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12 July 2017
Former Dinner Cruise Ship Captain Sentenced to Prison for Using Stolen IdentityRead the Press Release
GALVESTON, Texas – A former ship captain for Majestic Ventures, Majestic Dinner Cruises and Majestic Yacht Charters dinner cruise lines has been ordered to federal prison following her conviction of aggravated identity theft and making false statements in a passport application, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Michael Perkins of the Department of State’s Diplomatic Security Service (DSS) and Captain Kevin Oditt, the commander of Coast Guard Sector Houston-Galveston.
Cynthia Lyerla, 53, of League City, pleaded guilty March 30, 2017.
Today, U.S. District Judge George C. Hanks ordered she serve 12 months for the false statements in a passport application as well as a mandatory 24 months for the aggravated identity theft which must be served consecutively. The total 36-month-term will be immediately followed by one year of supervised release.
At the hearing, the court heard that Lyerla stole the identity of a deceased child following an investigation into the death of her husband in 1988 and has used it ever since to obtain driver’s licenses, passports, merchant mariner licenses and transit worker identification credentials. She also purchased a firearm using the stolen identity.
Lyerla was further ordered to pay a $15,000 fine. In handing down the sentence, Judge Hanks noted the importance of the integrity of government records and that people’s safety depends on the information in those documents being accurate. He explained that the numerous documents Lyerla falsified and the importance of the documents warranted the sentence imposed.
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” said Michael Perkins, Special Agent-in-Charge of the Houston Field Office of the U.S. Department of State’s Diplomatic Security Service (DSS).
“The result of today's hearing was due to significant collaborative efforts from the Coast Guard Investigative Service partnering with the Diplomatic Security Service, the Transportation Security Administration as well as the United States Attorney's Office," said Oditt. “The Coast Guard is committed to a safe and secure maritime transportation system and this starts with ensuring mariners are properly licensed and credentialed.”
Lyerla admitted to obtaining the birth certificate of Christina White in 1992 and then using that identity to obtain a second Social Security number. She was also able to obtain driver’s licenses, passports, mariner licenses and Transportation Security Administration (TSA) documentation allowing her to enter secure port areas. Without a mariner license and TSA documentation, Lyerla would not be allowed to captain the ships for the dinner cruise companies.
The real Christina White died in 1965 on the same day she was born.
Cynthia Lynn Knox was born in 1964, later married Harold Lyerla and took his name. The marriage ended when Harold Lyerla was murdered in 1988 in Lompoc, California. Although another individual was convicted for that crime, Lyerla’s fingerprints were taken by the local police in the course of the investigation.
Since that time, Lyerla used the identity of Christina White, providing her date and place of birth, Social Security number and parents’ names in order to apply for and obtain various legal documentation.
Authorities discovered Lyerla’s true identity when her fingerprints were taken in connection with a mariner license application and compared to those taken in 1988 and 1989 during the investigation into the murder of her husband. Additionally, a retired California police detective, who investigated that murder, positively identified the defendant as Lyerla.
Previously released on bond, Lyerla was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of State - Diplomatic Security Service and U.S. Coast Guard Investigative Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Federal inmates plead guilty to possessing weapons in prisonRead the Press Release
CHARLESTON, W.Va. – Two inmates at the Federal Correctional Institution at McDowell pleaded guilty today to possessing weapons in prison, announced United States Attorney Carol Casto. Antonio Freeman, 30, entered his guilty plea to possession of a weapon by an inmate. In a separate prosecution, Robert Aguon, 42, also pleaded guilty to possession of a weapon by an inmate.
Freeman admitted that on August 25, 2016, he ran away from staff members of the prison and threw an object on the roof of a building. A staff member retrieved the object and found that it was a piece of wood over five inches long that was sharpened to a point. There was tape on the other end of the object to serve as a handle and a cord attached as a lanyard. The object was a handcrafted weapon commonly known as a “shank.”
In a separate prosecution, Aguon admitted that on February 24, 2017, during a search, a staff member of the prison discovered an object inside the seam of Aguon’s pants. The object was a “shank,” and was made from a piece of metal, approximately six inches in length, sharpened to a point on one end with duct tape around the opposite end to form a handle.
Both Freeman and Aguon face up to five years in federal prison. The inmates are scheduled to be sentenced on October 24, 2017.
These cases were investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecutions. The plea hearings were held before Senior United States District Judge David A. Faber.
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Federal Grand Jury Indicts Union Official for Allegedly Extorting Cash Payments from Local BusinessRead the Press Release
CHICAGO — A high-ranking official in a Chicago-area labor union threatened a local business with economic loss if it didn’t pay him quarterly cash payments of $25,000, according to a federal indictment returned today.
JOHN T. COLI SR. used the threat of economic harm to extort quarterly payments of $25,000 from a local company, according to the indictment. The attempted extortion occurred from approximately October 2016 to April 2017, while Coli served as President of Teamsters Joint Council 25, a labor organization that represents more than 100,000 workers in the Chicago area and northwest Indiana. The organization has approximately 26 local union affiliates, including Teamsters Local Union 727, where Coli also served as Secretary-Treasurer during the time period referenced in the indictment.
The indictment was returned today in U.S. District Court in Chicago. It charges Coli, 57, of Chicago, with one count of attempted extortion and five counts of demanding and accepting a prohibited payment as a union official. The indictment seeks forfeiture from Coli of at least $100,000.
Arraignment in federal court in Chicago will be held at a future time to be set by the Court.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.
According to the charges, Coli accepted a $25,000 cash payment on July 7, 2016; two cash payments totaling $25,000 on Oct. 4, 2016, and Nov. 29, 2016; and $25,000 cash payments on Dec. 22, 2016, and April 4, 2017. The indictment does not identify the individual who made the payments nor the company Coli allegedly extorted.
Coli previously served as International Vice President of the Central Region of the International Brotherhood of Teamsters, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Attempted extortion is punishable by a maximum penalty of 20 years in prison. Each count of demanding and accepting a prohibited payment is punishable by up to five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
Federal Grand Jury Indicts Decatur Man on Charges of Murder and Hobbs Act RobberyRead the Press Release
SPRINGFIELD, Ill. – A grand jury today returned a superseding indictment that charges Matthew J. Higgins-Vogt, 24, of Decatur, Ill., in the April 3, 2015, armed robbery of the Circle K convenience store and the April 5, 2015, murder of Paige Mars, also of Decatur.
The indictment alleges that on April 3, 2015, Higgins-Vogt and Kelton Snyder robbed the Circle K convenience store at 1685 S. Baltimore in Decatur, and took money, including the contents of the cash register, and alcohol, while brandishing a 12-gauge shotgun. On or about April 5, the indictment alleges that Higgins-Vogt killed Paige Mars to prevent Mars from communicating with law enforcement about the robbery.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Jason Bohm and Katherine Boyle. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Higgins-Vogt has been in the custody of the U.S. Marshals Service since his initial appearance on Feb. 17, 2017. He will be arraigned on the indictment in federal court in Urbana on a date to be determined by the U.S. Clerk of the Court. Trial for Higgins-Vogt is currently scheduled on Sept. 18. A jury previously convicted Snyder on similar charges and he is serving a life sentence.
The indictment returned today charges Higgins-Vogt with interference with commerce by violence, otherwise known as a Hobbs Act Robbery; killing a witness; use of a firearm resulting in death; brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a felon.
If convicted, the penalty for killing a witness is life in prison; use of a firearm resulting in murder is up to life in prison; brandishing a firearm during and in relation to a violent crime is a mandatory minimum of seven years and a maximum of up to life in prison, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence; Hobbs Act Robbery is up to 20 years in prison; and being a felon in possession of a firearm is up to 10 years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Fairhaven Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
BOSTON – A Fairhaven man pleaded guilty today in federal court in Boston to distributing methamphetamine.
Peter Lobo, 54, pleaded guilty today to one count of distributing methamphetamine before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Oct. 4, 2017.
In late 2016, an undercover agent posing as a Maine methamphetamine dealer met with Lobo, and on Dec. 12, 2016, Lobo distributed a half pound sample of methamphetamine to the agent. Two days later, the agent paid Lobo $4,000 for the half pound, and Lobo sold an additional four pounds of methamphetamine to the agent. A subsequent drug analysis determined that the substance consisted of 1,777 grams of 99% pure d-methamphetamine hydrochloride, also known as “Ice.”
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Elkton Man Sentenced on Methamphetamine, Gun ChargesRead the Press Release
Harrisonburg, VIRGINIA – An Elkton man, who was the driver of a car pulled over in Shenandoah County and found to be illegally in possession of a firearm and illegal drugs, was sentenced today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Blake Morgan Stroop, 22, of Elkton, was sentenced today to 130 months’ imprisonment, with a five-year period of supervised release to follow. Stroop previously pled guilty to one count of conspiring to distribute more than 50 grams of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to evidence presented at previous hearings by Assistant United States Attorney Jeb Terrien, on October 12, 2015, officers in Shenandoah County stopped a rental vehicle drive by Stroop, in which Ernest Wayne Good was the passenger. After smelling marijuana and hearing Good admit to smoking “a little while ago,” officers searched Good and Stroop and found various items, including methamphetamine and firearms, among other items. Good was previously convicted and sentenced to 68 months in federal prison for his crimes.
Later, on November 13, 2005, again in Elkton, Stroop and Good were again apprehended by law enforcement. On this occasion, Stroop was found in possession of a large amount of methamphetamine, approximately $12,070, and a loaded .380 caliber pistol with an obliterated serial number. Good was also found in possession of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the RUSH Drug Task Force, Shenandoah County Sheriff’s Office, Elkton Police Department, and Strasburg Police Department. Assistant United States Attorney Jeb Terrien and Special Assistant United States Attorney Thomas Duncombe prosecuted the case for the United States.
Department of Justice Statement on the Closing of Its Investigation into the Possible Acquisition of Chicago Sun-Times by Owner of Chicago TribuneRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into the possible acquisition of the Chicago Sun-Times by tronc Inc., the owner of the Chicago Tribune:
On May 15, 2017, the Antitrust Division announced that it was investigating the possible acquisition of the Chicago Sun-Times by tronc because the merger of the two daily newspapers in Chicago would raise significant antitrust concerns.
