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12 July 2017
Zuni Pueblo Man Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Justin Owen Poblano, 24, an enrolled member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated child sexual abuse charge under a plea agreement that recommends a maximum sentence of 15 years of imprisonment. Poblano will be required to register as a sex offender after completing his prison sentence. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Poblano was arrested in Aug. 2012, on an indictment charging him with engaging in a sexual act with a child between 12 and 16 years of age on June 10, 2012, on the Zuni Pueblo in McKinley County, N.M. According to court documents, proceedings in the case were delayed during the pendency of competency proceedings. Poblano remained in federal custody from the time of his arrest until the court found him competent in Oct. 2014.
During today’s proceedings, Poblano pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Poblano admitted that on June 10, 2012, while at a residence on the Zuni Pueblo, he forced the victim to engage in a sexual act. Poblano remains in custody pending a sentencing hearing, which is scheduled for July 25, 2017, in Santa Fe, N.M.
This case was investigated by the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
The case also is being prosecuted under Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
York Man Indicted for Armed Bank Robbery and Armed Robbery of A Convenience StoreRead the Press Release
HARRISBURG– The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Austin Carr, age 23, of York, Pennsylvania, was indicted by a federal grand jury with armed bank robbery, the armed robbery of a convenience store, and two counts of possession of a firearm in furtherance of a crime of violence.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Carr robbed the Turkey Hill on West Market Street in York on June 14, 2017, using a silver and black .380 caliber, Smith and Wesson handgun. Carr allegedly used the same firearm to rob the M&T Bank on West Market Street in York on June 17, 2017.
The matter was investigated by the FBI Capital City Violent Crimes Task Force, the York City Police Department, the West York Borough Police Department, and the West Manchester Township Police Department. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 is life 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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Would-Be Bomber Sentenced to 120 Months ImprisonmentRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces Clinton Scott Bass, age 34, of Hahira, Georgia, was sentenced today by Senior United States District Court Judge Hugh Lawson in Valdosta. Mr. Bass was sentenced to 120 months imprisonment, the maximum sentence under the statute and guidelines, for attempting to receive and transport explosive materials with intent to kill, injure or intimidate.
In March 2017, Mr. Bass solicited and paid for what he believed to be a mail bomb through the Internet. Mr. Bass subsequently attempted to arm the bomb before delivering it to the doorstep of his intended target. Through the efforts of the Federal Bureau of Investigation and other law enforcement agencies, Mr. Bass’s attempt was thwarted and no one was injured.
“The FBI committed substantial resources to spearheading this investigation. But for the dedication, hard work and ingenuity of the FBI agents, and the other federal and local law enforcement officers working with them, this case could well have ended with tragic consequences,” said United States Attorney Peterman. “Instead, justice has been done.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation and its resulting arrest, guilty plea, and sentencing, while expending exhaustive law enforcement resources, prevented an imminent homicide and removed a dangerous individual from our streets. The FBI would like to thank its many law enforcement partners that were so vital to this effort for their commitment and dedication in seeing this matter through.”
The case was investigated by the Federal Bureau of Investigation, United States Postal Service, Valdosta Police Department, Lowndes County Sheriff’s Department, and the Hahira Police Department. Assistant United States Attorneys Julia C. Bowen and Peter D. Leary prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
West Haven Woman Admits Robbing 3 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COURTNEY WORTHINGTON, 29, of West Haven, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of bank robbery and admitted that she robbed a total of three Connecticut banks in December and January.
According to court documents and statements made in court, WORTHINGTON robbed the TD Bank at 636 Campbell Avenue in West Haven on December 19, 2016; the Peoples Bank at 198 Amity Street in Woodbridge on January 2, 2017, and the TD Bank at 184 Route 81 on January 5, 2017. During each robbery, WORTHINGTON handed the teller a note containing threats and demanding money.
WORTHINGTON was arrested on January 5 at a hotel in East Haven. She has been detained since her arrest.
Judge Meyer scheduled sentencing for October 11, 2017, at which time WORTHINGTON faces a maximum term of imprisonment of 20 years.
This investigation has been conducted by the FBI, the Connecticut State Police and the West Haven and Woodbridge Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Heroin Charge Stemming from Overdose Death in WinstedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PETER HASKELL, 32, of Waterbury, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 17, 2016, Winchester Police officers and emergency medical personnel responded to a Winsted residence on the report of an unresponsive woman. The woman, who was 27, was pronounced deceased at the scene. Within the residence, officers located and seized several opened and unopened wax folds (“bags”) of suspected heroin/fentanyl, and other narcotics paraphernalia. Investigators also seized the victim’s cell phone.
The investigation revealed that the day before she was found dead, the victim traveled to Waterbury to purchase heroin from HASKELL.
The Connecticut Chief Medical Examiner’s Office determined that the victim’s death was caused by acute intoxication due to the combined effects of fentanyl, heroin, hydrocodone and alcohol.
HASKELL was arrested on a federal criminal complaint on April 21, 2017, and has been detained since his arrest. When he is sentenced, he faces a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Winchester Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Natasha Freismuth.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting Assistant Attorney General Wood, Acting U.S. Attorney Weinreb, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
BOSTON – A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Wood, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
USNCB Attends the First Extraordinary Meeting of Heads of National Central Bureaus in the AmericasRead the Press Release
Welcome reception at the Heads of National Central Bureaus of the Americas in Bogota, Columbia.From July 11th through July 12th, 2017 Acting Director Wayne Salzgaber and Deputy Chief of Staff Joe Ferrigno attended the First Extraordinary Meeting of Heads of National Central Bureaus in the Americas that took place in Bogota, Colombia. The U.S. National Central Bureau, INTERPOL Washington, sponsored the meeting. The Colombian National Police Criminal Investigation Directorate and INTERPOL at the "General Francisco de Paula Santander" School of Police Training Academy of the National Police of Colombia served as the hosts for this first ever meeting.
Two Sentenced in Marijuana Drug ConspiracyRead 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 Shahana Beaver, 25, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute marijuana, was sentenced to time served and three years’ supervised release by U.S. District Judge Elizabeth A. Wolford. In addition, co-defendant Janice Humphrey, 28, also of Buffalo, N.Y., who was convicted of maintaining a drug-involved premises, was sentenced to two years’ probation.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between April 2015, and September 2015, the defendants conspired with Damarcus Hennings, Shaquata Hennings, Arthur Clark, and Dashawn Abrams, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Damarcus Hennings and Shaquata Hennings have been convicted and are awaiting sentencing. Charges are pending against Dashawn Abrams and Arthur Clark. 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.
Today’s sentencings are 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.Two Men Indicted in Medicare Fraud Scheme in Rio Grande ValleyRead the Press Release
McALLEN, Texas ‐ A former laboratory technician at a medical clinic in Mission and an account representative for a toxicology testing company have been indicted in connection with a scheme to defraud Medicare, announced Acting U.S. Attorney Abe Martinez.
Ivar Cantu, 46, of Palmview, was arrested today and is set to make his initial appearance before U.S. Magistrate Judge Peter Ormsby at 10:30am. Co-defendant Omar Solis, 35, of Mission, was taken into custody yesterday.
The 18-count indictment charges Cantu and Solis with conspiracy to commit health care fraud, health care fraud and aggravated identity theft.
According to the indictment, Cantu and Solis fraudulently set up an account between the medical clinic where Solis was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Solis allegedly misappropriated urine specimens of patients of the medical clinic and sent them to the toxicology testing company without the consent of the patient or doctor in order to receive commissions and collection fees from the testing company. Cantu and Solis forged patient signatures, falsified medical records and created fictitious documents in carrying out the scheme, according to the indictment.
As a result of the conspiracy, Medicare was billed $836,788 between May 2015 and December 2015.
The charge for conspiracy to commit health care fraud and each of the eight counts of health care fraud carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine, upon conviction. Each of the nine counts of aggravated identity theft carries a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two California Men Sentenced to Prison for Their Roles in Fake Law Firms that Promised to Help Struggling HomeownersRead the Press Release
Two Orange County, California men were sentenced yesterday in U.S. District Court in Santa Ana, California to serve 41 and 47 months in prison, respectively, for their roles in a multi-million dollar fraudulent mortgage modification scheme posing as a successful law firm, the Justice Department announced.
Ronald Rodis, 52, of Long Beach, California, and Charles Wayne Farris, 56, of Aliso Viejo, California, each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. In addition to the terms of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered Farris to pay $3,534,927.43 in restitution and ordered Rodis to pay $3,826,947.95 in restitution.
Both defendants previously admitted that, between October 2008 and June 2009, they participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group. These defendants and their co-conspirators made numerous misrepresentations regarding RLG’s ability to negotiate loan modifications from the homeowners’ mortgage lenders. They hid the involvement of Bryan D’Antonio, the true owner of the scheme. D’Antonio was a convicted felon and subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
“These defendants played key roles in a scheme that victimized homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The defendants promised homeowners assistance saving their homes and modifying their mortgages, yet took their money knowing the promised benefits would never be realized.”
“These two defendants used their legal knowledge and expertise to coerce and victimize vulnerable homeowners,” said Acting U.S. Attorney Sandra R. Brown of the Central District of California. “Rather than help these individuals as promised, their fraudulent scheme cost the victims millions of dollars.”
