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Tuesday 23 May 2017
Springfield Man Sentenced for Federal Drug and Firearms OffensesRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for distributing cocaine and crack cocaine and for selling firearms and ammunition to a convicted felon.
Eric Vale, 35, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 years in prison and five years of supervised release. In January 2017, Vale pleaded guilty to three counts of selling a firearm to a convicted felon and three counts of drug distribution.
On Aug. 27, 2013, Vale sold a Davis Industries .380 caliber pistol and four rounds of .380 caliber ammunition to a convicted felon. On Sept. 5, 2013, Vale sold 50 rounds of .380 caliber ammunition to the same individual, and on Jan. 30, 2015, Vale again sold the same individual a FEG 9mm pistol and four rounds of 9mm ammunition. In addition, Vale distributed crack cocaine on Aug. 26, 2013, and Sept. 5, 2013, and distributed cocaine on March 3, 2015, all in Springfield.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Branch Office prosecuted the case.
Six Members of National Drug Trafficking Organization Charged in Manhattan Federal CourtRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Carl J. Kotowski, the Special Agent in Charge of the New Jersey Division of the Drug Enforcement Administration (“DEA”), announced today the unsealing of an Indictment charging six defendants with operating a national drug trafficking organization that distributed synthetic cannabinoids. In conjunction with the unsealing of the Indictment, search warrants were executed at locations in Illinois, Indiana, Kentucky, Missouri, and Wisconsin.
HIKMAT HAMED, a/k/a “Abu Amjad,” was arrested by DEA agents this morning and will be presented today before U.S. Magistrate Judge David D. Noce in St. Louis, Missouri.
MOHAMMAD ABDELELAH AL BARBARAWI, a/k/a “Abu Yazan,” and HATEM K. EL HAJ, a/k/a “Tug Tug,” were arrested by DEA agents this morning and will be presented today before U.S. Magistrate Judge Jeffrey Cole in Chicago, Illinois.
NEHAD THAHER, a/k/a “Nick,” SHADI SHUAIBI, and MAYTHEM AL ABOUDI were arrested by DEA agents this morning and will be presented today before U.S. Magistrate Judge Colin H. Lindsay in Louisville, Kentucky.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Trafficking of synthetic cannabinoids – sometimes called K2 or Spice – is on the rise and posing a serious threat to public health and safety. Packaged attractively to appeal to teenagers and young adults, synthetic cannabinoids are in reality a toxic cocktail that can be very dangerous to consume. As alleged, thanks to our partners at the DEA, a sprawling operation of alleged traffickers has been dismantled.”
DEA Special Agent in Charge Carl J. Kotowski said: “This multi-jurisdictional investigation puts an end to this alleged drug trafficking organization. This is just another example of an organization allegedly more concerned about making a profit selling their poison than they are about the safety of the public.”
According to the allegations in the Indictment unsealed today in Manhattan federal
court[1]:
Between October 2016 and May 2017, HIKMAT HAMED, a/k/a “Abu Amjad,” MOHAMMAD ABDELELAH AL BARBARAWI, a/k/a “Abu Yazan,” NEHAD THAHER, a/k/a “Nick,” SHADI SHUAIBI, HATEM K. EL HAJ, a/k/a “Tug Tug,” and MAYTHEM AL ABOUDI participated in a conspiracy to distribute and possess with the intent to distribute leaves treated with 5F-MDMB-PINACA and FUB-AMB, each of which is an analogue of a schedule I controlled substance. Many of the synthetic cannabinoids the defendants distributed were packaged in packets that contained inaccurate descriptions of their contents and were misleadingly labeled as “Potpourri Product,” “NOT FOR HUMAN CONSUMPTION,” and “complies with all federal and state legislation.”
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Each of the defendants is charged with one count of conspiracy to distribute and possess with the intent to distribute controlled substance analogues, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to introduce misbranded drugs into interstate commerce with the intent to defraud and mislead, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge. The case is assigned to U.S. District Judge Katherine Polk Failla.
Mr. Kim praised the investigative work of the DEA Newark’s Tactical Diversion Squad. Mr. Kim also thanked the United States Postal Inspection Service, the Indiana State Police, the Louisville Metropolitan Police Department, the West Virginia State Police, as well as the United States Attorney’s Offices for the Northern District of Illinois, the Northern District of Indiana, the Southern District of Indiana, the Eastern District of Kentucky, the Eastern District of Missouri, the District of New Jersey, and the Eastern District of Wisconsin for their assistance in this investigation. He added that the investigation is continuing.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Andrew K. Chan, Benet J. Kearney, and Michael D. Neff are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Rochester Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Leonardo Gonzalez, 34, of Rochester, NY, pleaded guilty to possession of child pornography before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that this case began with an indictment in the District of Alaska where Gonzalez was charged with one count of distribution of child pornography. On August 31, 2016, in the Western District of New York, the defendant possessed 300 images of child pornography involving prepubescent minors on his Alcatel smart phone. Gonzalez downloaded the images from a website containing child pornography.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Attorney’s Office for the District of Alaska, under the direction of Acting United States Attorney Bryan Schroder.
Sentencing is scheduled for August 17, 2017 at 11:00 a.m. before Judge Geraci.
Roanoke Man Sentenced on Child Pornography ChargeRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who used a peer-to-peer file-sharing network that allowed others to access his images of hardcore child pornography, was sentenced today in the United States District Court for the Western District of Virginia, Acting United States Attorney Rick A. Mountcastle announced.
William Rhodes, a.k.a. “Billy Rhodes,” a.k.a. “BillRho,” a.k.a. “hel_yeh1,” age 26, of Roanoke, Va., was sentenced today to 120 months in federal prison, to be followed by 15 years of supervised release. Rhodes previously pled guilty to one count of knowingly distributing or receiving or attempting to distribute or receive child pornography.
According to a factual statement filed in court by Assistant United States Attorney Nancy S. Healey, on March 23, 2014, an undercover task force officer with the Federal Bureau of Investigation working in Texas, accessed a peer-to-peer file sharing network, and identified a computer with a particular IP address as a potential source of files associated with hash values previously known to belong to images of child pornography. The undercover agent successfully downloaded 1,432 images from this torrent, the vast majority of which depicted prepubescent females engaged in sexually explicit conduct and sadistic abuse, including depictions of infants and toddlers.
On September 10, 2014, an FBI task force officer working in Richmond downloaded approximately 320 images from the same torrent from a different IP address. The investigation revealed that the downloads were associated with the same Roanoke, Virginia address.
A search warrant was executed at that Roanoke residence in the early morning hours of February 2, 2015. The defendant, William Rhodes, was the adult son of the homeowners and was living at the home. He was briefly interviewed during the search and told investigators he knew why there were there, without specifically mentioning the downloading of child pornography.
A forensic examination of the defendant’s computer conducted by the Virginia State Police revealed substantial corroborating evidence that proved the defendant was the person responsible for the downloads conducted by the task force officers, including Skype chat evidence suggesting that the defendant had transferred videos from the same torrent to another individual.
The investigation of the case was conducted by Federal Bureau of Investigation, the Virginia State Police and the Roanoke City Police. Assistant United States Attorney Nancy S. Healey and Jessica Urban, U.S. Department of Justice, Child Exploitation and Obscenity Section, are prosecuting the case for the United States.
Rio Rancho Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Kayleb Reyos, 22, of Rio Rancho, N.M., pled guilty today in federal court to heroin trafficking charges. His co-defendant, Joshua Greene, 19, of Albuquerque, N.M., previously entered a guilty plea to resolve the charges against him.
Reyos and Greene were arrested in May 2016, as the result of a DEA investigation into heroin and methamphetamine trafficking in northwest Albuquerque. According to the criminal complaint filed against them, Greene and Reyos sold an aggregate of 36 ounces (2.25 pounds) of heroin and 3 ounces (.18 pounds) of methamphetamine to an undercover law enforcement agent during a series of transactions occurring between Feb. 2016 and May 2016. The two men were arrested when the DEA executed a search warrant at a residence in northwest Albuquerque. During the search, the DEA seized an additional pound of heroin, bulk amounts of cash, a handgun, and drug paraphernalia.
Greene and Reyos subsequently were charged in a ten-count indictment filed on June 14, 2016. The indictment charged Greene and Reyos with conspiracy to distribute heroin from Feb. 2016 to May 2016. It also charged the two defendants with distributing heroin on Feb. 25, 2016, April 12, 2016, and May 4, 2016, and distributing methamphetamine on March 23, 2016. Greene separately was charged with distributing heroin on Feb. 4, 2016, March 9, 2016, and March 22, 2016, and possessing heroin with intent to distribute on May 17, 2016. Reyos separately was also charged with possessing heroin with intent to distribute on May 17, 2016.
During today’s proceedings, Reyos pled guilty to a felony information charging him with conspiracy and distribution of heroin. In entering the guilty plea, Reyos admitted that from Feb. 4, 2016 through May 17, 2016, he was part of a small-scale drug trafficking organization that operated in northwest Albuquerque. Reyos admitted that on April 12, 2016, he drove Greene to a parking lot in Albuquerque, where Greene sold approximately 423.8 grams of heroin to an undercover law enforcement agent.
On April 11, 2017, Greene pled guilty to a felony information charging him with conspiracy and distribution of heroin. In entering the guilty plea, Green admitted that from Feb. 4, 2016 through May 17, 2016, he directed a small-scale drug trafficking organization in northwest Albuquerque. Greene also admitted selling approximately 135.1 grams of heroin to an undercover law enforcement agent on March 22, 2016.
Reyos and Greene both remain in custody pending sentencing hearings, which have yet to be scheduled. Reyos faces a maximum penalty of 20 years in federal prison. Under the terms of his plea agreement, Greene will be sentenced within the range of 60 to 87 months in federal prison. Each will be on supervised release for a term to be determined by the court after completing his prison sentence. Reyos and Greene jointly will be required to forfeit $28,135 in cash in addition to paying a money judgment in the amount of $28,250. In addition, Greene will have to forfeit a handgun and a gold necklace set with 1,728 natural diamonds valued at $11,555.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Kristopher Houghton and Alexander Uballez are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Registered Broker Sentenced to 24 Months in Prison for Securities Fraud in A $131 Million Market Manipulation SchemeRead the Press Release
Today in federal court in Brooklyn, Naveed Khan, a registered broker, was sentenced to 24 months in prison and two years of supervised release after having pleaded guilty to securities fraud for his role in the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company that was listed on the NASDAQ under the ticker symbol “FNRG.”
The sentencing 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.
According to court filings and facts presented at the plea hearing, between January 2009 and April 2015, Khan, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between February 2015 and April 2015, Khan received commission payments, or kickbacks, from a ForceField executive for purchasing ForceField stock in his clients’ brokerage accounts. Khan did not disclose to his clients the kickbacks he was receiving for their purchase of ForceField stock. Khan and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash.
Today’s proceeding took place before United States District Court Judge Brian M. Cogan.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
The Defendant:
NAVEED KHAN
Age: 35
Residence: Staten Island, New York
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Pomona Woman Arrested on Federal Charges that Allege Scheme to Smuggle Restricted Space Communications Technology to ChinaRead the Press Release
LOS ANGELES – A Pomona woman was arrested this morning on federal charges that accuse her of conspiring to procure and illegally export sensitive space communications technology to her native China.