The Division’s investigation focused on whether the Chicago Sun-Times was a failing company under the Department of Justice/Federal Trade Commission Horizontal Merger Guidelines, which provide that a transaction is not likely to be anticompetitive if the assets of one of the firms would otherwise exit the market. One of the conditions required to be met in order to establish the “failing firm” defense is that the failing firm “has made unsuccessful good-faith efforts to elicit reasonable alternative offers that would keep its tangible and intangible assets in the relevant market and pose a less severe danger to competition than does the proposed merger.” Horizontal Merger Guidelines at § 11. Because this condition may not be satisfied by a confidential sale effort, a seller may choose to undertake a public sale process to augment its effort to elicit reasonable alternative offers.
In this case, Wrapports LLC, the owner of the Chicago Sun-Times, launched a public sale process on May 16, 2017, which the Division monitored closely. This process resulted in Wrapports selling the Chicago Sun-Times to an alternative buyer, ST Acquisition Holdings LLC, which does not currently own an interest in any other newspaper. As a result, the Division will be closing its investigation of the possible acquisition of the Chicago Sun-Times by tronc.
The Division notes that some transactions that rely on a failing firm defense may not be reportable under the Hart-Scott-Rodino Act. Division encourages firms whose non-reportable transaction relies on a failing firm defense to: (i) inform the Division about the proposed transaction prior to consummation; (ii) allow for sufficient time for the Division to conduct a thorough investigation, which may decrease the possibility of a precipitous enforcement action; and (iii) plan in advance for the costs of undergoing such an investigation. At the same time, when voluntarily notified of such a transaction, the Division endeavors to conduct its investigation expeditiously under the circumstances. Here, Wrapports helpfully notified the Division of the Letter of Intent that it had entered into with tronc, which enabled the Division to open its investigation and monitor the public sale process.
The Antitrust Division is the agency responsible for investigating mergers involving newspapers.
Tronc is a Delaware corporation headquartered in Chicago. It publishes major daily newspapers across California, Illinois, Florida, Maryland, Connecticut, Virginia and Pennsylvania. Wrapports is a privately-held Delaware limited liability company based in Chicago. ST Acquisition Holdings is a privately-held Delaware limited liability company based in Chicago.
The Antitrust Division’s Closing Statement Policy
The Division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the Division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the Division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the Division in any future enforcement actions. Guidance on the division's policy regarding closing statements is available at www.justice.gov/atr/public/closing/index.html.
Del Rio Man Sentenced to 121 Months in Federal Prison for Possession of Child PornographyRead the Press Release
In Del Rio, a federal judge sentenced 30-year-old Ramiro Martinez to 121 months in federal prison followed by ten years of supervised release for possession of child pornography announced United States Attorney Richard Durbin, Jr. and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio.
During Monday’s sentencing hearing, U.S. District Judge Alia Moses also ordered that Martinez pay a $2,000 fine and forfeit the computer and other property he used in the commission of the offense.
On May 21, 2015, Martinez pleaded guilty to one count of possession of child porn. By pleading guilty, Martinez admitted that from August 2014 through October 2014, he was in possession of child pornography.
On October 30, 2014, HSI agents executed a search warrant at the defendant’s residence and seized the defendant’s computer and other related material. A forensics examination of the seized items revealed the presence of more than 125 images and videos depicting the sexual exploitation of children.
“As this sentence makes clear, those who exploit innocent children will face serious consequences,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Targeting these crimes is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators that traumatize and victimize children.”
HSI conducted this investigation. Assistant United States Attorney Matthew H. Watters prosecuted this case on behalf of the Government.
Dallas Man Admits His Role in a $6.4 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — Jay Bruce Heimburger, 58, of Dallas, appeared yesterday before U.S. Magistrate Paul D. Stickney and pleaded guilty to his role in a diamond investment scheme that the indictment alleged ran from approximately March 2011 to November 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Heimburger pleaded guilty to one count of mail fraud. He faces a maximum penalty of not more than 20 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set for October 16, 2017.
Co-defendant Christopher Arnold Jiongo, 56, of Houston, pleaded guilty in May 2017 to one count of wire fraud. Jiongo is scheduled to be sentenced September 11, 2017.
Craig Allen Otteson, 65, of McKinney, is scheduled to plead guilty to his role in the scheme on July 18, 2017.
According to documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
According to the plea documents signed by Heimburger, during the period from February 20121 through March 2013, Otteson and Heimburger engaged in a scheme to defraud investors, and to obtain money and property from these investors by false and fraudulent pretenses, representations, and promises.
The indictment charged that Jiongo drafted $50,000 diamond notes which Jiongo, Otteson and Heimburger later used as investment vehicles to generate investment funds. As part of their original business plan, Jiongo, Otteson and Heimburger represented to American Safe Retirements (ASR) that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Jiongo, Otteson and Heimburger all understood that ASR would instruct ASR sales agents to represent to investors that every dollar invested through the diamond notes would always be fully secured by the cash and diamond inventory of Worldwide Diamond.
The indictment also alleged that sometime in the summer of 2011, Jiongo, Otteson and Heimburger all realized that their original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Rather than inform ASR and the investors of the changed circumstances caused by their failed business plan, Jiongo, Otteson and Heimburger chose to deceive ASR when they failed to inform ASR that 100% of all investment funds would not be secured by cash and/or the diamond inventory of Worldwide Diamond. By deceiving ASR, Jiongo, Otteson and Heimburger knew that they were also causing the investors to be deceived about the use of investor funds.
In plea papers filed with the court, Heimburger admitted that he and Otteson engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. Heimburger also admitted that as part of the scheme to defraud investors, Heimburger and Otteson caused their sales agent to fraudulently sell promissory notes valued at $1,280,000 to 23 new clients in California.
The indictment alleged that during the period from 2011 through 2013, Otteson and Heimburger caused over $6.4 million to be fraudulently collected from 77 Worldwide Diamond investors.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Twenty-six defendants have been charged as part of that initiative; 21 were convicted, one resulted in a mistrial and four are pending trial.
The U.S. Postal Inspection Service is conducting the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Cumberland County Man Indicted on Child Exploitation ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jesse Owen Maurice, age 27, of Carlisle, Pennsylvania, was indicted by a federal grand jury for offenses involving the sexual exploitation of a minor.
According to United States Attorney Bruce D. Brandler, Maurice is alleged to have coerced and enticed a minor to take sexually explicit photographs of herself and send them to him over the internet in November 2016. Maurice also is charged with distributing those sexually explicit photographs. The two-count indictment charges Maurice with production of child pornography and receipt and distribution of child pornography. The indictment also seeks forfeiture of all electronic equipment used to take those images.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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 for the production of child pornography offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years. The receipt and distribution of child pornography charge is punishable by a maximum of 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of five years. 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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Corporate Insiders and Managers of Long Island Boiler Room Indicted for Orchestrating $147 Million Stock Manipulation Scheme Involving Publicly Traded CompaniesRead the Press Release
A nine-count indictment was unsealed this morning in federal court in Brooklyn, New York, against 14 defendants: Jeffrey Chartier, Stephanie Lee, Lawrence Isen and Robert Gleckman, insiders and marketers of five publicly traded companies whose stock the defendants manipulated; Erik Matz and Ronald Hardy, managers of My Street Research and its predecessors (the “Boiler Room”); Brian Heepke, Dennis Verderosa, Emin L. Cohen, Paul Ewer, McArthur Jean, and Sergio Ramirez, Boiler Room cold-callers; Anthony Vassallo, owner of Elite Stock Research (“ESR”); and Robert Gilbert, owner of Accredited Investor Preview (“AIP”).[1]
The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and substantive securities fraud in connection with the stock manipulation of five publicly traded companies – National Waste Management Holdings, Inc., trading under the ticker symbol NWMH; CES Synergies, Inc., trading under the ticker symbol CESX; Grilled Cheese Truck, trading under the ticker symbol GRLD; Hydrocarb Energy Corporation, trading under the ticker symbol HECC; and Intelligent Content Enterprises, Inc., trading under the ticker symbol ICEIF. In addition, the government restrained Matz’s residence in Mt. Sinai, New York, Isen’s residence in San Diego, California, and a co-conspirator’s residence in Hicksville, New York, and seized bank accounts containing alleged criminal proceeds and automobiles purchased with alleged criminal proceeds.
Matz, Hardy, Heepke, Verderosa, Cohen, Ewer, Jean, Ramirez, Vassallo, and Gilbert will be arraigned this afternoon before Magistrate Judge Robert M. Levy, at the United States Courthouse in Brooklyn. Chartier’s and Gleckman’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 312 North Spring Street, Los Angeles, California. Lee’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 801 North Florida Avenue, Tampa, Florida. Isen’s initial appearance for removal proceedings to the Eastern District of New York is scheduled for this afternoon at the United States Courthouse, 333 W. Broadway, San Diego, California.
The indictment was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, the defendants designed an elaborate, fraudulent scheme, to defraud the investing public, preying, in particular, upon unsuspecting and elderly investors. Specifically, the defendants obtained shares from corporate insiders at below-market prices and engaged in manipulative trading patterns to drive up the price of the shares, while aggressively and repeatedly calling and emailing victims to purchase those shares,” stated Acting United States Attorney Rohde. “Today’s 14 arrests, in three states, reflect the scope of this fraud and our commitment to aggressively locating and bringing to justice those who abuse our financial markets in order to fraudulently enrich themselves.” Ms. Rohde expressed her grateful appreciation to the FBI and the United States Securities and Exchange Commission for their significant cooperation and assistance in the investigation.
“Manipulating stock prices, as alleged in this case, to appear more attractive to investors, is a deliberate attempt at sabotaging fair market trading,” stated Assistant Director-in-Charge Sweeney. “And manipulation, at its core, is a true act of deception, especially when the elderly are targeted. This scheme involved an incredible amount of money, more than $147 million. That's no small change for even the savviest investor. As evidenced by our arrests today, we take these matters seriously, and will continue to pursue those who make victims out of unwitting participants in these schemes.”
