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Friday 26 May 2017
Wichita Business Owner Pleads Guilty in $250,000 Tax CaseRead the Press Release
WICHITA, KAN. – A Wichita business owner pleaded guilty Friday to withholding more than $258,000 in taxes from employee salaries that he failed to paid over to the government, U.S. Attorney Tom Beall said.
Michael J. Skladzien, 54, Wichita, Kan., pleaded guilty to one count of failing to pay over taxes. In his plea, he admitted that while he owned S&S Floor Maintenance he withheld approximately $258,610 from salaries of employees to pay federal taxes. Instead of paying the funds over to the government, he spent the money on personal expenses including gambling.
Sentencing is set for Aug. 11, 2017. He faces up to five years in federal prison. Beall commended Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.
Virginia Man Admits to Falsely Certifying Bridge Inspection VehiclesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CAROL “CASEY” SMITH, 56, of Chester, Virginia, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to a federal charge related to his false certification of bridge inspection vehicles.
According to court documents and statements made in court, Under Bridge Inspection (“UBI”) vehicles are vehicles that contain a moveable boom with a platform. The vehicles are used to conduct inspections of bridges by positioning the vehicle on top of the bridge and, using the boom, lifting a platform carrying inspectors alongside or beneath a bridge deck. “Company A” rents or leases bridge access equipment, including UBI vehicles, to engineering companies and government agencies for use on bridge inspection and bridge maintenance projects. Company A’s UBI vehicles travel on interstate highways to job locations throughout the U.S. Company A has several locations, including one in Connecticut.
SMITH was the president and chief surveyor for Virginia-based Martin Enterprizes, Inc. (“MEI”). Between January 2012 and January 2015, SMITH falsely represented that he, as the chief surveyor for MEI, examined the UBI vehicles in Company A’s fleet on an annual basis. During that time, SMITH created 165 Certificates of Unit Text/Examination of Material Handling Device (the “Certificate of Inspection”) for UBI vehicles in Company A’s fleet. As part of the Certificate of Inspection, SMITH verified that he personally examined the specified UBI vehicle and that the UBI vehicle met federal requirements. SMITH also issued 165 annual stickers representing that he had inspected the UBI Vehicles, and he knew that an employee or employees of Company A would affix the stickers to the UBI vehicles, and that those UBI vehicles would be driven on interstate highways and used on jobs throughout the U.S., including Connecticut.
Between 2012 and 2015, in exchange for the Certificates of Inspection for the UBI vehicles, as well as other vehicles in its fleet, Company A paid SMITH a total of $76,400.
SMITH pleaded guilty to one count of making a false statement, which carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Utah Man Sentenced to 110 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a West Valley, Utah, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 16, 2017, by U.S. District Judge Roberto A. Lange.
Alfredo Chavez Mendoza, a/k/a Alfredo Chavez-Mendoza, a/k/a Maniac, a/k/a Julian, age 27, was sentenced to 110 months in custody, followed by 4 years of supervised release, a fine of $500, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Mendoza was indicted by a federal grand jury on April 13, 2016. He pled guilty on February 6, 2017.
Beginning in August of 2015, and continuing through April of 2016, Mendoza knowingly and intentionally conspired with others to distribute between 350 and 500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Mendoza came to South Dakota with friends to “scope things out” and sell drugs. Mendoza admitted to selling methamphetamine to Kristina Lofton, who was convicted of conspiracy to distribute methamphetamine in and around Eagle Butte, South Dakota, and sentenced in January of 2017. Mendoza admitted he received distributable quantities of methamphetamine to distribute in South Dakota, and that he provided others with methamphetamine to further distribute.
This case was investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, and the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Mendoza was immediately turned over to the custody of the U.S. Marshals Service.
Two Dunkirk Men Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a six count indictment charging Fred A. Santiago, 29, and Michael Pacheco, 27, both of Dunkirk, NY with conspiracy to distribute and distribution of five or more kilograms of cocaine, possession with intent to distribute and distribution of cocaine, and maintaining a drug premise. The charges carry a mandatory minimum penalty of 10 years, a maximum of life and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on May 2, 2017, a state search warrant was executed at Santiago’s residence. Law enforcement officers seized scales, a heat sealer, heat sealing bags, a drug press, and over 600 grams of suspected cocaine. On the same day, members of the Southern Tier Regional Drug Task Force stopped Pacheco’s vehicle and seized an amount of cocaine that was secreted away inside a potato chip bag.
The defendants were arraigned today before the U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being held pending detention hearings on June 2, 2017 at 11:45 a.m.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. hunt, new York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, and the Dunkirk Police Department, under the direction of Chief David Ortolano.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Defendants Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — U.S. District Judge Sidney A. Fitzwater sentenced three defendants, including a doctor, a pharmacist, and the owner of McAllen Medical Clinic, today for their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Muhammad Faridi, 41, of Murphy, was sentenced to 108 months in federal prison following his guilty plea in August 2016 to one count of conspiracy to launder monetary instruments.
Dr. Richard Andrews, 64, of Dallas, was sentenced to 96 months in federal prison following his guilty pleas in January 2017 to one count of conspiracy to distribute a controlled substance, namely, Oxycodone, and one count of conspiracy to launder monetary instruments.
Ndufola Kigham, 45, of Arlington, was sentenced to 27 months in federal prison following her guilty pleas in February 2017 to two counts of misprision of felony.
“These diverted prescription pain pills kill more people in this country than heroin, while simultaneously fueling demand for heroin itself,” said U.S. Attorney Parker. “Eighty percent of heroin users started down that dark, steep path by abusing prescription pain pills first. Those who divert legitimate drugs from their lawful, therapeutic purposes to illicit, deadly purposes all in the name of money are no better than any other drug trafficker and will be treated accordingly.”
According to documents filed in the case, from approximately January 2013 through July 2014, Andrews, a doctor of osteopathy, and his co-conspirators, including Faridi, who is not a physician but who owned the McAllen Medical Clinic, distributed and caused to be distributed at least 150,000 30mg oxycodone pills in Dallas. The prescriptions were issued in Andrews’ name and under his DEA registration number. Andrews wrote or signed prescriptions for 30mg oxycodone pills without conducting medical exams of patients, without determining there was a legitimate medical purpose for the prescription, and outside the usual course of professional practice. Sometimes Faridi filled out the prescriptions Andrews had previously signed. Andrews and his coconspirators issued the illegitimate prescriptions to make money.
The proceeds of the drug-trafficking conspiracy consisted of cash payments collected by Faridi and other coconspirators at McAllen Medical Clinic for fake patient visits. Those payments varied per patient, per visit, and were payable only in cash. Andrews received a share of those cash payments
Co-defendant Kigham, a registered pharmacist who owned, operated, and served as the pharmacist in charge of GenPharm Pharmacy on Wheatland Road in Desoto, Texas, knew of the conspiracy and failed to notify any authority of it. Instead, she committed affirmative acts to conceal the conspiracy, such as filling prescriptions for 30mg oxycodone written for multiple different individuals and dispensing the filled prescriptions to a single individual, and not to the individuals named on the prescription. By filling these prescriptions while the conspiracy was ongoing, Kigham dispensed more than 70,000 30mg oxycodone pills based on illegitimate prescriptions.
In March 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to a prescription drug distribution conspiracy. Andrews, Kigham and Faridi were charged in December 2015 by a superseding indictment. The indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies.
The prescription medications were then distributed like street drugs in Texas and Louisiana.
This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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Three Charged with Illegal Trafficking of $17 Million Worth of Sea CucumbersRead the Press Release
NEWS RELEASE SUMMARY – May 26, 2017
SAN DIEGO – A Tucson firm and two executives were arraigned in federal court today on charges related to the illegal trafficking of $17 million worth of sea cucumbers from 2010-2012.
Blessings, Inc. of Tucson, its owner David Mayorquin, and Ramon Torres Mayorquin of San Diego were charged in a 26-count indictment with conspiracy, illegal trafficking in wildlife, importation contrary to law, false labeling and criminal forfeiture.
According to the indictment, defendant David Mayorquin, on behalf of Blessings, contacted suppliers of sea cucumbers in Mexico and agreed to purchase approximately $13 million worth of sea cucumbers, knowing that it had been illegally harvested, that is, in excess of permit limits, or without a proper license or permit, or out of season.
It was a further alleged that defendant Ramon Mayorquin received the shipments of sea cucumbers from the Yucatan to Tijuana, Mexico, and created false invoices to be submitted to U.S. Customs officials, knowing that the sea cucumbers had been illegally harvested, sold and transported, and lacked the proper paperwork required under Mexican law.
According to the indictment, the fraudulent sales invoices submitted to U.S. Customs falsely represented defendant Ramon Mayorquin to be the supplier of the sea cucumbers to Blessings, from a non-existent address in Mexico, for a price less than one tenth of the true price paid by Blessings for the sea cucumbers.
The indictment states that after the sea cucumbers had been imported into the United States, defendant David Mayorquin sold the sea cucumbers on behalf of Blessings for approximately $17.5 million to customers in China and elsewhere. The indictment alleges that as part of the scheme payments were made to bank accounts held under false names to conceal the illegal sales and hide the proceeds, and payments were also made to Mexican officials to insure that no action was taken against the illegally harvested sea cucumbers. In furtherance of the scheme, it is alleged that in June of 2011, a co-conspirator in Mexico sent an email to defendant David Mayorquin, stating in substance “We want what is owed in freight to be your contribution for the bribe, 32K.”
Mexican law requires that the lawful origin of fisheries products be demonstrated by means of an arrival, harvest, production, or collection notice or an import permit. The original sales invoice for fisheries products must bear the number associated with the notice of arrival, harvest, production or collection, as well as a description of the product, and all subsequent invoices must bear the number of the invoice from which it derived, so that all fisheries products sold in Mexico can be traced to their lawful origins.
In addition, in Mexico a fisheries waybill is needed for the interstate transportation of fisheries products. It is also violation of Mexican law to harvest, possess, transport, or sell a species out of season, or of less than the minimum established size and weight, or to harvest a species in excess of permit limits or without a proper license or permit. The indictment alleges that the defendants imported sea cucumbers into the United States they knew had been harvested, transported and sold in violation of these Mexican laws.
Since the beginning of this investigation, with the increased cooperation with Mexican officials, the importation of sea cucumbers from Mexico to the United States through the ports of entry in San Diego have decreased approximately 93% in the past three years. According to the NOAA Office of Science and Technology, Commercial Fisheries Statistics Division website, total sea cucumber imports from 2013 through 2016 into the San Diego ports of entry have decreased from 1,096,258 kg in 2013 to 70,708 kg in 2016. Total sea cucumber imports to the U.S. from Mexico have decreased from 4 million kg in 2013 to 3 million kg in 2016.
“This case demonstrates the coordination between U.S. federal law enforcement agencies in detecting illegal, unreported, and unregulated (IUU) fishing and stopping the trafficking of sea cucumbers into the U.S. from Mexico,” said Assistant Director Will Ellis of NOAA's Office of Law Enforcement. “Sea cucumbers is an important commercial fishery for Mexico and NOAA's Office of Law Enforcement is committed to cooperating with our international partners to safeguard this marine resource.”
“The Service's investigation and this subsequent indictment will help stop the illegal harvest and transport of thousands of pounds of sea cucumbers, whose numbers have fallen dramatically over the past few years,” said Ed Grace, Deputy Assistant Director for U.S. Fish and Wildlife Service Office of Law Enforcement. “Sea cucumbers serve an important role in the marine ecosystem, helping recycle nutrients and break down organic matter. Illegal over-harvest threatens more than just the species themselves, impacting delicate coral reefs and local fisheries. Going after criminal poachers and wildlife traffickers like these is not only critical for saving protected species such as sea cucumbers, it also ensures some justice for those impacted by their illegal activities.”