Rodis was a licensed California attorney who allowed his name to be used to lend legitimacy to the scheme. He recorded radio advertisements encouraging struggling homeowners to call RLG. In the ads, Rodis falsely claimed that RLG consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG was a telemarketing operation that never had a team of experienced attorneys and rarely achieved any of the promised results for homeowners. During much of the scheme, Rodis was the only attorney at RLG. After his involvement with the RLG scheme, Rodis surrendered his law license.
supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he helped create, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and America’s Law Group – a successor to RLG – had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
On April 10, Bryan D’Antonio, the leader of the scheme, was sentenced to 97 months in prison followed by 12 months in a halfway house and was ordered to pay $3,826,977.95 in restitution.
This case was investigated by the FBI Los Angeles Field Office and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two California Men Sentenced to Prison for Their Roles in Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
LOS ANGELES – Two Orange County, California men were sentenced yesterday in U.S. District Court in Santa Ana, California to serve 41 and 47 months in prison, respectively, for their roles in a multi-million dollar fraudulent mortgage modification scheme posing as a successful law firm, the Justice Department announced.
Ronald Rodis, 52, of Long Beach, California, and Charles Wayne Farris, 56, of Aliso Viejo, California, each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. In addition to the terms of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered Farris to pay $3,534,927.43 in restitution and ordered Rodis to pay $3,826,947.95 in restitution.
Both defendants previously admitted that, between October 2008 and June 2009, they participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group. These defendants and their co-conspirators made numerous misrepresentations regarding RLG’s ability to negotiate loan modifications from the homeowners’ mortgage lenders. They hid the involvement of Bryan D’Antonio, the true owner of the scheme. D’Antonio was a convicted felon and subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
“These defendants played key roles in a scheme that victimized homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The defendants promised homeowners assistance saving their homes and modifying their mortgages, yet took their money knowing the promised benefits would never be realized.”
“These two defendants used their legal knowledge and expertise to coerce and victimize vulnerable homeowners,” said Acting U.S. Attorney Sandra R. Brown of the Central District of California. “Rather than help these individuals as promised, their fraudulent scheme cost the victims millions of dollars.”
Rodis was a licensed California attorney who allowed his name to be used to lend legitimacy to the scheme. He recorded radio advertisements encouraging struggling homeowners to call RLG. In the ads, Rodis falsely claimed that RLG consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG was a telemarketing operation that never had a team of experienced attorneys and rarely achieved any of the promised results for homeowners. During much of the scheme, Rodis was the only attorney at RLG. After his involvement with the RLG scheme, Rodis surrendered his law license.
Farris supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he helped create, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and America’s Law Group – a successor to RLG – had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
On April 10, Bryan D’Antonio, the leader of the scheme, was sentenced to 97 months in prison followed by 12 months in a halfway house and was ordered to pay $3,826,977.95 in restitution.
This case was investigated by the FBI Los Angeles Field Office and prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
Three Louisiana Residents Indicted for Insider Trading in Connection with Shaw Group AcquisitionRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that three more individuals have been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Middle District of Louisiana has indicted KELLY LIU, age 31, SALVADOR RUSSO, III, age 34, both of Baton Rouge, Louisiana, and VICTORY HO, age 38, of Morgan City, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, each face significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from on or before July 18, 2012, and continuing to at least July 30, 2012, LIU and her boyfriend RUSSO, along with associate HO, engaged in a scheme to profit from inside information about the upcoming merger between The Shaw Group (“Shaw”) and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, which was returned by the grand jury earlier today, in mid-2012, Shaw was considering a potential merger opportunity. At the time, LIU was a Shaw employee working in the Financial Planning and Analysis Department. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The Indictment alleges that, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was being acquired by another company and passed the inside information to HO, through another individual, and to RUSSO, for their use in trading Shaw securities. Thereafter, HO and RUSSO allegedly purchased Shaw securities before the public announcement. HO sold his Shaw securities after the public announcement had caused Shaw’s stock price to rise, while RUSSO held his Shaw securities, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that HO made over $294,000, and RUSSO over $2,500 in unrealized profits, from their illegal insider trading activities.
Prior to the Indictment announced today, three other individuals have been charged in the Middle and Western Districts of Louisiana with securities fraud offenses related to the Shaw merger. One defendant has pled guilty, and the remaining two are scheduled for trial.
Acting U.S. Attorney Amundson stated: “Insider trading undermines investor confidence in the fairness and integrity of the securities markets, and cheats those honest investors who play by the rules. My office will continue to work aggressively with our excellent partners with the FBI, IRS-Criminal Investigations, the U.S. Secret Service, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and others to pursue such important matters whenever merited.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel, Patricia Jones, and Adam Ptashkin.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
St. Albans man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Jeremiah Joe Johnson, 40, entered his guilty plea to possession with intent to distribute 50 grams or more of methamphetamine.
Johnson admitted that on April 30, 2017, he traveled to Charleston from Atlanta with approximately 1.3 kilograms of methamphetamine. Agents with the Metropolitan Drug Enforcement Network Team were monitoring Johnson’s travels using a GPS tracker and surveillance. Johnson also admitted that he stopped at the Bigley Avenue Go-Mart in Charleston, where an officer saw a passenger with Johnson attempt to hide a meth pipe from view. A drug dog on the scene gave a positive indication of the presence of narcotics, and a subsequent search of the vehicle uncovered the methamphetamine in a bag in the back seat. Johnson additionally admitted that he had obtained the drugs from a source in Georgia, and that he intended to distribute the drugs. Johnson further admitted to several other encounters with law enforcement while he was in possession of dealer amounts of methamphetamine.
Johnson faces at least five and up to 40 years in federal prison when he is sentenced on October 5, 2017.
The Metropolitan Drug Enforcement Network Team, the West Virginia State Police, and the Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Sherwood Man Arrested on Child Pornography Charges Stemming from Online Participation in Sexual Exploitation of ChildrenRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr., announced today the arrest of William Thomas Murry, III, 60, of Sherwood, on multiple charges of possession and receipt of child pornography.
A federal grand jury indicted Murry on July 6, 2017, on one count of possession of child pornography and four counts of receipt of child pornography. In late 2015 and early 2016, HSI agents learned that an individual was participating in an online chatroom that was involved in the sharing of live child rapes and recorded child pornographic videos and pictures through webcam streaming. While this individual’s face was never visible, his bare torso and genitals were visible, as well as the background of what appeared to be an office with several distinguishing features.
Agents were able to determine that the IP address being utilized by the individual in the chatroom returned to the Kawasaki Sports Center at 5922 South University Ave., Little Rock. At the time, Murry owned the Kawasaki Sports Center.
On November 22, 2016, HSI/LR, Little Rock Police Department, and Arkansas Attorney General’s Office, Special Investigations Division (AG/SID), executed a federal search warrant at the Kawasaki Sports Center.
Agents observed Murry’s office and determined it was the location where the individual was engaged in viewing child pornography in the online chatrooms. Murry also physically resembled the individual in the chatroom. After waiving his Miranda rights, agents interviewed Murry, who admitted to using the online network, but denied looking at child pornography.A forensic exam was conducted on Murry’s work computer and his home laptop.
Murry’s work computer contained 65 still images and two video files containing child pornography. The computer also contained evidence of the online network. Murry’s home laptop contained 33 still images and four video files of child pornography. It also contained evidence of the online network.
Agents interviewed all the other employees of Kawasaki and eliminated them as the individual in the online chatroom.
“Too often people like Murry think they can hide behind a computer and receive gratification from watching children being sexually exploited,” said Harris. “This indictment sends the message that this depravity will not be tolerated.”
Possession of child pornography carries a maximum statutory penalty of 10 years’ imprisonment, a $250,000 fine, and five years to life of supervised release. Receipt of child pornography carries a statutory penalty of five to 20 years’ imprisonment, a $250,000 fine, and five years to life of supervised release.
“No one is above the law when it comes to child exploitation,” Parmer, Jr. said. “HSI will continue working with our partner law enforcement agencies to ensure we find and arrest anyone involved in these heinous transnational crimes.”
Today, Murry turned himself into Homeland Security agents and was seen by United States Magistrate Judge Jerome T. Kearney. Judge Kearney released Murry on conditions to include electronic monitoring, no unsupervised contact with minors, and monitored internet access.
The investigation was conducted by Homeland Security Investigations and the Arkansas Attorney General’s Office, Special Investigations Division. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
San Juan County Man Pleads Guilty to Federal Wire Fraud Charges Arising Out of Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – Bobby Willis, 45, a resident of Kirtland, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to wire fraud charges under a plea agreement recommending a maximum sentence of 24 months in federal prison. The plea agreement also requires Willis to pay restitution to the victims of his fraudulent conduct.
Willis was charged in a two-count indictment, which was filed on Oct. 20, 2015, alleging that, from March 2010 through Aug. 2011, Willis executed an illegal scheme to defraud two victims out of $1,000,000. According to the indictment, Willis offered the victims an opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000 with the understanding that he and other individuals had also invested millions of dollars in the company. Willis then spent $995,000 of the victims’ $1,000,000 instead of investing the funds.
Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account. Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account.
During today’s proceedings, Willis pled guilty to the two-count indictment. In entering the guilty plea, Willis admitted meeting the victims in 2010 and devising a plan to cause the victims to give him $1,000,000 to invest in a real estate LLC created by Willis. Willis further admitted directing the victims to work with his associates to invest the money in a real estate company. That same real estate company transferred $995,000 into an account held by Willis and his wife on Oct. 25, 2010 and Nov. 18, 2010.
In his plea agreement, Willis admitted that he and his wife spent the victims’ money. Willis also admitted that he did not invest the victims’ money in any real estate, and when the victims inquired about the status of their investment, he had associates falsely assure the victims that their investment had grown in value. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Revere Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Revere man pleaded guilty today in federal court in Boston to robbing 10 banks during a 19-day spree from late December 2016 to early January 2017.
Fred Mandracchia, 36, pleaded guilty to 10 counts of bank robbery. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 11, 2017.
Following a Jan. 3, 2017 robbery of the Mechanics Cooperative Bank branch in Fall River, law enforcement identified Mandracchia as the individual responsible for that robbery. Based on similarities in the robberies and the physical description of the perpetrator, Mandracchia was suspected to have also been involved in nine other Boston-area bank robberies: the Dec. 19, 2016, robbery of a People’s United Bank branch in Boston; the Dec. 21, 2016, robbery of a Century Bank branch in Boston; the Dec. 22, 2016, robbery of a Citizens Bank branch in Boston; the Dec. 23, 2016, robbery of an East Boston Savings Bank branch in East Boston; the Dec. 23, 2016, robbery of a Commerce Bank branch in Boston; the Dec. 24, 2016, robbery of a Citizens Bank branch in Boston; the Dec. 27, 2016, robbery of a Brookline Bank branch in Malden; the Jan. 4, 2017, robbery of an East Boston Savings Bank branch in South Boston; and the Jan. 6, 2017, robbery of a Meetinghouse Bank branch in Dorchester. Mandracchia was arrested in Chelsea on Jan. 7, 2017, and confessed to robbing the banks.
The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000 on each count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Police Departments of Fall River, Boston, Malden, and Chelsea assisted with the investigation. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit is prosecuting the case.
Quincy Man Sentenced for Four Bank RobberiesRead the Press Release
BOSTON – A Quincy man was sentenced today in federal court in Boston for robbing multiple banks throughout the Boston area.
Kyle P. Nathan, 28, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In March 2017, Nathan pleaded guilty to four counts of bank robbery.
In February and March 2016, an individual robbed the East Boston Savings Bank in both South Boston and Dorchester, a branch of the Santander bank in Chelmsford, and a branch of the Citizens Bank, also in Chelmsford. Due to similarities in the robberies and the physical description of the perpetrator, law enforcement suspected that the same individual was involved in each of the robberies. After the fourth robbery, Nathan was arrested wearing the same clothes the suspect was identified as wearing during all four robberies.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Chelmsford Police Chief James Spinney made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Quincy Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A Quincy man pleaded guilty today in federal court in Boston to possession of child pornography.
Nicholas Oslander, 68, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge William G. Young scheduled sentencing for Nov. 16, 2017. Oslander was charged and arrested in March 2017.
Following an investigation into the online trade of child pornography through peer to peer networks, a federal search warrant was executed at Oslander’s home in Quincy on Dec. 30, 2016. Forensic analysis of digital devices seized during the search revealed hundreds of images of child pornography.
In 2000, Oslander pleaded guilty in federal court in Boston to possession of child pornography and was sentenced to 30 months in prison.
Oslander faces a mandatory minimum sentence of 10 years based on his prior federal conviction. The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
President of Baltimore Tax Preparation Business Indicted for Assisting in the Filing of Four Years of False Tax ReturnsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Tynisha Martin Kadiri, age 39, of Baltimore, Maryland, on charges of filing false income tax returns and failure to file tax returns. The indictment was returned yesterday, and unsealed today upon the arrest of the Kadiri.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service – Criminal Investigation.
According to the 21-count indictment, Kadiri, who owned three tax preparation businesses in west Baltimore, filed false and fraudulent tax returns for her client-taxpayers for tax years 2012 through 2016. These false returns included business receipts that the taxpayer did not receive, business losses the taxpayer did not incur and false or fictitious businesses. These falsities resulted in the clients receiving larger refunds than they were entitled to. In addition, the indictment alleges that Kadiri has not filed federal corporate income tax returns for her businesses from tax years 2013 through 2015.
Kadiri faces a maximum sentence of up to three years in prison and a fine of $250,000 for aiding or assisting in the filings of false income tax returns and one year in prison for willful failure to file a return. Kadiri had her initial appearance today in U.S. District Court in Baltimore.
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.
Acting United States Attorney Stephen M. Schenning commended the IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Philip Selden who is prosecuting the case.
Pine Hills Man Sentenced to Seven Years in PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell has sentenced Vladimir Jean Pierre (31, Orlando) to seven years in federal prison for theft of government property, aggravated identity theft, and attempted possession with the intent to distribute a controlled substance.
He pleaded guilty on February 16, 2017.
According to court documents, in April 2015, Pierre received a package from China that contained approximately one kilogram of Ethylone. Ethylone is a positional isomer of Butylone, which is a DEA Schedule I controlled substance. Pierre was questioned shortly after he picked up the package from an Orlando Post Office. According to Pierre, he was aware that the package would contain a controlled substance, but thought that it would contain either cocaine or heroin.
In addition, from February 2012 through May 2012, Pierre deposited a total of 43 separate Internal Revenue Service (IRS) tax refund checks, totaling over $250,000, into two different bank accounts. IRS agents obtained video footage from the bank showing Pierre depositing a tax refund check for “S.D.” into his own bank account. The agents later identified S.D. and learned that the individual did not know Pierre and had not given him permission to deposit the refund check. However, S.D. did acknowledge having filed a tax return but never receiving the expected check.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Tiffany Cummins.
Pierre Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Adele Tahsequah, age 34, was charged by criminal complaint on June 28, 2017 and indicted on July 6, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 10, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 21, 2017, Tahsequah knowingly and intentionally possessed with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota.
The charge is merely an accusation and Tahsequah is presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Tahsequah was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pharr Man Sentenced in Absentia for Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – A 21-year-old Pharr man has been sentenced to life in federal prison following his convictions of conspiracy to commit hostage taking and conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in McAllen convicted Luis Gerardo Betancourt in absentia following a five-day trial and less than three hours of deliberation on March 30, 2017. Also sentenced today were 25-year-old Mexican citizen Luis Enrique Perez-Talavera and Jonathan Carlos Valdez-Harris, 22, of Phar, who had both previously pleaded guilty.
Today, U.S. District Judge Randy Crane ordered Betancourt to serve life in prison. Perez-Talavera and Valdez-Harris received respective sentences of 240 and 120 months in federal prison. Betancourt and Perez-Talavera were ordered to pay $26,000 in restitution, while Valdez is to pay $3,000. In handing down the sentence, the court noted how vulnerable one of the victims was, an eight-year-old child, and that the hostage taking conspirators exploited her age and vulnerability to pry additional ransom from family members.
The investigation began Dec. 4, 2015, when authorities learned of people in other states being forced to pay for the release of family members being held hostage at an undetermined location. Testimony at trial revealed that an individual had paid approximately $17,000 for such release. The jury heard that some family members received threats such as to cut off body parts and kill the hostages, one of whom was an eight-year-old victim, if monetary demands were not met. Further investigation revealed Betancourt’s involvement in the conspiracy. The jury heard that he was responsible for recruiting and transporting co-conspirators as well as the receipt of money sent by the victims’ family members.
The hostages held during the course of the conspiracy were eventually released Dec. 8, 2015.
Betancourt was present upon the jury’s selection, but failed to appear for trial, presentation of the evidence and his sentencing hearing. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the United States Marshals Service in McAllen, Texas at (956) 618-8025.
The FBI Safe Streets Task Force conducted the investigation with assistance from Border Patrol, Customs and Border Protection, police departments in Pharr and Robstown Police Department and the Orange County, Florida, Sheriff’s Office. Assistant U.S. Attorneys David A. Lindenmuth and Roberto Lopez Jr. are prosecuting the case.
Oxford Man Sentenced to 130 Months for Cocaine DistributionRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that yesterday in federal court, Senior U.S. District Court Judge Malcolm J. Howard, sentenced ANTONIO RODRIGUEZ CROSS, 33, of Oxford, to 130 months imprisonment followed by 5 years of supervised release. On April 10, 2017, CROSS pled guilty to one-count of Distribution and Possession with Intent to Distribute a Quantity of Cocaine and to one-count of Distribution and Possession with Intent to Distribute 28 Grams or More of Cocaine Base.
In 2014, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives in Raleigh, along with officers from the Oxford Police Department initiated an investigation into the drug-trafficking activities of CROSS. They discovered that CROSS sold cocaine and the defendant also converted cocaine into cocaine base on occasion. Agents conducted eight controlled purchases from CROSS beginning in March 2014 and concluding in April 2015. Further investigation revealed CROSS was arrested on numerous occasions for drug-trafficking activities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Oxford Police Department. Assistant United States Attorney Toby Lathan prosecuted the case for the government.