Overview
As alleged in the indictment and court proceedings, between January 2014 and July 2017, the defendants, together with others, engaged in a $147 million scheme to defraud investors and potential investors in, among other companies, one or more of the following publicly traded companies: NWMH, CESX, GRLD, HECC, and ICEIF (collectively, the “Manipulated Public Companies”), by artificially controlling the price and volume of traded shares in the Manipulated Public Companies through, among other things, (a) artificially generating price movements and trading volume in the shares, and (b) material misrepresentations and omissions in their communications with victim investors about the stock of the Manipulated Public Companies, relating to, among other things, the advisability of purchasing such stock. To execute this scheme, the defendants fraudulently concealed their control of shares of the Manipulated Public Companies that were held in brokerage accounts in the names of other individuals or entities. In addition, in or about and between 2014 and 2017, defendants Chartier, Lee, Isen, Matz, and Hardy engaged in a scheme to launder approximately $14,714,493 in proceeds of the foregoing stock manipulation schemes.
The Stock Manipulation Scheme
In order to carry out the fraudulent pump and dump scheme, employees of the Boiler Room based in Melville, New York, obtained shares from insiders at the Manipulated Public Companies, including the defendants Chartier, Lee and Gleckman, at below-market prices through stock purchase and consulting agreements. Once employees of the Boiler Room obtained shares in the Manipulated Public Companies, the defendants engaged in manipulative trading patterns including wash trades and matched trades to drive up the price of the shares, while aggressively and repeatedly calling and emailing victims – many of whom were senior citizens – to purchase shares in the Manipulated Public Companies. When victims indicated a willingness to purchase a recommended stock, the defendants and their co-conspirators at the Boiler Room called the victims repeatedly, pressured them to follow through with their purchases and directed them to log into their trading accounts while still on the telephone to place purchase orders for the relevant stock. Many of the victims ultimately purchased stock in more than one of the Manipulated Public Companies. In some cases, the Boiler Room also charged the victims for “subscriptions” to receive stock recommendations.
The defendants did not disclose to the victims that, contemporaneously with or shortly after their recommendation to the victims of the stocks of the Manipulated Public Companies, the defendants and their co-conspirators sold their own shares in the same companies. The victims therefore were left with the false and misleading impression that the stocks of the Manipulated Public Companies were sound investments in which the defendants and their co-conspirators themselves firmly believed.
The defendants’ deceptive practices included using false names or the names of co-conspirators instead of their true names during their communications with victims. The defendants Matz, Heepke, Cohen and Jean most frequently employed those tactics by providing false names to victims and by using email addresses in other individuals’ names when communicating with victim investors. In addition, the defendants directed and controlled trading in shares of the Manipulated Public Companies in brokerage accounts with names that were not associated with themselves or the Boiler Room. Such trading, which included matching trades of both victims and co-conspirators as part of the scheme to manipulate the stock of the Manipulated Public Companies, appeared not to be linked to the defendants or the Boiler Room.
The Money Laundering Scheme
Between 2014 and 2017, the defendants Chartier, Lee, Isen, Matz and Hardy engaged in a scheme to launder approximately $14,714,493 in proceeds of the fraudulent schemes to manipulate the share prices of NWMH, CESX, GRLD, HECC and ICEIF. They laundered proceeds of their pump and dump schemes by transferring the proceeds from brokerage accounts that they and their co-conspirators controlled through, among other things, bank accounts in the names of companies controlled by the co-conspirators and other individuals, or by generating invoices to lend the appearance of legitimacy to the transactions.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alicyn L. Cooley and Patrick T. Hein are in charge of the prosecution. Assistant U.S. Attorney Tanisha R. Payne is handling the forfeiture aspects of the case.
The Defendants:
JEFFREY CHARTIER
Age: 53
Residence: Los Angeles, CaliforniaSTEPHANIE LEE
Age: 46
Residence: St. Petersburg, FloridaLAWRENCE ISEN
Age: 63
Residence: San Diego, CaliforniaROBERT GLECKMAN
Age: 52
Residence: Tarzana, CaliforniaERIK MATZ
Age: 44
Residence: Mt. Sinai, New YorkRONALD HARDY
Age: 42
Residence: Port Jefferson, New YorkBRIAN HEEPKE, also known as “Brian Targis”
Age: 36
Residence: Farmingdale, New YorkDENNIS VERDEROSA
Age: 67
Residence: Coram, New YorkEMIN L. COHEN, also known as “Ian Grant”
Age: 33
Residence: Coram, New YorkANTHONY VASSALLO
Age: 54
Residence: Farmingdale, New YorkPAUL EWER
Age: 36
Residence: Massapequa, New YorkMCARTHUR JEAN, also known as “John McArthur”
Age: 34
Residence: Dix Hills, New YorkROBERT GILBERT
Age: 51
Residence: Cold Spring Harbor, New YorkSERGIO RAMIREZ
Age: 44
Residence: East Meadow, New YorkE.D.N.Y. Docket No. 17-CR-372 (JS)
[1] The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty.
Coopersville Man Sentenced to Prison in Scheme to Defraud Herman Miller Inc. of $1.77 MillionRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Kevin John Grimm, 61, was sentenced to serve 27 months in federal prison for his role in defrauding furniture manufacturer Herman Miller Inc. in a vendor invoicing scheme. The Honorable Paul L. Maloney, U.S. District Judge, imposed the sentence. In addition to the prison term, Grimm was ordered to serve two years of supervised release, pay $458,947.14 in restitution, and forfeit an additional $458,947.14 to the government.
Grimm pled guilty on March 21, 2017, to conspiracy to commit mail fraud and wire fraud. He admitted conspiring with Spring Lake resident Jerry Akers to devise and execute a scheme to defraud Herman Miller between June 2010 and July 2015 using Grimm’s company, KJ Gas Transportation, LLC. With Akers’s assistance as an employee at the company, Grimm submitted false and fraudulent invoices for payment for natural gas services he never provided. The fraud scheme generated $1,772,726 in payments to his company. Prior to Grimm’s sentencing, Akers and Grimm collectively returned $1,313,779 of the illegal proceeds they obtained during the fraud, with Grimm paying $1,223,779 of that amount.
This matter was investigated by the Grand Rapids office of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher O’Connor.
END
Convicted Felon Sentenced in Federal Court on Drug and Gun ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Dereke Lamar Collins Carroll, 27, of Daphne, was sentenced today in federal court on charges involving his illegal possession of marijuana and ammunition. The federal indictment alleged that Carroll was previously convicted of two felony drug charges, and that he was found in possession of both crack cocaine and marijuana with the intent to distribute them. Court documents reflect that a Daphne police officer observed Carroll speeding in the Lake Forest subdivision. The officer pursued Carroll , who attempted to elude the officer until he turned into a cul de sac. Carroll jumped out of the car while it was still moving and ran between two houses, climbing two fences to avoid apprehension. He was caught and the police found a pink bag he discarded as he jumped one of the fences. Law enforcement recovered crack cocaine, marijuana, a marijuana grinder, a box of plastic bags used to package drugs, and a handgun magazine located with 10 rounds of 9 mm cartridges. Carroll’s wallet contained his identification and $435 in cash. In March of 2017, Carroll pled guilty to the count charging possession with intent to distribute marijuana and his illegal possession of the ammunition as a convicted felon.
Senior District Court Judge Callie V. S. Granade sentenced Carroll this morning to 130 months imprisonment, consisting of 60 months on the drug count and 70 months on the gun count, and ordered that they be served consecutively. The judge also ordered that Carroll will serve three years on supervised release following his release from imprisonment. She also ordered that Carroll undergo drug abuse treatment while in custody and when he is released on supervision. No fine was imposed, but the judge ordered that Carroll pay the special mandatory assessments of $200.
The case was investigated by the Daphne Police Department and the Federal Bureau of Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.Contractor Pleads Guilty to Making False Statements and Theft of Government FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, pled guilty today to one count of making false statements in violation of 18 U.S.C. § 1001 and one count of theft of government funds in violation of 18 USC § 641.
According to court documents, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program, also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. In 2011 and 2012, each elevation grant from HMGP was worth up to $100,0000 with contractors and homeowners being entitled to an advanced payment of 80% of the grant prior to a contractor doing any elevation work. The HMGP expected homeowners receiving HMGP grants to commit their $30,000 Road Home elevation grant to the total cost of the elevation.
In 2011, SPEARS signed contracts with multiple homeowners in the Eastern District of Louisiana to elevate their homes through the HMGP. For many of these contracts, SPEARS received advanced payments from the HMGP prior to starting the elevation work. For at least two contracts, the homeowners gave him Road Home elevation funds prior to HGMP approving their grants or giving them an advanced payment.
On or about May 5, 2012, SPEARS was placed on a restricted status with the HMGP that prohibited him from getting any advanced payments on new elevation contracts because he was significantly out of compliance with a number of his pending elevation projects. On or about July 20, 2012, in an effort to be removed from his restricted status with the HMGP, SPEARS falsely represented to the program that certain funding recipients had requested that their elevation be delayed when, in truth and in fact, they had not requested a delay. In August 2012, the HMGP removed SPEARS from restricted status on representations from him that he would have the properties completed by the end of 2012.
However, as of 2013, SPEARS had still failed to do any work on at least three properties for which he had received $118,000 in federal funds, including the two properties for which he had received the Road Home elevation funds as down payment. Despite demands, SPEARS has not returned the funds to the government or the homeowners.
A violation of 18 USC § 1001 carries a maximum term of imprisonment of not more than 5 years, a fine of $250,000, not more than three years supervised release after imprisonment, and a $100 special assessment. violation of 18 USC § 641 carries a maximum ten year term of imprisonment, a $250,000 fine, not more than three years of supervised release following any term of imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for November 8, 2017.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security-OIG and the Federal Bureau of Investigation for investigating this matter.
Complaint Filed Against Tulsa Man Alleged to Be Responsible for Explosion at Bixby Air Force Recruitment OfficeRead the Press Release
Today, Acting United States Attorney for the Northern District of Oklahoma, Loretta F. Radford, filed a four-count Federal Complaint against Benjamin Don Roden, a 28-year-old resident of Tulsa, Oklahoma, accused of using an explosive device to cause destruction of the Bixby Air Force Recruitment Office. The Federal Complaint charges Roden with Malicious Damage to Federal Property By Use of Explosive, Destruction of Federal Property, Use of Explosive to Commit Federal Felony, and Destruction of Federal Property.
