitive position and used his position as a public official to facilitate the introduction of the contraband into a prison facility.
Salinas was a correctional officer formerly employed at the Management and Training Corporation (MTC) Willacy County Regional Detention Center. At the time of his plea, Salinas admitted that between October 2015 and January 2016, he accepted bribes in exchange for providing cell phones and gallon jugs of alcohol to inmates at the MTC Detention Center. He admitted he used his position as a correctional officer to smuggle the items into the facility. Was paid a total of approximately $3,000 for allowing the contraband into the facility.
Salinas was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service at a later date.
Department of Justice - Office of Inspector General, U.S. Marshals Service and Department of Homeland Security conducted the investigation. Assistant U.S. Attorney Angel Castro prosecuted the case.