Op-Ed by Acting U.S. Attorney Corey Amundson Regarding Anniversary of Mass Shooting of Police Officers in Baton RougeRead the Press Release
Monday is the year anniversary of the mass murder in Baton Rouge of three of our law enforcement heroes and the wounding of three others, one critically. We should all take this somber occasion to remember and celebrate the fallen and wounded officers and to give some comfort – however small it may be – to their families.
It has often been said that the line between order and chaos is blue. I firmly believe this to be true. Without a doubt, our police officers hold one of the most important and impactful roles in our society.
Police officers protect our community against sexual predators who prey upon the most vulnerable among us; drug traffickers who use violence and addiction to end some lives and wreak havoc on others; and dangerous and often armed criminals who threaten the security and safety of all around them. They also serve our community in countless other ways, especially during times of crisis and disaster, risking their own safety to rescue others who find themselves in their darkest hours.
Police officers teach us all what being a hero really means. It is not about money. It is not about having an easy life. It is about fulfilling a calling to help others. The men we honor this week are perfect examples of police officers who answered that calling. Their service was a blessing to all of us.
Corey R. Amundson
Acting United States Attorney
Middle District of Louisiana
Baton Rouge, Louisiana
Ninth Loiza Boys Gang Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Edwin Sanchez, 31, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine, was sentenced to 168 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that the defendant was an associate of a gang known as the Loiza Boys, which has been distributing heroin and cocaine on Buffalo’s West Side since at least 2006.
The defendant was charged in 2013 along with nine co-conspirators following a long-term investigation that involved the interception of telephone calls of various defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Nine of the 10 defendants charged in this case have been convicted. Josbel Garcia is scheduled to go to trial on November 14, 2017. 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.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Newport News Man Sentenced for Producing Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 35 years in prison for production of child pornography.
Ernesto Rodriguez Hernandez, 23, pleaded guilty on April 5. According to statement of facts filed with the plea agreement, Rodriguez Hernandez used two minor females to produce images of child pornography. Hernandez exchanged messages with Jane Doe 1 using the Facebook messenger application, and received images of child pornography of Jane Doe 1 through Facebook messenger. On Dec. 2, 2016, law enforcement executed a federal search warrant at Hernandez’s residence, and seized Hernandez’s computers and other media storage items. An examination revealed additional videos and images of child pornography. After forensic examination, law enforcement identified an additional minor victim, Jane Doe 2, who Hernandez used to produce additional images of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys Megan M. Cowles and Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-94.
New York Restaurant Entrepreneur Sentenced to 12 ½ Years in Prison for Investment Fraud Scheme and Tax EvasionRead the Press Release
A federal district judge in Utica, New York sentenced a Watertown, New York food and restaurant entrepreneur and franchisor to serve 150 months in prison for committing tax evasion and investment fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Grant C. Jaquith for the Northern District of New York.
According to documents filed with the court, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors out of more than $19 million, as well as a scheme to evade more than $4 million in taxes and obstruct the Internal Revenue Service (IRS).
“For over a decade, Mr. Swartz stole millions from lenders, investors, and the United States, using multiple schemes, shell companies and layers of transactions in an effort to escape detection,” said Acting Deputy Assistant Attorney General Goldberg. “His 12 ½ year sentence sends the clear message to those involved in such financial chicanery that their schemes – no matter how complex – will be uncovered, investigated and successfully prosecuted.”
“Christopher Swartz stole millions of dollars from investors and lenders and cheated the public treasury out of millions of dollars of taxes,” said Acting U.S. Attorney Jaquith. “His elaborate scheme to defraud relied on a mind-boggling web of accounts and enterprises and concealment of his assets and diversions of funds. Swartz inflicted terrible harm on people who trusted him with money they needed to support their families, educate their children, pay for medical care, and retire. This case sends a strong message that such treachery will not be tolerated.”
“Today’s sentencing demonstrates the serious consequences of financial crimes such as this, and the collective focus of IRS Criminal Investigation (CI) and our partners on holding the perpetrators of such corrupt investment schemes accountable for their actions,” said Special Agent in Charge James D. Robnett of the IRS-CI. “Mr. Swartz preyed upon honest and law abiding citizens, abusing their trust for his own financial gain.”
“Mr. Swartz betrayed his investors and attempted to conceal his crimes,” said FBI Special Agent in Charge Vadim D. Thomas. “The resolution of this case is the culmination of the outstanding efforts of the FBI and our federal law enforcement partners.”
According to documents filed with the court, between 2005 and 2015, Swartz defrauded investors through bogus promissory notes and fraudulent offers of ownership in his companies. He induced investors by promising company growth and high interest rates. Despite these promises, Swartz stole investor funds and money from the businesses and spent it for his personal benefit. When lenders and investors tried to get their money back, Swartz provided false assurances, and made partial payments, including payments by check that he knew would bounce. He sought to cover up his thefts by falsifying company records. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors seeking to recover their funds.
The food and restaurant entities and companies Swartz used to fraudulently issue promissory notes and stock included: Jreck Subs, North Country Hospitality, Ultimate Franchise Systems, Caffino Live Roast, Madeline Ventures, Grace Ventures and Obees.
In addition to the promissory note scheme, Swartz sold worthless shell company stock to approximately 70 United Kingdom residents, stealing the funds and defrauding them of approximately $1.1 million.
Swartz also committed tax evasion for a decade. Between 2005 and 2015, Swartz filed false personal tax returns that underreported his income and did not file corporate returns or pay corporate taxes. Swartz diverted money from business accounts and concealed these diversions in the company records through fraudulent accounting entries. He made extensive use of cash so the funds could not be traced and used multiple entities and nominees to conceal his ownership of various assets. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
Court documents allege, and the defendant is not contesting, that Swartz owned and operated as franchisor, Jreck Subs, through layers of nominees and entities, since at least 2002. Jreck is one of the largest New York State-based franchises and a popular submarine sandwich chain with approximately 45 stores in central and upstate New York.
Swartz is in custody and will begin serving his sentence immediately. Judge Hurd ordered Swartz to serve three years of supervised release and to pay $21,041,249.43 in restitution to his investment fraud victims and $4,619,340.75 in restitution to the IRS. He also ordered a forfeiture money judgement totaling $12,360,400. Swartz pleaded guilty to tax evasion and wire fraud in September 2016. As part of his plea agreement, Swartz agreed not to contest ownership of the franchise or forfeiture of this asset. Jreck Subs is currently the subject of a restraining order, as the government evaluates the potential forfeiture of the business and a sale to new owners with proceeds serving as a potential source of funds to compensate victims.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Jaquith thanked special agents of IRS-CI and the FBI Albany Field Office, and an IRS revenue agent, who conducted the investigation, and Assistant Chiefs John N. Kane Jr. and Andrew Kameros, and Trial Attorney Abigail Chingos of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New York Man Sentenced to 24 Years on Drug Trafficking Conspiracy and Firearms ChargesRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Malcolm Cowart, a/k/a “Prince”, 37, of Harlem, New York, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 24 years in prison and five years of supervised release for conspiracy to possess with intent to distribute a kilogram or more of heroin, cocaine base, commonly known as “crack,” and oxycodone and for discharging a firearm during and in furtherance of that drug trafficking conspiracy. He pled guilty to the charges on January 6, 2017.
According to court records, from about November 2011 until March 2014, Cowart led a conspiracy that distributed heroin, crack, and oxycodone in Portland. The drugs were brought from the New York area by managers of the drug conspiracy. The managers stayed with Portland residents who were paid drugs and money for allowing the conspirators to use their apartments to distribute drugs. Managers dispatched runners to distribute the drugs throughout the Portland area.
In March 2013, Cowart had a falling out with Wayman Sparrow that led to the two of them engaging in a shootout inside the Lafayette Arms Apartments in Portland. In March 2014, agents with the U.S. Drug Enforcement Administration (“DEA”) and the Maine Drug Enforcement Agency (“MDEA”) searched an apartment in Portland, encountered a manager fleeing out the back door, and seized about $25,000 in drug proceeds from him. Later that day, agents apprehended another manager traveling by bus from New York and seized about 400 grams of heroin from her.
This joint investigation was conducted by DEA, MDEA and the Portland Police Department, with valuable assistance provided by Maine State Police Crime Laboratory and the Cumberland County District Attorney’s Office.
New York Man Sentenced to over 17 Years’ Imprisonment for Armed Bank Robberies and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jule Futrell, age 44, a resident of Endicott, New York, was sentenced by Senior United States District Court Judge James M. Munley to serve 208 months’ imprisonment for multiple armed robberies of banks and another business.
According to United States Attorney Bruce D. Brandler, Futrell pleaded guilty in March 2016, to committing two armed bank robberies, a pharmacy robbery, and to a firearms charge. The robberies were:
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March 13, 2014, First National Community Bank (FNCB), Jenkins Township, Pennsylvania, Futrell and co-defendant Jeremy West stole approximately $57,000 in cash;
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April 18, 2014, CVS pharmacy, East Stroudsburg, Pennsylvania, Futrell and West stole an unknown quantity of controlled substances;
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November 26, 2014, NBT Bank, Keyser Avenue, Scranton, Pennsylvania, Futrell and co-defendant Jemal Laquan King stole approximately $101,000 in cash.