The supporting affidavit to the Complaint generally alleges that Roden violated Federal laws associated with the destruction of Federal property and Federal laws prohibiting the manufacturing, possession, and use of explosives. The Complaint specifically alleges that on July 10, 2017, at approximately 10:28 p.m., an explosive device detonated outside of the Air Force Recruiting Station located at 10425 South 82nd East Avenue, Suite 103, Bixby, Oklahoma. Besides breaking windows, the resulting explosion from the detonation of the explosive device caused significant structural damage to the office front of the recruiting station. Roden was identified and later arrested, based upon leads obtained from Roden’s Facebook page and a witness who identified Roden’s motorcycle speeding away simultaneously with the sound of an explosion in the area; the execution of a Federal search warrant against Roden’s residence; and a consensual search of a residence belonging to Roden’s parents. The explosive, identified by law enforcement specialists as an improvised explosive device, is commonly referred to as a “pipe bomb”.
“The exacting and immediate response by the Federal Bureau of Investigation has led to the successful arrest and detention of an individual who would seek to do harm to the citizens of the Northern District by designing and creating a pipe bomb to target a Federal military recruitment facility. I view this conduct as not only a threat to the safety of the citizens of this district, but as an assault upon all of the dedicated men and women in this country who willingly support our military efforts,” Acting U.S. Attorney, Loretta F. Radford said. “I intend to seek a formal grand jury indictment.”
The Federal Bureau of Investigation is leading the investigation, assisted by Special Agents with the Alcohol, Tobacco, Firearms and Explosives Unit, the Tulsa Police Department Bomb Squad and the Bixby Police Department. Assistant United States Attorneys Allen J. Litchfield and R. Trent Shores will prosecute the case.
Coaldale Man Charged with Possessing Methamphetamine with Intent to DistributeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Breck, III, age 34, of Coaldale, Pennsylvania, was indicted on July 11, 2017, by a federal grand jury for possession of methamphetamine with the intent to distribute.
According to United States Attorney Bruce D. Brandler, Beck was found in possession of approximately 200 grams of methamphetamine at his home on July 5, 2017.
The charges stem from an investigation by the Drug Enforcement Administration and the Pennsylvania State Police Department. Assistant United States Attorney Evan Gotlob is prosecuting the case.
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 defendant is facing a mandatory minimum of five years and maximum of 40 years in prison and a $5,000,000 maximum fine and lifetime maximum supervised release. 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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Canadian Man Sentenced on Drug Charges Following Extradition to United States in Case Involving Largest Seizure of Cocaine in District HistoryRead 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 Gursharan Singh, 34, of Brompton, Ontario, Canada, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 63 months in prison by U.S. District Judge Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between 2007 and May 2011, Singh conspired with others to smuggle cocaine into Canada from the United States via several international bridges located including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.
Singh was indicted along with Alvin Randhawa and Harinder Dhaliwal, all three have been convicted. Also charged and convicted in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu.
Today’s sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; Officers from the United States Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
California Tax Preparer Sentenced to More Than 14 Years in Prison for Using Stolen IDs to File Fraudulent Returns Seeking More Than $2 Million in RefundsRead the Press Release
A Lemon Grove, California woman was sentenced to serve 175 months in prison for her role in two stolen identity refund fraud schemes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Alana W. Robinson of the Southern District of California.
In April 2013, Cynthia Lozano was charged in a 33-count indictment for using stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS). According to the indictment as well as documents and information provided to the court, Lozano directed the IRS to deposit the refunds into bank accounts in 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 into a bank account she controlled without her clients’ knowledge.
On Feb. 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 returns, resulting in her receipt of approximately $1.5 million in fraudulently obtained refunds between 2008 and 2013.
In June 2015, while Lozano was awaiting sentencing, agents from the IRS Criminal Investigation (CI) and Department of Treasury, Inspector General for Tax Administration (TIGTA) discovered that Lozano filed additional fraudulent returns in a manner similar to her previous scheme. Lozano was subsequently charged in a second indictment with 51counts, including filing false claims for refund, wire and mail fraud, and aggravated identity theft.
Some of the victims of Lozano’s 2015 scheme were actual or prospective tenants of properties she purchased and titled in the name of her relative, who does not live in the United States. Using her relative’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 (PHA) supplements rent to a qualifying property owner on behalf of eligible 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 stole the names and social security numbers from her Section 8 tenants, and others who submitted rental applications to Lozano and used them to file additional false returns. Lozano then directed the IRS to deposit the refunds into 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.
“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 Goldberg. “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.”
“The lying, cheating defendant went on a white-collar crime spree that continued even after she got caught,” said Acting U.S. Attorney Robinson. “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.”
“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,” said Special Agent in Charge R. Damon Rowe of IRS-CI. “IRS Criminal Investigation, along with our law enforcement partners and the U.S. 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 U.S. Treasury and blatantly disregard the victims of their schemes.”
“This is a case about the irresistibility of greed,” said Special Agent in Charge Rod Ammari of TIGTA Office of Investigations San Francisco Field Division. “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.”
In addition to the terms of prison imposed, U.S. District Court Judge Anthony J. Battaglia ordered Lozano to serve three years of supervised release, to pay $1.479 million in restitution to include the IRS and HUD. Lozano is alleged to have used illegal proceeds from the first scheme to purchase properties in and around the Phoenix, Arizona area. A forfeiture hearing will be scheduled at a later date. Lozano pleaded guilty to two counts of the first indictment on Feb. 13, 2015, and the remaining 31 counts on Aug. 31, 2016. She pleaded guilty to all 51 counts of the second indictment on Nov. 15, 2016.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Robinson commended special agents of IRS–CI and TIGTA, who conducted the investigation, and Trial Attorney Thomas Flynn of the Tax Division and Assistant U.S. Attorney Christopher Tenorio, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Man Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A California man who participated in a large-scale cocaine trafficking conspiracy was sentenced today to 162 months in prison.
Hilario Rodriguez, 50, pleaded guilty on April 12. According to court documents, Marvin O’Neal Carter, Sr., 49, of Newport News; Michael Stephen Kuna, 42, of Canada; Daniel Rodriguez, 49, and Hilario Rodriguez, both of California; were charged with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Carter was also charged with possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, possession of a firearm during a drug trafficking crime and maintaining a drug involved premises. In addition to the conspiracy charge, Daniel and Hilario Rodriguez were charged with interstate travel in aid of racketeering.
According to court documents, agents observed the arrival of a tractor trailer at a garage leased by Carter. The tractor trailer eventually off-loaded the trailer next to the garage, and agents observed Michael Kuna, and Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The four men then allegedly worked together to unload cocaine from hidden compartments located underneath the trailer. A short time later, Kuna was observed loading two large duffel bags with green straps into a vehicle before leaving the area. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which emanated with the odor of wet currency.
According to court documents, as Kuna was being detained, agents executed two federal search warrants on the garage and trailer. During the search, approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks were recovered. The search of the garage also led to the recovery of a firearm and a quantity of heroin, in addition to approximately $42,000 in cash from a safe.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-76.
California Man Pleads Guilty to Methamphetamine 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 Lawrence Neubert, 46, of San Diego, CA, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 50 grams or more of methamphetamine before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on September 4, 2014, and October 2, 2014, the defendant mailed packages containing more than 220 grams of methamphetamine, via FedEx, from California to Buffalo. Surveillance video from September 4, 2014, showed Neubert preparing the package and paying for its shipment in cash. In exchange for sending the packages, Neubert received $3500 in USPS money orders.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for October 18, 2017, at 2:00 p.m. before Judge Skretny.
Brother and Sister Charged with Phony Invoice SchemeRead the Press Release
NEWARK, N.J. – A brother and sister from New Jersey have been charged with running a multi-million-dollar fraudulent invoice scheme, Acting U.S. Attorney William E. Fitzpatrick announced today.
Shevandra Verasawmi, 37, of Matawan, New Jersey, and Vishallie Verasawmi, 36, of Green Brook, New Jersey, are charged by indictment with one count of conspiracy to commit mail fraud and three counts of mail fraud.
Shevandra Verasawmi was arrested July 11, 2017, and appeared that afternoon before U.S. Magistrate Judge David Cayer in Charlotte, North Carolina, federal court. Vishallie Verasawmi was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Both defendants, who are out on bail, will be arraigned before U.S. District Judge Freda L. Wolfson in Trenton federal court on July 19, 2017.
According to the indictment:
From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to add the shell companies to Victim Company 1’s accounts payable system.
Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including luxury cars and credit card payments.
The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’ s alleged proceeds from the scheme, including $1,066,829.57 and a 2016 BMW 750Li xDrive sedan.
The mail fraud conspiracy and mail fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
The investigation was led by criminal investigators with the U.S. Attorney’s Office in Newark. The government is represented by Assistant U.S. Attorneys Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Alex Weinberg of the office’s Asset Forfeiture and Money Laundering Unit.
Acting U.S. Attorney Fitzpatrick thanked postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the U.S. Marshals for their assistance.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Brewer Man Sentenced to 69 Months for Possessing Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Ronald Boersma, 38, of Brewer, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 69 months in prison to be followed by 15 years of supervised release for possessing child pornography. Boersma pleaded guilty on November 18, 2016.
According to court records, in February of 2016, law enforcement, using a peer-to-peer file sharing program, downloaded files containing images of child pornography from the defendant’s home computer. A search warrant was subsequently obtained for the defendant’s residence where a forensic examination of the defendant’s computer revealed additional images of child pornography. On the day the search warrant was executed, the defendant was interviewed and admitted that he had searched for and downloaded sexually explicit images via the internet and that his specific interest was in females between 8 and 10 years of age.
The case was investigated by the Maine State Police Computer Crimes Unit and the U.S. Secret Service.
Brandon Scott Woodley to Serve A Total of 138 Months in Prison Following Shooting in West Knoxville Hotel Parking LotRead the Press Release
KNOXVILLE, Tenn. – On July 12, 2017, Brandon Scott Woodley, 35, of Knoxville, Tennessee, was sentenced by the Honorable Leon R. Jordan, Senior U.S. District Judge, to serve 120 months in prison for knowingly possessing ammunition after having been previously convicted of a felony. Woodley was convicted in December 2016 after a jury trial in federal court.