“A large overseas demand for sea cucumbers harvested in Mexico has fueled an increase in illicit importation-schemes uncovered at commercial ports of entry on the U.S.-Mexico border, ” said Dave Shaw, special agent in charge for Homeland Security Investigations in San Diego. “This investigation underscores HSI’s commitment to ensuring U.S. trade laws are not exploited by those seeking financial gain.”
The defendants were ordered to appear before U.S. District Judge Roger T. Benitez for a hearing on all motions on July 10, 20917, at 2:00 pm.
DEFENDANTS Criminal Case No. 17cr1254-BEN
Blessings, Inc Incorporated: 2003
Tucson, Arizona
David Mayorquin Age: 39
Tucson, Arizona
Ramon Torres Mayorquin Age: 75Chula Vista, California
SUMMARY OF CHARGES
Count 1
Conspiracy, 18 U.S.C. § 371
Maximum penalty: 5 years’ prison, fine of $250,000
Counts 2-8
Unlawful Importation of Wildlife, 16 U.S.C. §3372(a)(2)(A) and §3373(d)(1)(A)
Maximum Penalty: 5 years’ prison, $250,000 fine
Counts 9-17
Importation Contrary to Law, 18 U.S.C. §545
Maximum Penalty: 20 years’ prison, $250,000 fine or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.
Counts 18-26
False Labeling, 16 U.S.C. §3372(d)(1) and §3373(d)(#)(A)
Maximum Penalty: 5 years’ prison, $250,000 fine
AGENCIES
National Oceanic and Atmospheric Administration, Office of Law Enforcement
U.S. Fish & Wildlife Service, Office of Law Enforcement
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Buffalo Men Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Derrick Pitts, 46, Shawn Cunningham, 46, and Travel Jefferson, 36, all of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the complaint, between April 2017 and May 17, 2017, the defendants conspired to sell and sold several ounces of crack cocaine on Jewitt Avenue in the Central Park area of Buffalo. The investigation included undercover drug purchases on April 17; May 16; and May 24, 2017.
During the execution of search warrants at residences located at 269 Jewett Avenue and 1945 Hertel Avenue, law enforcement officers recovered drug paraphernalia, including packaging, and scales with suspected cocaine residue, a plastic bag containing suspected cocaine, two plastic baggies containing suspected crack cocaine, cash, and a cell phone.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder. Shawn Cunningham and Travel Jefferson were released on conditions; Derrick Pitts is being held pending a detention hearing on June 2, 1017 at 10:00 a.m.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Federal Bureau of Investigation, under the direction of Special Agent-in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Texas Woman Pleads Guilty to Using Offshore Accounts in Panama to Conceal More than $1.3 Million from the IRSRead the Press Release
A resident of College Station, Texas, pleaded guilty today to conspiring to defraud the United States by using offshore accounts in Panama to conceal more than $1.3 million in royalty income that she earned from oil wells, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, Joyce Meads, 73, admitted that she filed false 1997 through 2009 individual income tax returns, omitting more than $1.3 million in royalty income that she received from oil wells. From approximately April 1997 through April 2010, she conspired with offshore promoters to disguise this income, setting up nominee companies in Delaware and Panama in the name of W.G. Holdings Corporation and transferring her interest in the oil wells to the nominee entity in Delaware. Meads’s monthly royalty checks were issued to W.G. Holdings. For approximately a decade, Meads had her royalty checks sent to a Miami post office box where they were picked up, couriered to Panama and deposited into her nominee accounts. Meads repatriated funds by disguising them as scholarships or loans from W.G. Holdings to herself. She later transferred the funds to bank accounts in her own name or her mother’s name. Meads admitted that she caused a tax loss of more than $250,000. Two of the promoters who assisted Meads, Marc Harris of The Harris Organization, Republic of Panama, and Boyce Griffin of Offshore Management Alliance Ltd., Republic of Panama, have also been convicted of conspiracy and other charges and were previously sentenced to prison.
“For more than a decade, Joyce Meads attempted to conceal her income from the Internal Revenue Service (IRS) by assigning it to a nominee entity and stashing it offshore,” said Acting Deputy Assistant Attorney General Goldberg. “As today’s plea makes clear – the days of safely hiding your money offshore are over – the Department continues to work with its law enforcement partners to find and hold accountable those who seek to evade paying their fair share of taxes.”
“Joyce Meads’ attempt to use complex offshore schemes to evade paying her fair share of income taxes was no match for the skills of IRS Criminal Investigation special agents,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS CI and the Department of Justice’s Tax Division share the same vision when it comes to investigating those who attempt to hide their income; whether it’s through offshore holdings or state-side entities, we are determined to put an end to this type of fraudulent activity.”
Sentencing is scheduled for Aug. 4. Meads faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant Chief Greg Tortella of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Sureno Gang Member Sentenced to 100 Months in Prison for RICO Conspiracy and the Use of Firearms in Furtherance of ConspiracyRead the Press Release
SAN JOSE – Mario Cardenas was sentenced yesterday to 100 months in prison based on his conviction on charges of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and use of a firearm, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge, and represents the sixteenth conviction resulting from a proactive operation by the FBI’s Santa Clara County Violent Gang Task Force targeting gang members committing violent crimes and selling methamphetamine in San Jose.
Cardenas, 22, of San Jose, pleaded guilty on February 22, 2017, to being a member of Sur Santos Pride (SSP) and to using a gun during an in relation to a crime of violence. According to the plea agreement, Cardenas was a member of SSP for at least five years from January 2009 through January 2014. Cardenas acknowledged SSP was made up of Sureño gang members and associates from San Jose who coordinated and engaged in criminal activity together. The objective of SSP was to have its members and associates commit acts of violence including murder, attempted murder, and robbery for the benefit of the gang. To carry out their violent crimes, the SSP gang regularly collected money for firearms for the gang. Like other Sureño gangs in San Jose, SSP pledged their loyalty to the Mexican Mafia prison gang and followed its directives. Cardenas admits in his plea agreement that he participated in meetings during which money was collected so SSP could buy more guns; SSP members decided to extort local pimps for money and to use violence (including assaults with firearms) to enforce SSP’s demands for money, if necessary; SSP members collected money to pay as “taxes” to the Mexican Mafia; and gang members decided which people would hold guns for the group.
Cardenas was among 27 Sureño gang members in San Jose indicted on March 19, 2014, with various charges. For his part in the scheme, Cardenas was charged with RICO conspiracy, in violation of 18 U.S.C. § 1962(d); conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); conspiracy to assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6); and use and possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c). Pursuant to his plea agreement, Cardenas pleaded guilty to the RICO conspiracy and § 924(c) charges.
The investigation leading to the indictment was part of the FBI’s crackdown on Sureño gangs in Santa Clara County. Fifteen of the other charged defendant have already been sentenced as reflected in the chart below. Several other defendants are scheduled to be sentenced in the coming months. Three defendants are in custody pending trial, and a status conference is scheduled for June 5, 2017.
Defendant
Charges
Sentence
JOSE DAVID SANCHEZ a/k/a “Joker”
Distribution of Methamphetamine
Sentenced on 10/21/14 to 77 months in prison
JUAN CHAVEZ
a/k/a “Dukester”
Distribution of Methamphetamine
Sentenced on 10/30/14 to 77 months in prison
ANDY LAMB LOPEZ a/k/a “Solo”
Felon in Possession of Firearm
Sentenced on 2/23/15 to 45 months in prison
MIGUEL MIRANDA
a/k/a “Payaso”
Distribution of Methamphetamine
Sentenced on 2/23/15 to 120 months in prison
MARIO GUERRERO
a/k/a “Lil Junior”
Distribution of Methamphetamine
Sentenced on 8/27/15 to 85 months in prison
FRANCISCO RAMIREZ a/k/a “Cisco”
Distribution of Methamphetamine
Sentenced on 11/2/15to 46 months in prison
JORGE RODRIGUEZ a/k/a “Brownie”
RICO Conspiracy and VICAR Attempted Murder
Sentenced on 2/1/16 to 160 months in prison
RICARDO MONTOYA
a/k/a “Necio”
RICO Conspiracy and VICAR Attempted Murder
Sentenced on 5/16/16 to 108 months in prison
JOSE MORENO
a/k/a “Lil Chocolate”
RICO Conspiracy and Use of a Firearm
Sentenced on 8/4/16 to 160 months in prison
MARCOS LOMELI
a/k/a “Cookie”
RICO Conspiracy and Use of a Firearm
Sentenced on 9/26/16 to 127 months in prison
FERNANDO CRUZ
a/k/a “Nano”
RICO Conspiracy
Sentenced on 11/10/16 to 87 months in prison
FRANCISCO FONSECA
a/k/a “Griffo”
RICO Conspiracy, Distribution of Methamphetamine, Felon in Possession of a Firearm
Sentencing Scheduled for 6/5/17
DANIEL CORTEZ
a/k/a “Lil Temper”
RICO Conspiracy
Sentenced on 12/19/16 to 60 months in prison
FELIX HERNANDEZ CRISTOBAL a/k/a “Pato”
RICO Conspiracy
Sentenced on 12/19/16 to 80 months in prison
BENITO CANALES
a/k/a “Dopey”
RICO Conspiracy
Sentenced on 3/10/17 to 24 months in prison
DENNIS SANDOVAL
a/k/a “Criminal”
VICAR Attempted Murder
Sentenced on 1/23/17 to 108 months in prison
Assistant United States Attorneys Stephen Meyer, Cynthia Frey, and Amie Rooney are prosecuting the case with the assistance of paralegals Nina Burney and Kevin Costello. The case is the result of an investigation by the FBI.
St Marys Man Sentenced for Tax EvasionRead the Press Release
TOPEKA, KAN. – A St. Marys man was sentenced Thursday to five years in federal prison for tax evasion, U.S. Attorney Tom Beall said. He was ordered to pay more than $8.4 million in restitution.
David G. Pflum, 71, St. Marys, Kan., owner of Coil Springs Specialties, was found guilty in a jury trial in January on one count of tax evasion and one count of obstructing the Internal Revenue Service. During trial, the prosecutor presented evidence that Pflum submitted false documents claiming he had less than $475 in assets and his income was $470 a month. In fact, he owned more than $2 million worth of real estate and his income was more than $16,000 a month. He urged renters, buyers and other people indebted to him to ignore collection efforts by the IRS.
Beall commended the IRS and Assistant U.S. Attorney Christine Kenney for their work on the case.
Seven Members of Armed Robbery Crew Sentenced for their roles in Virginia-Highland Wells Fargo Bank RobberyRead the Press Release
Seven members of an Atlanta-based robbery crew have been sentenced for their roles in the February 2015 armed robbery of the Wells Fargo bank at the intersection of Virginia and North Highland Avenues in Atlanta, Georgia.
“This robbery crew targeted a bank at one of the busiest pedestrian thoroughfares in the city, at the height of the morning rush hour,” said U.S. Attorney John Horn. “The robbers stormed the bank, pointed loaded firearms directly at bank employees and customers, threatened to kill them, and stole over $20,000 from the bank’s safe and cash drawers. The robbers compounded their violence by leading law enforcement on a high-speed chase throughout metro Atlanta at speeds topping 170 miles per hour. The convictions and lengthy sentences for the members of this crew puts an end to their ability to inflict further violence and mayhem in our district.”
“I can’t imagine the terror those innocent victims inside the bank felt,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “We are extremely fortunate that no one was physically hurt or killed in this rage of violence. Rarely do we see so much havoc created in such a short period of time in a very busy area. These seven suspects disregard for employees and customers of the bank, and motorists on our public streets is reprehensible. The lengthy sentences they received will not only stop them, but also send a message to anyone else who might think about committing this type of violence.”
According to U.S. Attorney Horn, the charges, and other information presented in court: On February 27, 2015, Bruce Brown, Kayode Philip Adeleye, and Ryan Vincent Hill arrived at a Wells Fargo Bank branch in Atlanta, Georgia, wearing hoods, masks, and gloves. Brown, Adeleye, and Hill entered the bank while Brown and Adeleye each brandished a loaded handgun. Brown stationed himself at the front door while Adeleye jumped over the teller counter and Hill walked behind that counter.