Another co-defendant, Dorian Whitehead, pleaded guilty to aiding and abetting the two armed bank robberies.
Judge Munley sentenced Futrell’s co-defendants for their roles in the crimes. King was sentenced on July 26, 2016, to 157 months’ imprisonment, West was sentenced on January 6, 2017, to 126 months’ imprisonment, and Whitehead was sentenced on January 5, 2017, to 51 months’ imprisonment.
In addition to the prison term, Judge Munley also ordered that a probation officer supervise Futrell for three years following his release from prison, and that Futrell pay restitution in the amount of $171,180.50.
The charges were the result of an investigation conducted by the Federal Bureau of Investigation – Scranton and Binghamton offices. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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New Orleans Men Plead Guilty in Conspiracy to Traffick Methamphetamine to New OrleansRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that AARON SHEEHAN, age 30, of New Orleans, and TYLER CONNER, age 27, of Dallas, each pled guilty today to conspiracy to traffic methamphetamine in New Orleans. SHEEHAN pled guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine. CONNER pled guilty to conspiring to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
Under his plea agreement, SHEEHAN is facing a maximum sentence of twenty years, a possible fine of up to $1,000,000, and at least three years of supervised release upon his release from prison. Under his plea agreement, CONNER is facing a mandatory minimum sentence of five years, a maximum sentence of forty years, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. U.S. District Judge Sarah S. Vance will sentence SHEEHAN and CONNER on November 15, 2017.
This case stems from a Drug Enforcement Administration (DEA) investigation into a group of individuals who sold and used methamphetamine in the French Quarter area of New Orleans. Seven defendants were charged in a 2016 indictment with conspiring to distribute and possess with intent to distribute methamphetamine. With today’s guilty pleas of SHEEHAN and CONNER, all seven defendants have now agreed to plead guilty.
U.S. Attorney Evans praised the work of the DEA, the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
New Orleanian Sentenced for Bank RobberyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DAVID SHEAROD, age 45, of New Orleans, was sentenced today after previously pleading guilty to a seven-count Bill of Information charging him with bank robbery, attempt robbery of a United States Postal Office, and Hobbs Act Robbery.
U.S. District Judge Jay C. Zainey sentenced SHEAROD to 120 months in the Bureau of Prisons, followed by three years of supervised release. Additionally, SHEAROD was ordered to make full restitution in the amount of $10,570.
According to court documents, on October 22, 2015, SHEAROD entered the Liberty Bank located at 6600 Franklin Avenue in New Orleans, and approached a teller with a note demanding money. The teller gave SHEAROD $1,697. On December 1, 2015, SHEAROD entered the Regions Bank, located at 541 Chartres Street, New Orleans, and approached a teller with a demand note. The teller complied and gave SHEAROD $1,400. On December 5, 2015, SHEAROD entered the Winn Dixie grocery store located at 4600 Chef Menteur Highway, New Orleans, and verbally demanded that the cashier give him money. The cashier gave SHEAROD $2,173. On December 10, 2015, SHEAROD attempted to rob the United States Post Office located at 5919 Chef Menteur Highway, New Orleans. SHEAROD approached a postal worker with a demand note demanding $2,500. The postal employee demanded that SHEAROD leave the post office and did not give SHEAROD the money. The next day, SHEAROD entered the First Bank and Trust located at 909 Poydras Street, New Orleans, and demanded that the teller give him money. SHEAROD robbed the bank of $2,600. SHEAROD’s last robbery occurred on December 13, 2015. SHEAROD entered the Walgreens located at 4200 Chef Menteur Highway, New Orleans, approached the pharmacy counter and demanded the cashier to open the register. While the cashier did not give SHEAROD money, before leaving the store, SHEAROD approached another cashier and demanded money. The cashier gave SHEAROD $200. Many of the bank tellers and cashiers allege that SHEAROD either used a gun to commit the robberies or implied that he had a gun during the robberies.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed was in charge of the prosecution.
Navajo Man from Ramah Sentenced to Prison for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Nochise Martinez, 23, an enrolled member of the Navajo Nation who resides in Ramah, N.M., was sentenced today in federal court in Albuquerque, N.M., to 48 months in prison for his conviction on a voluntary manslaughter charge. Martinez will be on supervised release for three years after he completes his prison sentence.
Martinez was arrested on Jan. 4, 2017, on a criminal complaint charging him with killing a Navajo man on the Ramah Navajo Indian Reservation in Cibola County, N.M., on Dec. 31, 2016. According to the criminal complaint, Martinez stabbed the victim multiple times during a fight.
On March 27, 2017, Martinez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Martinez admitted that on Dec. 31, 2016, he killed the victim by stabbing him in the chest with a knife during a fight between the two men.
This case was investigated by the Gallup office of the FBI and the Ramah Navajo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
Navajo Man Pleads Guilty to Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Abner Joe, 55, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Joe was arrested on Aug. 10, 2016, on a criminal complaint charging him with assaulting a federal officer. According to the complaint, Joe assaulted an officer of the Navajo Nation Division of Public Safety on Aug. 4, 2016, by spitting on her and threatening her with a hammer and a wooden board. At the time of the assault, the tribal officer was commissioned as a Special Federal Officer by the BIA’s Office of Justice Services.
Joe was indicted on Aug. 23, 2016, and charged with assaulting a federal officer with a dangerous weapon and assault involving physical contact. The indictment alleged that Joe committed the crimes on Aug. 4, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, Joe pled guilty to assaulting a federal officer. In entering the guilty plea, Joe admitted that on Aug. 4, 2016, he threatened two uniformed tribal officers as he approached them while holding a raised 2” x 4” board. He also admitted throwing a hammer at one of the tribal officers who was commissioned as a Special Federal Officer by the BIA.
At sentencing, Joe faces a maximum penalty of 20 years in prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
Mineral County woman admits to failing to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Keyser, West Virginia woman was convicted today of failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bobbi Jo Starry, age 51, pled guilty to one count of “Failure to Register as a Sex Offender.” Starry, having been convicted of third degree sexual assault in the Circuit Court of Berkeley County, admitted to traveling interstate commerce and failing to register and update her registration as a sex offender from January to May 2017.
Starry faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The United States Marshals Service investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Miami-Based Physician Pleads Guilty for Role in Pain Pill Diversion and Medicare Fraud SchemeRead the Press Release
A licensed physician in Miami pleaded guilty in federal court yesterday for his role in a multi-faceted $4.8 million health care fraud scheme that ran from April 2011 to February 2017, involving the submission of false and fraudulent claims to Medicare and the illegal prescribing of Schedule II (e.g., oxycodone and hydrocodone) and Schedule IV (e.g., alprazolam) controlled substances.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Roberto A. Fernandez, M.D., 51, of Miami, pleaded guilty before U.S. District Judge Cecelia M. Altonaga of the Southern District of Florida to one count of conspiracy to commit health care fraud and wire fraud. Sentencing is set for September 20.
According to admissions made as part of his guilty plea, Fernandez referred Medicare beneficiaries to pharmacy owners in exchange for illegal health care kickbacks. Fernandez admitted knowing that the pharmacy owners were billing and receiving reimbursements from Medicare for prescription drugs based upon the prescriptions he sold, and that his patients did not truly need many of the medications he prescribed in exchange for the kickbacks. For example, he admitted providing prescriptions for expensive, name brand drugs, including anti-psychotics and HIV/AIDS medications that were not medically necessary.
Fernandez also solicited referrals of Medicare beneficiaries to his own practices from his co-conspirators, he admitted, including submitting claims to Medicare under his Part B provider number for services he did not, in fact, render to Medicare beneficiaries. Additionally, Fernandez admitted receiving kickbacks in return for signing plans of care and prescriptions for home health services.
Fernandez also admitted that he prescribed controlled substances, including dangerous opioids, to patients and patient recruiters in return for $100 - $200 cash per prescription. Fernandez admitted that he knew these patients did not need the controlled substances he prescribed. Furthermore, Fernandez admitted that he wrote many of these controlled substance prescriptions for patients that he did not even examine.
The FBI, HHS-OIG, and USSS investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Member of Lawrence Kidnapping Crew Sentenced to 23 Years in PrisonRead the Press Release
BOSTON – A member of a Lawrence-based kidnapping crew was sentenced today in federal court in Boston for his role in a 2012 kidnapping.
Gadiel Romero, a/k/a “TC,” 33, was sentenced today by U.S. District Court Judge Richard G. Stearns to 23 years in prison and three years of supervised release. Romero previously pleaded guilty to conspiracy to commit kidnapping.
Romero was charged in connection with a wide-ranging investigation targeting violent kidnapping and home invasion crews operating in Lawrence. According to court documents, these crews – often referred to as “joloperros,” which loosely translates to “stick-up guys” – were organized, armed and violent.
Romero was identified as part of a violent, sophisticated kidnapping crew that included Danny Veloz, a/k/a “Maestro,” Jose Guzman, a/k/a “Cano,” Jose Matos, a/k/a “Boyca,” and Luis Reynoso, a/k/a “Prieto,” all of Lawrence; Henry Maldonado, of Manchester, N.H., and Thomas Wallace of Raynham, N.H.