Woodley has been in custody since his arrest in September 2015, following a shooting in a west Knoxville hotel parking lot in August 2015. Witnesses testified at trial that Woodley shot a co-worker during an argument and tried to shoot the victim a second time, but the gun jammed. Woodley fled the scene and the firearm was never recovered; however, some ammunition from the shooting was recovered in the parking lot. The victim was hospitalized after the shooting, but has fully recovered.
At the time of the offense, Woodley was serving a three-year term of supervised release after his release from prison for a 2009 conviction of being a convicted felon in possession of a cache of firearms. As a result of his more recent conviction and his illegal drug use and drug trafficking while on supervised release, Judge Jordan also revoked his supervised release and ordered him to serve an additional prison term of 18 months, to be run consecutively with the 120-month sentence for the more recent charge, for a total of 138 months.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Knoxville Police Department. Assistant U.S. Attorney Matthew T. Morris represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Attorney General Jeff Sessions Applauds House of Representatives for Anti-Human Trafficking LegislationRead the Press Release
Today Attorney General Jeff Sessions issued the following statement applauding the House of Representatives for passing three significant Anti-Human Trafficking bills:
“There is simply no way to overstate the horrific nature of enticement, kidnapping, and human trafficking. It is an absolute priority of President Trump and the Department of Justice to make those that seek to profit off the exploitation of others feel the weight of swift and certain justice. I am therefore extremely encouraged by the actions of Congress today in passing legislation aimed at stopping this scourge and commend all those that supported these bills.”
BACKGROUND
The Frederick Douglass Trafficking Victims Prevention and Protection Act
The Enhancing Detection of Human Trafficking Act
The Empowering Law Enforcement to Fight Sex Trafficking Demand Act
Anchorage Man Sentenced to Federal Prison for Distributing OpiumRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Danny R. Q. Wong was sentenced in federal court in Anchorage today to serve a term of 15 months in prison for distributing opium. Wong, 58, of Anchorage, was indicted last year for conspiring with three other persons to distribute opium. In three separate transactions, Wong sold a total of 1 and ¼ kilograms of opium to another individual for a total of $60,000. Two of the three remaining defendants in the case are awaiting trial, and the third is a fugitive.
In sentencing Wong to serve 15 months in prison, Chief U.S. District Judge Timothy M. Burgess noted that a significant amount of opium had been involved in the case, but also noted that at age 58, this was the first criminal conviction sustained by Wong who had otherwise lead a productive life as the owner of a metal recycling business in Anchorage.
Acting U.S. Attorney Schroder commends the Federal Bureau of Investigation Safe Streets Task Force for the investigation of this case.
American Falls Man Sentenced to 25 Years for Child EnticementRead the Press Release
POCATELLO – Jesus Nieto, 20, of American Falls, Idaho, was sentenced yesterday in United States District Court to 300 months in prison for enticing and coercing two underage girls, followed by 15 years of supervised release, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Nieto to pay a $5,100 special assessment. Nieto pleaded guilty to the charge on March 2, 2017.
According to the plea agreement, Nieto utilized Internet-based social media to communicate with two girls, ages 11 and 15, for the purpose of soliciting sexually explicit pictures and persuading and coercing the girls into engaging in sexual intercourse with him. Nieto communicated with the girls from approximately November 2015 to January 2016. Evidence introduced at sentencing indicated that Nieto had engaged in unlawful sexual activity with other underage girls as well.
The case was investigated by the American Falls Police Department, with the assistance of the Power County Prosecutor’s Office and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Alexandria Man Pleads Guilty to Gun and Drug CrimeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to the use and carry of a firearm during and in relation to a drug trafficking crime.
According to the statement of facts filed with the plea agreement, Bryan Jamal Matthews, 19, distributed an ounce of marijuana to an undercover police officer in the Kingstowne area of Fairfax County on February 8. Matthews then led officers on a short foot pursuit when they attempted to arrest him. During a search, officers seized a semi-automatic pistol with an extended magazine and other controlled substances from Matthews’ person. After his arrest on state charges, Matthews was released on bond and continued to distribute marijuana and possess firearms. Then, on May 19, federal agents executed a court-authorized search at Matthews’ residence and he again attempted to flee, tossing a loaded semi-automatic pistol into the nearby woods.
Matthews faces a mandatory minimum of five years and a maximum penalty of life in prison when sentenced on October 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Boxler, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-143.
11 July 2017
Woman Sentenced to 138 Months in Federal Prison for Her Role in Armed RobberiesRead the Press Release
DALLAS — Tatiana Renee Sallie, 20, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 138 months in federal prison for her role in committing several violent armed robberies with a group in the Dallas area in 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Sallie pleaded guilty in November 2016 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Sallie has been in custody since her arrest in April 2016.
Judge Lindsay previously sentenced co-defendants Devonte Aaron Dillard, 25, to 240 months in federal prison; Michael Deshun Holland, Jr., 22, to 220 months in federal prison; Coby Cole Ditto, 22, to 168 months in federal prison; and Trenton Kyle Sirkel, 21, to 24 months in federal prison.
“These people are extremely dangerous,” said U.S. Attorney Parker. “Working with our local and federal partners to take them off our streets is a critical part of this office’s work.”
According to documents filed in the case and information presented in court, Sallie and her co-defendants robbed four convenience stores in April and May 2015. The group displayed a firearm to the store clerk in all four of the robberies.
On April 17, 2015, Sallie waited in the car while Dillard and Holland, armed with a loaded firearm, entered a Chevron Food Mart on Highway 80 in Mesquite, Texas. In the course of robbing the store, Dillard shot the clerk. Holland repeatedly punched the clerk in the face, continuing even after the clerk had been shot.
On May 8, 2015, Dillard, Holland, Ditto and Sirkel entered a 7-Eleven store on Interstate Highway 30 in Mesquite, brandished a firearm, and robbed the store.
On May 12, 2015, Dillard, Holland, Ditto and Sallie entered a 7-Eleven store on Gus Thomasson Road in Mesquite. The group brandished a firearm, struck a store clerk in the head with the firearm, and robbed the store.
That same night, Dillard, Holland, Ditto and Sallie went to the 7-Eleven store on Northwest Highway in Garland. The group brandished a firearm and robbed the store, during which time Holland and Dillard brutally beat the store clerk.
The case was investigated by the Mesquite Police Department, the Garland Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jamie L. Hoxie and Keith Robinson prosecuted.
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Woman Indicted for Running Health Care Fraud Scheme from PrisonRead the Press Release
DALLAS — Alexis C. Norman, 46, of Midlothian, Texas has been indicted on felony offenses stemming from a health care fraud conspiracy she ran from prison that involved the submission of more than $810,000 in false claims to Medicaid, announced U.S. Attorney John Parker of the Northern District of Texas.
Norman is scheduled to make her initial appearance in federal court on July 14, 2017, before U.S. Magistrate Judge Paul D. Stickney.
On August 4, 2015, Norman pled guilty to one count of health care fraud in connection with a false billing scheme she ran using two companies she owned and operated, Greater Southwest Group, Inc. and Ellis County Community Services. As part of that scheme, Norman used the identities of licensed counselors and Medicaid clients without their knowledge or consent to submit claims to Medicaid for psychotherapy services that were not provided. Norman appeared before a United States District Court Judge for sentencing on April 7 and 8, 2016, and was sentenced to 105 months in federal prison and ordered to pay $2,969,045.97 in restitution to Medicaid. Norman has been in the custody of the Federal Bureau of Prisons since April 8, 2016.
According to the indictment that was just unsealed, Norman ran a similar scheme while she was awaiting sentencing in her prior case, and continued to direct it after she was incarcerated. The indictment alleges that Norman, who is not licensed as a psychotherapist or other mental health provider, controlled and operated two counseling companies, Janus Children Services, Inc. (Janus) and Therapeutic Outreach Services (Therapeutic). As part of the scheme, according to the indictment, Norman and a coconspirator applied for and obtained group Medicaid provider numbers for Janus and Therapeutic. They then obtained the individual Medicaid provider numbers of licensed mental health professionals by soliciting applications for job opportunities on Craigslist but not hiring the individuals who applied. Norman and her coconspirators used these provider numbers, together with the names, dates of birth, social security numbers, and Medicaid numbers of approximately 156 Medicaid clients—mostly minor children—to submit claims for services that were not performed.
As a further part of the scheme to defraud, Norman and a coconspirator opened a bank account and leased office space in Tyler, Texas for Janus. Norman also opened a bank account and leased office space in Waco, Texas, for Therapeutic. Norman selected these locations for office locations to conceal the fraud from the law enforcement authorities in the DFW area that investigated her prior fraud. Other than using the office addresses for various Medicaid applications and submissions, the office spaces in both Tyler and Waco were never occupied or used.
The indictment alleges to conceal the fraud, Norman provided false testimony at her sentencing hearing on April 8, 2016, when she responded “No, sir.” to the question, “Have you ever submitted any claims to Medicaid or a Medicaid managed care organization under a business other than Greater Southwest Group or Ellis County Community Services?” In fact, Norman had submitted numerous false claims to Medicaid under Janus, including $1,575.00 in claims she submitted on April 7, 2016.
Norman is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, and four counts of aggravated identity theft. The indictment also includes a forfeiture allegation that would require the defendant, upon conviction, to forfeit to the U.S. any property traceable to the offense.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count of conspiracy to commit health care fraud and substantive health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a $250,000 fine.
The U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit are investigating. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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Wolfeboro Man Sentenced to Seven Years in Prison for Two Rochester Bank RobberiesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Jacob Chiaradonna, 28, of Wolfeboro, New Hampshire, was sentenced to 84 months in federal prison for robbing two Rochester banks in October of 2016.
Court filings and statements made in court established that on October 5, 2016, Chiaradonna entered a Citizens Bank in Rochester, New Hampshire, and handed a teller a note that read “Give me all your $50 and $100, I have a gun don’t be stupid.” After taking money from the teller, Chiaradonna fled the bank. Six days later, on October 11, 2016, Chiaradonna robbed a TD Bank in Rochester using a similar strategy, handing a teller a note that read “give me your 20’s, 50’s, 100’s, I have a gun,” then fleeing on foot with the cash.