Adeleye pointed his gun into the back of one of the tellers and threatened to kill him if he did not open the bank’s safe. Adeleye forced another teller to the ground while pointing his gun at him and instructing him to lie face down. After one of the tellers opened the bank safe and cash drawers, Adeleye and Hill stole $22,343.40 in U.S. currency, and fled with Brown. The robbers escaped in a rental sport-utility vehicle bearing stolen tags. They later switched vehicles, twice, with help from Xavier Cornelius Shields, Connie Cristobul Montoya, and Joe Francisco Montoya.
The robbery crew consisted of seven individuals, all from metro Atlanta, which was led by Hill and Adeleye. Hill and Adeleye, along with Brown committed the armed robbery at gunpoint. Shields, C. Montoya, and J. Montoya assisted with the robbery by driving switch cars and acting as lookouts. Paris Lashay Paggett assisted with the concealment of evidence after the fact.
Using various investigative means, law enforcement located the fleeing robbers while they were still in transit. Officers and agents from the Atlanta and DeKalb County police departments, the Georgia State Patrol, and the FBI pursued the robbers as they traveled in a Mercedes AMG sports car leased and driven by Hill. The robbers led law enforcement on a high-speed chase through various highways and streets at speeds reaching up to 170 miles per hour. Law enforcement was unable to apprehend the robbers during the chase, but they did recover most of the stolen money, and several other items of evidence, at a residence in Ellenwood, Georgia, shortly after the robbery.
In the weeks that followed, the FBI, APD, and the Georgia Bureau of Investigation worked together to locate and develop evidence that identified the robbers. On June 17, 2015, a grand jury in the Northern District of Georgia returned an eight-count superseding indictment charging Hill, Adeleye, Brown, Shields, C. Montoya, J. Montoya, Paggett, and Tekevious Nicole Brandon with various offenses in connection with their roles in the robbery conspiracy. Hill, Adeleye, Brown, Shields, C. Montoya, and J. Montoya were charged with conspiracy to interfere with commerce by robbery and armed bank robbery. Hill, Adeleye, and Brown were also charged with brandishing a firearm during a crime of violence. Adeleye, C. Montoya, and J. Montoya were also charged with illegal possession of a firearm. Paggett and Brandon were charged as accessories after the fact.
Seven of the eight defendants pleaded guilty or were convicted at trial, and U.S District Judge Amy Totenberg imposed sentences on the three principal members of the crew as follows:
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Ryan Vincent Hill, 28, of Atlanta, Georgia, was sentenced on May 9, 2017, to 17 years and one month in prison, followed by three years of supervised release. Hill had pled guilty to counts one (conspiracy) and two (armed bank robbery) on August 3, 2016. Hill proceeded to trial on count three (brandishing a firearm during a crime of violence). The jury convicted him on January 26, 2017.
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Kayode Philip Adeleye, 34, of McDonough, Georgia, was sentenced on March 28, 2017, to 16 years in prison, followed by five years of supervised release. Adeleye had pled guilty to counts two (armed bank robbery) and three (brandishing a firearm during a crime of violence) on July 27, 2016.
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Bruce Brown, 27, of East Point, Georgia, was sentenced on May 10, 2017, to 11 years and two months in prison, followed by three years of supervised release. Brown had pled guilty to counts one (conspiracy), two (armed bank robbery), and three (brandishing a firearm during a crime of violence) on January 4, 2017.
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Xavier Cornelius Shields, 24, of Decatur, Georgia, was sentenced on March 24, 2017, to six years and eleven months in prison, followed by two years of supervised release. Shields had pled guilty to count one (conspiracy) on July 26, 2016.
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Connie Cristobul Montoya, 39, of Mableton, Georgia, was sentenced on March 30, 2016, to 6 years and 6 months in prison, followed by three years of supervised release. C. Montoya had pled guilty to count one (conspiracy) on November 30, 2015.
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Joe Francisco Montoya, 36, of Mableton, Georgia, was sentenced on November 12, 2015, to approximately seven months in prison, followed by ten months of supervised release. J. Montoya had pled guilty via criminal information to misprision of a felony on August 26, 2015.
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Paris Lashay Paggett, 26, of College Park, Georgia, was sentenced on May 10, 2017, to three years of probation. Paggett had pled guilty via criminal information to misprision of a felony on December 2, 2016.
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Tekevious Nicole Brandon, 36, of Atlanta, Georgia, had her charges dismissed on December 9, 2016, after successfully completing pretrial diversion under the conditions set forth in the parties’ pretrial diversion agreement.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Atlanta Police Department, the DeKalb County Police Department, and the Georgia State Patrol.
Assistant U.S. Attorneys John S. Ghose and Richard S. Moultrie, Jr. prosecuted the case.
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.
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Rosebud Man Sentenced to 121 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute a controlled Substance was sentenced on May 16, 2017, by U.S. District Judge Roberto A. Lange.
Shaun Adam Espino, age 44, was sentenced to 121 months in custody, followed by 4 years of supervised release, a fine of $1,000, forfeiture of $7,682 in U.S. currency and two firearms, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Espino was indicted by a federal grand jury on March 15, 2016. He pled guilty on February 7, 2017.
Beginning in January of 2015, and continuing through March of 2016, Espino knowingly and intentionally conspired with others to distribute between 500 and 1,500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Espino admitted that he received distributable quantities of methamphetamine from others who knew that he intended to engage in further distribution, and that he provided methamphetamine to others knowing that they intended to further distribute it. Found in Espino’s residence during the execution of a search warrant were 73 grams of methamphetamine, $7,682 in U.S. currency, a pistol, and a shotgun.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Espino was immediately turned over to the custody of the U.S. Marshals Service.
Registered Sex Offender Indicted for Cyberstalking and Enticing a Minor Victim to Engage in Sexually Explicit ConductRead the Press Release
Ceradoy was convicted of possession of child pornography in 2005 and attempted sexual exploitation of a minor in 2014
Baltimore, Maryland – A federal grand jury has charged Piere Ceradoy, age 36, of Crofton, Maryland, for production and advertisement of child pornography, coercion and enticement, cyberstalking, transfer of obscene material, and for engaging in this conduct while a registered sex offender. The indictment was returned on May 23, 2017. He was also ordered to be detained following a detention hearing held on May 25, 2017.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to the seven count indictment, and information presented at the detention hearing, Ceradoy met a minor victim on social networking apps in the spring of 2016, within months of being released from prison in Washington for his conviction on attempted sexual exploitation of a minor.
The victim told Ceradoy she was 13, and Ceradoy immediately initiated sexually explicit discussions. Ceradoy enticed the victim to engage in sex acts, and received videos and photos of the victim engaged in these acts. He also threatened to post the explicit photos on the internet and to send them to the victim’s family, and Ceradoy threatened to kill the victim and members of her family.
Ceradoy faces a mandatory minimum of 15 years and a maximum of 30 years in prison, followed by a lifetime of supervised release for each counts of production and advertising of child pornography; a mandatory minimum of 10 years and a maximum of life in prison, followed by a lifetime of supervised release for coercion and enticement; a maximum of 10 years, followed by three years of supervised release for cyberstalking; a maximum of 10 years, followed by three years of supervised release for transfer of obscene matter to a minor; and 10 years consecutive to all the charges stated above, excluding cyberstalking, for being a registered sex offender, followed by a lifetime of supervised release.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Qiran Li Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant QIRAN LI, age 31, from Susupe, Saipan, was sentenced in District Court to an 18-month term of imprisonment, to be followed by two years of supervised release, and 50 hours of community service, for Distribution of a Controlled Substance (Methamphetamine). The Court also ordered LI to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On December 2, 2016, LI was charged by Indictment with Distribution of a Controlled Substance (Methamphetamine), in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). He entered a guilty plea to the charge on January 27, 2017. During the course of the underlying investigation, LI sold methamphetamine to a confidential informant on two separate occasions in March of 2016, and law enforcement was able to seize a total of 9.7 grams with a 98 percent purity level.
The investigation was conducted by the Drug Enforcement Administration, with the assistance of Task Force Officers from CNMI Customs and the CNMI Department of Public Safety. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
Pennsylvania Man Charged with Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Pennsylvania man was charged yesterday in federal court in Boston with failure to register as a sex offender.
Carlos Pagan-Reyes, 31, was indicted for failing to register as a sex offender after moving from Pennsylvania to Boston.
According to court documents, on Feb. 17, 2017, Pagan-Reyes was arrested in Boston on state charges of possession of narcotics, buying/receiving stolen goods, assault with a dangerous weapon and failure to register as a sex offender. Pagan-Reyes was released from state custody pending charges. On April 27, 2017, federal investigators arrested Pagan-Reyes for failing to register as a sex offender in Massachusetts.
The court documents further allege that on April 25, 2007, Pagan-Reyes was convicted in Dauphin County, Penn., of statutory sexual assault and indecent assault on a child less than 16-years-old. Pagan-Reyes was sentenced to state prison and ordered to register as a sex offender in any communities where he lived and worked upon release. Upon his release from prison, Pagan-Reyes registered as a sex offender in Pennsylvania. However, Pennsylvania authorities later became aware that Pagan-Reyes had left Pennsylvania without notifying the proper authorities, as he was required to do; they then issued a warrant for his arrest. Pagan-Reyes was arrested by federal authorities in Boston after determining that he had been living in Massachusetts since Nov. 30, 2016, and had not registered as a sex offender.
The charging statute provides for a sentence of no greater than 10 years in prison, a minimum of five years and no longer than a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and John Gibbons, U.S. Marshal of the District of Massachusetts, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Orwigsburg Postmaster Pleads Guilty to Making False ClaimsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl R. Bonser, age 56, of Lehighton, Pennsylvania, pled guilty today before United States District Judge James M. Munley to making false claims against the government. Bonser is scheduled to be sentenced on September 1, 2017.
According to United States Attorney Bruce D. Brandler, from January 1, 2016 through October 31, 2016, Bronser, in his official capacity as Postmaster of the Orwigsburg Post Office, requested compensation for travel that never occurred, causing a loss of $6,500.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
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.
The maximum penalty under federal law for this offense is five years of 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.
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Orange County Man Pleads Guilty to Taking $2.2 Million from Distressed Homeowners in Bogus Loan Modification SchemeRead the Press Release
SANTA ANA, California – An Orange County man pleaded guilty this morning to federal charges relating to his operation of a fraud scheme that took $2.2 million from distressed homeowners through false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages.
Kevin Frank Rasher, 45, who has been in custody since his arrest at his Coto de Caza residence one year ago, pleaded guilty to 12 counts of mail fraud.
Rasher pleaded guilty before United States District Judge Josephine L. Staton, who is scheduled to sentence the defendant on September 29. Rasher faces a statutory maximum sentence of 240 years in federal prison.
In a plea agreement filed in federal court, Rasher admitted that, between 2011 and March 2016, he falsely told distressed homeowners that he was an employee of HUD and/or an attorney, and that the homeowners had been approved for a reduced mortgage payment or interest rate. Rasher then instructed the homeowners to mail their mortgage payments to one of his businesses, claiming that he would forward the money to the homeowners’ mortgage lenders. Instead of forwarding the money to the mortgage lenders, Rasher deposited the money into his bank accounts and used it for his own personal expenses.
Rasher admitted that he fraudulently obtained approximately $2.24 million from more than 500 victims.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the United States Postal Inspection Service; the Federal Housing Finance Agency’s Office of the Inspector General; and the Federal Bureau of Investigation.
The case against Rasher is being prosecuted by Assistant United States Attorneys Rosalind Wang and Robert J. Keenan of the Santa Ana Branch Office.