Si Chen, also known as Cathy Chen, 32, is expected to be arraigned this afternoon in United States District Court on charges contained in an indictment that was returned by a federal grand jury on April 27 and was unsealed today after her arrest.
The 14-count indictment accuses Chen of violating the International Emergency Economic Powers Act (IEEPA), which controls and restricts the export of certain goods and technology from the United States to foreign nations. Chen is also charged with conspiracy, money laundering, making false statements on an immigration application, and using a forged passport.
According to the indictment, from March 2013 to December 2015, Chen purchased and smuggled sensitive items to China without obtaining licenses from the U.S. Department of Commerce that are required under IEEPA. Those items allegedly included components commonly used in military communications “jammers” from which Chen removed the export-control warning stickers prior to shipping. Additionally, Chen is suspected of smuggling communications devices worth more than $100,000 that are commonly used in space communications applications. On the shipping paperwork Chen falsely valued the items at $500. The indictment further describes how Chen received payments for the illegally exported products through an account held at a bank in China by a family member.
“Federal export laws are designed to protect American interests by preventing the proliferation of technology that may fall into the wrong hands,” said Acting United States Attorney Sandra R. Brown. “We will vigorously pursue those who traffic items that could harm our national security if they land in the wrong hands.”
Chen was taken into custody this morning without incident by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Department of Commerce’s Office of Export Enforcement (OEE); and the Defense Criminal Investigative Service (DCIS).
“One of HSI’s top enforcement priorities is preventing sensitive technology from falling into the hands of those who might seek to harm America or its interests,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The export of items like those identified in this case are tightly controlled with good reason. Given what’s at stake, HSI will continue to work closely with its law enforcement partners to combat this threat and hold the perpetrators accountable for putting the U.S. at risk.”
In addition to the export violations, Chen is also charged with employing several aliases and using a forged passport in an effort to conceal her alleged smuggling activities on behalf of unnamed co-conspirators in China. The indictment alleges the defendant used a Chinese passport bearing her photo and a false name – “Chunping Ji” – to rent an office in Pomona where she took delivery of the export-controlled items. After receiving the goods, the indictment alleges Chen shipped the devices to Hong Kong in parcels that bore her false name, along with false product descriptions and monetary values, all done in an effort to avoid attracting law enforcement scrutiny.
Under IEEPA, it is crime to willfully export or attempt to export items that appear on the Commerce Control List without a license from the U.S. Department of Commerce. These are items authorities have determined could be detrimental to regional stability and national security.
“The partnership between OEE, HSI and DCIS was critical in the apprehension of Si Chen,” said Richard Weir, Special Agent in Charge of Commerce’s Office of Export Enforcement Los Angeles Field Office. “We will continue to work with our law enforcement partners to identify, deter, and prevent any suspected violations.”
“The Defense Criminal Investigative Service and our law enforcement partners will relentlessly pursue anyone who violates laws that are designed to preserve and protect the Department of Defense’s critical technologies,” stated Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service. “Precious DoD resources are invested in technology, and its theft puts our brave soldiers, marines and airmen at risk.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of the 14 charges in the indictment, Chen would face a statutory maximum penalty of 150 years in prison.
This case is the result of an ongoing investigation being conducted by HSI, OEE and DCIS. The probe began in 2015 after U.S. Customs and Border Protection alerted HSI about a suspicious parcel its officers intercepted that contained communications equipment sent by “Chunping Ji.”
The case against Chen is being prosecuted by Assistant United States Attorney Judith A. Heinz of the National Security Division in the United States Attorney’s Office.
Pittsburgh-area Sex Offender Sentenced to 33 Months in Prison for Failing to RegisterRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 33 months imprisonment, followed by five years supervised release, on a charge of Failure to Register as a Sex Offender, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Arthur Linsenbigler, 46, whose last known address was in Pitcairn, Pennsylvania.
According to information presented to the court, from February 3, 2015, to June 20, 2016, Linsenbigler, who had been convicted of the felony sex offense of Rape By Forcible Compulsion in 1991, failed, as required, to register and update a registration under the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the United States Marshals Service for conducting the investigation leading to the successful prosecution of Linsenbigler.
Pittsburgh Man Sentenced to 4 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 48 months imprisonment to be served concurrently, followed by a lifetime supervised release, on two charges of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Robert James Grace, Jr., age 49, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about February 23, 2016, in the Western District of Pennsylvania, Grace, Jr. knowingly possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Grace, Jr. also possessed child pornography, from a date unknown and continuing until May 12, 2011, in Tucson, Arizona.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Immigration & Customs Enforcement, Homeland Security Investigations for conducting the investigation leading to the successful prosecution of Grace.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Parkville Man Pleads Guilty to Computer Hacking, Accessing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Parkville, Mo., man who was under investigation for hacking into his former employer’s computer system, pleaded guilty in federal court today to both the intrusion charge and to using a computer to view online child pornography.
Jacob Raines, 38, of Parkville, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of computer intrusion and one count of accessing a computer in order to view child pornography over the Internet.
Raines worked as the information technology manager for American Crane & Tractor Parts in Kansas City, Kan., from July 2004 until his resignation on March 28, 2014. The company’s new IT manager removed Raines’s computer passwords and made other security changes associated with the transition to a new IT manager. However, while utilizing the computer previously assigned to Raines, the new IT manager noticed that someone had logged into the computer remotely and copied files to an off-site server.
An examination revealed the company’s proprietary source code files and file folders were copied to Raines’s remote server during several sessions from May 16 to May 18, 2014. Law enforcement officers executed a search warrant at Raines’s residence on April 2, 2015, for evidence of the computer intrusion and theft of trade secrets. Copies of the proprietary source code for the company were on Raines’s home computer.
This proprietary source code is considered a trade secret by American Crane & Tractor Parts, which provides it a competitive advantage in its industry. The value of the proprietary source code exceeds $5,000, and the copying of this source code would provide a commercial advantage and a private financial gain to others.
Investigators also discovered that Raines had used his home computers and hard drives to access child pornography over the Internet since Nov. 13, 2013. Raines utilized peer-to-peer, file-sharing software to search for child pornography. Investigators discovered more than 7,000 files of child pornography images and videos on a Memorex DVD.
Under the terms of today’s plea agreement, the government will argue for a sentence of up to 7 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI.
Omaha Man Sentenced to 7 Years for Child PornographyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Randy Arnold, 51, was sentenced in federal court in Omaha, Nebraska, for receiving child pornography. Chief Judge Laurie Smith Camp sentenced Arnold to 84 months imprisonment. There is no parole in the federal system. After his release from prison, Arnold will begin a five-year term of supervised release and will be required to register as a sex offender. Arnold was also ordered to pay restitution of $700.00 to a specific identified victim.
On June 12, 2016, the Omaha Police Department was called to Arnold’s home. A thumb drive was provided to the police. A search warrant was obtained to thoroughly search the drive for child pornography. A total of 74 videos of minor children engaged in sexually explicit conduct, many with children in the seven- to nine-year-old range, were found on the drive. The drive belonged to Arnold.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha Police Department.
Office Manager Sentenced for Theft from Lawrence CompanyRead the Press Release
TOPEKA, KAN. - A former office manager for a Lawrence property management company was sentenced Tuesday to 24 months in federal prison for embezzlement, U.S. Attorney Tom Beall said. She was ordered to pay more than $485,000 in restitution.
Candy A. Gunderson, 45, Lawrence, pleaded guilty to one count of interstate transportation of stolen funds. In her plea, Gunderson admitted the crime took place from 2007 to 2015 while she was office manager for Garber Enterprises in Lawrence. She used various means to steal money from the company including:
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Depositing into her personal account checks made payable to Garber Enterprises.
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Issuing forged Garber Enterprises checks.
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Using company funds to pay bills for work performed on rental properties she owned.
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Using the company VISA card for personal expenses.
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Depositing cash belonging to the company into her personal accounts.
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Forging checks on Garber’s account to pay for personal phone bill.
Beall commended the Lawrence Police Department, the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
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Nitro meth dealer pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Nitro man caught selling methamphetamine while on federal supervised release pleaded guilty today to a drug crime, announced United States Attorney Carol Casto. John F. Parrish, Jr., 55, entered his guilty plea to distribution of methamphetamine.
Parrish admitted that on August 18, 2016, he sold methamphetamine to a confidential informant working with law enforcement. The drug deal took place at the Exxon One Stop gas station on Goff Mountain Road in Cross Lanes. The Drug Enforcement Administration’s laboratory analyzed the methamphetamine and determined that it was at least 95% pure.
Parrish faces up to 20 years in federal prison when he is sentenced on August 23, 2017.
The Drug Enforcement Administration and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Nine Trey Gangsters Plead Guilty to Four Murders and Multiple ShootingsRead the Press Release
NORFOLK, Va. – Two members of the Nine Trey Gangsters pleaded guilty today to their respective roles in four murders and multiple shootings.
According to the statements of fact filed with the plea agreements, Anthony Foye, 25, and Alvaughn Davis, 28, both of Suffolk, were members of the Nine Trey Gangsters, a street gang with members in states across the East Coast that is affiliated with the United Blood Nation. In furtherance of his membership in the gang, Foye murdered Al-Tariq Tynes, Vandelet Mercer, Linda Lassiter, and Wayne Davis; shot into a residence in Portsmouth; and shot two other individuals in Portsmouth and Virginia Beach. Davis, in furtherance of his membership in the gang, helped conceal Mr. Tynes’ body and was the driver during the murder of Ms. Mercer.
Foye pleaded guilty to four counts of murder in aid of racketeering activity, and faces a mandatory life sentence on each count when sentenced on September 8. Davis pleaded guilty to RICO conspiracy, use of a firearm resulting in death, and to being an accessory after the fact to a murder in aid of racketeering. Davis has agreed to a sentence of 45 years and is scheduled to be sentenced on October 17.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Larry D. Boone, Chief of Norfolk Police; Tonya D. Chapman, Chief of Portsmouth Police; James A. Cervera, Chief of Virginia Beach Police; Col. K.L. Wright, Chief of Chesapeake Police; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse, and Special Assistant U.S. Attorney John F. Butler are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130.
New York Man Sentenced to 110 Months in Federal Prison for Selling Oxycodone and Laundering Money in Vermont over A Six-Year PeriodRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on May 22, 2017, The Honorable William K. Sessions III, sitting in Burlington, sentenced Michael J. Foreste, aka “Beast,” of Valley Stream, New York to 110 months’ imprisonment and three years of supervised release. Foreste was convicted at trial on 10 charges related to his oxycodone trafficking in Vermont over a six-year period. Specifically, in October 2016, a jury convicted Foreste, age 36, of (1) conspiring to distribute oxycodone in Vermont from about 2008 through June 2014; (2) distributing oxycodone (seven counts); and (3) money laundering (two counts). The jury returned a not guilty verdict relating to an additional count charging oxycodone distribution. The verdict was returned following a trial spanning two weeks. Judge Sessions III presided over the trial. At sentencing, Judge Sessions also ordered Foreste to forfeit his interest in a 2007 Lexus, which Foreste used to launder drug proceeds.