Law enforcement officers posted images of the robberies on television and social media, and several individuals familiar with Chiaradonna came forward to identify him as the robber. On October 13, 2016, law enforcement located Chiaradonna at a motel in Wolfeboro, New Hampshire, and arrested him. A search of Chiaradonna’s cell phone from the motel turned up an internet browsing history that included visits to web pages providing advice on how to rob a bank.
Chiaradonna previously pleaded guilty to the two bank robberies on March 16, 2017. After serving his prison sentence, he will be on supervised release for a period of 3 years.
The case was jointly investigated by the Police Departments of Rochester and Wolfeboro, and by the Federal Bureau of Investigation and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Shane B. Kelbley.
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White Sulphur Springs drug dealer pleads guilty to federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A White Sulphur Springs heroin dealer pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Gerald Tyrone King, 37, entered his guilty plea to distribution of heroin.
King admitted that on May 27, 2016, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in White Sulphur Springs.
King faces up to 20 years in federal prison when he is sentenced on October 18, 2017.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of the Greenbrier Valley Heroin and Pill Initiative, 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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White County, Tennessee Business Owner Charged in $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tenn., was charged in a criminal information filed on July 5, 2017, with wire fraud and money laundering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tenn.
The charging document contains the following allegations: beginning in 2012 and continuing to mid-December of 2016, Gentry devised and executed a scheme to defraud and obtain money and property from investors, promising high rates of return on investments, purportedly used to purchase farm-related equipment to satisfy state contracts and producing significant profits.
Gentry falsely represented to investors, including customers, friends, acquaintances, and family members, many of whom lived in White County, Tennessee, that he was bidding on and winning contracts from various states, including Tennessee, to supply equipment, including tractors, lawn mowers, and other farm-related equipment through his tractor supply company.
Through this scheme, Gentry convinced more than 50 individuals to invest funds totaling approximately $43 million and caused financial loss to investors of more than $10 million.
Despite his assurances to investors of significant returns, Gentry never intended to invest the funds as promised but instead, used the money to subsidize his lifestyle, amassing assets worth a substantial amount of money, including numerous tracts of real estate and vehicles.
In March 2016, Gentry also used investor funds to start up and support a new business venture, Gentry Auto, a used car lot, transferring more than $365,000 of investor funds from the Gentry Brothers Tractor Supply company to the Gentry Auto business between March 24, 2016 and December 6, 2016.
The charging document also contains a forfeiture allegation which seeks a monetary judgement of at least $10 million.
If convicted, Gentry faces up to 20 years in prison on each count and monetary fines.
This case was investigated by the FBI, the IRS-Criminal Investigation; and the U.S. Marshal’s Office. The case is being prosecuted by Assistant U.S. Attorney Kathryn Risinger. Assistant U.S. Attorney Deb Phillips is handling the asset forfeiture.
The charges brought by this information are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Watertown Man Sentenced for Citizenship FraudRead the Press Release
SYRACUSE, NEW YORK – Gurpreet Singh (37) of Watertown, New York, was sentenced today in federal court in Syracuse to three months in prison to be followed by three years of supervised release, following a jury trial in January where he was convicted of knowingly obtaining U.S. citizenship through unlawful naturalization, announced Acting United States Attorney Grant C. Jaquith and James C. Spero, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York.
Because of this conviction, Singh’s U.S. citizenship will be revoked by law.
The trial evidence showed that Singh, who is originally from India, repeatedly affirmed to United States Citizenship and Immigration (USCIS) authorities that he had not committed any crimes for which he was not arrested. Immigration authorities later learned that the defendant sexually abused a 9-year-old child during the same time-period he was applying for U.S. citizenship. Evidence presented at trial demonstrated that Singh deliberately failed to report his criminal activity to USCIS because he knew that USCIS would not have approved his naturalization application if the agency had known about his crimes. Singh pled guilty in New York state court to a single count of sexual abuse of a minor child, after he had become a naturalized U.S. citizen. Singh was arrested by the City of Watertown (New York) Police Department the day after his naturalization ceremony in April 2012.
While on supervised release following his prison term, Singh will be required to register as a sex offender and will be prohibited from having direct contact with children under the age of 18 (other than his own) and from going to places where children under 18 are likely to congregate, such as parks, libraries, and schools, without prior permission of a probation officer.
This case was investigated by Homeland Security Investigations (HSI) and the City of Watertown Police Department, and was prosecuted by Assistant U.S. Attorneys Michael F. Perry and Robert S. Levine.
Utah Chiropractor Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
SALT LAKE CITY – An Orem, Utah former chiropractor, who also owned a health care products business, was convicted of tax evasion and corruptly endeavoring to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to evidence presented at trial, Louis Hansen, 65, attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. For 2007, Hansen’s return was audited and additional taxes assessed. In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
The jury returned the guilty verdicts Tuesday afternoon.
Hansen is scheduled to be sentenced before U.S. District Judge Clark Waddoups at 3 p.m. on Sept. 25, 2017. He faces a statutory maximum sentence of five years in prison for tax evasion and three years in prison for obstructing the IRS. Hansen also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.Utah Chiropractor Convicted of Tax Evasion and Obstructing the IRSRead the Press Release
An Orem, Utah former chiropractor, who also owned a health care products business, was convicted of tax evasion and corruptly endeavoring to obstruct the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to evidence presented at trial, Louis Hansen, 65, attempted to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010. For the years 2005, 2006 and 2010, Hansen filed a tax return reporting that he owed taxes, but did not fully pay the amounts due. For 2007, Hansen’s return was audited and additional taxes assessed. In March 2012, Hansen sent a check to the Internal Revenue Service (IRS) in the amount of $342,699 that was drawn on a closed bank account held in the name of another individual, and claimed that the check paid off his tax debt. Hansen then sent a signed letter to the revenue officer assigned to collect his unpaid taxes, claiming that he had paid the taxes owed. A few months later, Hansen sent 10 additional checks all in the amount of $425,000, to at least six IRS locations, all drawn on another closed account in the name of a different individual, claiming to pay the back taxes due.
Hansen is scheduled to be sentenced before U.S. District Judge Clark Waddoups on Sept 25. He faces a statutory maximum sentence of five years in prison for tax evasion and three years in prison for obstructing the IRS. Hansen also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
U.S. Weapons Smuggler Sent to PrisonRead the Press Release
LAREDO, Texas – A 24-year-old U.S. citizen and resident of Nuevo Laredo has been ordered to federal prison for attempting to smuggle more than a dozen firearms, scopes and ammunition magazines to Mexico, announced Acting U.S. Attorney Abe Martinez. Iram Abel Buentello pleaded guilty March 31, 2017.
Today, U.S. District Judge Diana Saldana sentenced Buentello to 51 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that weapons smuggled to Mexico often end up in the hands of violent international cartels. The government also contended that the type of weapons Buentello smuggled, such as high-powered rifles, can cause tremendous loss of life. In handing down the sentence, the court described the case as “a very serious matter.” The court further recognized the ongoing violence in Mexico and how Buentello’s conduct only “adds fuel to the fire.”
On Feb. 1, 2017, Buentello climbed inside of a pickup truck parked in downtown Laredo which had a cache of high-powered weapons concealed in the truck’s bed. Buentello drove the truck to the Lincoln Juarez Bridge II in Laredo and attempted to exit the United States into Mexico.
At the bridge, he told U.S. Customs and Border Protection (CBP) officers that he had no weapons to declare. CBP officers searched the truck and found a non-factory compartment in the truck bed containing five rifles, two shotguns, six handguns, six magazines and four scopes. Several of the weapons had been reported stolen. Buentello falsely claimed that he picked the truck up at a family member’s house and came to Laredo to shop. He had no license, permit or authorization to export the weapons to Mexico.
He has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the U.S. Customs and Border Protection. Assistant U.S. Attorney Chris Howard prosecuted the case.
U.S. Attorney’s Office indicts 9 members of ‘Block Boyz’ gang on RICO offenses, drug and firearm conspiraciesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that nine members of the “Block Boyz” gang were indicted on RICO offenses, and drug and firearm conspiracies in Shreveport.
The nine Shreveport residents named in the 18-count indictment are:
DeMarcus D. Morris, 28;
Frank J. Morris, 24;
Jimmie R. Durden Jr., 28;
Lonnie D. Johnson, 23;
Gary J. McCain, 22;
Ravion M. Alford, 22;
Rodrick R. Hicks, 23;
Larshanda C. Davenport, 44; and
Golanda W. Atkins, 40.
According to the indictment, beginning in 2012, the defendants took part in a criminal organization known as the “Block Boyz” and the “Get Money Boyz” or “GMB.” The organization distributed controlled substances, murdered, robbed, possessed firearms illegally and conducted other crimes primarily within the Queensborough and Ingleside neighborhoods of Shreveport. The indictment lists 66 acts that members of the organization committed to further the RICO conspiracy. The acts include threats, sale of drugs and shootings. The organization sold crack cocaine, powder cocaine, roxicodone, marijuana, ecstasy and alprazolam. Eight of the defendants were named as part of a Racketeer Influenced and Corrupt Organizations or RICO conspiracy in the indictment, which is Count 1 of the indictment.
The indictment alleges that in order to generate income, gang members sold illegal drugs and committed armed robberies. They maintained and circulated a collection of firearms for use in their criminal activity and used cell phones to operate their criminal enterprise. Members of the organization bragged about their illegal activity, such as their possession of firearms, and took pictures of themselves with firearms and money to intimidate others and increase their position in the community.
All defendants have been arrested. In addition to the RICO count, charges include: Count 2 – conspiracy to distribute controlled substances; Count 3 – conspiracy to possess firearms; Counts 4 and 6 – violent crime in aid of racketeering; Counts 5 and 7 – using and carrying of a firearm during and in relation to a crime of violence; Counts 8, 12 and 15 – possessing a firearm by a convicted felon; Counts 9, 10 and 11 – distributing crack cocaine; Count 13 – conspiracy to commit a violent crime in aid of racketeering; Count 14 – possessing a firearm in furtherance of a crime of violence; and Counts 16, 17 and 18 – distributing powder cocaine.
The defendants face various possible penalties depending on the drug quantity involved, their role in the conspiracy and their criminal history. On the drug conspiracy and distribution counts, some defendants face up to 20 years and one defendant faces up to 40 years in prison. The defendants also face up to life of supervised release. The penalties for illegal use of firearms are up to ten years in prison and up to three years of supervised release for each count. Additionally, the defendants face fines up to $5 million and forfeiture of property seized in the case.