Niagara Falls Residents Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Raymond Hopson, 32, and Lindsay Carrier, 32 both of Niagara Falls, NY, with conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine base, possession with intent to distribute and distribution of crack cocaine, possession with intent to distribute cocaine and marijuana, and maintaining a drug involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that, between July 2016 and November 9, 2016, and April 2017 and May 17, 2017, the defendants conspired with others to possess and sell crack cocaine in in the Niagara Falls area.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New Haven Man Sentenced to 10 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HALBY LOPEZ, also known as “Harv,” 41, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by LOPEZ. Omar Polanco-Mendez and Bernardo Roman-Rolan were the second and third in command, respectively. The investigation revealed that LOPEZ, Polanco-Mendez and Roman-Rolan were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.
Between January 2016 and March 2016, LOPEZ, with the assistance of Polanco-Mendez, arranged for the delivery of approximately seven kilograms of cocaine. LOPEZ used the La Familia Barber Shop located on Howard Avenue in New Haven, which he owned and operated, to distribute cocaine.
On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging LOPEZ, Polanco-Mendez, Roman-Rolan and seven other individuals with various narcotics offenses. All of the defendants pleaded guilty.
LOPEZ has been detained since his arrest on March 11, 2016. On September 14, 2016, he pleaded guilty to one count of conspiracy to distribute more than five kilograms of cocaine.
LOPEZ’s criminal history includes convictions for drug trafficking, weapons possession and burglary.
On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment. On March 2, 2017, Roman-Rolan was sentenced to 68 months of imprisonment.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.
Mother and Son Sentenced to Prison for Fraudulent Corporate Tax ReturnsRead the Press Release
SAN FRANCISCO –Howard Hsu was sentenced to 33 months in prison and his mother, Tracy Chang, was sentenced to 12 months and a day in prison today following their convictions on tax fraud charges, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. The sentences were handed down by the Honorable William H. Orrick, U.S. District Judge, following a one-week trial at the conclusion of which a jury found the defendants guilty of conspiring to file fraudulent corporate income tax returns, filing false tax returns, and aiding the preparation of false tax returns.
According to the evidence presented at trial, Hsu, 36, owned and operated Didsee Corporation (Didsee), a business incorporated in Nevada, that provided advertisement marketing services to online websites and marketplaces. Chang, 65, was Disdee’s bookkeeper and listed as the President, Secretary, Treasurer, and Director. Chang opened bank accounts for the business, transferred money between accounts, signed the company’s tax returns, and paid Didsee’s bills.
“Today’s sentences are a cogent reminder to all business owners that the obligation to faithfully pay taxes amounts to more than a simple duty to be fair and honest,” said U.S. Attorney Stretch. “It is a legal obligation that, if flouted, can land you in prison.”
“Every taxpayer is required to file accurate returns and to pay their fair share,” said Acting Deputy Assistant Attorney General Goldberg. “Mr. Hsu ignored that responsibility, and with today’s prison sentence is held fully to account for deducting personal expenses as business expenses and filing false returns.”
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law, however, no one is entitled to defraud the United States and the American taxpayers,” said Special Agent in Charge Michael T. Batdorf of IRS Criminal Investigation (CI). “After paying a large tax bill, Tracy Chang and her son, Howard Hsu endeavored to virtually eliminate any future tax due from their company, Didsee Corporation. Those who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t. IRS-CI and the Department of Justice will investigate and prosecute those who violate our tax system.”
The evidence at trial established that Hsu and Chang conspired together to file fraudulent 2008 through 2009 corporate income tax returns, and an amended 2007 corporate tax return, cheating the Internal Revenue Service (IRS) out of approximately $500,000. Hsu provided false summaries to Didsee’s return preparers, which claimed business expenses that were not incurred and included Hsu’s personal expenses. Chang signed the fraudulent returns as Didsee’s President. On January 29, 2015, a federal grand jury indicted Hsu and Chang; the indictment charged Chang with two counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1); Hsu with three counts of aiding and assisting the preparation of false tax returns, in violation of 26 U.S.C. § 7206(2); and both defendants with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. One of the aiding and assisting charges against Chang was dismissed before trial and on February 13, 2017, the jury found defendants guilty on all of the remaining charges.
In addition to the prison terms, Judge Orrick ordered Hsu and Chang both to serve three years of supervised release, to pay restitution to the IRS in the amount of $396,306, and to pay costs of prosecution in the amount of $8,570.95. Further, Judge Orrick ordered Hsu to pay a fine of $75,000 and Chang to pay a fine of $7,500. Judge Orrick ordered the defendants to surrender on or before August 1, 2017, to begin serving their sentence.
Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS–Criminal Investigation who conducted the investigation.Man Found Guilty on Multiple Home Invasion and Car–Jacking ChargesRead the Press Release
PLANO, Texas – A jury has found a 26-year-old Norman, Oklahoma man guilty of federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jermaine Webster Harris was found guilty by a jury following a nine-day trial before U.S. District Judge Marcia Crone in Plano. Harris had been named in a 17-count indictment in which he was charged with conspiracy to carry a firearm during and in relation to a crime of violence, conspiracy to commit theft of firearms, conspiracy to possess stolen firearms, car-jacking, use and carry of a firearm in furtherance of a crime of violence, theft of firearms, and possession of stolen firearms.
According to information presented in court, Harris, along with his co-defendants, committed numerous home invasion robberies, burglaries, and two car-jackings in and around Plano and Frisco, Texas. Harris was armed during the car-jackings.
Under federal statutes, Harris faces up to life in federal prison at sentencing. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
“Congratulations to all who contributed to achieving this conviction,” said Brit Featherston, Acting U.S. Attorney, “When violent criminals endanger the citizens of this community, they better keep watch over their shoulder, because the weight of the federal government, and all of law enforcement, is coming to get them.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bedford Police Department, the Plano Police Department, the Frisco Police Department, and the Lewisville Police Department. This case was prosecuted by Assistant U.S. Attorney, Tracey Batson and Assistant U.S. Attorney Ernest Gonzalez.
Local Newspaper Editor Sentenced to 41 Months in Federal Prison for Illegally Possessing Firearms in ‘Guns for Haiti’ InvestigationRead the Press Release
LOS ANGELES – The editor of a newspaper that covers the Sunland/Tujunga area has been sentenced to 41 months in federal prison for illegally possessing firearms.
David “Doc” DeMulle, 75, of Tujunga, the editor-in-chief of The Foothills Paper, was sentenced on Monday by United States District Judge Otis D. Wright III.
DeMulle pleaded guilty in 2016 to being a convicted felon in possession of firearms. When he imposed the sentence earlier this week, Judge Wright found that DeMulle possessed 25 firearms and hundreds of pounds of ammunition that he was forbidden to possess because of convictions for perjury and welfare fraud in 1990.
This matter came to the attention of the firearms trafficking unit of the Los Angeles Police Department and ATF agents when DeMulle published an advertisement in his paper concerning “Guns for Haiti Quake Relief.” The ad solicited donations of firearms, which DeMulle then purportedly would sell, using the proceeds to support earthquake relief efforts in Haiti. Undercover LAPD officers responded to the advertisement and delivered two firearms to DeMulle, who illegally accepted them.
Subsequent searches of DeMulle’s home and business led authorities to recover 23 additional firearms, as well as hundreds of pounds (not rounds) of ammunition.
The investigation also revealed that DeMulle had previously placed classified ads in The Foothills Paper soliciting firearms, which resulted in him purchasing several firearms from a private citizen while falsely claiming that he possessed a federal firearms dealer’s license and would handle the firearms transfer paperwork.
The case against DeMulle was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Los Angeles Police Department.
This case was prosecuted by Assistant United States Attorney Gregory Lesser of the Violent and Organized Crime Section.
Little Eagle Woman Sentenced for Theft of a Postal Money OrderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, woman convicted of Theft of a Postal Money Order was sentenced on May 18, 2017, by U.S. District Judge Charles B. Kornmann.
Lucenda Bobtail Bear, age 35, was sentenced to 8 months in custody, followed by 3 years of supervised release, $275 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bobtail Bear was indicted by a federal grand jury on September 13, 2016. She pled guilty on January 6, 2017.
The conviction stems from an incident sometime between May 1, 2016, and June 20, 2016, when Bobtail Bear entered the Little Eagle Post Office and stole two postal money orders. The postal money orders were for the amounts of $165 and $110. The payee portion was left blank. At no time did Bobtail Bear tender payment to the U.S. Postal Service for these money orders.
Subsequently, Bobtail Bear went to a local pawn shop and purchased two small items from the pawn shop owner. She filled the name of the payee and received the two items she purchased and $245 dollars in change. Bobtail Bear then left the store with her items and cash.
This case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Law Enforcement Officers Receive Awards at Annual ConferenceRead the Press Release
On May 25, 2017, Acting United States Attorney Sean R. Berry of the Northern District of Iowa and United States Attorney Kevin VanderSchel of the Southern District of Iowa presented awards to numerous Iowa law enforcement officers at the 31st Annual Law Enforcement Coordinating Committee’s Executive Training Conference. The awards are presented to law enforcement officers who have gone above and beyond the call of duty in their efforts to make our community safer.
Awards were given to four groups of law enforcement officers:
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The Cedar Rapids Safe Streets initiative, comprised of the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation, was honored for its work in identifying and prosecuting the most violent offenders in Cedar Rapids. Through a concerted, proactive, long-term effort, the Cedar Rapids Safe Streets initiative utilized the expertise of multiple agencies and targeted the most violent actors in the community. In a single year, this initiative resulted in the indictment of ten individuals, seven of whom have been convicted and sentenced for a total of more than 44 years.
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The Des Moines Police Department, Ames Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives were honored for their work in investigating a string of robberies in the Des Moines area in 2016. As a result of the tireless efforts of numerous officers, on April 28, 2017, the ring-leader of the robbery crew, Alexander Hamilton, pled guilty to interference with commerce by robbery and admitted to committing 17 robberies from March 2016 to April 2016, included robberies of Git-N-Go (10); Kum & Go (3); Hy-Vee (3); and U.S. Bank (1). Three other individuals, Sarah Coe, Shelly Avery, and Chris Avery, pled guilty to aiding and abetting the robberies. All defendants are scheduled to be sentenced this summer. Each faces up to 20 years’ imprisonment.
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Officers from the Sioux City Police Department, the Federal Bureau of Investigation, and the Minnehaha County, South Dakota, Sheriff’s Office were honored for their work in investigating the brutal murder of Tony Canfield in 2011 as he attempted to escape armed robbers holding him and his wife captive. In 2016, Courtland Clark, from Flowery Branch, Georgia, Robert Beaver from Sioux City, Iowa, and Devery Hibbler from Dumas, Arkansas, were each convicted of one count of interference with commerce by robbery in relation to the murder. In addition, Clark and Hibbler also pled guilty to one count of use of a firearm during and in relation to a crime of violence causing death. Hibbler was sentenced to 35 years in federal prison. Clark, who supplied the gun for the robbery, was sentenced to 21 years. Finally, Beaver was sentenced to 20 years' imprisonment.
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Members of the Iowa City Police Department, Johnson County Sheriff’s Office, Coralville Police Department, Iowa Division of Narcotics Enforcement, and the Johnson County Drug Task Force were honored for their work in combating heroin trafficking in Iowa City. Beginning in and around December 2015, the Iowa City/Coralville area saw an increase in heroin-related deaths and overdoses. Through the coordinated efforts of nine separate law enforcement agencies, six arrests were made, resulting in six convictions for trafficking in heroin. Investigators believed the heroin distributed by this conspiracy was associated with at least six heroin related deaths or overdoses. As a result of this investigation and subsequent convictions, the Iowa City/Coralville area saw a significant decline in heroin related deaths and overdoses.
All of the law enforcement officers honored have gone above and beyond the call of duty to assist crime victims and make the community a safer place. Because of their dedication, long hours, and commitment to service, our communities are better places.