On July 23, 2012, armed with firearms and wearing t-shirts with the word “police” on them, the crew kidnapped two men at gunpoint on Allston Street in Lawrence. The victims were transported to Manchester, N.H. and held overnight – during which time one was burned with a hot iron – before being rescued by law enforcement. Several cooperating defendants advised that the July 23, 2012 kidnapping was one of several kidnappings or attempted kidnappings committed by this crew in Lawrence in 2012.
This crew was one of several kidnapping and home invasion crews identified during the federal investigation. The crews typically kidnapped drug dealers for large ransoms that were paid in cash or drugs; used safe houses to stash their victims; and used sophisticated tracking techniques, such as GPS devices, to follow their victims. The crews targeted drug dealers because they believed that the drug dealers were unlikely to cooperate with law enforcement, were subject to deportation, or feared reprisals, either against themselves or their families in Lawrence or in their native country. Numerous kidnapping victims described how they were abducted, tortured, and forced to pay ransoms of hundreds of thousands of dollars (either in the U.S. or in the Dominican Republic) to joloperros crew members. Victims were burned, scarred, bruised, and given other significant physical injuries marking them as kidnapping victims. During the investigation, law enforcement seized dozens of firearms, including shotguns, GPS devices, irons used to torture victims, masks, zip ties, t-shirts with the word “police” on them, fake police badges, handcuffs, and drugs.
Since the investigation began in 2012, more than 20 people have been convicted of either kidnapping-related offenses or being associated with members of Lawrence-based kidnapping or home invasion crews.
Matos was previously sentenced to 12 years in prison. Guzman, Maldonado, Wallace and Reynoso are scheduled to be sentenced in October 2017. Veloz is scheduled to stand trial on Aug. 7, 2017.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Essex County Sheriff Kevin F. Coppinger; Lawrence Police Chief James X. Fitzpatrick; and Manchester (N.H.) Police Chief Nick Willard made the announcement today. The cases are being prosecuted by Weinreb’s Organized Crime and Gang Unit.
The details contained in the charging document are allegations and the remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Massachusetts Man Sentenced to over Seven Years for Violent Home Invasion RobberyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Juan Andino-Tirado, 25, of Lawrence, Massachusetts, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 85 months in prison for robbery and aiding and abetting the brandishing of a firearm in furtherance of a crime of violence.
According to court records, on November 15, 2015, Andino-Tirado and four other men drove from Massachusetts to Wells, Maine, for the purpose of committing a home invasion robbery. Andino-Tirado and two co-defendants, Carlos Diaz and Javier Pagan Gonzalez, broke into the victim’s home. Diaz and Gonzalez brandished firearms. Andino-Tirado brandished a knife. Co-defendants Anthony Arrendell Pena and Marcos Hernandez remained outside the residence. The co-defendants stole $2,389 and 861 Oxycodone pills.
and Hernandez were previously sentenced to six years for their roles in the offense. Pena and Gonzalez pled guilty to their involvement in the robbery and await sentencing.
The case was investigated by the U.S. Drug Enforcement Administration; the U.S. Bureau of Alcohol, Tobacco and Firearms; and the Wells Police Department, with assistance from the Ogunquit Police Department, the Maine State Police, the Office of the Maine Attorney General, and the York County District Attorney’s Office.
Maryland Man Sentenced to 10 Years in Prison for Conspiracy to Distribute and Possess HeroinRead the Press Release
WASHINGTON – James Durrette, 45, of Clinton, Md., was sentenced today to 10 years in prison on a federal drug charge stemming from his role in a drug trafficking organization that operated in the Washington, D.C. area.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Andre R. Watson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Baltimore, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Durrette was found guilty by a jury in March 2017 of conspiracy to distribute and possess with intent to distribute 100 grams of heroin. The verdict followed a trial in the U.S. District Court for the District of Columbia. With his prior conviction for a similar drug offense, Durrette faced a mandatory minimum of 10 years in prison. He was sentenced by the Honorable Amit P. Mehta. Following his prison term, Durrette will be placed on eight years of supervised release. The judge also ordered Durrette to pay a $5,000 forfeiture money judgment.
The government’s evidence established that Durrette and others participated in a conspiracy to distribute large amounts of narcotics between 2009 and 2014. This drug trafficking group mainly involved itself with trafficking very large quantities of marijuana, but also involved itself with redistributing various and significant quantities of heroin and cocaine. In that regard, during the conspiracy, California suppliers frequently sent – or conspired to send – large quantities of marijuana, heroin, or cocaine to the Washington, D.C., metropolitan area, where Durrette and others participated in the illegal redistribution of one or more of the controlled substances to others in the Washington, D.C., area for profit.
Several others previously pled guilty to charges in the investigation.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, Special Agent in Charge Watson, and Chief Newsham praised the work of the FBI Safe Streets Gang Task Force, which in this case involved work from the FBI, the Metropolitan Police Department, and HSI. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. In addition, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz, Candace Battle, Rommel Pachoca, Mary Downing, and Teesha Tobias; Legal Assistants Holly Crouse and Peter Gaboton; Intern Zachary Kaplan, and Litigation Technology Specialist Kimberly Smith. Finally, they commended the work of Trial Attorney Andrea G. Duvall of the Department of Justice’s Criminal Division, and Assistant U.S. Attorneys Kenneth F. Whitted and Emory V. Cole, who indicted and prosecuted the case.
Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Spouse of Lawyer at International Law FirmRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that FEI YAN, who works as a post-doctoral associate at a major research university in Cambridge, Massachusetts, was arrested this morning at his residence in Cambridge and charged with insider trading. YAN made approximately $110,000 in connection with trading in options to buy the stock of Stillwater Mining Company, based on misappropriated material nonpublic information.
YAN was presented earlier today in federal court in Boston, Massachusetts.
Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Fei Yan repeatedly traded on confidential corporate information obtained from his spouse, a lawyer at an international law firm. Armed with confidential information about a corporate acquisition his spouse was working on, Yan allegedly traded on that information over and over again during a three-week period. As alleged, some of these trades followed online research Yan conducted on how to avoid law enforcement detection, including an article entitled ‘Want to Commit Insider Trading? Here’s How Not to Do It.’ The answer to Yan’s online inquiry should have been clear, there is no proper way to commit insider trading.”
FBI Assistant Director-in-Charge William Sweeney said: “The charges, as described today, present a very specific timeline of events in which Fei Yan allegedly traded on inside information acquired from his spouse, who worked for a law firm representing a mining company in the middle of a major acquisition. But, as we allege today, Yan dug too deep. Researching how to evade detection, Yan allegedly used an Internet search engine as an accomplice. But it doesn’t take much to understand the rules against insider trading, or how to break them.”
According to the Complaint[1] filed today Manhattan federal court:
YAN’s spouse (the “Spouse”) worked at the New York office of an international law firm (the “Law Firm”). In the summer of 2016, a mining company (the “Mining Company”) retained the Law Firm to represent it in negotiations to acquire Stillwater Mining Company, a publicly traded company whose shares trade on the New York Stock Exchange under the symbol “SWC.” On or about August 25, 2016, in connection with the Spouse’s work at the Law Firm, the Spouse learned of the negotiations between the Mining Company and Stillwater Mining and continued to work on the transaction through December 9, 2016, the date on which it was first publicly announced that the Mining Company was going to acquire Stillwater Mining. While working on the transaction during the fall of 2016, the Spouse had access to material nonpublic information regarding the potential acquisition.
The Law Firm required its employees, including the Spouse, to abide by a confidentiality policy, which prohibited disclosure of “information received from and about . . . clients . . . [and] other parties involved in transactions with clients.” In addition, YAN and the Spouse had a history, pattern, and practice of sharing confidences.
In early and mid-November 2016, the Spouse billed dozens of hours working on the potential merger between the Mining Company and Stillwater Mining, and YAN and Spouse were in frequent phone contact. During this period, YAN conducted internet searches for “yahoo swc” and “stillwater merger,” even though the Mining Company’s potential acquisition of Stillwater Mining had not yet been publicly announced.
On November 22, 2016, the Spouse participated in a Law Firm call regarding the potential acquisition. That same day, YAN, using a brokerage account he had previously set up in his mother’s name, bought 71 options to buy Stillwater Mining stock. The next day, YAN and the Spouse spoke twice. After these calls, YAN bought an additional 200 options to buy Stillwater Mining stock.
Negotiations between the Mining Company, represented by the Law Firm, and Stillwater Mining continued to progress, and the Spouse continued to work on the transaction. On December 1, 2016, after a 78-minute phone call with the Spouse the previous evening, YAN purchased an additional 100 Stillwater Mining options.
The following day, YAN conducted multiple internet searches and research related to mergers and acquisitions, including searches for “process of acquisition” and “company acquisition process.”
YAN and the Spouse also spoke on the phone multiple times on the night of December 5 and the early morning hours of December 6, 2016. Later on the morning of December 6, YAN bought an additional 341 Stillwater Mining options. Later that day, YAN conducted internet research related to insider trading. For example, YAN searched for “how sec detect unusual trade” and accessed at least three articles on financial websites related to insider trading. YAN also searched for the name of an individual who was charged in this District in May 2016 with insider trading.