The Fourth Superseding Indictment charged Foreste with working with others to sell oxycodone from 2008 through June 2014, including Andre Clarke, Carol Clarke and Dannis Hackney. During that period, Andre Clarke served as a New York City police officer. Earlier this year, Clarke pled guilty to his role in the conspiracy and resigned from the NYPD. His sentencing is scheduled for November 7. In September 2016, Hackney pled guilty to several charges relating to his involvement in the oxycodone scheme. He is also awaiting sentencing. Carol Clarke is under federal indictment for conspiring to distribute oxycodone and awaiting trial.
According to prosecutors, Carol Clarke, who lived in Brooklyn, received a monthly prescription for hundreds of oxycodone to treat her sickle cell disease. She diverted the pills to her brother, Andre Clarke, of Long Island, who supplied them to Foreste. In the early part of the conspiracy, Foreste brought the pills to Vermont himself and sold them with the help of certain local addicts. In April 2012, however, Vermont State Police stopped Foreste in a vehicle on Interstate 91 North and seized 659 oxycodone pills from his person. Based on this event, Foreste sustained a federal conviction in 2013 for possession with intent to distribute oxycodone and was on pretrial release during much of the conduct involved in the current case. After April 2012, Foreste began working with Hackney, of Chittenden County, who sold Foreste’s pills to Burlington area addicts. Foreste eventually began mailing the pills to Hackney via the U.S. Mail Express Mail system. The Clarkes, Foreste, and Hackney transferred drug proceeds using various bank accounts, resulting in Foreste’s two convictions for money laundering. The evidence presented at trial demonstrated that Foreste’s drug distribution in Vermont yielded him illicit profits in excess of $500,000 over the course of the conspiracy. Foreste and Hackney have been in custody since their arrests in June 2014.
The convictions and sentencing of Foreste were the culmination of a multi-agency investigation and prosecution that began in mid-2014. The collaborative effort was spearheaded by Homeland Security Investigations, with assistance from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Vermont State Police, the Burlington Police Department, and the NYPD. Foreste is represented by Mark Kaplan, of Burlington, and Natasha Sen, of Brandon. The case was prosecuted by Assistant United States Attorneys Christina E. Nolan and Kevin J. Doyle.
New Haven Man Sentenced to 2 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAQUILLE PEARSON, 23, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on June 30, 2016, officers from the New Haven Police Department executed a search and seizure warrant at PEARSON’s residence on Button Street in New Haven. In the residence, an officer encountered PEARSON who was holding a sneaker that contained a loaded 9mm pistol. A subsequent search of the residence also revealed a .380 handgun that was hidden in another sneaker.
Prior to June 2016, PEARSON was convicted of state felony offenses, including carrying a dangerous weapon and third degree burglary. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PEARSON has been detained since his arrest on June 30, 2016. On March 1, 2017, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Chief Judge Hall ordered PEARSON not to interact or communicate with any members of the “Slut Wave” street gang while he is on supervised release.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Neopit, Wisconsin Man Sentenced to Prison for Drug Trafficking and Firearm Offense on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 22, 2017, Joseph Komanekin, Jr. (age: 33) of Neopit, Wisconsin was sentenced by Chief United States District Judge William C. Griesbach to 2 years in prison and 3 years of supervised release after convictions for drug trafficking and a firearms offense on the Menominee Indian Reservation. The sentence was the result of guilty pleas in March 2017.
The investigation revealed that Komanekin possessed with the intent to distribute 38 grams of a synthetic drug called FUB-AMB, which is an analogue of a Schedule I controlled substance referred to locally as “Ish.” In February 2016, Komanekin’s residence was searched pursuant to a tribal search warrant, and further evidence of distribution was recovered from the home. Tribal police also seized a short-barreled shotgun from an area in the basement near where the synthetic drugs and other contraband were found.
In sentencing Komanekin, Chief Judge Griesbach noted the serious nature of the offense, which involved the sale of a substance that is causing great harm to the Menominee Indian community.
The case was investigated by the Menominee Tribal Police Department, the Wisconsin Department of Justice – Division of Criminal Investigation (Native American Drug and Gang Initiative), Wisconsin State Crime Laboratory, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Andrew J. Maier.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Nebraska Woman Sentenced for Involvement in Income Tax SchemeRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on May 22, 2017, Kathy L. Hansen, 36, of Gresham, Nebraska, was sentenced for her involvement in an income tax scheme. The Honorable Chief Judge Laurie Smith Camp sentenced Hansen to a three (3) year term of probation. Hansen was also ordered to make restitution in the amount of $11,557.
An investigation conducted by Internal Revenue Service Criminal Investigation determined that in 2014 Hansen opened a bank account used for the deposit of illegally obtained federal tax refunds. The illegally obtained federal tax refunds were deposited as part of a tax refund scheme being operated by individuals believed to be located outside of the United States. After the federal tax refunds were deposited into her account, Hansen would send the money to individuals operating the scheme believed to be located outside of the United States. “Individuals should think twice before participating in fraudulent tax schemes and be prepared to face the consequences,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Those consequences include being branded a convicted felon and paying back what was stolen from the government.”
The case was investigated by the Internal Revenue Service Criminal Investigation.
Navajo Woman Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Sho’Nee Ganadonegro, 26, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., was sentenced today in federal court to three years of probation for her conviction on a child abuse charge. Ganadonegro was also ordered to complete substance abuse counseling and childcare classes, and to refrain from the use of alcohol.
Ganadonegro was arrested in Jan. 2016, on an indictment charging her with engaging in child abuse by operating a motor vehicle recklessly on Nov. 1, 2015, in Indian Country in Cibola County, N.M.
On Jan. 3, 2017, Ganadonegro entered a guilty plea to the indictment. In entering the guilty plea, Ganadonegro admitted that on Nov. 1, 2015, she operated a motor vehicle recklessly within Laguna Pueblo while under the influence of alcohol. Ganadonegro admitted that her actions endangered the lives and health of the four Indian children who were passengers in the vehicle.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Nashville Man Sentenced to 55 Years in Federal Prison for Production and Transportation of Child PornographyRead the Press Release
Damion Faulkner, 33, of Nashville, Tenn., was sentenced yesterday by Chief U.S. District Judge Waverly Crenshaw to 55 years in prison for producing and transporting child pornography, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
On July 15, 2015, a federal grand jury in Nashville, Tenn. returned a 15-count indictment, charging Faulkner with production, receipt, possession and transportation of child pornography. He pleaded guilty to all counts on September 16, 2016.
“The sentence imposed by the Court reflects the atrocious actions of the defendant and society’s need to punish the offender and insure that no other innocent children will become a victim of his perverted sexual desires,” said Acting U.S. Attorney Jack Smith.
According to documents filed with the court, beginning in July 2013, Faulkner produced a pornographic video and still images of a 5-year old girl and another pre-pubescent girl who were staying at the residence where Faulkner lived. Some of the images and the video depicted Faulkner sexually molesting the 5-year old as she slept. Faulkner subsequently distributed the images and video of the five-year-old girl to at least ten different individuals and possibly many more, often identifying her name and/or relationship to him.
The documents also describe many of Faulkner’s email conversations with others, in which he discussed his sexual attraction to young girls, offered advice on how to groom a young girl in preparation for engaging in sex and also discussed his molestation of another prepubescent girl in years past.
On January 3, 2014, Metro Nashville Police detectives executed a search warrant at Faulkner’s home. As a result of that search, detectives found 3,745 images depicting child pornography and 103 videos, most of which were of pre-pubescent girls, some as young as toddlers.
This investigation began in late 2013 when an investigator with the Vancouver, Washington Police Department Digital Evidence Cybercrime Unit discovered that an individual using a specific email address was trading images depicting the sexual exploitation of children with another individual under investigation by the same unit. Further investigation indicated that the individual using this email address was located in Nashville, Tennessee, and the case was referred to the Metropolitan Nashville Police Department. Local detectives were able to identify the individual using that email address as Damion Faulkner.
As a result of this investigation, Nashville Metro detectives were able to initiate and refer investigations, which resulted in 13 additional persons being charged in seven other states. To date, 12 of those have pleaded guilty to various charges involving child pornography.
This case is the result of the Internet Crimes Against Children Task Force, a national network of 61 coordinated task forces representing over 3,500 federal, state, and local law enforcement and prosecutorial agencies. These agencies are continually engaged in proactive and reactive investigations and prosecutions of persons involved in child abuse and exploitation involving the internet.
This case was investigated by the Metropolitan Nashville Police Department and was prosecuted by Assistant U.S. Attorney Caran S. Daughtrey.
Nashville Man Facing Federal Firearms Charges After Ramming Metro Nashville Police Cruiser to Escape ArrestRead the Press Release
Joe Lewis Williams, Jr., of Nashville, Tenn., was indicted on May 18, 2017, and charged with being a convicted felon in possession of a firearm, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Williams was initially arrested on April 12, 2017, by officers of the Metropolitan Nashville Police Department, after a series of events where he attempted to evade arrest and subsequently assaulted a Metro police officer.
“This is another example of an assault against a law enforcement officer where the defendant now faces federal charges,” said Acting U.S. Attorney Jack Smith. “I want this message to be heard loud and clear-if you commit an act of violence directed at a law enforcement officer in this district, the U.S. Attorney’s Office will review the incident to determine if there is a basis to bring federal charges. There will be zero tolerance for acts of violence against law enforcement officers in this district.”
According to a criminal complaint, issued on April 14, 2017, on the afternoon of April 12, 2017, a MNPD officer was exiting the Mercury Court Apartments on Murfreesboro Pike, when he saw a vehicle pulling into the parking lot. The officer recognized the vehicle as matching the description of one that was involved in an earlier hit-and-run and also recognized the driver as Williams, who he knew was wanted on an outstanding warrant for violation of probation.
The MNPD officer conducted a stop of Williams and ordered him two times to place his vehicle in park. Williams refused and pulled away, rammed the officer’s patrol car and pushed it out of the way to allow him to exit the parking lot. Williams then fled the area and was found minutes later by another MNPD officer, parked at the rear of a nearby hotel and standing outside the vehicle. Williams ignored the officer’s orders and ran through the hotel’s breezeways before being caught by the officer. Williams resisted and struggled with the officer and as the officer was about to deploy his Taser, he noticed a handgun protruding from William’s pocket. In an attempt to gain control of Williams and the firearm, the officer dropped the Taser and as the struggle continued, Williams lunged toward the Taser, before being subdued with the assistance of another MNPD officer. Officers recovered a 9mm semiautomatic pistol, loaded with 13 live rounds and drug paraphernalia from Williams.
Williams had previously been convicted by the State of Tennessee of possession with intent to sell cocaine and had prior federal felony convictions for carjacking, use of a firearm in commission of a crime of violence, being a convicted felon in possession of a firearm and aggravated identity theft.
If convicted, Williams faces a sentence of up to 10 years in prison and a $250,000 fine.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rascoe Dean is prosecuting the case.
Mexican Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ADOLFO BOLANOS-BONIFACIO, age 38, a native of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Court Judge Jay C. Zainey sentenced BOLANOS-BONIFACIO to time served, followed by one year of supervised release, and a $100 special assessment fee. BOLANOS-BONIFACIO he defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on April 20, 2017, BOLANOS-BONIFACIO was found in the United States after having been previously deported from the United States on August 20, 2015.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant U.S. Attorney Jon Maestri was in charge of the prosecution.