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Last Defendants Sentenced in Massive Conspiracy to Commit Tax Fraud in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced that Diallo Dotson, Charleeta Cork and Simone Watkins were sentenced in federal district court this week for conspiring to defraud the United States through the filing of false income tax returns to receive fraudulent federal income tax refunds. These sentencings mark the conclusion of the prosecution of 33 individuals engaged in a conspiracy with Derrick J. Gibson, of Battle Creek, Michigan, to file false federal income tax returns. The conspiracy operated from 2008 to 2016 and resulted in more than $22 million dollars of loss to the Internal Revenue Service.
The ring-leader, Derrick J. Gibson, was sentenced on January 6, 2017, to the statutory maximum sentence of 10 years in prison and restitution of $16 million. This week, Diallo Dotson was sentenced to serve two years of probation including six weekends in jail and restitution of $76,476. Charleeta Cork was sentenced to a day in prison (time served), two years of supervised release including four weekends in jail and restitution of $41,075. Simone Watkins was sentenced to a day in prison (time served), two years of supervised release and restitution of $84,934.
A multi-year joint investigation led by the Internal Revenue Service Criminal Investigation, Veterans Affairs – Office of the Inspector General, United States Postal Inspection Service, the Bureau of Alcohol Tobacco and Firearms, Department of Homeland Security, Battle Creek Police Department, Albion Police Department, Calhoun County Sheriff’s Department, and Michigan State Police resulted in the federal charges.
"The sentencings in this case and the fact the perpetrators will have to pay back what they took illegally, shows that the government is serious when it comes to prosecuting those that want to use the tax system as their own personal bank account," said Special Agent in Charge Manny Muriel of IRS-Criminal Investigations. "This conspiracy involved 33 people, including three federal employees who stole from the American taxpayer through the filing of false tax returns in innocent people’s names. IRS Criminal Investigations and its law enforcement partners are dedicated to ferreting out these perpetrators and protecting the American public."
This case was prosecuted by Assistant U.S. Attorney B. Rene Shekmer.
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Last Defendant in Methamphetamine, Cocaine and Marijuana Distribution Conspiracy Sentenced to 15 Years in Federal PrisonRead the Press Release
LUBBOCK, Texas — Victor Manuel Castillo, aka “Victor Manuel Garza,” 44, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison for his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Castillo pleaded guilty in January 2017 to one count of distribution and possession with intent to distribute 50 grams or more of Methamphetamine. Castillo has been in custody since his arrest in June 2016.
Castillo and twelve other West Texas residents, including three other members of the Texas Syndicate, were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
All defendants have been sentenced for their roles in the conspiracy to the following:
Cruz Perez, aka “Travieso,” 41, 327 months
Christopher Lee Gonzalez, aka “Gonzo,” 44, 327 months
Evan Cruz Parson, aka “Evan,” 22, 168 months
Jose Gutierrez, III, aka “Baby Joey,” 22, 151 months
Christopher David Gonzales, aka “Chris,” 42, 121 months
Jasmine Pillar Hernandez, aka “Crazy,” 33, 120 months
Alexander Alfonzo Mendoza, aka “Alex,” 21, 48 months
Robert Diaz, Jr., aka “Bobby,” 34, 48 monthsAdrian Rodriguez, 38, 48 months
Johnny Trevino, Jr., aka “Baby John,” 27, 48 months
Crystal Dimas, aka “Babe,” 29, 33 months
The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.
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Las Vegas Man Pleads Guilty to Stealing over $85,000 in Section 8 Housing Assistance BenefitsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today for stealing more than $85,000 in public housing benefits over a six-year period and for providing false statements to a government agency, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Abdallah D. Hamey, 57, pleaded guilty before U.S. District Chief Judge Gloria M. Navarro to one count of theft of government property and five counts of false statement to a government agency.
According to the plea agreement, from August 2009 to April 2015, Hamey stole more than $85,000 in Section 8 public housing benefits. On at least seven applications for public housing assistance, Hamey falsely claimed that he held no bank accounts and possessed minimal assets. In fact, he owned and operated several businesses registered in his children’s names and controlled several business and personal bank accounts that together received approximately $1.7 million in deposits during the time he applied for public housing assistance. Based on the fraudulent applications, Hamey received Section 8 housing assistance to rent a house. During the same time he received housing assistance benefits, Hamey paid rent on four other houses in the Las Vegas area. In addition, he admitted to making five false statements to HUD officials.
Sentencing is scheduled for Aug. 18, 2017. Hamey faces the statutory maximum penalty of 10 years in prison and a $250,000 fine for the theft of government property charge and the statutory maximum penalty of five years in prison and a $250,000 fine for the false statement to a government agency charge.
The case is being investigated by the FBI, the U.S. Housing and Urban Development’s Office of the Inspector General (HUD-OIG), and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Dan Cowhig.
To report suspected fraud in a HUD program, call the HUD-OIG Hotline at 1-800-347-3735 (Toll-Free) or e-mail [email protected].
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Joint Federal and State Investigation Seizes More Than 115 Firearms; More Than 45 Members or Associates of Chicago Street Gang ChargedRead the Press Release
CHICAGO — More than 45 members or associates of the Gangster Two-Six Nation street gang are facing federal or state charges for their alleged roles in dealing guns and drugs on Chicago’s South Side and surrounding suburbs.
The joint federal and state investigation, dubbed “Operation Bunny Trap,” spanned more than two years and resulted in the seizures of approximately 118 firearms, including several assault rifles and shotguns, 25 rounds of ammunition, two ballistic vests, more than 800 grams of cocaine, more than 250 grams of fentanyl, and more than 280 grams of crystal meth. Authorities uncovered the alleged criminal activity through the use of undercover narcotics purchases and extensive surveillance. The probe was led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).
Twenty-one defendants were charged in federal court, and most of them were arrested Thursday. Some of the federal defendants made initial court appearances Thursday before U.S. Magistrate Judge Jeffrey Cole, while others will appear today.
Twenty-seven defendants are facing state charges. They will be making court appearances in Cook County Criminal Court.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The officials recognized the valuable assistance of the Chicago Field Division of the U.S. Drug Enforcement Administration, the Chicago office of the U.S. Marshals Service, and the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Federal and local law enforcement agencies since late 2014 have been investigating alleged criminal activities by members and associates of the Gangster Two-Six Nation street gang. The gang is national in scope but particularly prevalent on the South Side of Chicago and the surrounding suburbs, as well as Indiana, Wisconsin, Texas, Georgia and Kansas.
The investigation uncovered numerous illegal gun transactions, including two deals in January 2017 that occurred in the parking lot of a grocery store in the South Loop neighborhood of Chicago. EDUARDO CASTRO sold three handguns to a confidential source who was cooperating with law enforcement, the complaints state. Castro was under law enforcement surveillance when he sold the firearms, the complaints state. Castro, 30, of Chicago, is charged with illegal possession of a firearm by a felon and dealing firearms without a license.
The investigation further revealed gun and drug transactions inside a pizza parlor in the Brighton Park neighborhood of Chicago. ANTHONY LOPEZ sold cocaine and a handgun to a confidential source who was cooperating with law enforcement, the complaints state. The deals occurred in a bathroom of the pizza parlor in January and February 2015, the complaints state. Lopez, 34, of Chicago, is charged with illegal possession of a firearm by a felon.
The charges describe illegal firearm transactions in several other neighborhoods on Chicago’s South Side, including Chicago Lawn, Clearing, Chatham and Englewood, as well as the suburbs of Berwyn, Homewood and Alsip.
In addition to Castro and Lopez, the federal complaints charge 17 other defendants: JULIAN ALEJANDRO, 25, of Chicago: illegal possession of a firearm by a felon; VINCENT AVILA, 45, of Alsip: illegal possession of a firearm by a felon and possession of a controlled substance with intent to distribute; HERIBERTO BALDERAS, 49, of Chicago: possession of a controlled substance with intent to distribute; JOSEPH BUSTOS, 36, of Chicago: illegal possession of a firearm by a felon; JOSEPH CARDENAS, 43, of Chicago: possession of a controlled substance with intent to distribute; FRANCISCO CARDOZA, 36, of Chicago: possession of a controlled substance with intent to distribute; JAMES CORTEZ, 39, of Chicago: dealing firearms without a license; ARBNOR GASHI, 24, of Chicago: illegal possession of a firearm by a felon; JAMES KACHIROUBAS, 20, of Chicago: dealing firearms without a license; JUAN OCHOA, 58, of Alsip: possession of a controlled substance with intent to distribute; JAMES PELIKAN, 29, of Chicago: illegal possession of a firearm by a felon; REY BENITEZ, 33, of Chicago: illegal possession of a firearm by a felon; JOHN REPEL, 37, of Chicago: possession of a controlled substance with intent to distribute and illegal possession of a firearm by a felon; ALEXANDER RIVERA, 26, of East Chicago, Ind.: illegal possession of a firearm by a felon; TARA ZAMBRANO, 24, of Griffith, Ind.: illegal possession of a firearm by a felon; JOSE CORTEZ, 39, of Orland Hills: knowingly possessing a firearm with an obliterated serial number; FRANCISCO SANCHEZ, 50, of Chicago: illegal possession of a firearm by a felon.
Two other federal defendants were previously indicted in federal court in Chicago as part of this investigation: RICHARD GACHO, 43, of Burbank: illegal possession of a firearm by a felon; and DAVID SANTIAGO, 35, of Kansas: illegal possession of a firearm by a felon and possession of a controlled substance with intent to distribute. Gacho and Santiago have pleaded not guilty and are awaiting trial.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Illegal possession of a firearm by a felon is punishable by up to ten years in federal prison. Dealing firearms without a license and knowingly possessing a firearm with an obliterated serial number are each punishable by up to five years in federal prison. The maximum federal penalties vary for possession of a controlled substance with intent to distribute. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Assistant U.S. Attorneys Eric Pruitt, Timothy Storino, Andrew Dixon and Allison Ray are representing the government in the federal cases. The Cook County State’s Attorney’s Office is representing the government in the state cases.
Jingbo Chen Sentenced to Jail and Ordered to Pay Fine in Airport Smuggling CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant JINGBO CHEN, also known as Jingbo San Nicolas or “Kim,” age 43, of Navy Hill, Saipan, was sentenced in District Court to a thirty (30) day term of imprisonment, to be followed by one year of supervised release, for Entering a Secure Area at an Airport by False Pretenses. The Court also ordered CHEN to pay a $2,000 fine and a mandatory $100 assessment fee.
On August 5, 2016, CHEN was charged by Indictment with Removing Goods from Customs Custody, in violation of 18 U.S.C. § 549, and Entering a Secure Area at an Airport by False Pretenses, in violation of 18 U.S.C. §§ 1036(a)(4) and (b)(1). She entered a guilty plea to an Information charging her with one count of Entering a Secure Area at an Airport by False Pretenses on October 6, 2016. The investigation revealed that CHEN, then an Airport Service Agent for Pacific Oriental Inc. Aviation (POI), went to the Saipan International Airport in her uniform although it was her day off, and made a number of false statements to co-workers prior to entering a secure area of the airport. After entering the secure area, CHEN received a bag from an arriving passenger and took it with her through an access door before it could be inspected by CNMI Customs.
The investigation was conducted by Department of Homeland Security, Homeland Security Investigations, with the assistance of Task Force Officers from CNMI Customs and the CNMI Department of Public Safety. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
International Narcotics Transporter Extradited from ColombiaRead the Press Release
Later today, Gustavo Bermudez-Vanegas will be arraigned at the federal courthouse in Brooklyn, New York, on an international cocaine distribution conspiracy charge. The defendant was arrested in Colombia on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Colombia to the United States on May 25, 2017.
The extradition was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
According to court documents, between February 2016 and July 2016, Bermudez-Vanegas conspired to use airplanes and submarines to transport tonnage quantities of cocaine from Colombia, Ecuador, and Venezuela through Central American countries to Mexico, for the purpose of unlawfully importing the cocaine into the United States for further distribution. Bermudez-Vanegas provided his transportation services to Mexico-based drug cartels.