The next day, shortly after speaking with the Spouse by phone for approximately 30 minutes, YAN conducted an internet search for “insider trading with international account” and, shortly thereafter, viewed articles entitled “U.S. Insider Trading Enforcement Goes Global” and “Want to Commit Insider Trading? Here’s How Not to Do It.” The following day, YAN bought an additional 54 Stillwater Mining options.
Early on the morning of December 9, 2016, it was publicly announced that the Mining Company would acquire Stillwater Mining for $18 per share. Beginning at approximately 9:33 a.m. Eastern time, minutes after the open of regular market trading. YAN sold the Stillwater Mining options he had previously purchased, resulting in a profit of approximately $109,420. Also that day, YAN conducted Internet searches for “insider trading cases,” and “insider trading options.”
* * *
YAN, 31, of Cambridge, Massachusetts, is charged with two counts of securities fraud and one count of wire fraud. The securities fraud counts carry a maximum sentence of 20 and 25 years in prison, respectively, and a maximum fine of $5 million and $250,000 respectively, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the SEC, which has filed a separate civil action. Mr. Kim also thanked the FBI’s Boston Office and the U.S. Attorney’s Office for the District of Massachusetts for their assistance in this investigation. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Luzerne County Men Indicted for Armed Bank RobberyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two Luzerne County men were indicted on July 11, 2017, by a federal grand jury on bank robbery charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Doug Sickler, age 36, and Shawn Cavanaugh, age 35, both of Luzerne County, Pennsylvania, with the armed robbery of the PNC Bank in Avoca, Pennsylvania and taking more than $2,000 on June 21, 2017.
The charges stem from a joint investigation between the Federal Bureau of Investigation and Wilkes-Barre, Kingston and Pennsylvania State Police Departments. Assistant United States Attorney Evan Gotlob is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
Sickler and Cavanaugh face a maximum of 25 years in prison as well as a $250,000 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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Lemon Grove Woman Sentenced to 14½ Years in Prison for Using Stolen IDs to File Fraudulent Returns Seeking More than $2 Million in RefundsRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – July 12, 2017
SAN DIEGO – Cynthia Lozano of Lemon Grove was sentenced in federal court today to 175 months in prison in connection with two complex frauds involving identity theft, false tax returns and hundreds of unwitting victims. The second fraud scheme was committed while she was awaiting sentencing for the first one. In total, Lozano sought over $2 million in refunds from false tax returns
Lozano, who appeared before U.S. District Court Judge Anthony J. Battaglia, was also ordered to pay $1,479,134.77 in restitution to the Internal Revenue Service and Department of Housing and Urban Development (“HUD”). In all, the defendant was sentenced for 84 counts of mail and wire fraud, false claims and aggravated identity theft.
In April 2013, Lozano was charged in a 33-count indictment (13CR1354-AJB) for filing false tax returns in the names of persons who were often unaware that she used their names and Social Security numbers to defraud the IRS. Lozano directed the IRS to deposit tax refunds via electronic transfer into bank accounts opened under the names of her relatives and associates. For some actual tax-preparation clients, Lozano claimed a larger refund from the IRS than she represented to her clients. She directed the IRS to deposit the excess amounts in one of the bank accounts under her control without her clients’ knowledge.
On February 13, 2015, Lozano pleaded guilty to aggravated identity theft and participation in her fraudulent scheme. In total, Lozano used the identities of over 200 victims to file over 400 federal tax returns, resulting in her receipt of over $1.5 million in fraudulently-obtained tax refunds between 2008 and 2013. Lozano used the majority of the funds obtained from her initial scheme to purchase 20 properties in and around Phoenix, Arizona. But her criminal conduct did not stop.
In June 2015, while Lozano was awaiting sentencing, agents from the Internal Revenue Service - Criminal Investigations (“IRS-CI”) and Department of Treasury, Inspector General for Tax Administration (“TIGTA”) discovered that Lozano filed additional federal tax returns in a manner similar to her previous scheme. Lozano was subsequently charged in a second indictment (16CR1332-AJB) with 51 additional counts, including false claims to the IRS, wire and mail fraud, and aggravated identity theft.
Some of the victims of Lozano’s 2015 scheme were actual or prospective tenants at the Arizona properties purchased by Lozano with funds from her earlier scheme. After Lozano purchased the properties, she transferred titles to the name of her mother, who does not live in the United States. Using her mother’s name as an alias, Lozano obtained authorization to rent some of the Arizona properties under the Section 8 Tenant-Based Assistance Housing Choice Voucher Program (“Section 8 program”) administered by the Department of Housing and Urban Development (“HUD”). Through the Section 8 program, a local Public Housing Authority supplements rent to a qualifying property owner on behalf of qualifying tenants. Lozano submitted false documents under her alias to HUD, under penalty of perjury, to qualify for supplemental rental payments under the Section 8 program.
For the 2015 scheme, Lozano obtained the names and Social Security numbers from her Section 8 tenants, and others who submitted rental applications to Lozano. She used their names and numbers to submit additional false federal tax returns. Lozano then directed the IRS to deposit the tax refunds into new bank accounts she opened with the assistance of two co-conspirators, Gerardo Baker and David Hernandez. Baker and Hernandez have since pleaded guilty and been sentenced for their participation in the conspiracy.
Lozano pleaded guilty to two counts of the first indictment (13CR1354-AJB) on February 13, 2015, and the remaining 31 counts on August 31, 2016. She pleaded guilty to all 51 counts of the second indictment (16CR1332-AJB) on November 15, 2016.
At sentencing, Judge Battaglia took special account of the fact that Lozano committed additional criminal conduct while out on bail. He said it was “a unique case that needs to be treated uniquely.” As part of the sentence, Judge Battaglia ordered that the restitution include $107,194 to HUD for the supplemental rental payments that Lozano she received as a result of her false statements. A status hearing regarding forfeiture of the properties Lozano purchased with the proceeds from the original scheme is scheduled for August 25, 2017.
Acting U.S. Attorney Robinson said, “The lying, cheating defendant went on a white-collar crime spree that continued even after she got caught. It is astounding that she committed a second major fraud while awaiting sentencing for the first. Her greed-fueled rampage ends today, with a sentence that recognizes the significant losses suffered by her victims, including U.S. taxpayers.”
“Using stolen identities, Cynthia Lozano filed hundreds of fraudulent tax returns, cheating the U.S. Treasury out of more than $1.5 million,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “She preyed on low income individuals, ripping off their personal information to file bogus tax returns and brazenly continued her criminal conduct even while awaiting sentencing in federal court on tax fraud and identity theft charges. Her 14 1/2 year sentence sends a clear message that the Department and IRS will aggressively investigate and prosecute those who steal taxpayer identities and file fraudulent claims for refund.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law,” stated IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney’s Office and the Justice Department’s Tax Division, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
“This is a case about the irresistibility of greed,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, TIGTA Office of Investigations. “Even though Ms. Lozano had pleaded guilty and awaited sentencing on 51 counts of aggravated identity theft, wire and mail fraud, she could not resist the temptation of engaging in additional criminal illegal schemes to steal more identities and file additional fraudulent tax returns -- 69 new fraudulent tax returns to be exact.
“Fortunately, we were able to bring this individual to justice for the additional crimes she committed. We wish to thank our law-enforcement partners at the Justice Department and IRS Criminal Investigation for their outstanding collaboration and teamwork during this long and complicated investigation.”
DEFENDANT
Cynthia Lozano Age: 35
SUMMARY OF CHARGE
Case Number: 13CR1354-AJB
- 1-13: Title 18, United States Code, Section 287 (false claims)
Maximum penalty: 5 years of custody; $250,000 Fine
Counts 14-25: Title 18, United States Code, Section 1343 (wire fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Count 26: Title 18, United States Code, Section 1341 (mail fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Counts 27-33 Title 18, United States Code, Section 1028A (aggravated identity theft)
Minimum penalty: 2 years of custody, consecutive to sentence for other crimes; No Probation; Fine same as for underlying offense
Case Number: 16CR1332-AJB
Count 1: Title 18, United States Code, Section 371 (conspiracy)
Maximum penalty: 5 years of custody; $250,000 Fine
Counts 2-15: Title 18, United States Code, Section 287 (false claims)
Maximum penalty: 5 years of custody; $250,000 Fine
Counts 16-17: Title 18, United States Code, Section 1343 (wire fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Count 18-29: Title 18, United States Code, Section 1341 (mail fraud)
Maximum penalty: 20 years of custody; $250,000 Fine
Counts 30-37: Title 18, United States Code, Section 641 (theft of government property)
Maximum penalty: 10 years of custody; $250,000 Fine
Counts 38-51: Title 18, United States Code, Section 1028A (aggravated identity theft)
Minimum penalty: 2 years of custody, consecutive to sentence for other crimes; No Probation; Fine same as for underlying offense
AGENCIES
Internal Revenue Service - Criminal Investigations (“IRS-CI”)
Department of Treasury, Inspector General for Tax Administration (“TIGTA”)
Ledyard Man Who Distributed Heroin Involved in Overdose Sentenced to 30 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY PAPROCKI, 33, of Ledyard, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by four years of supervised release, for distributing heroin involved in an overdose death last year.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male. The victim, who had used heroin, was transported to the hospital where he was pronounced deceased. The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim had arranged to purchase heroin from PAPROCKI. PAPROCKI then purchased the heroin from Rudy Hernandez and sold it to the victim.
PAPROCKI has been detained in state custody since his arrest on April 20, 2016. On December 20, 2016, he pleaded guilty in federal court to one count of distribution of heroin.
PAPROCKI has unrelated state charges pending, and Judge Shea ordered PAPROCKI to begin serving his 30-month federal sentence after he completes his state sentence.
On July 6, 2016, Hernandez, of New London, pleaded guilty to one count of distribution of heroin. On November 21, 2016, he was sentenced to 34 months of imprisonment.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Town of Groton Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Leader of Multi-State Drug Trafficking Organization Sentenced to Life in Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Eric Scott, age 40, was sentenced to life imprisonment without the possibility of parole in federal court in Greenville today. The Court also imposed a money judgment against Scott in the amount of approximately $ 1,300,000.
The evidence at trial showed that Scott participated in a drug conspiracy that spanned 13 years, beginning in 2003. Members of the conspiracy operated in South Carolina, Georgia, Alabama, Texas, and Louisiana. Testimony from numerous witnesses established that during the course of the conspiracy, members of the conspiracy distributed in excess of 100 kilograms of cocaine, over 1,000 pounds of marijuana, and in excess of 5 kilograms of crack cocaine.
Scott operated primarily in Anderson, South Carolina, as local distributors. The evidence showed that Scott entered the conspiracy in 2003 and continued participating in the conspiracy even while imprisoned on federal drug charges from 2007-2011 and after his release until his arrest in this case in 2015.
Law enforcement officers utilized remote surveillance, wiretaps, confidential sources and other investigative techniques to ultimately charge in excess of 20 defendants in the case. Scott and co-defendant Antonio Crawley were the only defendants who went to trial.
During the course of the investigation, law enforcement seized in excess of $1.5 million in U.S. Currency, over 5 kilograms of cocaine, quantities of marijuana and crack cocaine, and numerous firearms.
Assistant U.S. Attorney Andy Moorman, Deputy Narcotics Chief for the Narcotics Unit, was the lead prosecutor.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
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La Pine Man Sentenced to Federal Prison for Money LaunderingRead the Press Release
EUGENE, Ore. – On July 11, 2017, United States District Court Judge Ann Aiken sentenced Erik William Johnson, 44, of La Pine, Ore., to two years in federal prison for money laundering.
According to the government’s sentencing memorandum, Johnson defrauded ninety-one eBay customers of over $180,000 in payments for high-end digital cameras he advertised for sale on eBay. The wire fraud scheme occurred over a three-week period in June 2011. Johnson received $189,916.99 in payments but only shipped $5,245 worth of cameras to customers.
The basis of Johnson’s guilty plea to money laundering was his use of proceeds from the eBay scheme to pay for a sport utility vehicle. The defrauded customers received refunds from eBay totaling $103,838.98.
Johnson will remain out of custody until September 2018 to allow him to complete his studies at a local community college. The court ordered him to pay $103,838.98 to eBay and perform 150 hours of community service.
This case was investigated by IRS Criminal Investigation, the FBI and the Deschutes County Sheriff’s Office, and was prosecuted by William "Bud" Fitzgerald, Assistant United States Attorney for the District of Oregon.
Kentucky man sentenced for mailing threatening communicationsRead the Press Release
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today that Kevin Kyle McCaffrey, 22, Hickman, Kentucky, was sentenced to 30 months in prison by U.S. District Judge Richard L. Young for two counts of mailing threatening communications and one count of conveying false and misleading information. The case was the result of an investigation by the United States Postal Inspection Service and the Evansville Police Department.
On May 8, 2017, at the time of his guilty plea, McCaffrey affirmed to the court that he mailed threatening communications to the postmaster of an Evansville, Indiana, post office facility located at 600 Cross Valley Circle.
McCaffrey admitted that on or about May 17, 2016, he prepared and mailed an envelope addressed to the “United States Postmaster United States Postal Service Evansville, INDIANA 47711”, containing a letter stating “I wish death to all infidels!” The envelope also contained a simulated explosive device that McCaffrey admitted making, using wires and the parts of an e-cigarette.
McCaffrey admitted sending a second letter addressed to the “United States Postmaster United States Postal Service Evansville, INDIANA 47711,” containing the statement “If you continue to investigate my case and if you bring my case before the district attorney you and your family will not be safe.”
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also ordered McCaffrey to serve a period of 3 years of supervised released following his release from imprisonment. During his supervision, McCaffrey must submit to drug testing and participate in a substance abuse treatment program.
Jefferson County Man Arrested in Federal Mail Fraud SchemeRead the Press Release
BEAUMONT, Texas – A 42-year-old Beaumont, Texas man has been arrested on federal charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Westley Judy Pollard, Jr., was indicted by a federal grand jury on July 6, 2017 and charged with 11 counts of mail fraud. Pollard was arrested in Beaumont this morning and went before U.S. Magistrate Judge Zack Hawthorn for an initial appearance.
According to the indictment, from 2011 to 2016, Pollard worked as a salesperson in the rare and precious coin field. During this time, Pollard was employed by various coin companies in Beaumont, Texas and the surrounding area, where he sold coins to individual investors. Beginning in early 2014, Pollard began contacting prior customers and telling them that he could find a purchaser for their coin collections at significantly higher prices than they originally paid, or that he could get their coins re-graded to a higher level of condition, which would increase their value. At Pollard’s direction, the customers would allow him to take possession of their coins so that he could sell or re-grade them, and then return the proceeds or re-graded coins to them. Pollard directed the customers to mail the coins to him via FedEx, or, in some instances, he would take possession directly from the customer. After receiving the coins, Pollard would then sell them to pawnshops or other coin retailers, at significantly lower prices than the investors originally paid and without their consent, using the proceeds from the sales for his personal benefit. In connection with this scheme, Pollard convinced four customers to send him their coins, with an approximate combined value of $5,480,000.
If convicted, Pollard faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
James Bristol Imprisoned for Attempted Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that James Bristol, 45, of Burlington, was sentenced today in United States District Court in Burlington to 30 months of imprisonment following his guilty plea to a charge of attempted bank robbery. Chief U.S. District Judge Christina Reiss also ordered that Bristol serve a three-year term of supervised release following completion of his prison term. Bristol has been in custody since his arrest last year.
According to court records, on June 3, 2016, a man entered the College Street branch of Citizens Bank in Burlington and presented the teller with a note which stated that he had a gun and wanted large denomination bills. The teller told the robber she did not have large bills, only $20s, whereupon the robber took back the note and left the bank without receiving any money. Less than an hour later, Burlington Police officers detained Bristol several blocks from the scene of the robbery. They later found the demand note in Bristol’s pocket. Bristol was originally charged in state court with attempted assault and robbery, but that charge was dismissed after a federal grand jury indicted Bristol for attempted bank robbery last fall.
Bristol is represented by Assistant Federal Public Defender Steven Barth. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Illegal Alien Charged with Possessing and Attempting to Produce Child PornographyRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that a federal grand jury has indicted VICTOR ZELAYA-FUNEZ, age 37, a Honduran national residing in Zachary, Louisiana, for possessing and attempting to produce child pornography, in violation of Title 18, United States Code, Sections 2251 and 2252A. He faces a mandatory minimum 15-year prison term.
ZELAYA-FUNEZ also faces a separate federal indictment charging him with illegal re-entry into the United States by a removed alien. That charge, which was filed on December 8, 2016, remains pending. Both indictments were returned in the Middle District of Louisiana.
Acting U.S. Attorney Amundson stated, “The aggressive prosecution of illegal aliens engaged in the sexual exploitation of children is a top priority of the U.S. Department of Justice generally and this office in particular. I greatly appreciate the outstanding efforts of our excellent federal, state, and local partners in addressing this important criminal justice priority.”
This investigation was conducted by the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement Removal Operations, and the East Baton Rouge Parish Sheriff’s Office, with assistance from the East Baton Rouge Parish District Attorney’s Office. The matter is being prosecuted by Assistant United States Attorney Ryan Rezaei.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.
Houma Man Pleads Guilty to Meth ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PHILIP BAKER, JR., age 43, pled guilty today to an Indictment charging him with violations of the Federal Controlled Substances Act, in violation of 21 U.S.C. § 841, 841(b)(1)(B) and 846 for conspiring to possess with the intent to distribute fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents, BAKER was arrested by law enforcement agents on June 5, 2016, with approximately a pound of methamphetamine in his vehicle after a concerned citizen contacted law enforcement about drug related trips back and forth from Louisiana to Texas by BAKER. BAKER then made calls from a recorded jail line in which he asked others to remove the contraband from his residence in an attempt to avoid further charges.
BAKER faces a minimum term of five years of imprisonment, a maximum term of forty years of imprisonment, a maximum fine of $5,000,000, at least four years of supervised release, and a mandatory $100 special assessment. Judge Ivan L. R. Lemelle set sentencing for October 18, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.