Counts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Demarcus * * * * * * * * * * * * FRANK MORRIS * * * DUREN * * * * * * JOHNSON * * * * * * * MCCAIN * * * * ALFORD * * * * * * HICKS * * * DAVENPORT * * * * * * ATKINS *The FBI Northwest Louisiana Violent Crimes Task Force, Shreveport Police Department, Caddo Parish Sheriff’s Office, ATF and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) participated in the investigation. Assistant U.S. Attorneys Allison D. Bushnell, James G. Cowles Jr. and Tennille M. Gilreath are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
GREENVILLE – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging GENRI GONZALEZ-CARRENO, age 39, of Mexico, and ROGELIO GUTIERREZ-GALLEGOS, age 41, of Mexico with Illegal Reentry of a Deported Alien.
GONZALEZ-CARRENO and GUTIERREZ-GALLEGOS are alleged to have been previously deported twice each from the United States and reentered without permission. If convicted, they would face a maximum imprisonment term of 2 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
Twelve Alleged Baltimore TTG Members and Associates Indicted on Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
A federal grand jury has returned a superseding indictment charging 10 defendants with conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The superseding indictment, which was returned on June 30, 2017 and unsealed today, charges 10 alleged TTG gang members and TTG associates with conspiring to violate federal racketeering and drug trafficking laws. Four defendants are also charged with committing murder in aid of racketeering. Twelve defendants, including all 10 defendants charged in the RICO count, are also charged with conspiracy to distribute and possession with intent to distribute heroin, cocaine, and marijuana. Four defendants are charged with distribution and possession with intent to distribute heroin; two are charged with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a felon.
The indictment was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
According to the ten-count indictment, the defendants are members of Trained To Go (TTG), a criminal organization whose members engaged in drug distribution and acts of violence involving murder, kidnapping, assault, robbery, and witness intimidation. TTG operated in the Sandtown neighborhood of West Baltimore. Members and associates of TTG sold narcotics, including heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The murders, assaults, and kidnappings included that of rival gang members, rival drug dealers, and individuals cooperating with law enforcement, as well as engaging in murder-for-hire schemes. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which included five Baltimore City Police Officers.
The following defendants, all of Baltimore, are charged in the indictment unsealed today:
Montana Barronette, a/k/a Tana, and Tanner, age 22;
Terrell Sivells, a/k/a Rell, age 26;
John Harrison, a/k/a Binkie, age 27;
Taurus Tillman, a/k/a Tash, age 28;
Linton Broughton, a/k/a Marty, age 24;
Dennis Pulley, a/k/a Denmo, age 30;
Roger Taylor, a/k/a Milk, age 26;
Brandon Wilson, a/k/a Ali, age 23;
Brandon Bazemore, a/k/a Man Man, age 24;
Timothy Floyd, a/k/a Tim Rod, age 27
Hisaun Chatman, age 31; and
James Woodfolk, age 20.
The indictment alleges that between May 20, 2010 and May 25, 2016, the defendants committed acts of violence, including 10 murders, and one non-fatal shooting. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, and for the purpose of maintaining and increasing their position within the organization.
Ten defendants have been detained, one defendant is under supervision with pretrial services and the whereabouts of Roger Taylor are unknown.
Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI- Baltimore Field office at (410) 265-8080.
FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area. The squad utilizes drug and violent crime investigations to address gang violence and the associated homicides in Baltimore, MD. The vision of the program is to use the Enterprise Theory of Investigation (ETI), through criminal and civil provisions of RICO Act and in accordance with the FBI and Department of justice national strategies, to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities. The FBI Baltimore Violent Crimes Gangs Task Force includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.
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.
The case was investigated by the FBI, Baltimore City Police Department, and the ATF. The prosecution was handled by Assistant U.S. Attorneys Matt Sullivan, Christopher J. Romano and Daniel Gardener, and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section.
Twelve Alleged Baltimore TTG Members and Associates Indicted on Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
JULY 11, 2017
FOR IMMEDIATE RELEASE
www.justice.gov/usao/md Contact ELIZABETH MORSE
at (410) 209-4855
Baltimore, Maryland –A federal grand jury has returned a superseding indictment charging ten defendants with conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The superseding indictment, which was returned on June 30, 2017 and unsealed today, charges ten alleged TTG gang members and TTG associates with conspiring to violate federal racketeering and drug trafficking laws. Four defendants are also charged with committing murder in aid of racketeering. Twelve defendants, including all ten defendants charged in the RICO count, are also charged with conspiracy to distribute and possession with intent to distribute heroin, cocaine, and marijuana. Four defendants are charged with distribution and possession with intent to distribute heroin; two are charged with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a felon.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Acting Chief of the Department of Justice Organized Crime and Gang Section, Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.
According to the ten-count indictment, the defendants are members of Trained To Go (TTG), a criminal organization whose members engaged in drug distribution and acts of violence involving murder, kidnapping, assault, robbery, and witness intimidation. TTG operated in the Sandtown neighborhood of West Baltimore. Members and associates of TTG sold narcotics, including heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The murders, assaults, and kidnappings included that of rival gang members, rival drug dealers, and individuals cooperating with law enforcement, as well as engaging in murder-for-hire schemes. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.
The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which included five Baltimore City Police Officers.
The following defendants, all of Baltimore, are charged in the indictment unsealed today:
Montana Barronette, a/k/a Tana, and Tanner, age 22;
Terrell Sivells, a/k/a Rell, age 26;
John Harrison, a/k/a Binkie, age 27;
Taurus Tillman, a/k/a Tash, age 28;
Linton Broughton, a/k/a Marty, age 24;
Dennis Pulley, a/k/a Denmo, age 30;
Roger Taylor, a/k/a Milk, age 26;
Brandon Wilson, a/k/a Ali, age 23;
Brandon Bazemore, a/k/a Man Man, age 24;
Timothy Floyd, a/k/a Tim Rod, age 27
Hisaun Chatman, age 31; and
James Woodfolk, age 20.
The indictment alleges that between May 20, 2010 and May 25, 2016, the defendants committed acts of violence, including 10 murders, and one non-fatal shooting. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, and for the purpose of maintaining and increasing their position within the organization.
The defendants face a maximum sentence of life in prison on the racketeering and drug conspiracies. Barronette, Bazemore, Harrison, Floyd and Taylor also face mandatory life in prison for murder in aid of racketeering, a charge which is death penalty eligible as a Federal Capital offense. Wilson also faces a maximum sentence of 10 years in prison for being a felon in possession of a firearm.
Ten defendants have been detained, one defendant is under supervision with pretrial services and the whereabouts of Roger Taylor are unknown.
Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI- Baltimore Field office at (410) 265-8080.
FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area. The squad utilizes drug and violent crime investigations to address gang violence and the associated homicides in Baltimore, MD. The vision of the program is to use the Enterprise Theory of Investigation (ETI), through criminal and civil provisions of RICO Act and in accordance with the FBI and Department of justice national strategies, to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities. The FBI Baltimore Violent Crimes Gangs Task Force includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.
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 FBI, Baltimore City Police Department, and ATF for their work in the investigation. Mr. Schenning recognized Assistant U.S. Attorney Matt Sullivan for his work on this case. Mr. Schenning thanked Assistant U.S. Attorney’s Christopher J. Romano and Daniel Gardener, and Department of Justice Organized Crime and Gang Section Trial Attorney John C. Hanley, who are prosecuting the case.
Tonawanda Man Charged with Possession of Child PornographyRead 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 Steven Brzezinski, 33, of Tonawanda, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of ten years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that according to the complaint, the defendant, who was on probation for an unrelated offense, was in possession of a tablet containing child pornography. Brzezinski has a previous conviction for endangering the welfare of a child.
The defendant made an initial appearance today before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing scheduled for July 17, 2017 at 11:00 a.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Thai National Sentenced, Faces Deportation for Operating Immigration Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps as much as in excess of $518,000.
The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request nor authorize the applications.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.
The government and the defense recommended to the court a sentence of 18 months incarceration. The U.S. Sentencing Guideline range of imprisonment in this matter is 27-33 months.
Naphaeng, who was arrested and ordered detained on February 22, 2105, faces deportation proceedings upon completion of his prison sentence.
Nimon Naphaeng’s sentence is announced by Acting United States Attorney Stephen G. Dambruch and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
Naphaeng previously admitted to the court that from August 2014 through December 2015, for a fee of between approximately $1,500 and $2,500 per applicant, he filed false asylum applications thereby securing the right of the applicant to remain in the United States. By doing so, applicants were eligible to obtain an Employment Authorization Document (“EAD card”) and as a result, further government benefits including a social security number, driver’s license, and if otherwise qualified, financial benefits.
Naphaeng admitted to the court that to execute the scheme, he advertised on the Internet and in flyers posted in Thai restaurants around the United States that, in addition to helping with tax returns, he could obtain EAD cards for Thai nationals. Naphaeng admitted that he never told his clients that he would file asylum applications on their behalf in order to obtain the EAD card.
To execute the scheme, Naphaeng had applicants supply him with vital personal information including their name and date of birth, photographs, and a copy of the biographical page from their passport. He would then file a false asylum application without the knowledge of the applicant in order to obtain the promised documents.
Naphaeng pleaded guilty on February 6, 2017, to seven (7) counts of mail fraud and two (2) counts of visa fraud.
The case was prosecuted by Assistant U.S. Attorneys Richard W. Rose and Mary E. Rogers.
The matter was investigated by Homeland Security Investigations and the United States Attorney’s Office. Acting United States Attorney Stephen G. Dambruch thanks the U.S. Citizenship and Immigration Services - Fraud Detection National Security Asylum Office, Newark, N.J., and the Warwick, R.I., Police Department for their substantial assistance in the investigation of this matter.