“The United States will continue to prosecute international narcotics traffickers wherever they may be operating,” stated Acting United States Attorney Rohde. “As alleged, the defendant conspired to transport narcotics across several borders and continents, from South America to the United States. Now he faces justice in the Eastern District of New York, with the help of our law enforcement partners in Colombia, who effectuated his capture and extradition to the United States.” Ms. Rohde thanked the Department of Justice’s Office of International Affairs (OIA) for its assistance with the extradition of the defendant.
“The United States has been besieged by drug traffickers bringing drugs into our country. In contrast, drug law enforcement has brought Bermudez-Vanegas, a significant trafficker who used submarines and planes into our country to face charges for such crimes,” stated DEA Special-in-Charge Hunt.
The defendant is scheduled to be arraigned later today before United States Magistrate Judge Robert M. Levy.
If convicted, Bermudez-Vanegas faces a mandatory minimum sentence of 10 years’ imprisonment. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Narcotics & Money Laundering Section. Assistant United States Attorneys Michael Robotti, Hiral Mehta, and Ameet Kabrawala are in charge of the prosecution.
The Defendant:
GUSTAVO BERMUDEZ-VANEGAS
Age: 57
Colombia
E.D.N.Y. Docket No. 16-CR-416 (FB)
Individual Sentenced to 62 Years in Prison for Rico Act ViolationsRead the Press Release
SAN JUAN, P.R. –Carlos E. López-Soto, a.k.a. “Chemito” was sentenced to 744 months (62 years), in prison and 5 years of supervised release for his participation in a gang that committed fourteen (14) armed robberies in Puerto Rico announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On December 19, 2016, a jury convicted Carlos López-Soto of a RICO conspiracy, two Hobbs Act robberies and related firearm offenses for his role in this gang. The evidence at trial revealed that the purpose of the criminal enterprise was to enrich its members and associates. To accomplish this, the members of the organization would: (1) commit armed robberies during which, through the use of force, violence, and intimidation, they would take money, electronics, and other property from persons and businesses, (2) pool resources in order to accomplish the robberies, (3) use guns to commit the robberies, (4) have a getaway driver for the robberies, (5) sell the items that were obtained from the robberies, and (6) share the proceeds of the robberies. The members of this organization were responsible for fourteen (14) armed robberies to persons, businesses, and street vendors. Through these robberies, defendants were able to obtain at least eighty-thousand dollars ($80,000.00) in profits. The other members of the organization were convicted after pleading guilty to the charges filed against them.
United States District Court Judge Daniel Domínguez presided over the case, which was prosecuted by Assistant United States Attorneys Victor O. Acevedo-Hernández and Kelly Zenón-Matos. The FBI was in charge of the investigation.
Honduran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Honduran national was charged yesterday in federal court in Boston with a federal immigration crime.
Ivan DeJesus Lopez-Lopez, 29, a Honduran national residing in Boston, was charged with illegally reentering the United States after being deported.
According to the indictment, Lopez-Lopez was deported in November 2009 for unlawfully entering the United States. In May 2017, federal agents in Boston discovered Lopez-Lopez and found him to be again illegally present in the United States.
The charge of illegal reentry after deportation provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. Lopez-Lopez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Woman Charged with Bank Fraud and Identity TheftRead the Press Release
Boston – A Holyoke woman was charged yesterday in federal court in Boston with bank fraud and identity theft.
Heather Bingle, 26, was indicted on two counts of bank fraud and two counts of identity theft. According to court documents, Bingle was a member of a Cape Cod-based group of conspirators committing retail fraud. Bingle and others allegedly used counterfeit motor vehicle licenses and other forms of identification issued in the names of third parties to open up retail credit cards; they then used the newly issued lines of credit to buy thousands of dollars’ worth of merchandise. Specifically, Bingle fraudulently assumed a woman’s identity in order to obtain a credit card in the woman’s name at a retail store in Holyoke. Bingle then used the card to purchase almost $4,000 worth of items. Bingle committed the same fraud at a store in Attleboro, where she allegedly purchased $1,487 worth of merchandise.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release, and a fine of $1million. The charge of identity theft provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Yarmouth Police Chief Fred Fredrickson made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
Hezbollah Associate Pleads Guilty to Money Laundering ChargeRead the Press Release
Earlier today, Joseph Asmar, a citizen of Lebanon, pled guilty at the federal courthouse in Brooklyn, New York, to a money laundering charge for laundering funds he believed to be drug money. Asmar was arrested in Paris, France, in October 2015, on a provisional arrest warrant issued from the Eastern District of New York, and was extradited to the United States on December 21, 2016. The guilty plea was entered before United States District Judge Eric N. Vitaliano.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York.
According to court filings, the investigation, a Drug Enforcement Administration (DEA) undercover operation, determined that between approximately September 2013 and October 2015, the defendant conspired to conduct monetary transactions to assist individuals, whom he believed to be drug traffickers, to conceal drug money. In a series of recorded conversations, Asmar discussed his money laundering network that spanned the globe and provided money laundering services in parts of the Middle East, Europe, Africa, South America, and cities across the United States. Asmar claimed to know how to make large amounts of money appear to be legitimately-derived and suggested that he could use his connections with Hezbollah[1] to provide security for narcotics shipments at transshipment points in Africa and the Middle East. During the course of the investigation, undercover agents provided approximately $400,000 in purported drug proceeds to Asmar and his coconspirators, who laundered the money back to the United States in exchange for a commission.
At sentencing, Asmar faces up to 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Narcotics & Money Laundering Section. Assistant United States Attorneys Gina M. Parlovecchio and Ameet B. Kabrawala are in charge of the prosecution.
The Defendant:
Joseph Asmar
Age: 43
Nationality: Lebanese
E.D.N.Y. Docket No. 15-CR-491 (ENV)
[1] Hezbollah has been designated as a foreign terrorist organization by the United States Department of State since 1997.
Hazleton Realtor Pleads Guilty to Money Laundering ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ignacio Beato, age 46, of Hazleton, Pennsylvania, pled guilty today before United States District Judge James M. Munley to conspiracy to engage in monetary transactions through a financial institution, with funds that were the proceeds of wire fraud. Beato is scheduled to be sentenced on August 31, 2017.
According to United States Attorney Bruce D. Brandler, Beato, who was a licensed realtor, falsely represented to potential purchasers that he was authorized to sell vacant conventional and Federal Housing Administration insured mortgaged properties in Hazleton, when in fact, he did not have such authority. Between December 2013 and March 2015, Beato accepted $751,082 from individuals who believed they were purchasing properties. Beato then fraudulently converted that money to his own personal use.
The case was investigated by the Internal Revenue Service, the Housing and Urban Development Office of the Inspector General, the Department of Homeland Security, the Pennsylvania State Police, and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
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.
The maximum penalty under federal law for this offense is 10 years of 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.
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Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with a federal immigration crime.
Jose Sanchez-Alarcon, 40, a Guatemalan national residing in Boston, was charged with illegally reentering the United States after being deported.
According to the indictment, in February 2011, Sanchez-Alarcon was deported for unlawfully entering the United States. In May 2017, federal agents in Boston discovered Sanchez-Alarcon and found him to be again illegally present in the United States.
The charge of illegal reentry after deportation provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. Sanchez-Alarcon will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged yesterday in federal court in Boston with a federal immigration crime.
Selvin Jarquin-Felipe, 31, was charged with illegally reentering the United States after being deported.
According to the indictment, Jarquin-Felipe was previously deported in September 2014 after unlawfully entering the United States. In May 2017, federal agents in Framingham discovered Jarquin-Felipe and determined him to be in the United States illegally.
The charge of illegal reentry after deportation provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. Jarquin-Felipe will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand Jury Returns Indictment Charging 24 Individuals with Conspiracy to Distribute Methamphetamine; Indictment Follows Joint Investigations Targeting Drugs, GangsRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a 13-count indictment Wednesday afternoon charging 24 individuals with conspiracy to distribute 500 grams or more of methamphetamine following joint Organized Crime Drug Enforcement Task Force operations conducted by the FBI’s Safe Streets Task Force and the DEA.
U.S. Attorney John W. Huber, DEA District Agent in Charge Brian S. Besser and FBI Special Agent in Charge Eric K. Barnhart announced the indictment Friday morning.
Assisting with the investigations were the Salt Lake City, West Valley City, Sandy, and West Jordan police departments and the Utah Department of Public Safety, who participate as members of the FBI’s Safe Street Task Force; the Unified Police Department and the Metro Gang Unit; the Murray Police Department, the U.S. Marshals, the ATF, and ICE Enforcement and Removal Operations.
The indictment also includes four counts of possession of methamphetamine with intent to distribute, four counts of distribution of methamphetamine, three counts of felon in possession of a firearm, and one count of possession of an unregistered firearm. Law enforcement officers seized 41 pounds of methamphetamine during the investigation and 17 firearms, including 13 firearms and assorted ammunition from one defendant who is prohibited under federal law from possessing a firearm after a felony conviction.Charged in the indictment are Raul Enrique Lizarraga Lopez (aka Maestro), Silvio McKenzie-Gainza, Cesar Gutierrez, Melissa Delgado, Ciro Santamaria-Zepeda, Makasini Lomu (aka Maka), Siosifina Ositamani (aka Fina Halai), Sompheth Thaodara (aka Diamond), Michael Shane Tisdale, David Tyson Madden, Man Tat Le (aka Asian Le), Gary Bronson Dean (aka Gary Dean Bronson), Timote Fangupo (aka Double Barrel), Mario Cerna (aka Havoc), Morgan Harris (aka Ace), Brandon Callaway, Cerina Gutierrez, Jon Martinez (aka Droopy), Greg Montoya, Jake Duran (aka Troublez), Jeremy Najera, Justin Dahlquist, Linda Sosa, and Steven Trujillo. (See the attached sheet for specific information on each defendant.)
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Two complaints were filed in the case prior to the return of this week’s indictment leading to the arrest of 18 of the defendants. Federal arrest warrants have been issued for Delgado, Santamaria-Zepeda, Fangupo, Cerna, Harris, and Najera, but they are not in federal custody at this time. Fangupo is in state custody on unrelated charges. Seventeen of those arrested remain in custody. Sosa has been released on supervised release conditions.
The first complaint, U.S. v McKenzie-Gainza, et al, involves an extensive strategic investigation by the FBI’s Safe Streets Task Force. Over the course of the investigation, agents acquired evidence establishing what the charges allege was a large-scale methamphetamine distribution organization in Salt Lake County. Through court-authorized investigative techniques, agents identified the distributors of multiple-pound quantities of methamphetamine. Agents learned that these distributors had a source of supply in California, and that they were expecting a large delivery of methamphetamine over the weekend of May 12-13, 2017.
The second complaint, U.S. v Calloway, et al, involves of a number of undercover narcotics purchases within a strategic investigation by the DEA and local law enforcement partner agencies. During this long-term investigation, agents purchased approximately 4 ¼ pounds of methamphetamine from several individuals in and around Salt Lake City. Through exhaustive analysis of evidence acquired with court authorization, agents determined the extent of the methamphetamine distribution conspiracy and identified numerous individuals as part of that conspiracy. Subsequently, agents also learned that these individuals were being supplied by the same California narcotics source as those involved in the FBI investigation.
At that point, these two separate efforts merged into one large-scale conspiracy investigation conducted by both the FBI and the DEA and their partners. During the weekend of May 12-15, 2017, agents and law enforcement officers executed a number of federal search warrants resulting in the seizure of 38 pounds of methamphetamine and 17 firearms.
Fourteen Federal Defendants Indicted for Drugs and Firearms OffensesRead the Press Release
FRESNO, Calif. — Following a multi-agency investigation in Merced County that focused on crimes of violence, drug sales, and illegal firearms possession, 14 federal defendants were indicted on Thursday for drug trafficking and firearms offenses, U.S. Attorney Phillip A. Talbert announced.
According to the criminal complaint, in December 2016, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and other federal, state and local law enforcement agencies began targeting gang members associated with Sureno criminal street gangs in Merced County. Information leading to the arrests was gathered using undercover buys of firearms and narcotics, surveillance and other investigative tools. On May 10, 2017, nearly 500 federal, state and local law enforcement personnel executed search warrants and arrested more than 50 criminal street gang members.
Most defendants face state charges. The following were arrested on federal charges and indicted by a federal grand jury on Thursday:
Robert James Guthrie, 22, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, distribution of cocaine, conspiracy to engage in the business of dealing firearms without a license, and possession of an unregistered firearm.
Andres Corona Prado, 28, of Hughson, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in the business of dealing firearms without a license, and being an illegal alien in possession of a firearm.
Joseph Quirarte, 21, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and conspiracy to engage in the business of dealing firearms without a license.
Francisco Salgado, 25, of Stevinson, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, attempted possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.
Marcos Hernandez, 33, of Winton, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in the business of dealing firearms without a license, and being a felon in possession of a firearm.
Raul Zamudio Hurtado Jr., 34, of Oakdale, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.
Orasio Fierro, 25, of Winton, is charged with distribution of cocaine, conspiracy to engage in the business of dealing firearms without a license, being a felon in possession of a firearm, and possession of an unregistered firearm.
Jose Rodriguez 34, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and distribution of cocaine.
Zeb Stevens, 37, of Atwater, is charged with being a felon in possession of a firearm.
Vincent Michael Williams, 28 of Atwater, is charged with being a felon in possession of a firearm.
Abraham Sigala, 20, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine.
Daniel Garcia, 21, Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.
Carlos Arauza-Parga, 26, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.
Joshua Lacey, 35, of Atwater, is charged with possession of an unregistered firearm.
This case was the product of an investigation by the FBI, ATF, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Merced Area Gang and Narcotic Enforcement Team (MAGNET), and the California Department of Justice/California Highway Patrol, Special Operations Unit (CA DOJ/CHP SOU). Assistant U.S. Attorneys Kimberly A. Sanchez and Ross Pearson are prosecuting the case.
If convicted, of the conspiracy to distribute methamphetamine, the maximum statutory penalty is 10 years in prison and a $10 million fine. The statutory penalty for distribution of methamphetamine is a minimum of 10 years in prison to a maximum of life in prison and a $10 million fine. The maximum penalty for distribution of cocaine is 20 years in prison and a $1 million fine. The maximum penalty for conspiracy to engage in the business of dealing firearms without a license is five years in prison and a $250,000 fine. The maximum penalty for possession of an unregistered firearm is 10 years in prison and a $250,000 fine. The maximum penalty for being a felon in possession of a firearm or being an illegal alien in possession of a firearm is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Thompson Man Charged with Kidnapping and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Kidnapping and Assault of a Dating Partner by Strangulation and Suffocation.
Chadwick Alex Harrison, age 21, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge William D. Gerdes on May 25, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 13, 2017, Harrison willfully and knowingly seized, confined, inveigled, decoyed, kidnapped, abducted and carried away his dating partner against her will. The Indictment also alleges that on February 12, 2017, and February 13, 2017, Harrison unlawfully assaulted the same victim by strangling and suffocating her, and attempted to do so.
The charges are merely accusations and Harrison is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Harrison was remanded to the custody of the U.S. Marshals Service pending trial which has been set for August 2, 2017.
Former University of Tampa Professor Sentenced to More Than 17 Years in Federal Prison for Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Nathan A. Madsen (37, Tampa) to 17 years and 6 months in federal prison, followed by a life term of supervised release, for enticing a child to produce child pornography and for possessing child pornography. The Court also ordered Madsen to forfeit his vehicle and multiple electronic storage devices that had been used in the commission of the offenses. Madsen pleaded guilty on February 3, 2017. Prior to his arrest, he had worked as a music professor at the University of Tampa.
According to court documents, Madsen responded to an online advertisement for prostitution services posted on Backpage.com. Madsen requested and negotiated the price to have sex with a 14-year-old-girl. Unbeknownst to him, the message had been posted by agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. In an attempt to verify the existence of the minor, Madsen asked for her picture, spoke to “her” on the phone, withdrew money from the ATM and drove to the designated meeting location. Madsen met with and paid an undercover special agent $140 to have sex with the minor.
After his arrest, agents executed a search warrant at Madsen’s apartment and seized multiple electronic devices. Forensic analyses of his cellphone and tablet revealed that from at least May 2015 and continuing through July 2015 Madsen engaged in a series of sexually explicit online conversations with a 16-year-old girl. During this time, he persuaded, induced, and enticed the child to produce and transmit explicit images and videos for his personal benefit. At the time of his arrest, Madsen had 61 explicit images and 14 videos of the child, some of which depicted violent, sadistic or masochistic conduct.
“Our HSI special agents, in partnership with the Tampa Police Department, have prevented this predator from harming more children,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. “This investigation demonstrates that child exploitation continues to be a threat that can’t be ignored. Today’s sentencing sends a message that HSI is committed to the investigation and prosecution to the fullest extent of the law of individuals who engage in any heinous crime against our children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Stacie B. Harris and Lisa M. Thelwell.
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.
Former Mexican State of Tabasco Secretary of Finance Indicted in Money Laundering Scheme with Wife and Business AssociateRead the Press Release
CORPUS CHRISTI, Texas – An indictment charging the former Tabasco, Mexico, Secretary of Finance has been unsealed following the arrest of his wife in the Houston area, announced Acting U.S. Attorney Abe Martinez. Jose Manuel Saiz-Pineda, 49, served as the Secretary of Finance of the Mexican State of Tabasco from 2007 to 2012 under former Governor Andres Granier Melo.
A federal grand jury in Corpus Christi returned a sealed indictment against him on April 26, 2017. Authorities arrested his wife - Silvia Beatriz Perez-Ceballos, 49, at her residence in Sugar Land on Wednesday, May 24, after which the indictment was unsealed. Also charged is Saiz-Pineda’s business associate in Mexico and the United States, Martin Alberto Medina-Sonda, 44. All are charged with conspiring to launder monetary instruments and conspiracy to commit bank fraud.
Perez-Ceballos made her initial appearance yesterday in federal court in Houston before U.S. Magistrate Judge Dena Palermo who temporarily ordered her into custody pending a detention hearing set for May 30, 2017, at 2:00 p.m.
Saiz-Pineda is currently in custody in Tabasco on related charges of illegal enrichment. Medina-Sonda is also in custody in Mexico.
The indictment includes a notice of criminal forfeiture regarding seven real properties located in New York City, New York; Los Angeles, California; Miami, Florida; and Houston which have an estimated combined value of more than $50 million. The notice of forfeiture also lists six separate bank accounts, including one held in an offshore account in Bermuda.
The United States intends to seek a personal money judgment from the defendants in the amount of $50 million, according to the indictment.
Conspiracy to commit bank fraud carries a maximum penalty of 30 years in federal prison and up to a $1 million possible fine. If convicted of the money laundering conspiracy, each also faces up to 20 years in federal prison and a possible $500,000 maximum fine, twice the value of the monetary instrument or funds involved in the transactions or both.
The charges are the result of an Organized Crime Drug Enforcement Task Force investigation in Houston and Corpus Christi. The Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, sheriff’s offices in Fort Bend and Harris Counties and U.S. Marshals Service all conducted the investigation. Officials with the State of Tabasco traveled to Houston to confer with the investigative team.
Assistant U.S. Attorney Assistant Julie Hampton is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Johns Hopkins Employee Pleads Guilty to Immigration Fraud in Connection with False Statements to Conceal Membership in Military Unit Responsible for War CrimesRead the Press Release
Morales is currently under indictment in Guatemala for alleged serious human rights offenses, including those committed at Dos Erres massacre
Baltimore, Maryland – Jose Ortiz Morales, age 55, of Hyattsville, Maryland, pleaded guilty on May 25, 2017, to attempted unlawful procurement of naturalization charges.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, in 1980, Morales joined the Guatemalan Army and became a member of a Special Forces military unit, known as the Kaibiles. The Kaibiles were involved in serious human rights offenses during the time period in which Morales was a member. The military unit of approximately 20 Special Forces soldiers is alleged to have participated in the massacre of over 200 unarmed villagers in the small hamlet of Dos Erres, Guatemala. The massacre occurred on December 6, 1982, when the soldiers indiscriminately killed innocent men, women and over 100 children. Many of the women were raped by the soldiers before they were forced to walk at gun point to a well in the center of the village, where they were bludgeoned in the head with a hammer, and their bodies thrown into the well. Those villagers who did not die of the blow to their head were killed when a soldier fired a weapon and threw a grenade into the well. Morales is under indictment in Guatemala for his alleged participation in these war crimes.
In August 1988, the defendant entered the United States by crossing the international border from Mexico into Texas illegally. He travelled to the Maryland, Virginia, and District of Columbia area, where he resided and legally worked for many years, including at Johns Hopkins University in Baltimore, Maryland. He applied for and was granted Lawful Permanent Resident (LPR) in 1990.
On July 13, 2006, Morales sought U.S. citizenship by submitting the N-400 naturalization application to the U.S. Citizenship and Naturalization Services (CIS). On the N-400 and during a CIS official interview, Morales falsely claimed under oath that he was not a part of any group reportable to CIS, when, in fact, he was a member of the Kaibiles and sought to conceal his involvement with that military unit. This false representation was material to the immigration authorities who were deciding Morales’ application for United States citizenship.
Morales faces a maximum sentence of 10 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for September 8, 2017 at 2:15 p.m.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser, who is prosecuting the case, and trial attorney Christine Duey, of the Department of Justice’s Human Rights and Special Prosecutions Section.
Florida Woman Sentenced to Federal Prison for Causing the Death of One Victim and Hospitalization of Others by Injecting them with Liquid SiliconeRead the Press Release
ATLANTA - Deanna Roberts has been sentenced to eleven years and three months in federal prison for illegally injecting persons with liquid silicone and for introducing liquid silicone that was obtained by fraud into interstate commerce. One woman died approximately 36 hours after Roberts performed the injection, after the silicone migrated to her lungs, heart, brain, and other organs. Other victims who received silicone injections by Roberts were hospitalized with respiratory problems when the silicone moved to their lungs. Even after Roberts became aware that the victim died and others had been hospitalized, Roberts continued to obtain silicone illegally so that she could administer silicone to others.
“The defendant was aware that silicone injections she was administering were causing serious harm, even requiring hospitalization, yet she continued to inject paying customers with it knowing the risks that were involved,” said U. S. Attorney John Horn. “Even after Roberts knew that the victim in this case died from the injections she gave her, she did not stop. This case is a shocking reminder that citizens should seek care only from experienced and licensed health care professionals.”
“The FDA has not approved any liquid silicone products to be injected into the body for tissue augmentation, and serious harm, including death, can occur following such injections,” said Justin D. Green, Special Agent in Charge, FDA’s Office of Criminal Investigations’ Miami Field Office. “We will continue to aggressively pursue and bring to justice those who endanger the U.S. public health by offering this hazardous procedure.”
According to U.S. Attorney Horn, the charges and other information presented in court: Liquid silicone is strictly regulated by the Food and Drug Administration and may be legally injected directly into the human body only as a treatment for certain eye conditions. In April 2004, Roberts began ordering liquid silicone from a business in Arizona. In order to purchase liquid silicone from the business, Roberts submitted an affidavit to the company in which she falsely swore that she did not intend to inject the silicone into humans. Rather, she claimed that she intended to supply the silicone to a customer for use in lubricating medical equipment. Between April 2004 and December 2015, Roberts purchased at least 178 gallons of liquid silicone.
Roberts injected the silicone she illegally obtained into the hips, buttocks, and other body parts of her victims. Roberts falsely claimed to them that she was a licensed medical practitioner and that the silicone she used was medical grade. Roberts charged between $300 and $1000 for each silicone treatment that she administered.
During the evening of November 16, 2015, Roberts injected liquid silicone into the buttocks of L.H. The next day L.H. complained of tightness in her chest and shortness of breath, symptoms that are consistent with the presence of liquid silicone in the lungs. During the early morning hours of November 18, 2015, L.H. died. Dr. Geoffrey Smith, Associate Medical Examiner for DeKalb County, performed an autopsy on L.H. Based upon the autopsy Dr. Smith determined that L.H. died from complications due to silicone polymer embolization. Dr. Smith found that L.H.’s lungs were heavily congested with liquid silicone.In addition, Dr. Smith found liquid silicone in L.H.’s liver, kidney, heart, brain, and spleen. Dr. Smith noted that each of L.H.’s buttocks had 10 injection sites. From a microscopic examination of tissue surrounding one of the injection sites, Dr. Smith determined that a blood vessel had been punctured. The evidence, therefore, established that the defendant punctured the blood vessel with one of the silicone injections and that the silicone was carried by the blood stream to L.H.’s lungs and other organs causing her death.
Also on November 16, 2015, the defendant illegally injected liquid silicone into the buttocks of victim J.T. In November 2014, the defendant injected liquid silicone into the buttocks of victim V.M. and in October 2014, the defendant injected liquid silicone into the face of victim S.P. However, J.T., V.M., and S.P. did not die nor were they hospitalized from their injections.
In 2006, Roberts administered silicone injections to victim J.H.’s lips on three occasions. Also in 2006, Roberts hired J.H. to drive her to Florida where she would administer silicone injections. J.H. worked for Roberts as a driver for about four months. J.H. testified that Roberts was aware that at least one person was hospitalized after Roberts injected her with silicone. J.H. also testified that Roberts claimed that the victim was hospitalized, not because she suffered complications from the silicone injections, but because she was HIV positive. However, J.H. was aware that the victim was not HIV positive.
In 2006, Roberts injected victim S.W. with liquid silicone. Shortly thereafter, S.W. began to feel tightness in her chest and discomfort in her lungs. The next day she passed out at work. S.W. was taken to the hospital and spent the next 31 days there recovering from problems with her lungs. When she was released, S.W. had to use oxygen to assist her in breathing.
In October 2009, Roberts administered silicone injections into victim A.S.’s buttocks at A.S.’s house in Florida. A.S. immediately felt her heart rate accelerate, so she asked Roberts to stop. Roberts then took A.S. to the emergency room. A.S. was admitted to the hospital with respiratory problems and the next day she was placed on a ventilator. A.S. stayed in the hospital 2-3 weeks. While A.S. was in the hospital, Roberts called her to check on her condition. At the same time, Roberts inquired about when she could come by to pick up the payment that A.S. owed her for the silicone injections. While A.S. was still hospitalized, Roberts came to the hospital to pick up a check to pay for the injections. During the visit, A.S. overheard a nurse tell Roberts that A.S. was being treated for silicone poisoning. Since 2013, A.S. has had problems because the silicone that Roberts injected into her buttocks has been coming out of her body. Because of this, A.S. spent another eight weeks in the hospital and has had surgery in an attempt to remove the silicone. As a result, her buttocks are now deformed.
Roberts administered silicone injections to victim D.R., on multiple occasions between 2005 and 2010. In June 2010, Roberts administered silicone injections to D.R.’s breasts and face at the defendant’s house in Florida. Later that day D.R. began to feel nauseous. The following day she went to the emergency room and was admitted to the hospital for treatment for acute respiratory failure. She had to be resuscitated and was placed on a respirator. After spending a month in the hospital, D.R. was released to a rehabilitation facility where she spent several weeks before she could return to her home.
D.R.’s friend, K.M. was present the day the defendant administered the silicone injections that hospitalized her. After D.R. was hospitalized, K.M. informed the defendant that D.R. was in the hospital.
Deanna Roberts, 47, of Sanford, Florida, was sentenced to eleven years and three months in prison to be followed by three years of supervised release. Roberts was convicted on these charges on March 31, 2017, after she pleaded guilty.
This case was investigated by the Food and Drug Administration, Office of Criminal Investigations, the Doraville Police Department, and the Atlanta Police Department.
Assistant U.S. Attorneys William L. McKinnon, Jr. and Erin E. Sanders prosecuted the case.
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.
Financial advisor faces federal fraud chargesRead the Press Release
California man allegedly defrauded former Indianapolis Colts player out of over $4.5 million
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced the indictment of Kenneth Ray Cleveland, 63, of Agoura Hills, California, in connection with an alleged investment fraud scheme. The indictment charges Cleveland with seven counts of wire fraud and three counts of money laundering and alleges that Cleveland, acting as a financial advisor, stole over $4.5 million from his client, a former NFL player who played several years for the Indianapolis Colts.
“People place great trust in those who help manage and invest their hard-earned money,” said Minkler. “Exploiting that trust for personal gain through lies and deception is a crime that this office takes very seriously.”
The indictment alleges that Cleveland worked as the victim’s financial advisor for years, starting just after the victim entered the NFL after college. Cleveland allegedly promised to invest his money in conservative investments that would yield a significant amount of “interest” every month without ever depleting the principal. Over nearly 10 years, the victim provided millions of dollars to Cleveland to invest on his behalf.
Instead of investing the money, however, Cleveland allegedly spent it. According to the indictment, he used over $2 million as part of a Ponzi scheme to pay fictitious investment returns to his other clients. He also spent over $2 million more on personal expenses, such as his home mortgage, credit card bills, and payments to family members.
Throughout the alleged scheme, Cleveland repeatedly reassured the victim, both in writing and in person, that his investments were safe and performing well. The indictment alleges that Cleveland routinely provided the victim with false information regarding his purported “investments,” including fictitious financial statements. Cleveland also allegedly paid the victim “interest” using the victim’s own money in an effort to continue to gain the victim’s trust and his money. Cleveland’s alleged scheme ended, however, when the victim began to ask for his money back and Cleveland, having spent the money, could not come up with it.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that the charges carry maximum sentences of between 10 and 20 years in prison and a maximum fine of $250,000.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Federal Jury Convicts Intoxicated PilotRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced that Sean Michael Fitzgerald, 35, of Boca Raton, Florida, was convicted today by a federal jury of operating a common carrier under the influence of alcohol. Chief United States District Judge Robert J. Jonker presided over the four-day trial. Fitzgerald faces a statutory maximum term of imprisonment of fifteen years at the time of sentencing.
The proofs at trial established that on August 25, 2016, Fitzgerald arrived at the Cherry Capital Airport in Traverse City, Michigan, to co-pilot a private charter to Bedford, Massachusetts. On the way to the airport and once there, witnesses observed obvious signs of intoxication, including slurred speech, the smell of alcohol on his breath, and bloodshot eyes. Fitzgerald proceeded to the plane and began the pre-flight preparation process before he was arrested. Among other tasks, he inspected the plane, completed systems checks, turned on the auxiliary power unit, and received clearance for the flight’s route from air traffic control. After the arrest, his blood alcohol content was measured at 0.343%.
“Aircraft are complex machines and intoxicated operation poses a danger to passengers, the ground crew at the airport, and the public even before they begin to taxi,” Acting U.S. Attorney Birge said. “I commend airport personnel and law enforcement for their swift action to prevent this defendant from flying the plane, but that does not lessen the gravity of his crime.”
Federal Bureau of Investigation (FBI) Special Agent in Charge David P. Gelios commented that: “Today's verdict demonstrates how alert members of our community, coupled with strong and dedicated law enforcement action, continues to keep people safe. This diligence prevented what could have been a tragic example of the dangers of alcohol use and operating any kind of vehicle or aircraft.”
The FBI and the Traverse City Police Department investigated the case. Assistant U.S. Attorneys Clay M. West and Justin M. Presant prosecuted it.
END
Federal Grand Jury Indicts Union Secretary-Treasurer for Scheming to Fraudulently Obtain Social Security BenefitsRead the Press Release
CHICAGO — The Secretary-Treasurer of a local labor union put his wife on the union’s payroll while lowering his own salary in a scheme to fraudulently qualify for early retirement benefits from the Social Security Administration, according to a federal indictment returned in Chicago.
JOHN A. MATASSA JR. served as the Secretary-Treasurer of the Independent Union of Amalgamated Workers Local 711, a labor organization with members in Illinois, Wisconsin and Indiana. In February 2013, Matassa placed his spouse on the Local 711 payroll, even though she had no intended role or job function, while lowering his own salary, the indictment states. In his capacity as Secretary-Treasurer, Matassa personally signed his spouse’s paychecks, and caused them to be deposited into a bank account jointly controlled by the couple, according to the indictment. Two months later, Matassa applied for early retirement benefits from the Social Security Administration’s Old-Age Insurance program, listing his reduced salary amount in the application, according to the indictment. The Social Security Administration approved the application, and Matassa began receiving Social Security benefits, the indictment states.
The indictment was returned Thursday in U.S. District Court in Chicago. It charges Matassa, 65, of Arlington Heights, with two counts of wire fraud, two counts of theft of government funds, four counts of embezzlement from a labor organization, and two counts of making false entries in union records required to be in accordance with federal labor laws. Arraignment is set for June 1, 2017, before U.S. District Judge Matthew F. Kennelly.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Labor’s Office of Inspector General - Office of Investigations; Michael J. Purcell, District Director of the Chicago District Office of the U.S. Department of Labor - Office of Labor Management Standards; and Tracy Thanos, Special Agent-in-Charge of the Chicago Social Security Administration’s Office of Inspector General.
According to the charges, Matassa falsified the minutes of a Local 711 meeting to reflect that the union’s Executive Board had authorized the hiring of Matassa’s spouse. After the Social Security Administration approved his application for Old-Age Insurance benefits, Matassa caused the agency to wire payments to a bank account jointly controlled by Matassa and his spouse, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by a maximum penalty of 20 years’ imprisonment. Theft of government funds is punishable by up to ten years’ imprisonment. Embezzlement from a labor organization is punishable by up to five years’ imprisonment. Making false entries in records submitted to the U.S. Department of Labor is punishable by up to one year’s imprisonment. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Terry Kinney.
Faith Man Sentenced to 121 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Faith, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 15, 2017, by U.S. District Judge Roberto A. Lange.
Roy Antrim, age 40, was sentenced to 121 months in custody, followed by 5 years of supervised release, a fine of $7,500, forfeiture of $9,301 in U.S. currency and fourteen firearms, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Antrim was indicted by a federal grand jury on June 14, 2016. He pled guilty on February 21, 2017.
Beginning in September of 2015, and continuing through June of 2016, Antrim knowingly and intentionally conspired with others to distribute between 1.5 and 5 kilograms of methamphetamine, a Schedule II Controlled Substance, in South Dakota.
Antrim admitted to receiving distributable quantities of methamphetamine and distributing it to others within South Dakota. Antrim also admitted to possessing fourteen firearms, and having firearms in his possession while distributing methamphetamine. Antrim further admitted to being involved in the distribution of methamphetamine with Kristina Lofton of Eagle Butte, South Dakota, who was convicted of conspiracy to distribute methamphetamine and sentenced in January of 2017.
This case was investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Antrim was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Julian Navarro, age 30, was indicted on May 23, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 24, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 18, 2017, Navarro assaulted his intimate partner with a dangerous weapon, a bar, causing her substantial bodily injury.
The charges are merely accusations and Navarro is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Navarro was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Acquitted of AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man was acquitted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury, as a result of a federal jury trial in Pierre, South Dakota, on May 24, 2017.
Andrew Frost, age 20, was indicted by a federal grand jury on October 12, 2016, and April 12, 2017.
The charges relate to an incident which occurred on June 25, 2016, when Frost allegedly assaulted two male victims, one of which sustained serious bodily injury and the other was assaulted with a dangerous weapon.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the U.S. Attorney's Office prosecuted the case.