Mescalero Apache Man Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Paul Raymond Garcia, 20, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 27 months in prison for his conviction on an involuntary manslaughter charge. Garcia will be on supervised release for three years after completing his prison sentence.
Garcia was arrested in Jan. 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Garcia killed a Mescalero Apache woman when he crashed his vehicle on March 23, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M. At the time of the crash, Garcia was driving under the influence of alcohol. Garcia was subsequently indicted on the same charge on June 22, 2016.
On Nov. 16, 2016, Garcia pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Garcia acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Media Advisory - Press Conference in St. Petersburg on WednesdayRead the Press Release
WHO:
W. Stephen Muldrow
Acting United States Attorney
Middle District of Florida
Chief Anthony Holloway
St. Petersburg Police Department
Daryl R. McCrary
Special Agent in Charge
Bureau of Alcohol, Tobacco, Firearms and Explosives
Participating Agencies
State Attorney’s Office for the Sixth Judicial Circuit
WHAT:
Press Conference
Press conference to announce the culmination of an eight-month operation.
WHEN:
WEDNESDAY, May 24, 2017
11:00 A.M. EST
WHERE:
St. Petersburg Police Department (Headquarters)
Basement Meeting Room
1300 1st Avenue North
St. Petersburg Florida 33705
OPEN PRESS
NOTE:
All media must present press credentials and government-issued photo I.D. (e.g. Driver’s License).
Media may begin arriving at 10:30 A.M.
Please park on Central Avenue (behind P.D.).
Call (727) 893-7128 for escort through rear door.
Please RSVP to [email protected] by 5:00 p.m. today.
Maxton Man Sentenced to 20 Years for Firearm OffensesRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announced that in federal court today, Chief United States District Judge James C. Dever, III, sentenced RONNIE DEESE, 39, of Maxton, NC to 240 months of imprisonment followed by 5 years of supervised release.
DEESE was named in a three-count Superseding Indictment filed on September 21, 2016. On October 25, 2016, DEESE pled guilty to discharging a firearm in furtherance of a crime of violence and possession of a firearm in furtherance of a crime of violence.
On May 28, 2016, investigators with the Robeson County Sheriff’s Office, responded to a residence on Tuscarora Nation Road in Maxton in reference to a shooting. They met with a witness who stated that prior to the deputies arriving, he heard a knock on his door and observed a male with blood on his face standing outside his door. He opened his door and the victim walked into the home, followed by DEESE. DEESE was armed and pointed a firearm at the homeowner while ordering him to give DEESE what he had, referring to marijuana. The homeowner told DEESE he did not have anything and DEESE shot the man in the foot. DEESE then began searching the home. Once DEESE entered the kitchen, the homeowner fled from the home through the front door. DEESE soon left the residence with a trash bag containing approximately $5,000 worth of marijuana.
Investigators interviewed the man with blood on his face, who had multiple lacerations to the top of his head. He told investigators that prior to the robbery, DEESE approached him near a creek and struck him on the head with a firearm. DEESE instructed the victim to take him, “where the grass was,” referring to marijuana, and DEESE forced him to ride with DEESE to the residence.
On June 2, 2016, members of the Robeson County Sheriff’s Office executed a search warrant at DEESE’S residence. At the time, DEESE had outstanding warrants for his arrest based upon the incidents that transpired on May 28, 2016. While searching DEESE’S residence, investigators located and seized a stolen 9mm semi-automatic pistol from DEESE’S master bedroom.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Robeson County Sheriff’s Office and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney Peggah Wilson handled the prosecution of this case for the government.
Massachusetts Insurance Broker Convicted of Filing False Tax ReturnsRead the Press Release
A Dover, Massachusetts, insurance broker was convicted today by a federal jury of filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney William D. Weinreb for the District of Massachusetts.
According to the evidence presented at trial, Anthony J. May, 62, owned and operated Clients First Financial Insurance Agency, LLC, through which May sold life insurance products as a broker, and Advantage Life Settlements, LLC, through which he served as a broker for insured individuals looking to sell their personal life insurance policies to third party investors. May operated his businesses out of an office suite in Hingham where he also leased space to other independent insurance agents. May filed false 2008 and 2009 individual income tax returns that did not report $396,554 in income that he received from insurance commissions, broker fees and lease rental payments.
Sentencing is scheduled for Oct. 2, 2017. May faces a statutory maximum sentence of three years in prison on each count as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Weinreb thanked special agents of the Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Victor A. Wild and Trial Attorney Eric Powers 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.
Man Sentenced to Prison for Assault on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 22, 2017, Jeffrey Matchopatow (age: 32) of Keshena, Wisconsin was sentenced by Chief United States District Judge William C. Griesbach to 26 months in prison and 3 years of supervised release. In March, Matchopatow pled guilty to assault resulting in serious bodily injury.
The investigation revealed that On September 11, 2016, Matchopatow assaulted a woman at a residence in Keshena on the Menominee Indian Reservation. As a result of Mathopatow’s actions, the woman sustained a fractured jaw and other facial injuries.
In sentencing Matchopatow, Chief Judge Griesbach noted the serious nature of the offense, noting the serious injuries sustained by the victim. The court also referred to Matchopatow’s prior tribal convictions for violent offenses involving multiple victims.
The case was investigated by the Menominee Tribal Police Department, Menominee County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Andrew J. Maier.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Man Pleads Guilty to Stealing from Marine Helicopter Squadron OneRead the Press Release
ALEXANDRIA, Va. – A Stafford man pleaded guilty today to stealing nearly $100,000 worth of military equipment from the helicopter squadron responsible for the transportation of the President of the United States.
According to the statement of facts filed with the plea agreement, from approximately September 2013 to April 2015, Branden Roy Baker, 34, stole at least 51 image intensifiers tubes and other night vision parts worth approximately $94,392 from Marine Helicopter Squadron One (HMX-1). Baker typically negotiated the sales of the stolen equipment via email after identifying potential buyers on eBay.com.
Baker pleaded guilty to theft of government property, and faces a maximum penalty of 10 years in prison when sentenced on August 11. 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 Jeremy Gauthier, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Special Assistant U.S. Attorney Andres E. Vasquez and Assistant U.S. Attorney Michael E. Rich are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-91.
Man Charged with Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI- Dean Thompson, 47, of St. Thomas, made his initial appearance Monday before United States Magistrate Judge Ruth Miller on an indictment charging him with conspiracy to possess with intent to distribute marijuana, and possession with intent to distribute marijuana, Acting United States Attorney Joycelyn Hewlett announced. Thompson was detained pending a detention hearing on Friday.
According to the indictment, between February 9, 2017, and March 8, 2017, Thompson conspired with others to possess approximately 14 kilograms of marijuana that was mailed in two packages from New York to St. Thomas.
If convicted, Thompson faces a maximum sentence of five years in prison and a $250,000 fine.
The case is being investigated by the United States Postal Inspection Service and U.S. Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Acting United States Attorney Hewlett reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Los Angeles Defendants Indicted on Drug and Murder-for-Hire SchemeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that the Superseding Indictment charging DAVID SUIAUNOA a/k/a “DAVE,” age 46 from Torrence, CA; LUCKY FUA IOSUA, a/k/a “IOSUA LUCKY FUA,” age 46, from Carson, CA; and NADINE SAMALAULU PAALA, a/k/a “NADINE PAALA-UTU,” age 28, from Torrence, CA, was unsealed today. The Superseding Indictment charges each defendant with conspiracy to distribute methamphetamine. SUIAUNOA, IOSUA, and DAVID PHILLIPS, age 36 from Los Angeles, CA, were also indicted for using facilities of interstate commerce to solicit a murder-for-hire.
According to the Superseding Indictment, since on or about December 17, 2015, SUIAUNOA, IOSUA, and PAALA conspired to distribute and possess with the intent to distribute 500 grams or more of methamphetamine. SUIAUNOA, IOSUA, and PHILLIPS were also indicted on conspiring to commit a murder-for-hire from on or about July 27, 2016. The investigation revealed that PHILLIPS hired SUIAUNOA to kill an individual located in Los Angeles. SUIAUNOA and IOSUA later attempted to hire an undercover agent from Homeland Security Investigations to find a hitman to complete the murder. SUIAUNOA, IOSUA, and PHILLIPS were all arrested before the victim could be murdered.
Acting U.S. Attorney Evans reiterated that the Superseding Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
KCK Man Sentenced to 24 Years for Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for enticing a child victim, whom he met online, into engaging in illegal sexual activity.
Nathan R. Caylor, 42, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 24 years in federal prison without parole.
On Dec. 12, 2016, Caylor pleaded guilty to one count of enticing a minor to engage in illegal sexual activity and one count of receiving child pornography. Caylor admitted that he communicated online for more than a year with a 14-year-old victim, identified in court documents at “Jane Doe,” and traveled to her home to engage in sexual intercourse on at least eight separate occasions.
Caylor initially contacted Jane Doe in May 2013. He used the false name “Justin” and told her he was 17 years old. They exchanged photos of each other electronically and communicated via Skype. Caylor told Jane Doe that he had been diagnosed with cancer when he was 14 years old and that the chemotherapy and radiation he had to undergo for cancer made him look older. In reality, Caylor had never been diagnosed with cancer.
Caylor eventually turned the topic of their communications to graphic conversations of a sexual nature and made arrangements to meet Jane Doe in person. Caylor traveled to her home for the first time in November 2013 when her parents were not home. Between May 2013 and July 2014 Caylor also electronically sent pornographic photos of himself to Jane Doe.
In July 2014 the Blue Springs, Mo., Police Department was notified about Caylor’s contact with Jane Doe. A Blue Springs detective assumed Jane Doe’s identity on Facebook and began communicating with Caylor. Caylor asked if he could visit, and was told that her parents were not home. Caylor told Jane Doe that he would see her that same day. He traveled by bus from Kansas City, Kan., to Independence, Mo., then walked several miles to her home. Caylor was arrested while he was walking to the victim’s home.
Investigators also found images of child pornography on Caylor’s computer, including images of a 3-to-4-year-old victim and a 10-to-12-year-old victim. Caylor also was in possession of images of Jane Doe engaged in sexually explicit conduct.
Caylor has prior Kansas state convictions in 1993 for four counts of enticing a child and five counts of lewd and lascivious behavior. According to court documents, Caylor enticed four young children (between 7 and 8 years old) to enter a building so he could commit an unlawful sexual act upon them. He exposed himself to these same four children and as well as to a fifth child.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Settles U.S. Worker Discrimination Claims Against New Mexico FarmRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Carrillo Farm Labor, LLC (Carrillo Farm), an onion farm in Deming, New Mexico. The settlement resolves the department’s investigation of complaints that Carrillo Farm discriminated against U.S. citizens due to a hiring preference for foreign visa workers.
After investigating complaints filed on behalf of two U.S. citizens, the Justice Department determined that Carrillo Farm denied U.S. citizens employment in 2016 because it wanted to hire temporary foreign workers under the H-2A visa program. Under the anti-discrimination provision of the Immigration and Nationality Act (INA), it is unlawful for employers to intentionally discriminate against U.S. citizens because of their citizenship status.
The settlement agreement requires Carrillo Farm to pay civil penalties to the United States, undergo department-provided training on the anti-discrimination provision of the INA, and comply with departmental monitoring and reporting requirements. In a separate agreement with workers represented by Texas RioGrande Legal Aid, Carrillo Farm agreed to pay a total of $44,000 in lost wages to affected U.S. workers.
“U.S. workers are the backbone of our economy, and the Justice Department will not tolerate employers discriminating against them because of their citizenship status,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The department is wholeheartedly committed to challenging discriminatory hiring preferences that disfavor U.S. workers. We commend Texas RioGrande for bringing the matter to our attention and applaud Carrillo Farm for cooperating with the department to implement the corrective actions necessary to resolve this matter.”
This settlement is part of a Justice Department enforcement initiative dedicated to combatting employment discrimination against U.S. workers.
The Division’s Immigration and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Indianapolis gang members indicted on federal racketeering chargesRead the Press Release
The “MOB Gang” allegedly responsible for a number of area pharmacy robberies taking prescription narcotics for street sale
PRESS RELEASE
Indianapolis--United States Attorney Josh J. Minkler, today announced the indictment of nine individuals in an investigation into an Indianapolis street gang known as The Mob. The indictment charges six of these defendants with violations of the Racketeer Influenced and Corrupt Organizations statute, which the U.S. Attorney’s Office used in 2013 to successfully prosecute members of the Outlaws Motorcycle Club.
“Today’s defendants made a living terrorizing the citizens of Indianapolis by robbing local pharmacies, then selling the drugs on the street,” said Minkler. “Their reign of terror is over and now face the hammer of federal law enforcement.”
The indictment alleges that members of The Mob robbed numerous Indianapolis-area pharmacies and distributed the stolen prescription drugs on the street. The indictment alleges that members of The Mob committed at least twenty-four pharmacy robberies from December 2014 through June 2016. The Mob, which operated near the area of 40th and Boulevard Place in Indianapolis, commonly robbed opiate prescription drugs, including OxyContin, Percocet, and Roxicodone, which could be illegally sold on the street for up to $15 per tablet. In many of the robberies, thousands of pills and tablets were stolen.
The indictment further alleges the gang used violence and the threat of violence to protect their territory through the use of social media. Members of the gang followed a code of silence (COS) forbidding members from providing information to law enforcement about their illegal activities. Members who violated the COS were met with threats of violence.
Members of The Mob enterprise secured accomplices for the robberies from a particular pool of individuals, some included members of the gang and lower-level associates known as “peons.” Soon after the robberies, members of the gang would upload boastful posts on social media of their crimes and advertise the stolen drugs for street sale.
Those arrested include:
Larry Warren, a/k/a Bayboy, 19
Miguel Chambers,a/k/a Mick, 20
Kye Jackson, a/k/a Fatty, 22
Anthony Jackson, a/k/a Ace, 19
Devon Taylor, 20
Alphonse Turner, a/k/a Weezy, 24
Justin Rudolph, 23
John Doe, a/k/a Toro, Tote
Fugitive:
Duwan Byers, a/k/a Rockhead, 21
juveniles were also arrested, but their names are being withheld until formal adult charges are filed.
Minkler further stated his office has prosecuted 35 defendants for pharmacy robberies at 62 pharmacies in and around Marion County and Central Indiana.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives the Bloomington, Indiana Police Department and the Indianapolis Metropolitan Police Department.
“Because of the collective law enforcement work of our federal partners and IMPD, we have taken some extremely dangerous individuals off of the streets of Indianapolis,” said Chief Bryan Roach. “The allegations detailed in the charging documents are examples of the investigative focus on violence in Indianapolis. We are appreciative of the collective impact that allows such success.”
Indiana Man Pleads Guilty to Charges Relating to a Kickback Scheme at the John Cochran VA CenterRead the Press Release
St. Louis, MO – Tony Pedretti, 43, of Whiting, Indiana, admitted to his role in a kickback scheme that ran for three years while he supervised the HVAC shop and the John Cochran Veterans Administration Medical Center in St. Louis from 2012 to 2015. Pedretti appeared before Judge Audrey G. Fleissig in St. Louis. Judge Fleissig accepted his plea and set his sentencing for September 7, 2017.
According to the plea agreement, Pedretti conspired with Scott Geary, David Graham and others to collect kickbacks for work done at the HVAC shop. Pedretti was authorized to pay up to $2500 to outside contractors without prior approval and most of the jobs involved in the scheme were near that limit. It was a part of the parties’ agreement that, for each job, Pedretti would receive a cash kickback. In all, Pedretti admitted that more than $270,000 in work was let by him in furtherance of the kickback scheme.
Scott Geary has already pleaded guilty to his role in the scheme and awaits sentencing. Graham is a co-defendant with Pedretti and is awaiting trial of his case. Pedretti faces up to five years imprisonment and a fine of up to $250,000 for his conspiracy conviction.
This case was investigated by the United States Department of Veterans Affairs – Office of the Inspector General and the FDIC – Office of the Inspector General. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Houston-Area Psychiatrist Convicted of Health Care Fraud for Role in $158 Million Medicare Fraud SchemeRead the Press Release
A federal jury convicted a Houston-area psychiatrist today for his role in a $158 million Medicare fraud scheme.
Acting Assitant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge D. Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office, Special Agent in Charge Kristin Osswald of the Railroad Retirement Board Office of Inspector General’s (RRB-OIG) Chicago Regional Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a five-day trial, Riaz Mazcuri, 65, of Harris County, Texas, was convicted of one count of conspiracy to commit health care fraud and five counts of health care fraud. Sentencing has been scheduled for Oct. 10, 2017, before U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas, who presided over the trial.
According to evidence presented at trial, from 2006 until February 2012, Mazcuri and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside General Hospital (Riverside), approximately $158 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness.
The evidence presented at trial showed that Mazcuri participated in a scheme by which Riverside paid bribes and kickbacks to group home owners and nursing home employees in exchange for sending Medicare patients to Riverside’s PHPs. Mazcuri indiscriminately admitted and readmitted these patients into these intensive psychiatric programs – often for years on end – many of whom suffered from severe Alzheimer’s or dementia and were unable to participate in the treatment purportedly provided at the PHPs, and who therefore did not qualify for the services, the evidence showed.
In addition, evidence presented at trial showed that Mazcuri rarely saw patients and that he visited the PHPs briefly every week or so to sign documents and briefly see patients. Additionally, Mazcuri falsified medical records and signed false documents purporting to show that patients admitted to the PHPs qualified and required the intensive psychiatric services, the evidence showed. Evidence also showed that Riverside did not actually provide the intensive, psychiatric treatment that a PHP is supposed to provide and falsified documentation to make it appear to Medicare that intensive treatment was being provided to qualifying patients.
Evidence at trial demonstrated that Mazcuri personally billed Medicare for over $4.5 million for psychiatric treatment he purportedly provided to Riverside’s PHP patients. Mazcuri’s signature on patient documents enabled Riverside to bill Medicare for $55 million of the total $158 million that Riverside billed Medicare for fraudulent psychiatric services, the evidence showed.
To date, 15 others have been convicted of offenses based on their roles in the fraudulent scheme. These include Earnest Gibson III, the former president of Riverside; Earnest Gibson IV, the operator of one of Riverside’s PHP satellite locations; Regina Askew, a group home owner and patient file auditor; and Robert Crane, a patient recruiter, all of whom were convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison. Earnest Gibson IV was sentenced to 20 years in prison. Regina Askew was sentenced to 12 years in prison. Robert Crane has not yet been sentenced. Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison. Sharon Iglehart, a physician, was also convicted after a jury trial in August 2015. She was sentenced to 12 years in prison. Walid Hamoudi, a physician, pleaded guilty in August 2015. He was sentenced to five years in prison.
The case was investigated by the FBI, HHS-OIG, IRS-CI RRB-OIG and the MFCU, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Ashlee McFarlane and Trial Attorneys Kevin Lowell and Aleza Remis of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Hanover Man Pleads Guilty to Witness Tampering and Agrees to Pay $171,831 to Settle False Claims Act ViolationRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David K. Shaqfeh, age 49, of Hanover, Pennsylvania, pleaded guilty on May 18, 2017, before U.S. District Judge Christopher C. Conner to tampering with a witness. No date has been set for sentencing.
According to United States Attorney Bruce D. Brandler, Shaqfeh solicited and encouraged an unidentified witness to give a false statement about supplemental rent payments Shaqfeh received during 2014 and 2015, for a U.S. Department of Housing and Urban Development (HUD) subsidized rental property in Levittown, Pennsylvania, to investigators from the HUD Office of Inspector General.
In the agreement to settle the False Claims Act violations, the United States alleged that Shaqfeh participated as a landlord in the Housing Choice Voucher Program (HCVP) and solicited and received unauthorized side payments from a HCVP participant over and above the authorized rent. HCVP is a program whereby the HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market.
The settlement agreement resolves allegations that Shaqfeh submitted a request for tenancy approval to HUD for a HCVP tenant, which was not approved because the rent exceeded the maximum initial rent burden under HUD guidelines. Thereafter, Shaqfeh submitted another request for tenancy approval to HUD for the same HCVP participant with a lower rent amount, which was approved by HUD. However, Shaqfeh continued to collect additional side payments from the HCVP participant to make up for the lower lease amount. HUD’s payments to Shaqfeh were contingent upon his certification that he would only charge the amount of rent approved by HUD and not receive additional rent payments from the HCVP participant. Additionally, HUD would not have paid Shaqfeh on two other HUD contracts had it known he was charging an HCVP participant additional rent on another HUD contract. Shaqfeh has paid $171,831 to resolve allegations that he violated the False Claims Act.
The case was investigated by the U.S. Department of Housing and Urban Development’s, Office of Inspector General. Assistant United States Attorneys Kim Douglas Daniel and Melissa Swauger are prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Jury Indicts Five for Robbing PharmaciesRead the Press Release
DAYTON – A federal grand jury returned two indictments today charging five people with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.
Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Middletown Police Chief Rodney Muterspaw announced the indictments.
The grand jury charged two Dayton men, Calvin Cavonte Tribble, 19, and Savon Anthony Davis, 23, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19. In a separate indictment, the grand jury alleges that three Indianapolis men, Eric Lamont Bates, 20, Yasar Jamal Burnett, 18, and Brandon Lee Dawson, 19, conspired to rob another Middletown pharmacy of morphine and oxycodone on April 29, 2017.
The grand jury charged the defendants with conspiracy, robbery by force, interference with commerce by threats of violence, and possession with intent to distribute the drugs. Each crime is punishable by up to 20 years imprisonment.
Middletown police arrested the defendants on the date of the robberies and filed state charges. All defendants appeared in federal court. Davis was released with conditions. The other four are being held without bond pending trial.
U.S. Attorney Glassman commended the cooperative investigation of this case by the Middletown Police and the FBI, as well as Assistant U.S. Attorneys Amy Smith and Brent Tabacchi, who are representing the United States in the case.
An indictment contains allegations. All defendants should be presumed innocent until and unless proven guilty in court.
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Gang Leader Sentenced to more than a decade in Prison for Violent Extortion of Business OwnersRead the Press Release
ATLANTA – Eugene Chung has been sentenced to ten years, six months in prison on federal extortion charges. Chung was the leader of a Gwinnett County, Georgia, gang that specialized in the violent collection of debts from business owners in the Korean-American community. Chung and his gang also shook down business owners for “protection payments” and engaged in other criminal conduct including drug trafficking, firearms offenses, and gambling. Chung earlier pled guilty to two counts of interfering with commerce by extortion. Four other members of Chung’s gang were also convicted of federal extortion offenses.
“Chung carefully cultivated his reputation for violence, and profited from that reputation by victimizing our Korean-American community,” said U.S. Attorney John Horn. “He bragged that he and his associates were ‘professionals’ at extortion and that harming their victims was one more way to get people to pay. The community is safer now that he and his fellow gang members are off the streets.”
“Mr. Chung counted on the silence of his many victims within the Korean community as he beat and extorted them. This case, and sentencing of Mr. Chung to federal prison, came about from brave and informed community members who understood their rights and were willing to stand up for those rights by working with our federal agents and federal prosecutors in order to put a stop to Mr. Chung and his gang. The FBI thanks those individuals for their efforts as they now enjoy a safer community due primarily to their own actions and willingness to get involved,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: In about July 2009, Chung and his crew visited a Korean restaurant in Gwinnett County, Georgia, and demanded a monthly share of the restaurant’s profits from the bar’s owner (referred to as “Victim # 1” in the indictments) in exchange for “protection.” Chung promised that, unless Victim #1 made the demanded payments, Chung and his crew would assault Victim #1, harass his customers and employees, and otherwise damage the restaurant. To reinforce their threats, Chung told Victim #1 that his crew routinely carried firearms and terrorized other Korean businesses in the community.
Over the next four months, Chung and his criminal associates strong-armed Victim #1 into making monthly protection payments, ranging from $400 to $800. On December 16, 2009, after Victim #1 missed making a monthly payment, Chung, Vorasith, and Kim showed up at the restaurant, assaulted Victim #1 in one of the restaurant’s karaoke rooms, and demanded payment. Chung threatened to kill Victim #1 if he did not pay. Chung pulled out a semiautomatic pistol, pointed it at Victim #1, and threatened to pull the trigger. Vorasith punched Victim #1 in the face, breaking his nose and knocking him unconscious.
Shortly after the December 16 assault, the FBI opened an investigation, and Victim #1 resumed making protection payments under FBI surveillance, including two payments that were made to Kim for Chung.
On March 10, 2010, Victim #1 introduced an FBI undercover agent to Chung, Vorasith, and Lee. The undercover agent (referred to as “the patron” in the indictments) posed as a wealthy businessman who was said to be Victim #1’s uncle and who purported to be interested in buying large quantities of marijuana. During the recorded meeting, Chung explained to the patron that he ran a marijuana distribution business and offered a menu of other illegal services as well, including gambling, extortion, and debt collection services.
Chung offered to help the patron if he ever needed money collected and stated, “If you need us to beat up anybody, we’re professionals at that.” Chung added that he and his associates were “best at making people crippled,” and said they could also make people “permanently limp, blind, or deaf.” Upon hearing that the patron supposedly was owed $200,000 by a businessman in Houston, Texas, who was behind in payments (and who was actually an undercover FBI Special Agent as well), Chung offered to collect the debt.
In July 2010, Chung and Lee had a series of recorded in-person meetings and telephone calls with the patron in which they planned to forcibly collect the debt from the Texas businessman. Chung offered to get 20 to 30 guys ready for the job, and he said that the businessman was “sure to pay” because his crew was “really good at collecting money” and the businessman would be “scared.” Chung accepted a $2,000 advance payment.
When the patron asked Chung not to break the businessman’s legs, Chung quipped that that sometimes “happens,” but usually was not necessary because his guys were good at making victims think they were going to be killed. Chung further observed that “people in Atlanta know if you don’t pay you get killed,” and that if the businessman did not pay, they would show up at his office in Texas.
On July 21, 2010, Chung, Vorasith, Choi, and Lee rode together with the patron to Atlanta Hartsfield-Jackson Airport where they believed the Texas businessman was catching a connecting flight. Chung, Vorasith, Choi, and Lee approached the businessman, who was sitting at a restaurant table in the airport’s atrium. While being recorded, Chung and his crew surrounded the table. Chung ordered the businessman to repay the patron and threatened to visit the businessman and his wife at their home in Texas if he did not pay. Chung told the businessman if “you don’t pay,” Chung’s crew “can’t eat.” The businessman handed $5,000 to the patron as well as his Rolex watch. Chung later obtained the businessman’s telephone number from the patron.
In September 2010, Chung left several recorded voice messages in which he threatened the businessman and his family. Chung eventually spoke with the businessman by telephone and reiterated those threats. A few days after that, Chung and Vorasith accepted a $1,000 payment for their efforts in attempting to collect the debt.
Chung, Choi, and Lee also sold drugs and guns to undercover agents throughout 2010 and 2011.
On September 17, 2013, a federal grand jury in Atlanta returned a 13-count indictment charging the defendants with extortion, drug trafficking, and firearms offenses. Each of the five defendants was convicted and sentenced (or is awaiting sentencing) as follows:
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Ye El (“David”) Choi, 33, of Norcross, Georgia, pleaded guilty on February 13, 2015, via plea agreement, to one count of conspiracy to interfere with commerce by extortion. On June 16, 2017, Choi will be sentenced by U.S. District Judge Timothy C. Batten, Sr.
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Athith (“Andy”) Vorasith, 36, of Auburn, Georgia, pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion. On July 11, 2016, Vorasith was sentenced to seven years, three months in prison, to be followed by three years of supervised release. Vorasith was also ordered to pay restitution of $8,500 to Victim # 1.
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Eugene Thomas Chung, 43, of Duluth, Georgia, pleaded guilty on February 4, 2016, via plea agreement, to two counts of interfering with commerce by extortion. On May 19, 2017, Chung was sentenced to ten years, six months in prison, to be followed by three years of supervised release. Chung was also ordered to pay restitution of $8,500 to Victim # 1.
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Thomas Jungwon (“Tommy”) Lee, 36, of Duluth, Georgia, pleaded guilty on February 16, 2017, via plea agreement, to one count of interfering with commerce by extortion. On May 16, 2017, Lee was sentenced to a time-served sentence, which amounted to one year, ten months in prison, followed by three years of supervised release, to include 160 hours of community service.
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Jong Sung (“John”) Kim, 52, of Suwanee, Georgia, went to trial and was convicted by a jury on March 2, 2017, on two counts of interfering with commerce by extortion. Kim was acquitted on two other extortion counts, including a conspiracy count. Kim will be sentenced by U.S. District Judge Batten on June 5, 2017.
This case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant U.S. Attorney John S. Ghose, former Assistant U.S. Attorney Ryan Scott Ferber, First Assistant U.S. Attorney Kurt R. Erskine, and Emory Law School Extern Joshua E. Orlan.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Gang Leader Sentenced to Nearly 20 Years in Prison for Gang-Related Violence and Shootings in Northwest DetroitRead the Press Release
DETROIT – A leader of the Band Crew street gang was recently sentenced to nearly 20 years in prison for his role in gang-related attempted murders, robberies, and shootings. An associate of the Band Crew street gang was also sentenced to nearly seven years in prison for his role in the gang’s criminal activities. Corey Deandre Mapp, a/k/a Lil Corey, 23, and Mario Perkins, a/k/a Rio, both of Detroit, were sentenced following their guilty pleas to RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence. Mapp and Perkins both pleaded guilty in late 2016, before Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan.
Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, and Chief James Craig of the Detroit Police Department made the announcement.
“These convictions and sentences are particularly important since Mr. Mapp was a leader of the gang, participated in shootings, and encouraged this violence to occur, which included Mr. Perkins participation in gang-related shootings and violence” said Acting U.S. Attorney Lemisch. “We believe these sentences send a strong message of deterrence to those who may want to pursue the gang lifestyle.”
“These sentences are the culmination of countless hours of dedicated work by ATF agents and our law enforcement partners,” said Special Agent in Charge Shoemaker. “ATF will continue to aggressively target and dismantle criminal enterprises threatening the safety of Detroit’s citizens.”
According to court documents, Band Crew was an association comprised of smaller gangs, including Constantly Making Hundreds (CMH), Young N Crispy (YNC), Pushit (or Pusha) Boy Family (PBF), and Family Over Everything Love is Forever (FOE Life). Band Crew operated in northwest Detroit, and the gang’s members claimed this area as their territory by “tagging” buildings with gang-related graffiti, including markings such as “#22 BandCrew,” “BAND CREW,” “22 BAND CREW,” “YNCMH” and “PBF.” Band Crew members and associates worked to defend their territory, to promote and maintain the status and reputation of the gang, and to engage in or threaten violence in retaliation for perceived wrongs. Band Crew’s specific base of operation in northwest Detroit was in the area in and around Seven Mile Road, with Southfield Freeway to the west, West McNichols Road to the south, Eight Mile Road to the north, and Greenfield Road to the east. The gang members claimed this area as “Band Crew Territory.”
Mapp, Perkins, and their co-defendants were responsible for a multitude of crimes that took place in and around Northwest Detroit. Mapp and Perkins, according to plea agreements and court documents, directly participated or encouraged acts of assault with intent to murder, home invasions, aggravated assaults, shootings in public places, drug dealing, and robberies. Mapp’s criminal conduct spanned the duration from Band Crew’s inception until he and his co-defendants were arrested in the fall of 2015.
All defendants charged in the indictment have been convicted. In addition to Mapp and Perkins, six other members, leaders, and associates of the Band Crew, all of Detroit, have pleaded guilty to charges related to racketeering, assault a dangerous weapon in aid of racketeering, or other weapons offenses. The remaining Band Crew members are scheduled to be sentenced over the next three months.
A very important component to the federal prosecution was earlier successful state prosecutions by the Wayne County Prosecutor’s Office of a number of Band Crew members for specific violent state felony offenses that served as a foundation to the federal Racketeering Conspiracy.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Band Crew street gang, and identified the leaders and key members of the gang, who now have been held accountable. This prosecution was also part of a larger coordinated effort to address ongoing gang violence in Northwest Detroit. During the time of the Band Crew investigation, federal law enforcement and the U.S. Attorney’s Office also investigated, prosecuted, and convicted members of the RTM street gang, chief rival to the Band Crew.
The ATF and Detroit Police Department investigated the case. Assistant U.S. Attorney John N. O’Brien of the Eastern District of Michigan and Assistant U.S. Attorney Jeremy R. Jehangiri of the District of South Dakota prosecuted the case.
Four Indicted for Illegal Re-entry into the United StatesRead the Press Release
PROVIDENCE – A federal grand jury in Providence returned indictments charging four individuals with illegal re-entry into the United States. The defendants were previously deported and allegedly re-entered the country without the permission of the United States government.
The indictments are announced by Acting United States Attorney Stephen G. Dambruch and C.M. Cronin, Field Office Director for United States Immigration and Customs Enforcement.
On May 18, 2017, a federal grand jury returned indictments naming
- Fernando Cortez Cuevas, 40, of Attleboro, MA. Cuevas, a citizen of Mexico, was previously deported in 2007, having been convicted on felony drug charges and on an obstruction charge. He was most recently arrested by Rhode Island State Police in April 2017 and ordered detained at the ACI on an obstruction charge;
- Rosendo Gonzalez Perez, 27, of Providence, RI. Perez, a citizen of Guatemala, was previously deported in 2009 and 2012. Perez was most recently arrested on April 19, 2017, by the Pawtucket Police Department on a motor vehicle violation;
- Jose Mercedes Leon, 47, address unknown. Leon, a citizen of the Dominican Republic, previously convicted on drug, assault and fraud charges, and deported in 1999, 2002, 2011, was convicted in Rhode Island in January 2017 on a state felony drug charge; and
- Angel Matos, 56, address unknown. Matos, a citizen of the Dominican Republic, previously convicted on multiple drug trafficking and assault charges, was previously deported in 1992, 1997, and 2006. He was recently released from the ACI, having been convicted and sentenced in June 2011 on a felony assault charge.
The cases are being prosecuted by Assistant U.S. Attorney Zechariah Chafee, Border Security coordinator for the United States Attorney’s Office for the District of Rhode Island.
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Four Armed Drug Traffickers Ordered to PrisonRead the Press Release
McALLEN, Texas – The final two of four men involved in stealing 246 kilograms of marijuana, some of whom also conspired to carry and use a firearm during and in relation to that crime, have been ordered to prison, announced Acting U.S. Attorney Abe Martinez.
Mexican national Arturo Guadalupe Saldivar-Abrego, 30; Eliezer Jesus Vela, 39; of Pharr; and Luis Angel Gonzalez, 21, and Nery Gonzalez Jr., 29, both of Edinburg, pleaded guilty to one count of possession with intent to distribute a controlled substance. Saldivar-Abrego, Gonzalez and Gonzalez Jr. also pleaded to conspiracy to carry and use a firearm during and in relation to a drug offense.
Today, U.S. District Judge Randy Crane ordered Gonzalez to serve a 180-month sentence, while Gonzalez Jr. will serve 207 months in federal prison. Judge Crane previously sentenced Saldivar-Abrego and Vela to 96 and 60 months, respectively. Vela, Gonzalez and Gonzalez Jr. will also serve four years of supervised release following completion of the prison terms. Not a U.S. citizen, Saldivar-Abrego is expected to face deportation proceedings following his release from prison.
On Oct. 9, 2015, a vehicle containing approximately 246 kilograms of marijuana was traveling on expressway 83. Saldivar-Abrego, Gonzalez and Gonzalez Jr. soon approached in a second vehicle and fired gunshots at the load vehicle, forcing it to stop. They then transferred the marijuana into their vehicle. Following a pursuit, officers apprehended Saldivar-Abrego. Gonzalez and Gonzalez Jr. were arrested shortly thereafter. A subsequent investigation revealed Vela was the owner of the vehicle and that it was purchased knowing it was to be used to transport narcotics.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and police departments in San Juan and Alamo. Assistant U.S. Attorney Rolando Cantu and Kristen Rees prosecuted the case.
Former director of Cleveland Job Corps sentenced to more than three years in prison, ordered to pay $1.5 million for embezzlement and tax violationsRead the Press Release
The former director of the Cleveland Job Corps Center was sentenced to more than three years in prison for embezzling retirement funds from employees and failing to pay taxes, law enforcement officials said.
Clark V. Hayes, 56, of Richfield, was sentenced to 37 months in prison and ordered to pay $1.5. million in restitution. He previously pleaded guilty to one count of embezzlement and three counts of failure to pay taxes.
“This defendant was hired to make sure struggling workers learned new job skills, but instead used the Job Corps program as a way to purchase expensive cards and dine at fancy restaurants,” said Acting U.S. Attorney David A. Sierleja. “He defrauded his employees and the federal government.”
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said IRS Criminal Investigation Acting Special Agent in Charge Frank S. Turner II, Cincinnati Field Office. “When employers fail to do so, it affects revenue to the United States government, but more importantly, it affects their employees Medicare and Social Security benefits.”
"The U.S. Department of Labor funds contractors to provide critical educational services to Job Corps students. While employing Job Corps Center staff, Clark Hayes embezzled over $100,000 from his employees’ pension plans, and failed to pay over $870,000 in employment taxes for which he received funding under the DOL contract. We will continue to work with our law enforcement partners to ensure the integrity of Department programs, and will seek debarment from future government contracts when appropriate,” stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
Hayes was the owner of Applied Technology Systems, Inc. (ATSI) in Cleveland. The U.S. Department of Labor contracted with ATSI to operate the Cleveland and Jacksonville Job Corps Centers, according to court documents.
Under the terms of the agreement, ATSI staffed and maintained the centers, subject to reimbursement by the Department of Labor for their costs based on a budget. The reimbursable costs included the wages ATSI paid to the centers’ employees, including amounts to be withheld and paid over to the IRS, according to court documents.
The Labor Department paid ATSI more than $15.5 million between from on or about July 1, 2010, through August 16, 2011. Hayes withheld but did not pay over approximately $1.4 million in taxes between 2010 and 2011, according to court documents.
He also closed an employee retirement account and had more than $210,000 and transferred those funds to a different account he controlled. He spent approximately $100,000 of those funds on personal expenses, including purchasing a Mercedes Benz and investing the money in other business ventures, according to court documents and statements.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros following an investigation by the Internal Revenue Service – Criminal Investigations, the Department of Labor – Office of Inspector General and the Department of Labor -- EBSA.
Former Supervisor at the Laguna Pueblo Superette Sentenced for Federal Embezzlement ConvictionRead the Press Release
ALBUQUERQUE – Marshall J. Cheromiah, the former supervisor at the Laguna Pueblo Superette, was sentenced today in federal court in Albuquerque, N.M., to three months in prison followed by three years of supervised release for embezzling funds belonging to the Pueblo of Laguna. Cheromiah was also ordered to pay $21,758 in restitution to the Laguna Development Corporation and to perform 40 hours of community service.
Cheromiah, 32, of Mesita, N.M., was charged in an indictment filed on Nov. 5, 2015, with embezzling approximately $48,953.47 from the Pueblo of Laguna. According to the indictment, Cheromiah was working as an employee or agent of an Indian Tribal Organization when he committed the crime between July 2013 and Oct. 2014, in Cibola County, N.M.
On Feb. 7, 2017, Cheromiah pled guilty to the indictment. In entering the guilty plea, Cheromiah acknowledged that from July 2013 through Oct. 2014, he was employed as a supervisor at the Laguna Pueblo Superette, which is owned by the Laguna Development Corporation and the Pueblo of Laguna. Cheromiah admitted that while he was employed at the Laguna Pueblo Superette, he embezzled approximately $48,953.47 belonging to the Pueblo of Laguna.
Court filings indicate that Cheromiah was responsible for supervising the operation of the ATM machine and ordering cash deliveries from the Bank of Albuquerque for stocking the ATM with cash. In his plea agreement, Cheromiah admitted that, when the Bank delivered cash for the ATM, he would skim or siphon approximately $10,000 or $20,000 for himself, which he used for gambling, paying off loans for friends, and a pleasure trip to Las Vegas, Nevada.
This case was investigated by the Albuquerque office of the FBI and the Laguna Police Department. Assistant U.S. Attorney Paul H. Spiers prosecuted the case.
Former Nashua Woman Sentenced to Prison for Tax Refund and Identity Theft ScamRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Gladys Maria Pena Dominguez, 35, was sentenced on Monday to serve 54 months in federal prison for her role in a scheme to use stolen personal identifying information to file false federal income tax returns and steal hundreds of thousands of dollars from the U.S. Treasury.
According to statements made during the proceedings, from January 2012 to December 2013, Pena couriered approximately 161 U.S. Treasury tax refund checks from New York, N.Y., to Kenneth Feliz, a co-conspirator in New Hampshire, who gave Pena cash in return. As Pena knew, the checks had been obtained from the Internal Revenue Service by co-conspirators who induced the IRS to issue the checks based upon false tax returns that the co-conspirators had filed using the names and Social Security numbers of real people without their consent or knowledge. The co-conspirators also reported false mailing addresses on the tax returns to cause the IRS to mail the fraudulently derived Treasury tax refund checks to locations that they controlled. The aggregate face value of the checks was approximately $1.1 million.
Pena is a resident of the Bronx, N.Y., and a former resident of Nashua, N.H. Pena had previously pleaded guilty to the federal crimes of theft of government property, aggravated identity theft, and conspiracy.
After completing her prison sentence, Pena will serve three years of supervised release. She also must pay $1,095,879.44 in restitution to the IRS.
Feliz is scheduled to be sentenced on July 10, 2017.
This matter was investigated by the Internal Revenue Service’s Criminal Investigation unit, principally by its Manchester, N.H., field office, with assistance from its field office in New York, N.Y. and its Fraud Detection Unit. Assistant United States Attorney Bill Morse prosecuted the case.
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Former Mailman Pleads Guilty to Theft of MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Timothy Wadsworth, 26, of Rochester, NY, pleaded guilty to theft of mail, before U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Wadsworth was employed by the Postal Service in 2014 as a mail carrier in Rochester. The defendant abused his position by stealing from the mails entrusted to him for delivery. In total, Wadsworth stole approximately $2,477.18 worth of cash, gift cards and other items. In addition, 745 pieces of rifled mail were recovered from his apartment.
The plea is the culmination of an investigation on the part of the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for August 17, 2017 at 10:00 am before Judge Geraci.
Former Government Employee Pleads Guilty to Receipt of Illegal Gratuities and Impersonation of A United States Immigration OfficerRead the Press Release
Baltimore, Maryland – John Theis, age 40, of Sparrows Point, Maryland, pleaded guilty today to receipt of illegal gratuities and impersonation of a United States officer.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark Tasky of the Department of Homeland Security (DHS), Office of Inspector General (OIG); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement, from January 2015 through his resignation in September 2015, Theis worked at the Department of Homeland Security, United States Citizenship & Immigration Services (USCIS) in Baltimore, Maryland. Theis was an Immigration Services Officer (ISO), whose duties and responsibilities included adjudicating immigration and citizenship cases and granting permanent residence status. Theis was required to obtain approval for any outside employment and no such requests had been submitted by Theis seeking or gaining such approval.
From 2014 and through his departure from federal service, Theis accepted cash in return for promising favorable immigration adjudications for a number of aliens. On one occasion, while working at USCIS, Theis advised an alien on the documents needed for a green card approval. Additionally, Theis took photos of the applicant’s case file from a USCIS database. In exchange, Theis received approximately $500 from the alien applicant.
Beginning in December of 2014 through February 2015, Theis and a co-conspirator agreed to work together in an immigration business to assist immigrants with getting their paperwork approved through USCIS. Theis would do presentations at an immigration program known as Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA). There, Theis would wear clothes that identified him as an immigration officer in order to influence new clients into paying him for assistance with immigration paperwork.
In April 2015, Theis went on disability leave after making false statements about his ability to work. He also took various forms of paid leave and never returned to the USCIS.
On September 29, 2015, Theis resigned from government service and left for Brazil in October 2015. He continued to do immigration work in Brazil while holding himself out to be a special agent with Immigration and Customs Enforcement (ICE) until his return to the United States and arrest in December 2016.
The approximate value of gratuities Theis received was over $15,000. He also received over $1,600 in disability benefits to which he was not entitled.
Theis faces a maximum sentence of two years in prison for receipt of illegal gratuities and a maximum sentence of three years in prison for impersonation of a United States officer. U.S. District Judge George L. Russell has scheduled sentencing for August 8, 2017 at 9:30 a.m.
Acting United States Attorney Stephen M. Schenning commended DHS OIG, Immigration and Customs Enforcement, Office of Professional Responsibility, USCIS, FBI, and IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul E. Budlow, who are prosecuting the case.
Former Garland Independent School District Executive Director of Human Resources Pleads Guilty to Conspiracy to Falsify Immigration DocumentsRead the Press Release
DALLAS — Victor Leos, 63, of Garland, Texas, appeared in federal court this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of conspiracy to commit false statements in connection with immigration documents, announced U.S. Attorney John Parker of the Northern District of Texas.
Leos faces a maximum penalty of five years in federal prison and a $250,000 fine. Sentencing is set for August 28, 2017.
According to plea documents, Leos was employed by Garland Independent School District (GISD), located in Garland, Texas from 1998 to 2013. Leos was responsible for recruiting teachers from Mexico, Central and South America, and the Philippines to fill open teaching positions at GISD. From around 2007 to around 2012, Leos engaged in a criminal conspiracy with outside recruiters to recruit and hire foreign teachers that GISD did not necessarily need. Leos benefited by receiving kickbacks in the form of inflated fees to teach orientation classes, travel, and other forms of remuneration. After the foreign teachers were employed at GISD on H-1B temporary visas, Leos knew they were unlikely to qualify for Form 9089s (Applications for Permanent Employment Certification). To further the conspiracy, Leos knowingly signed and filed falsified Form 9089s with the Department of Labor (DOL) to sponsor the teachers for employment-based permanent resident applications.
Specifically, from August 27, 2012 to December 6, 2012, Leos signed and filed for GISD thirty-eight Form 9089s in which he knowingly made false statements. In each Form 9089, Leos certified that all U.S. workers who applied for the job opening were rejected for lawful job-related reasons when Leos knew this was not the case. To support these false statements, Leos created recruitment reports which contained additional false statements regarding the number of U.S. applicants for the open positions and the reasons for the rejection of the U.S. applicants. Leos had these recruitment reports submitted to DOL to support the falsified Form 9089s that were also submitted.
This was a joint investigation involving U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Department of Labor-Office of the Inspector General, the Department of Education-Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Russell Fusco is in charge of the prosecution, which was assisted by Assistant U.S. Attorney John Kull.
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Former Deputy Police Chief Found Guilty of Conspiring to Distribute Heroin and MarijuanaRead the Press Release
FRESNO, Calif. — A federal jury in Fresno today found former Fresno deputy police chief Keith Foster, 53, guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
U.S. Attorney Talbert stated: “When a police officer misuses his official position to commit crimes for personal profit, it is the ultimate betrayal of public trust. The betrayal is only compounded when the officer involved is in a leadership position in the police department. By conspiring with others to traffic heroin and marijuana, Keith Foster not only disgraced the office he held, he put the community he was sworn to protect in danger. Although the jury was not able to reach verdicts on the additional counts relating to Foster’s alleged involvement in trafficking oxycodone, we are grateful for their hard work and the guilty verdicts they returned. My office is committed to rooting out corruption and prosecuting those who use their official position to commit crimes that endanger the community. We are proud to have worked alongside the ATF and FBI, with the full cooperation of the Fresno Police Department, in bringing Foster to justice.”
“The actions of Keith Foster and his co-defendants in this case jeopardized public safety and violated the trust of the citizens of Fresno he swore to protect,” said Special Agent in Charge Jill A. Snyder, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “During this investigation, ATF and FBI agents followed evidence of a drug trafficking conspiracy. That evidence led directly to the former deputy police chief of Fresno. Foster’s criminal activity will not deter ATF’s ongoing partnership with the Fresno Police Department to fight violent crime in the City of Fresno.”
“The FBI will continue to work closely with our law enforcement partners, investigating any allegation of criminal activity within the law enforcement community. The community must be served by those who obey the laws they are sworn to uphold and fulfill the oath of office,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Public trust is essential to the success of the work that men and women in law enforcement do daily. Foster’s illegal acts have negatively impacted public perception of the men and women of the Fresno Police Department who proudly put their lives on the line every day to serve the Fresno community.”
According to evidence presented at trial, between July 19, 2014, and March 26, 2015, Keith Foster conspired with his nephew Iran Dennis “Denny” Foster, 46, of Fresno, to obtain marijuana from Ricky Reynolds, 50, of Shasta Lake. Denny Foster regularly traveled to Reynolds’ residence to purchase marijuana. On one of these trips, Denny Foster was stopped by the California Highway Patrol in Merced County and arrested for possessing six pounds of marijuana in the trunk of his car. When he was arrested, his passenger called Keith Foster and Foster said that he “could have provided cover” for Denny Foster if he had known about the trip ahead of time. He also said he would call his “narc guys.”
Also according to evidence presented at trial, between December 23, 2014, and February 2, 2015, Foster conspired with co-defendant Rafael Guzman, 43, of Fresno, to obtain heroin for another person.
Keith Foster resigned from his position on April 3, 2015, one week after his arrest.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Six others pleaded guilty before trial to various offenses related to the drug trafficking conspiracy. Randy Flowers and Denny Foster are scheduled to be sentenced on July 10, 2017. Ricky Reynolds is scheduled to be sentenced on September 11, 2017. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 37, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.
Keith Foster is scheduled to be sentenced on October 10, 2017, by U.S. District Judge Anthony W. Ishii. Foster faces a statutory maximum penalty of 20 years in prison and a $1 million fine for the count relating to heroin, and a maximum of five years in prison and a $250,000 fine for the marijuana trafficking offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Corrections Officer Sentenced for Attempted ExtortionRead the Press Release
DAYTON – Michael Rose, 29, of New Carlisle, Ohio, was sentenced today in U.S. District Court to 12 months in prison for attempted extortion under the color of law.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Montgomery County Sheriff Phil Plummer announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Rose began working as a corrections officer at the Montgomery County Jail in spring 2016. In September of that year, Rose agreed to bring contraband – namely, a cell phone – into the jail in exchange for cash from an inmate. Likewise, in November 2016, Rose smuggled in a second cell phone and met with an associate of an inmate near a Dayton retail store to receive $1,500 as payment. Rose provided the phone knowing that the inmate intended to use it to direct drug trafficking activities from jail.
Rose pleaded guilty in February to one count of attempted extortion under color of official right.
“Any time a public employee takes a bribe, that is a breach of the public trust, but it is difficult to imagine a more serious instance of this crime than a corrections officer taking bribes from inmates in exchange for smuggling into the jail phones with which the inmates could carry on trafficking drugs,” U.S. Attorney Glassman said. “Federal prison is appropriate for Mr. Rose’s crimes.”
U.S. Attorney Glassman commended the investigation of this case by the Montgomery County Sheriff’s Office RANGE Task Force and the FBI, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Former CEO and President of Real Estate Investment Company Pleads Guilty to Embezzling $1.6 Million and Evading TaxesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ROCKWELL GAJWANI pled guilty today to one count of wire fraud and three counts of tax evasion in connection with embezzling over $1.6 million from the Manhattan-based real estate investment company for which he had served as chief executive officer and president. As part of his plea, GAJWANI agreed to pay $1,975,068.04 in restitution and $1,612,841 in forfeiture. GAJWANI pled guilty before United States District Judge Loretta A. Preska.
Acting U.S. Attorney Joon H. Kim said: “As he admitted today, for years Rockwell Gajwani siphoned money from his employer’s accounts, lining his own pockets with more than $1.6 million. Instead of working diligently as his company’s CEO, Gajwani put his efforts into concealing his crimes and hiding his ill-gotten gains from the IRS. Thanks to the dedicated work of the Postal Inspection Service and the IRS, Gajwani will now be held to account for his crimes.”
According to the Complaint, the Indictment, and other statements made in open court:
From October 2011 through March 2013, GAJWANI was the chief executive officer and president of a real estate investment company based in Manhattan (the “Manhattan Real Estate Company”). During this period, GAJWANI took more than $1.6 million in company funds to which he was not entitled by, among other means, making wire transfers from the company’s bank account to his personal bank account, writing company checks to himself, and making cash withdrawals from the company’s bank account.
To accomplish this scheme, among other means, GAJWANI took steps to conceal his true salary and to conceal from the Manhattan Real Estate Company’s parent company (the “Parent Company”) the amount of money he had taken from the Manhattan Real Estate Company’s bank account.
Beginning in late 2012, the director of accounting for the Manhattan Real Estate Company (the “Director of Accounting”) asked GAJWANI for details regarding GAJWANI’s compensation on more than one occasion, and GAJWANI repeatedly said he would get such details to her, but failed to do so. On another occasion, in connection with a request from the Parent Company for financial information, GAJWANI told the Director of Accounting not to provide that information to the Parent Company. To further conceal the funds he had taken from the Manhattan Real Estate Company, GAJWANI directed employees of the Manhattan Real Estate Company to lump the compensation of all employees together in accounting materials provided to the Parent Company, so that GAJWANI’s compensation would not be listed separately from the aggregate figure. GAJWANI also directed certain employees of the Manhattan Real Estate Company not to communicate with employees of the Parent Company.
Over the course of his employment, GAJWANI wrote himself over $940,000 in checks from the Manhattan Real Estate Company’s bank account, and wired over $1.7 million to his personal bank account. Although some of these funds were purportedly for expenses, by the end of his employment GAJWANI had taken over $1.6 million more from the Manhattan Real Estate Company’s bank account than he was entitled to under his employment agreement.
GAJWANI also concealed his fraud on the Manhattan Real Estate Company. Specifically, on two occasions in May 2012, wrote checks to an employee of the Manhattan Real Estate Company (“Employee-2”) from the company’s bank account. wrote “expenses” in the memo line of each check, although neither check was meant to pay company expenses, and instructed Employee-2 to write a check in return directly to GAJWANI himself. Employee-2 did so on both occasions. In this manner, was able to secure over $30,000 in payments that GAJWANI appeared to receive from Employee-2 but in reality were funds GAJWANI had taken from the Manhattan Real Estate Company.
In addition to defrauding the Manhattan Real Estate Company, GAJWANI did not file tax returns or pay taxes for his legitimate salary or for the money he had secured through fraud. Ultimately, in July 2015, after he learned of a criminal investigation, GAJWANI filed tax returns for calendar years 2011, 2012, and 2013. Each of those returns included false representations. For tax year 2011, the federal income tax return that GAJWANI filed understated GAJWANI’s actual income by more than $480,000, and included over $85,000 in false, impermissible tax deductions. For tax year 2012, the federal income tax return that GAJWANI filed included over $260,000 in false, impermissible tax deductions. For tax year 2013, the federal income tax return that GAJWANI filed underreported GAJWANI’s actual income by $270,000.
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GAJWANI, 53, of Darien, Connecticut, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and three counts of tax evasion, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge. As part of his plea, GAJWANI agreed to pay $1,975,068.04 in restitution and $1,612,841.04 in forfeiture.
GAJWANI is scheduled to be sentenced by Judge Preska on September 12, 2017, at 4:00 p.m.
Mr. Kim praised the outstanding investigative efforts of law enforcement personnel at U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigation Division.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jonathan Cohen and Andrew D. Beaty are in charge of the prosecution.