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Spokane Man Sentenced to 72 Months in Federal Prison for Possessing Firearm and AmmunitionRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that William Lee Taylor, age 53, of Spokane, Washington, was sentenced for being a previously convicted felon in possession of a firearm and ammunition. Senior United States District Judge Justin L. Quackenbush sentenced Taylor to a 72-month term of imprisonment and a three-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, members of the Spokane Police Department Patrol Anti-Crime Team (PACT) attempted to contact Taylor while investigating an unrelated matter in the East 2100 block of Cataldo Avenue in Spokane, Washington. Taylor, who is a previously convicted felon, took flight and a foot pursuit ensued. While pursuing Taylor an officer observed him reaching into his waistband. Taylor jumped a fence, fell to the ground and was apprehended. During a search of Taylor, officers discovered a .22 caliber, H. Schmidt (Ostheim), Model 21 S, 22 Magnum revolver. The revolver was loaded with five rounds of .22 caliber ammunition.
Joseph H. Harrington said, “Previously convicted felons should be aware that there are serious criminal penalties associated with possessing any firearm or ammunition. Together with the ATF, and in partnership with local law enforcement partners such as the Spokane Police Department, prosecuting firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington.”
This case was investigated by the Spokane Police Department PACT and the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Patrick J. Cashman, an Assistant United States Attorney for the Eastern District of Washington.
South Texas Man Heads to Prison for Possession of MethRead the Press Release
BROWNSVILLE, Texas – A 44-year-old resident of Brownsville has been ordered to federal prison for his conviction of possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Antonio Torres pleaded guilty July 13, 2016.
Today, U.S. District Judge Andrew S. Hanen ordered Torres to serve 240 months in federal prison followed by a five-year-term of supervised release.
On or about Oct. 23, 2015, Torres attempted to enter the United States through the Gateway Port of Entry in Brownsville in a silver Nissan. During inspection of the vehicle, officers discovered 22 bundles of methamphetamine secreted in the floorboard underneath the driver’s and front passenger’s seats. The bundles of methamphetamine had a gross weight of 24 kilograms.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of U.S. Customs and Border Protection. Assistant U.S. Attorney Ana Cano is prosecuting the case.
Singleton Sentenced for Nine Pharmacy BurglariesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Elyric Nathaniel Singleton, III was sentenced today by Senior United States District Judge Granade to 97 months in federal prison for his role in nine pharmacy burglaries.
Singleton entered a guilty plea to conspiracy to possess with intent to distribute Controlled Substances. He admitted in his plea agreement that on May 21, 2016, he and another individual entered Jim's Drug Store, in Lucedale, Mississippi by breaking through the front door, and that they attempted to steal Controlled Substances. Patrol units in the area heard an audible alarm coming from the pharmacy and pulled into the parking lot. Singleton and the other individual observed the patrol units and fled the building by breaking out the drive-thru window with a crowbar. They left a box they had filled with Controlled Substances from the pharmacy on the floor of the pharmacy in their haste to flee. Both Singleton and the other individual eluded capture at that time. Officers located a 2015 Dodge Journey vehicle parked behind the drug store with a T-shirt covering the tag.
An Investigator with the Lucedale Police Department collected a blue crowbar, discarded behind the pharmacy, and obtained a search warrant for the Dodge Journey. The Investigator located identification for two individuals, Singleton and the other individual, in the Dodge. Officers also located empty Walmart bags in the Dodge, which contained Walmart price tags. The price tags were from purchases at a Walmart in Mobile, Alabama. Video of the purchases showed Singleton and the other individual making purchases of clothing from Wal-Mart. The items purchased included clothing, which matched certain clothing worn by Singleton and the other individual during the Lucedale burglary. Business records from Hertz Rental Cars show Singleton had rented the Dodge in Mobile, Alabama on May 20, 2016.
Singleton also admitted that on March 3, 2016, prior to the Mississippi burglary, he and the other individual committed pharmacy burglaries in both Opp and Elba, Alabama. On April 2, 2016, Singleton and the other individual committed pharmacy burglaries in both Auburn and Wetumpka, Alabama, and an attempted burglary in Opelika, Alabama. On April 4, 2016, three similar pharmacy burglaries were committed by Singleton and the other individual in the Mobile, Alabama and Florida panhandle area. In each burglary, Singleton and the other individual, stole or attempted to steal Controlled Substances from the pharmacies.
Singleton rented at least twelve vehicles in his name between January 1, 2016 and May 21, 2016. Singleton rented some of the vehicles in Houston, Texas, some in Chicago, Illinois, and one in Mobile, Alabama. Singleton’s cell phone showed texts to several individuals, during the period of the burglaries, notifying the text recipients there were pills available and the price of the pills. Phone data, from February 26, 2016, thru September May 20, 2016, was located on Singleton’s cell phone showing SMS messages sent and received which indicated Singleton utilized the phone to facilitate the distribution of quantities of prescription medications, which were Controlled Substances.
Acting United States Attorney Steve Butler said, “The theft of prescription drugs is a reprehensible act, particularly in the height of this ongoing opioid crisis. Not only do the stolen prescription drugs cost the pharmacy thousands of dollars to replace, but the stolen drugs also fuel the drug habits of those addicted to prescription medication. Mr. Singleton’s actions were reprehensible, and we are pleased that Judge Granade sentenced him to a lengthy stay in federal prison.”
“This investigation highlights the impact multiple agencies can have when they join forces. We will continue to work together with our local law enforcement partners and pursue those who threaten our communities through their criminal activities. The successful prosecution of this individual should put others who engage in this type of activity on notice,” stated Stephen G. Azzam, Special Agent in Charge of the DEA’s New Orleans Field Division.
The DEA in Mobile, along with the Baldwin County, Alabama Sheriff’s Office investigated this matter. The Lucedale, Mississippi Police Department; the Opp, Opelika, and Wetumpka, Alabama Police Departments; the Escambia County Florida Sheriff’s Office, and the Robertsdale, Alabama Police Department, along with the Auburn Department of Public Safety assisted in the investigation. Assistant U.S. Attorneys Deborah Griffin and Christopher Bodnar prosecuted the case.
Simpsonville Woman Sentenced to Federal Prison for Attempting to Steal Eleven Million Dollars from Internal Revenue ServiceRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake, announced that Stephanie Lake Meyer, age 46, of Simpsonville, South Carolina, was sentenced today to serve 36 months in federal prison for Interference with the Administration of the Internal Revenue Service, in violation of Title 18, United States Code, Section 7212. The sentence was imposed by United States District Judge Timothy M. Cain who also directed that Meyer be placed on supervised release for one year once released from prison and to pay restitution in the amount of $256,938.04.
Meyer entered a plea of guilty before Judge Cain on November 30, 2016. At that hearing the Judge was advised of the following facts. Meyer devised and executed a scheme to defraud the Internal Revenue Service (IRS). In this scheme Meyer sent approximately 45 checks totaling approximately Eleven Million Dollars to the IRS. Each of these checks were noted by Meyer as being payment of income taxes. As the checks were received they were credited to Meyer’s IRS account. The IRS then checked and determined that Meyer had no tax liability. There being no tax liability, the IRS refunded monies to Meyer to account for the “overage” that she had sent in.
After some $256,938.04 was sent to Meyer, the IRS discovered that all of the checks that Meyer had sent in were bogus and that she was running what is commonly known as a “phantom account balance scheme”. This is a scheme normally seen with bank accounts where an account holder deposits worthless checks to build up the balance and then draws it down before the bogus nature of the checks is discovered.
U.S. Attorney Drake stated that agents of the IRS Criminal Investigation Division had investigated the case and that Assistant United States Attorney David C. Stephens of the Greenville Office was in charge of the prosecution.
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Seventh Company Agrees to Plead Guilty for Fixing Prices of Electrolytic CapacitorsRead the Press Release
Nichicon Corporation will plead guilty for its role in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of California, Nichicon conspired with others to suppress and eliminate competition for electrolytic capacitors from as early as November 2001 until December 2011. In addition to pleading guilty, Nichicon has agreed to pay a $42 million criminal fine and cooperate with the Antitrust Division’s ongoing investigation. The plea agreement is subject to court approval.
“Including today’s charge, the Antitrust Division has now charged seven companies and ten individuals for participating in a long-running conspiracy to fix the price of a critical component in electronic devices used by millions of American consumers,” said Director of Criminal Enforcement Marvin Price of the Justice Department’s Antitrust Division. “But our investigation is not over. We are continuing to pursue the companies and executives who conspired to undermine competition in this vital industry.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engines and airbag systems, home appliances and office equipment.
Today’s charge results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.
Schenectady Man Sentenced to 60 Months for Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Ray A. Perkins, age 30, of Schenectady, New York, was sentenced today to 60 months in prison for conspiring to distribute crack cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Senior United States District Judge Thomas J. McAvoy also sentenced Perkins to 4 years of supervised release, to begin after his release from prison.
As part of his guilty plea in August 2016, Perkins admitted that between December 2015 and March 2016, he and a co-conspirator sold more than 100 grams of crack cocaine in the city of Schenectady.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.
Ring Leader of Fraudulent Oxycodone Prescription Scheme Sentenced to 14 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID THOMPSON, also known as “Super Dave,” 43, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 168 months of imprisonment, followed by three years of supervised release, for his leadership role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. The investigation revealed that THOMPSON headed the organization that obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Organization members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
Julian Cintron and Alejandrino DeJesus, also of New Haven, were key associates of THOMPSON who helped to recruit and transport runners to fill fraudulent prescriptions.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
Eleven individuals were charged as a result of the investigation.
THOMPSON has been detained since his arrest on September 10, 2015. On that date, agents searched his residence and seized approximately 12 fraudulent prescriptions and a drug ledger containing the names of “patients” and medicine codes.
On October 13, 2016, THOMPSON pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
DeJesus and Cintron also pleaded guilty. On November 7, 2016, DeJesus was sentenced to 132 months of imprisonment and, on April 3, 2017, Cintron was sentenced to 108 months of imprisonment.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Portland Man Sentenced to 3½ Years for Possessing Child PornographyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Glenn Strout, 54, of Portland, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to 3½ years in prison to be followed by 10 years of supervised release for possessing child pornography. Strout pleaded guilty on December 1, 2016.
According to court records, in November 2015, law enforcement agents were investigating the sharing of child pornography over the internet. As part of the investigation, agents downloaded child pornography images from a computer at Strout’s residence in Portland. A search warrant was obtained for the residence and during the warrant’s execution Strout admitted downloading child pornography. A forensic analysis of devices seized under the warrant revealed numerous child pornography still images and video files.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Portland Police Department. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov