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26 June 2017
Louisville Resident Sentenced to 97 Months in Prison for Receiving Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man was sentenced Thursday, June 22, 2017, in United States District Court, by United States District Judge David J. Hale, to 97 months in prison followed by 15 years of supervised release, and ordered to pay a $5,000 fine for receiving child pornography announced United States Attorney John E. Kuhn, Jr.
According to a Plea Agreement, defendant John Treufeldt, 52, admitted to using an Internet account traced to his residence on Bridlevista Road, in Louisville, that connected to an online community of individuals who regularly sent and received child pornography via a website that operated on an anonymous online network. According to data obtained from logs monitored by law enforcement and other sources, a user with the user name "Elric" registered an account on February 25, 2015. The user "Elric" was logged into the website for a total of 20 hours, one minute and 10 seconds between the dates of December 4, 2014, and February 28, 2015. Treufeldt admitted to accessing videos and images that depicted and contained child pornography.
On March 15, 2016, law enforcement officials executed a federal Search Warrant
on Treufeldt’s residence in Louisville. Treufeldt admitted to using the screen name “Elric” on websites for the purpose of viewing child pornography. Later forensic examination of Treufeldt's
computer revealed the presence of thousands of images (still and video) depicting children engaged in sexually explicit behavior.
Assistant United States Attorney Jo E. Lawless prosecuted this case. The FBI investigated as part of a national operation – “Pacifier.”
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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."
Lost Nation Man Sentenced for Theft of Government PropertyRead the Press Release
DAVENPORT, IA - On June 23, 2017, Brian Ronald Coatesheather Jean Reekr, age 39, of Lost Nation, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to five years probation for theft of government property and making false statements, announced United States Attorney Kevin E. VanderSchel. Coates was ordered to pay restitution of $14,235.55 to the United States Railroad Retirement Board and pay a $200 special assessment to the Crime Victims’ Fund.
On February 13, 2017, Coates pleaded guilty to theft of government property and false statements. The Office of Inspector General, Office of Investigations (OIG/OI), United States Railroad Retirement Board (RRB), initiated an investigation of Brian Coates on June 11, 2015. The RRB is an independent agency in the executive branch of the United States government responsible for administering retirement benefits to railroad workers. The investigation revealed Coates was earning wages in Iowa while collecting Unemployment Insurance (UI) benefits.
Coates had been employed at the Canadian Pacific Railroad, as a trainmaster, in Maquoketa, Iowa. He was discharged from employment on March 28, 2014. Coates’ railroad service enabled him to be eligible to collect railroad unemployment insurance after he was discharged. Coates worked at Pattison Sand Company on days he reported to the RRB he was unemployed. From May 24, 2014, through March 28, 2015, Coates submitted 23 false claims to the government to hide this employment, resulting in a theft of $14,235.55 in benefits.
The investigation was conducted by the Office of Inspector General, Office of Investigations, and the United States Railroad Retirement Board. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Kingston Man Sentenced in Connection with Drug Distribution Causing DeathRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Kenneth Chapman (62), formerly of Kingston, New Hampshire, was sentenced to 144 months in federal prison for distributing fentanyl.
According to documents that were filed in United States District Court and statements at the sentencing proceeding, on June 12, 2016, Chapman sold a quantity of fentanyl to “M.S.”, a 31-year old male from Atkinson, New Hampshire. Because of a 911 call the following morning, emergency personnel responded to a residence in Atkinson, where they found M.S. dead from a suspected drug overdose. In the immediate vicinity of the body, law enforcement officers found a tied-off plastic bag that contained a white powdery substance that was determined to be fentanyl. An autopsy determined M.S.’ death was caused by acute fentanyl intoxication.
Chapman, who previously pleaded guilty, will be on supervised release for three years after serving his sentence.
“Opioid abuse is at epidemic levels in New Hampshire,” said Special Agent in Charge Michael J. Ferguson. “Fentanyl is causing overdose deaths across the Granite State, and DEA is committed to aggressively pursue anyone who distributes this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
“Fentanyl continues to be the cause of far too many deaths in the Granite State,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office will aggressively investigate and prosecute individuals who sell this deadly drug. The law enforcement cooperation after this overdose death demonstrates our commitment to working with our law enforcement partners at the local, state and federal level to identify those who distribute deadly doses of drugs. While we support access to treatment for those who suffer from addiction, those who distribute these deadly drugs need to be held accountable for the substantial damage they are causing in our community.”
This case was investigated by Drug Enforcement Administration with assistance from Kingston and Atkinson Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Kern County Man Pleads Guilty to Distributing over 30 Pounds of Methamphetamine in Tulare CountyRead the Press Release
FRESNO, Calif. — Daniel Rios, 33, of Kern County, pleaded guilty today to conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 1, 2016, and June 29, 2016, Rios conspired with others in Earlimart to distribute methamphetamine. On June 14, 2016, he distributed approximately 14.7 kilograms of methamphetamine to a co-conspirator. When law enforcement agents arrested Rios and other co-conspirators, they seized approximately 14.7 kilograms of methamphetamine, three firearms, multiple magazines and ammunition, and over $16,000 in cash.
This case was the product of an investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA), the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles Investigations, the Kern County Probation Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Rios is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on December 18, 2017. Rios faces a maximum statutory penalty of life in prison and a $5 million fine. 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.
Kapolei Woman Indicted and Arrested on Federal Bank Fraud and Tax ChargesRead the Press Release
HONOLULU – Johanne P. Jarlego, 44, a resident of Kapolei, Hawaii, was arrested on June 26, 2017 as a result of a federal indictment charging her with bank fraud and tax offenses.
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that a federal grand jury indicted Jarlego on June 21, 2017. The indictment charged that, between June 2008 and February 2015, Jarlego executed a scheme to defraud American Savings Bank. According to the indictment, Jarlego worked for a Hawaii company that published magazines. Jarlego handled accounts receivables, and was responsible for collecting and depositing checks made payable to her employer’s magazines for the purchase of advertising space. According to the indictment, Jarlego filed business registration paperwork with the State of Hawaii Department of Commerce and Consumer Affairs, claiming she would do business in two trade names that were similar to the names of her employer’s magazines. Jarlego then opened two business accounts at American Savings Bank in those trade names.
The indictment alleges that Jarlego thereafter diverted checks made payable to those magazines, and deposited them into her two American Savings Bank accounts, falsely claiming that the payments were intended for her businesses. According to the indictment, between 2008 and 2014 Jarlego obtained approximately $3,833,640 by depositing her employer’s checks into the two American Savings Bank accounts, and then repaid $2,428,600 to conceal her activities. The indictment also alleges that Jarlego filed four false tax returns for calendar years 2011-2014, failing to report as income a total of $2,688,356 obtained from her bank fraud during those years.
The indictment charges Jarlego with 32 counts of bank fraud, and four counts of filing false tax returns. An indictment is merely an accusation, and Jarlego is presumed innocent until and unless proven guilty. If convicted of the charges, Jarlego faces up to thirty years’ of imprisonment, and a fine of up to $1,000,000 as to each of the bank fraud charges, and up to three years’ imprisonment, and a fine of up to $250,000 on each of the tax charges.
Following her arrest, Jarlego was brought to federal court, where she pled not guilty to all charges. She was released on $50,000 bail, and ordered to appear for a jury trial on August 29, 2017 before United States District Judge Leslie E. Kobayashi.
The case was investigated by Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Larry Tong.
Justice Department and State of Colorado File Complaint Against PDC Energy, Inc. for Alleged Clean Air Act ViolationsRead the Press Release
The Department of Justice, the Environmental Protection Agency (EPA) and the State of Colorado, on behalf of the Colorado Department of Public Health and Environment (CDPHE), today filed a civil complaint in federal court in Denver, Colorado, against PDC Energy, Inc. (PDC).
The complaint alleges violations of the Clean Air Act, the Colorado Air Pollution Prevention and Control Act, Colorado’s federally approved State Implementation Plan, and Colorado Air Quality Control Commission Regulation Number 7 (Regulation 7), for unlawful emissions of volatile organic compounds (VOC) from storage tanks that are, or until recently were, part of PDC’s oil and natural gas production system in the Denver-Julesburg Basin (D-J Basin) located in Adams and Weld Counties, Colorado.
“Violations of environmental law will be pursued and punished,” said Environmental Protection Agency Administrator Scott Pruitt. “We will work with our federal, state and local partners to punish those that violate the laws to the detriment of human health and the environment.”
“Reducing emissions from condensate storage tanks is a critical component of our efforts to bring the Denver Metro/North Front Range Area back into compliance with ground level ozone standards,” said Director of Environmental Programs Martha Rudolph of the Colorado Department of Public Health and Environment. “Colorado has been a leader in developing and implementing control requirements for these tanks and it is vitally important that we take the necessary steps to ensure that these requirements are uniformly followed.”
“Violating emissions standards endangers public health and can give violators an unfair advantage in the marketplace,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “The United States will pursue all appropriate remedies against entities that violate our nation’s clean air laws.”
PDC owns or operates approximately 600 tank batteries in the D-J Basin that PDC has certified as being controlled to comply with Regulation 7’s system-wide VOC reduction requirements. The complaint alleges that at 86 tank batteries, and potentially hundreds more, PDC has violated numerous requirements in Regulation 7 intended to address VOC emissions from storage tanks. The complaint alleges that PDC failed to adequately design, operate and maintain vapor control systems on condensate storage tanks resulting in VOC emissions from pressure relief valves and openings on condensate storage tanks.
The complaint alleges that PDC’s failure to comply with these requirements has resulted in significant excess VOC emissions, a precursor to ground-level ozone. Ground-level ozone is a criteria pollutant, meaning that it causes or contributes to air pollution that may reasonably be anticipated to endanger public health or welfare. PDC operates in an area where air quality does not meet the National Ambient Air Quality Standards (NAAQS) for ground-level ozone.
These allegations are consistent with those set forth in the Compliance Advisory in December 2015 and the Notice of Violation in May 2017 that were both issued by CDPHE to PDC.
According to the complaint, following the issuance of the 2015 Compliance Advisory, CDPHE inspectors conducted additional inspections of PDC tank batteries and observed VOC emissions from several of the same tank batteries covered by the 2015 Compliance Advisory. CDPHE inspectors also observed VOC emissions from PDC tank batteries not covered by the 2015 Compliance Advisory and issued the 2017 Notice of Violation to PDC identifying violations of Regulation 7 at the other PDC tank batteries.
The civil complaint filed today seeks injunctive relief and the assessment of civil penalties. A civil complaint does not preclude the government from seeking other legal remedies.
The Clean Air Act is the comprehensive federal law that regulates air emissions of criteria pollutants and hazardous air pollutants from stationary and mobile sources to protect public health and public welfare.
Iowa Felon to Serve 57 Months in Federal Prison for Possessing Loaded Handguns after Traffic Stop in McLean CountyRead the Press Release
PEORIA, Ill. – Terrail Draper Lavar Dixon, 35, of Cedar Rapids, Iowa, has been sentenced to 57 months (4 years, 9 months) in federal prison for illegal possession of firearms by a felon during a traffic stop by Illinois State Police in McLean County. At the hearing, on June 21, U.S. District Judge Joe Billy McDade also ordered that Dixon remain on supervised release for three years following his release from prison.
Dixon pled guilty on Feb. 6, 2017. According to court documents, shortly after midnight on Nov. 22, 2016, an Illinois State Police trooper observed Dixon’s vehicle speeding and driving erratically on I-55 in McLean County. When the vehicle stopped, Dixon got out of the car and shouted, “arrest me, go ahead and arrest me.” When the trooper asked why, Dixon responded, “because I have guns in the car, man.” In the subsequent search of the vehicle, officers recovered a loaded Glock 17, .9 mm caliber semi-automatic handgun and a loaded Smith & Wesson MP40, .40 caliber handgun under the driver’s seat. At the time he possessed the guns, Dixon had prior felony convictions in Illinois and Indiana. Dixon has remained in the custody of law enforcement since his arrest.
At the sentencing hearing, the government submitted for exhibit, a transcript of the exchange between Dixon and the officer during the traffic stop. According to the transcript, Dixon admitted to the officer that the guns were “security,” and that Dixon thought about shooting the officer twice, “when I saw the lights. I was hoping you was just going to fly up and pass me.”
The charges were investigated by the Illinois State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted in the Peoria Division by Assistant U.S. Attorney Ronald L. Hanna.
Independence Man Sentenced to 12 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for distributing child pornography.
Eric A. Jackson, 53, of Independence, was sentenced by U.S. District Judge Stephen R. Bough to 12 years in federal prison without parole. The court also sentenced Jackson to supervised release for the rest of his life following incarceration.
Jackson, who pleaded guilty on Jan. 6, 2017, admitted that he sent images of child pornography to a 16-year-old female in Illinois. An aunt discovered the images on her niece’s cell phone and made a report to the Schuyler County, Ill., Sheriff’s Department. Among the pornographic images sent by Jackson was a 10-year-old female who was “hog tied.”
The 16-year-old to whom Jackson sent the child pornography images told investigators they had been communicating via social media for approximately a year, and had exchanged nude photos of each other.
Law enforcement officers executed a search warrant at Jackson’s residence and seized a Samsung tablet and a Samsung cell phone. Examiners found 1,028 photos and 130 videos of child pornography on the devices, including the recurring graphic depictions of the rape and sodomy of prepubescent girls, some as young as babies and toddlers, by adult men. Jackson was a prolific distributor of those disturbing images who actively shared them with many other child pornographers utilizing the Kik Messenger app. In online conversations with other child pornographers, according to court documents, Jackson bragged of his experience raping and molesting young children.
Examiners found evidence that Jackson had sent more than 70 attachments to the juvenile victim, which included both adult and child pornography. Examiners also found evidence that Jackson engaged in sexually graphic conversations through numerous text messages with other individuals, who represented themselves as minor females, including one who believed she was in a relationship with Jackson and who expressly shared a mutual desire to meet in person and engage in sexual contact.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI Child Exploitation Task Force and the Schuyler County, Ill., Sheriff’s 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."
Huntington woman sentenced to federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who was caught with heroin in 2016 was sentenced today to two and a half years in federal prison, announced United States Attorney Carol Casto. Ashley Dawn Smith, 24, previously pleaded guilty to possession with intent to distribute heroin.
On March 30, 2016, agents with the Huntington FBI Drug Task Force executed a search warrant at Smith’s residence located at 1814 7th Avenue in Huntington. When agents entered the residence, Smith concealed approximately 45 grams of heroin on her person. During the search, agents recovered a loaded 9mm pistol, digital scales, a drug press, and a magic bullet blender used to mix heroin. Smith was arrested based on a warrant pending from Putnam County and transported to the Huntington Police Department where she provided agents with the heroin that she had hidden. Smith admitted that the heroin was intended for distribution.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This prosecution 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Homeowner Pleads Guilty to Defrauding Banks in ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A Ridgefield Park, New Jersey, man today admitted his role in a scheme to use false information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” Acting U.S. Attorney William E. Fitzpatrick announced.
Rafael Popoteur, 65, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiring to commit bank fraud between 2012 and 2014.
According to documents filed in the case and statements made in court:
From 2012 through January 2014, Popoteur, Simon Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on a residential property in New Jersey. To get the banks to extend lines of credit they would not have otherwise approved, Popoteur, Curanaj, and others transferred ownership of a Ridgefield Park property to Popoteur, who also lived at the property.
Popoteur, Curanaj, and others then applied for three HELOCs from multiple banks using the Ridgefield Park property as collateral. They hid from the lenders the fact that the property was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also falsely inflated Popoteur’s income. The equity in the property was far less than the amount of the HELOC loans Popoteur and others applied for.
The victim banks eventually issued loans to Popoteur in excess of $495,000. After the victim banks deposited money into Popoteur’s bank accounts, Popoteur disbursed portions of it to Curanaj and others. In 2014, Popoteur defaulted on all three HELOC loans.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 10, 2017.
The charges against Curanaj are still pending and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Federal Finance Housing Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
Defense counsel: Jean Barrett Esq., Montclair
High Speed Flight from Border Patrol Checkpoint Leads to Stint in Federal PrisonRead the Press Release
LAREDO, Texas – A 35-year-old resident of San Antonio was ordered to federal prison following his conviction of fleeing or evading checkpoint operated by a federal law enforcement agency, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Chief Patrol Agent Jose Martinez of the Laredo Sector Border Patrol. Mike Ramirez pleaded guilty Feb. 7, 2017.
On June 26, 2017, U.S. District Judge Marina Garcia Marmolejo ordered Ramirez to federal prison for 19 months. The sentence will be immediately followed by three years in federal prison.
“We remain steadfast in our commitment in securing the border and keeping the Laredo and surrounding communities safe by working with the Assistant United States Attorney’s Office to prosecute those who break the law,” said Acting Assistant Chief Patrol Agent Martinez.
On Aug. 10, 2016, Ramirez approached the Border Patrol Checkpoint on Interstate Highway 35, north of Laredo, as the driver of a 2007 Dodge Durango. Upon arrival, the inspecting agent noticed two sealed containers in the rear of the vehicle. A canine alerted to the presence of concealed humans and/or narcotics and the agent advised Ramirez to proceed to the secondary inspection area. Instead, Ramirez did not stop at secondary and fled north away from the checkpoint at a high rate of speed. Pursuing agents were unable to catch up to Ramirez nor were Laredo Police Department and Webb County Sheriff’s officers who had been notified.
He was later arrested several months later at his sister’s home in San Antonio.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) and BP conducted the investigation. Officers with the San Antonio Police Department and Bexar County Sheriff assisted in the apprehension. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.Harrison County man convicted of drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was convicted today of distribution of heroin near a playground, Acting United States Attorney Betsy Steinfeld Jividen announced.
Richard “Ricky” Joseph Malfregeot, age 28, pled guilty to one count of “Distribution of Heroin in Proximity of a Protected Location.” Malfregeot admitted to selling heroin within 1,000 feet of North View Park in Harrison County on March 2, 2016.
Malfregeot faces up to 40 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grape Street Crips Crack-Cocaine Wholesaler Sentenced to 11 Years in Prison for Racketeering, Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – A crack-cocaine wholesaler for the New Jersey set of the Grape Street Crips was sentenced today to 132 months in prison for his involvement in racketeering and drug trafficking conspiracies operating in Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
James S. Gutierrez, a/k/a “Bad News,” 26, of Newark, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count 1 and Count 18 of a sixth superseding indictment charging him with racketeering conspiracy and conspiracy to distribute crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Gutierrez and other members of the gang accepted orders for, and distributed, thousands of clips of crack-cocaine to other distributors, including other gang members.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the area of 6th Avenue and North 5th Street in Newark used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison term, Judge Arleo sentenced Gutierrez to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Edward J. Plaza Esq., Little Silver, New Jersey
Gowanda Woman Charged with Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shania Martin, 21, of Gowanda, NY, was arrested and charged by criminal complaint with making a false statement. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant is the girlfriend of Shane Michael Aurand. Aurand was arrested in March 2015 and charged federally with producing and distributing child pornography. According to the complaint, Martin made false statements to special agents of the Federal Bureau of Investigation during the investigation of her boyfriend.
Martin made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and released.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Glenmont Woman Sentenced for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Tammy A. Grumme, age 42, of Glenmont, New York, was sentenced today to time served (about 4 months in jail), to be followed by 3 years of supervised release, for stealing more than $78,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Richard S. Hartunian and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of her October 17, 2016 guilty plea, Grumme admitted that she provided false information to the SSA so that she could continue to receive Survivors Insurance benefits for herself and another person from 2011 through 2013. Grumme admitted that she submitted false forms to the SSA because she knew she would not be entitled to benefits if the information were accurate.
Senior United States District Judge Frederick J. Scullin Jr. also ordered Grumme to pay $78,258 in restitution.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Fresno Resident Sentenced for Manufacturing and Selling Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Angelica Moreno Velasquez, 32, of Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiracy to produce, transfer, possess, and sell false identification documents, U.S. Attorney Phillip A. Talbert announced. Moreno Velasquez was remanded into custody today after the sentence was imposed.
According to court documents, between June 2015 and June 2016, Moreno Velasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Moreno Velasquez and five co-defendants were arrested for the scheme. In December 2016, Francisco Javier Hidalgo-Flores was sentenced to 15 months in prison; Veronica Rosales-Capitaine was sentenced to 14 months in prison; and Lizet Amairani Ramirez-Zazueta was sentenced to time served.
Charges are pending against the remaining co‑defendants and trial is scheduled to commence on December 5, 2017. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Vice President of National Construction Company Sentenced to 51 Months in PrisonRead the Press Release
JUNE 26, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Wendy Collins, age 46, of Woodbine, Maryland, to 51 months in prison followed by three years of supervised release for wire fraud, in connection with a scheme in which she stole more than $4.5 million from her employer. Judge Garbis also ordered Collins to pay forfeiture and restitution in the amount of $4,273,749.83.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.
According to her plea agreement and court documents, Collins worked at a national construction company (the “Company”) with projects throughout the United States. In 2010, Collins was promoted to Vice President of Administration, and was responsible for managing the Company’s finances, including payroll, accounting, petty cash, and health reimbursement account (HRA,) and overseeing payments to the Company’s subcontractors and employees. Collins also had access to the Company’s bank and credit card accounts, including multiple American Express credit card accounts.
Collins admitted that from April 2012 through September 2016, she stole money from the Company in several different ways. Specifically, Collins caused unauthorized withdrawals from the Company’s petty cash account and HRA account transfers to her personal accounts, totaling at least $367,435.52; used $3,814,578.17 in Company’s funds to pay the credit card bills for herself, family members and others; and caused unauthorized increases to her company bonus checks, totaling at least $164,970. In addition, Collins approved invoices related to payments for construction work to be completed at her residence with Company funds, and signed a $25,000 check from the Company’s funds to be paid to a family member’s business.
In some instances, in order to facilitate and conceal the unauthorized credit card charges, Collins created fraudulent expenses and accounting entries in the Company’s financial ledgers and internal credit card reports, which she then paid with the Company’s funds. To further her scheme, Collins “linked” the personal credit card accounts held by her, her family, and her friends, to the Company’s bank accounts so that automatic payments would be made by the Company’s bank account toward the balances owed on Collins’ personal credit card accounts and those associated with her family and friends. Collins, her family members, and her friends charged luxury items that were paid for with Company funds, including: more than $90,000 at Del Frisco’s Steak House; more than $90,000 at Ethan Allen, Williams Sonoma and Pottery Barn; more than $55,000 for Washington Redskins tickets; more than $14,500 at a Napa, California Vineyard as well as $1,400 for beauty products at Estee Lauder and Kiehl’s. Also purchased with the credit cards were: a Porsche 911 Carrera, a Porsche Macan GTS, a Mercedes-Benz G550, a Dodge Ram Truck, a Mazda CX-3, a Mazda MX-5 race car, as well as a Haulmark Trailer, using the Company’s funds.
Further, Collins admitted that she forged the signature of her longtime employer, the President of the Company, multiple times from 2014 through 2016, in order to conceal and complete the unauthorized increases to her bonus checks.
Acting United States Attorney Stephen M. Schenning commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Evan T. Shea, who prosecuted the case.
Former Controller Sentenced to 18 Months in Prison for Defrauding Fitness Company and Retail StoreRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former controller for a Birmingham-based fitness center franchise and a subsequent retail store to 1½ years in prison for defrauding the companies out of more than $100,000, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
U.S. District Court Judge Virginia Emerson Hopkins sentenced REBECCA FRITH, also known as Rebecca Wilson, 44, on two counts of wire fraud. Frith pleaded guilty to the charges in March. As part of her sentence, she must pay $102,806 in restitution. Frith was living in Texas when she was indicted and arrested in December. She must report to prison Aug. 28.
For more than two years while Frith worked as controller at Iron Tribe Fitness between 2014 and 2016, she fraudulently charged personal expenses to the company’s corporate bank and credit card accounts. She established automatic drafts to pay personal monthly utility bills and used Iron Tribe credit cards to pay unauthorized personal expenses including furniture purchases, pet care, car payments, taxes, flights, hotels and vacations, according to court records.
Frith resigned from Iron Tribe in June 2016 and began work as controller at The Pants Store in July 2016. Within her first month at the retail store, she set up automatic drafts from the company’s business bank account to pay her $1,650 apartment rent.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
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Former Clinical Pharmacy Manager Sentenced to Serve 16 Months in Prison for $4.4 Million TennCare Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. – On June 26, 2017, Amber Reilly, 33, of Jonesborough, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 16 months in federal prison for healthcare fraud, which resulted in at least a $4.4 million loss to TennCare. Upon her release from prison, she will be supervised by U.S. Probation for three years.
Reilly, a former clinical pharmacy manager, pleaded guilty in October 2016 to one count of healthcare fraud. In her plea agreement, she admitted that between October 2014 and April 2016 she falsified prior authorizations, medical lab reports, and drug test results for at least 51 Hepatitis C patients who had prescriptions for expensive drugs used to treat Hepatitis C. These patients had health insurance through TennCare, which does not pay for Hepatitis C prescriptions for patients who abuse illicit substances or who have limited or no scarring of the liver. The patients’ authentic medical lab reports and drug tests showed that they failed to meet TennCare eligibility requirements. However, Reilly replaced disqualifying information regarding levels of liver scarring and illicit substance abuse on the authentic records with qualifying information, and then submitted the altered records to TennCare. She also fabricated allergies on the prior authorization forms of some of these patients so they could receive the most expensive Hepatitis C drug, Harvoni®.
As a result of Reilly’s conduct, at least $4.4 million was paid by TennCare to purchase prescriptions for these 51 patients, which would not have been paid if true and accurate prior authorizations, drug test results, and medical lab reports pertaining to these patients had been submitted.
This investigation was conducted by the Tennessee Bureau of Investigation and Department of Health and Human Services – Office of the Inspector General. Assistant U.S. Attorney T.J. Harker represented the United States.
Federal Jury Convicts Two Former Crystal City Officials on Bribery and Wire Fraud ChargesRead the Press Release
In Del Rio this morning, a federal jury convicted two former Crystal City, TX, officials for their roles in a bribery and kickback scheme which decimated city coffers announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
The jury convicted 54-year-old former City Manager William James Jonas, III, of one count of conspiracy to commit bribery involving federal programs, three substantive counts of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services, five substantive counts of wire fraud and theft of honest services, and four counts of wire fraud.
The jury also convicted 40-year-old former Mayor Ricardo Lopez of one count of conspiracy to commit bribery involving federal programs, one substantive count of bribery involving federal programs, one count of conspiracy to commit wire fraud and theft of honest services and four substantive counts of wire fraud and theft of honest services.
“By this verdict, a jury of their peers has held these defendants accountable for their inexcusable abuse of the public trust. Corruption of the kind uncovered in this case corrodes confidence in government and undermines our belief that public officials work for our benefit, not their personal enrichment. We are grateful for the jury's hard work and good judgment, which may restore respect for the work of honest public servants,” stated United States Attorney Richard L. Durbin, Jr.
Testimony provided during trial revealed that between May 2012 and February 2016, Jonas, Lopez, and other city officials used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. Jonas and Lopez also used emails, texts and phone calls to carry out their scheme to defraud Crystal City and its citizens through bribery and the concealment of information.
Testimony further revealed that Jonas was involved in a wire fraud scheme in connection with a multi-million-dollar debt offering in December 2014, which was intended to pay for various improvements to the City’s infrastructure, including replacing the City’s water meters, certain heating and air conditioning equipment, and lighting. Under various documents relating to the debt offering, Crystal City agreed to place the $2.25 million generated by the sale of the certificates of obligation into separate accounts and to use those funds only for specified purposes. Instead, Jonas caused those monies to be deposited into the City’s General Fund in December 2014, where the funds were used to pay for Jonas’ salary and other unauthorized expenditures.
According to the indictment, the balance in the City’s General Fund after the deposit of the raised funds was $2,207,050.62. The balance in the City’s General Fund on or about October 31, 2015, was $2,199.95. On November 6, 2015 Crystal City still owed approximately $735,048.79 in payments to the company that performed the infrastructure improvements.
Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both were remanded into the custody of the U. S. Marshals pending sentencing, which will be scheduled by order at a later date.
“We would like to thank the San Antonio Police Department who were full partners in this investigation. We also would like to thank the Texas Department of Public Safety and the Texas Rangers for their assistance. This case reflects our commitment to the citizens of Crystal City to aggressively and relentlessly root out criminal corruption in our community,” said Christopher Combs, Special Agent in Charge of the FBI’s San Antonio Office. “Citizens deserve honest and faithful service from their public officials. Greed and self-interest have no place in public service. Officials who betray the public and violate their oath of office will be thoroughly investigated and exposed. In this effort one of our most important partners is the public, and we encourage honest citizens to report suspicious activity to the FBI at 210-225-6741.”
Four other defendants in this case—former Mayor Pro-Tem Rogelio Mata, former City councilman Roel Mata, former City Councilman Gilbert Urrabazo, and businessman Ngoc Tri Nguyen—each already entered guilty pleas to a federal programs bribery charge and are awaiting sentencing. All face up to ten years in federal prison and up to a $250,000 fine at sentencing.
The FBI, led by a San Antonio Police Department Task Force Officer, conducted this investigation with the assistance of the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
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Dubuque Man Sentenced to Two Years in Federal Prison for Operating a Motor Vehicle While Intoxicated While on Federal Court SupervisionRead the Press Release
A man who violated the terms of his supervised release by operating a motor vehicle while intoxicated was sentenced today to two years in federal prison.
Thomas Schaller, age 46, from Dubuque, Iowa, received the prison term after a court hearing where he admitted operating a motor vehicle while intoxicated. Schaller was originally sentenced in March 2005, on one count of attempting to manufacture pure methamphetamine and one count of possession of firearms by an unlawful drug user. Schaller began a five-year term of supervised release following his release from prison in August 2013. One of the conditions of supervision was that Schaller not enter bars or drink alcohol.
At the supervised release revocation hearing, Schaller admitted that on June 10, 2017, he drove his car into the rear of a Dubuque County Sheriff’s patrol car. The patrol car was parked on the side of the road, with the roof-top emergency lights on, and a sheriff’s deputy who was just completing a traffic stop with another vehicle was in the patrol car. Schaller tested at a blood alcohol level of .208, well above the threshold level of .08 for driving while intoxicated.
Schaller was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Schaller was sentenced to 24 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Schaller is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Dubuque County Sheriff’s Department and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 04-CR-1011.
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Drug Task Forces Honored with Midwest High Intensity Drug Trafficking (HIDTA) AwardsRead the Press Release
United States Attorney for the District of Nebraska, Robert C. Stuart, announced today that several individuals and drug task forces in Central and Western Nebraska will receive Midwest High Intensity Drug Trafficking (HIDTA) awards. Midwest HIDTA Director Jeffrey Stamm will be recognizing these individuals on Tuesday, June 27, 2017 at 11:00 a.m. in North Platte, Nebraska. The presentations will be made at the North Platte City Hall Council Chamber located at 211 W. Third Street.
Each year, the Executive Board of Midwest HIDTA recognizes a few of the many exemplary team and individual members in the Midwest HIDTA Program who have made significant contributions over the past year to reducing drug trafficking in the Midwest HIDTA Region.
The award recipients include many law enforcement officials from the Cooperative Operation for Drug Enforcement (CODE) Drug Task Force, the Western Nebraska Intelligence & Narcotics Group (WING) and the Central Nebraska Drug and Safe Streets Task Force (CNDSSTF), in addition to Assistant United States Attorney Kimberly Bunjer.
“This is an incredible honor for these law enforcement officials and task forces that are being recognized by the Midwest HIDTA”, said Acting U.S. Attorney Rob Stuart, “The coordination and cooperation among these agencies and entities is a tremendous tribute to the selfless dedication we see time and time again.”
Award Recipients include:
Outstanding Intelligence AnalystDottie Anderson, Central Nebraska Drug and Safe Streets Task Force
Outstanding Cooperative Effort (Operation Mexican Seafood)CODE Drug Task Force (Cooperative Drug Operations for Enforcement)
WING Drug Task Force (Western Nebraska Intelligence & Narcotics Group)
Central Nebraska Drug and Safe Streets Task Force
Drug Smuggler Gets Nearly 10 Years in PrisonRead the Press Release
LAREDO, Texas – A 35-year-old San Antonio man has been ordered to federal prison following his conviction of conspiracy and possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Carlos Pena pleaded guilty May 1, 2017.
Today, U.S. District Judge Diana Saldaña sentenced Pena to serve 110 months in federal prison to be immediately followed by three years of supervised release.
On Feb. 13, 2017, Pena took part in a conspiracy to smuggle 2.6 kilograms of methamphetamine through the U.S. Border Patrol checkpoint located 29 miles north of Laredo on International Highway 35. He was driving a grey Pontiac G6. In an aftermarket compartment in the vehicle’s frame near the gas tank, authorities discovered five packages wrapped in brown tape containing 2.6 kilograms of methamphetamine.
Pena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Jorge Vela and José Angel Flores Jr. prosecuted the case.
District Man Pleads Guilty to Broad-Daylight Bank RobberyRead the Press Release
WASHINGTON – Marquese Kelsey, 30, of Washington, D.C., pled guilty today to carrying out a broad-daylight robbery of a bank in downtown Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Kelsey pled guilty before the Honorable James E. Boasberg in the U.S. District Court for the District of Columbia, to one count of bank robbery. Kelsey faces a statutory maximum of 20 years in prison. Under federal sentencing guidelines, he faces a likely range of 63 to 78 months in prison and potential financial penalties. He also is subject to an order of restitution and a forfeiture money judgment. Judge Boasberg scheduled sentencing for Sept. 18, 2017.
The government’s evidence established that on June 1, 2017, at approximately 3:15 p.m., Kelsey entered a PNC bank in the 800 block of Seventh Street NW and handed a note to a bank teller that stated, “I need you to give me all big bills, no dye packs. I’m carrying a loaded weapon. Any quick movements and someone is going to get hurt!!!”
In response, the bank teller gave Kelsey approximately $1,734. After handing over the money, the bank teller alerted a bank employee that a robbery was occurring, and the bank’s silent alarm was activated. In response, members of the FBI’s Violent Crimes Task Force, which includes MPD detectives, as well as First District MPD officers, responded to the bank.
Based on information given to MPD’s Crime Solvers Tip Line, law enforcement learned that an individual who frequented Franklin Square Park had discussed participating in the bank robbery and was in possession of a large sum of money. Law enforcement also learned that the suspect had been arrested for solicitation hours after having committed the bank robbery. Based on this information, law enforcement was able to identify the suspect as Kelsey, who matched the bank surveillance video. After the solicitation incident, Kelsey ran from Third District MPD officers and in the process, hid an amount of cash on private property. The owner of the property subsequently alerted law enforcement to the presence of the money. After law enforcement officers retrieved the money, it was determined that at least some of the bills could be traced to the bank robbery.
Kelsey was arrested on June 3 and has been in custody ever since. At the time of his arrest, Kelsey was on supervised release for attempted robbery and attempted possession with intent to distribute cocaine and had been released from incarceration less than 30 days earlier on those charges. Kelsey now faces formal revocation of his supervised release and additional incarceration, separate from the above-referenced sentence, from the U.S. Parole Commission.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of the FBI’s Violent Crimes Task Force and First and Third District MPD officers in quickly investigating and arresting Kelsey. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Trafficking Section, Paralegal Specialists Candace Battle and Teesha Tobias, and Legal Assistant Latoya Wade.
District Man Found Guilty of Murder Charge in Slaying of Woman in Southeast WashingtonRead the Press Release
WASHINGTON – Delonte Wynn, 36, of Washington, D.C., was found guilty by a jury today of first-degree premeditated murder while armed for the fatal stabbing of a woman in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Zoe Bush scheduled sentencing for Sept. 11, 2017.
According to the government’s evidence, on May 13, 2015, at about 6:30 p.m., the masked defendant stabbed Darlene Bryant once in the back of the neck inside the stairwell of a building in the 4300 block of Wheeler Road SE. He then fled the scene. Ms. Bryant, 46, made her way down the stairs, stumbled across the street, and banged on a neighbor’s door until he came and called 911. Ms. Bryant was too injured to talk. Within seconds of the 911 call being placed, she slumped down and died on the neighbor’s front steps.
In announcing the verdict, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist; Victim/Witness Advocate Diana Lim; Victim/Witness Services Coordinator Tanya Via; Litigation Technology Specialist Anisha Bhatia; Criminal Investigator John Marsh, and Investigative Analyst Zachary McMenamin. Finally, he commended the work of Assistant U.S. Attorneys Christopher Bruckmann and Deborah Sines, who investigated and prosecuted the case.
Desoto Man Pleads Guilty for His Role in a “Foreclosure Rescue Scheme” That Exploited Vulnerable Homeowners Facing ForeclosureRead the Press Release
DALLAS — Bruce Kevin Hawkins, 52, of Desoto, Texas, appeared in federal court on June 20, 2017 before U.S. Magistrate Judge Renee Harris Toliver and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Hawkins faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. Restitution could also be ordered. Hawkins has been in custody since the time of his arrest in January 2017. Sentencing has not yet been scheduled.
A federal grand jury in Dallas returned an indictment in December 2016 charging Hawkins and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Mark Demetri Stein, 36, of Carrollton, Texas, and Richard Bruce Stevens, 51, of San Antonio, Texas, are scheduled to begin trial on August 28, 2017. Christina Renee Caveny, 37, of Dallas, pleaded guilty earlier this month. A sentencing date for Caveny will be set at a later date.
According to documents filed in the case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Hawkins and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Hawkins and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes prosecuted as a result of the Bankruptcy Fraud Initiative in the Northern District of Texas. Since May 2013, a total of 26 defendants have been charged as part of that initiative. To date, 20 defendants have been convicted, one resulted in a mistrial, and five are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Dallas Man Sentenced to 240 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 27 year-old Dallas, Texas, man, Francisco Turrubiartes, who pleaded guilty in April 2016 to one count of production of child pornography, was sentenced this morning by U.S. District Judge Ed Kinkeade to 240 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
“The sexual exploitation and victimization of underage girls, here 13 years old, is a despicable and heinous crime,” said U.S. Attorney Parker. “My office will continue to aggressively prosecute those who engage in this reprehensible behavior.”
According to documents filed in the case, on August 10, 2012, Turrubiartes persuaded, induced and enticed a 13-year-old minor, Jane Doe #3, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Turrubiartes using an alias pretended to be a minor female on Facebook and asked Jane Doe #3 to send nude photos. The offense began when Turrubiartes sent a Facebook message to a 15-year-old minor, Jane Doe #1, using the same alias and asked her to send nude photos of herself. After Jane Doe #1 sent him several sexually explicit photos of herself, Turrubiartes then asked Jane Doe #1 to get Jane Doe #3 to send him naked photos. Turrubiartes threatened to post Jane Doe #1’s nude images all over the internet and tell her mother if she did not get Jane Doe #3 to send him images of her. Following the August 10, 2012 incident, Jane Doe #3 received a Twitter message stating, “send more images or I will post them and tell your mom.” Turrubiartes continued threatening Jane Doe #3 for three years. He also demanded that Jane Doe #1 send sexually explicit photos of her then two-year old niece, and he asked Jane Doe #3 for nude photos of her six-year-old sister.
A search of Turrubiartes computer revealed several Facebook conversations with other people where Martinez asked them to send him nude photos of children.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Dallas Police Department and the FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Community Event to Focus on Ex-Offender EmploymentRead the Press Release
The Cedar Rapids Civil Rights Commission is partnering with the United States Attorney’s Office for the Northern District of Iowa, and other local agencies, in hosting “The Overlooked Workforce: A Community Discussion” on June 29, 2017 from 9:30 a.m. through 2:30 p.m., at the downtown library. The United States Attorney’s Office will facilitate a reentry simulation activity beginning at 1:00 p.m.
The simulation activity provides participants with the opportunity to “step inside the shoes” of someone being released from prison, to allow them to see the obstacles that exist in an ex-offender’s transition from prison back to the community. In addition to the simulation, the event will also feature panel discussions featuring ex-offenders who are returning to the community and employers who have successfully utilized this largely untapped workforce.
LaSheila Yates, the Executive Director of the Cedar Rapids Civil Rights Commission, and the City’s Chief Diversity Officer, encouraged employers and other interested community members to attend. “We have been afforded an opportunity to host a community storytelling event surrounding thought provoking experiences of ex-offenders seeking employment. We also have the rare occasion to hear from employers that saw past an individual’s background and successfully hired them. Through these dialogues, we hope to foster a safe learning environment where employers, housing providers, and community members can examine an area of diversity and inclusion in the workplace that is commonly overlooked,” Yates said.
Acting United States Attorney Sean Berry indicated that the United States Attorney’s Office continues to be supportive of community reentry efforts, noting that, “It is great to see so many local agencies partnering together to host such an important event. Employment is one of the primary indicators of whether someone coming out of prison will recidivate. Assisting in the transition from prison back to the community can have a direct positive impact on public safety.”
The event is sponsored by the Cedar Rapids Civil Rights Commission. In addition to the United States Attorney’s Office, other partners include the City of Cedar Rapids, IowaWORKS, America’s Job Honor Awards, the RISE program, the Adult Mentoring Program, and the Sixth Judicial District Department of Correctional Services.
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Cardiac Monitoring Companies and Executive Agree to Pay $13.45 Million to Resolve False Claims Act AllegationsRead the Press Release
AMI Monitoring Inc. aka Spectocor, its owner, Joseph Bogdan, Medi-Lynx Cardiac Monitoring LLC, and Medicalgorithmics SA, the current majority owner of Medi-Lynx Cardiac Monitoring LLC, have agreed to resolve allegations that they violated the False Claims Act by billing Medicare for higher and more expensive levels of cardiac monitoring services than requested by the ordering physicians, the Department of Justice announced today. Spectocor and Bogdan have agreed to pay $10.56 million, and Medi-Lynx and Medicalgorithmics have agreed to pay $2.89 million.
“Independent diagnostic testing facilities that improperly steer physicians to order higher levels of service will be held accountable,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will vigilantly ensure the appropriate use of our country’s limited Medicare funds.”
From 2011 through 2016, Spectocor, headquartered in McKinney, Texas, and Joseph Bogdan, allegedly marketed the Pocket ECG as capable of performing three separate types of cardiac monitoring services—holter, event, and telemetry. When a physician sought to enroll a patient for Pocket ECG, however, the enrollment process allegedly only allowed the physician to enroll in Pocket ECG for the service which provided the highest rate of reimbursement provided by a patient’s insurance, thus steering the ordering physician to a more costly level of service. In 2013, Medi-Lynx, a related company headquartered in Plano, Texas, began selling the Pocket ECG and allegedly adopted this same enrollment procedure. Medicalgorithmics SA, a limited liability company based in Warsaw, Poland, acquired a controlling interest in Medi-Lynx in September 2016.
“Sophisticated medical technology can be used to help doctors dramatically improve the lives of their patients, but it can also be misused to fraudulently increase medical bills,” said Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey. “Today’s settlement demonstrates that the federal government is committed to preserving the integrity of the Medicare system and ensuring that Medicare funds are spent only for patient care.”
“Billing for unneeded services, as the government alleged, takes unfair advantage of Medicare patients and steals from taxpayers,” said Special Agent in Charge Scott J. Lampert for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG, along with our law enforcement partners, will aggressively investigate these crimes.”
The settlements resolve allegations filed in a lawsuit by Eben Steele, a former sales manager at Spectocor. The lawsuit was filed in a federal court in Newark, New Jersey, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Steele will receive approximately $2.4 million from the two settlements.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
The settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of New Jersey and the HHS-OIG.
The case is captioned United States ex rel. John Doe v. Spectocor Enterprise Services, LLC, et al., Case No. 14-1387 (KSH) (D. N.J.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
Cardiac Monitoring Companies and Executive Agree to Pay $13.4 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – Four companies and one executive have agreed to pay more than $13.4 million, including interest, to resolve allegations that they billed Medicare for higher and more expensive levels of cardiac monitoring services than had been ordered by doctors, Acting U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division announced today.
AMI Monitoring Inc. and its affiliate, Spectocor LLC, both based in McKinney, Texas, agreed to pay $9.56 million, plus interest. Joseph H. Bogdan, 55, of Fairview, Texas, president and owner of the companies, has agreed to pay $1 million plus interest. Medi-Lynx Cardiac Monitoring LLC, headquartered in Plano, Texas, and its majority owner, MEDICALgorithmics S.A., a biotechnology company based in Warsaw, Poland, have agreed to pay $2.89 million.
“Sophisticated medical technology can be used to help doctors dramatically improve the lives of their patients, but it can also be misused to fraudulently increase medical bills,” Acting U.S. Attorney Fitzpatrick said. “Today’s settlement demonstrates that the federal government is committed to preserving the integrity of the Medicare system and ensuring that Medicare funds are spent only for patient care.”
“Independent diagnostic testing facilities that improperly steer physicians to order higher levels of service will be held accountable,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will vigilantly ensure the appropriate use of our country’s limited Medicare funds.”
“Billing for unneeded services, as the government alleged, takes unfair advantage of Medicare patients and steals from taxpayers,” said Special Agent in Charge Scott J. Lampert for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG, along with our law enforcement partners, will aggressively investigate these crimes.”
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
From 2011 through 2016, AMI and Spectocor marketed the PocketECG cardiac monitoring device under an exclusive distribution agreement with MEDICALgorithmics, the device’s manufacturer. AMI and Spectocor, both independent diagnostic testing facilities, marketed the device to doctors as being capable of performing three different types of cardiac monitoring services: Holter, event, or telemetry. The companies and Mr. Bogdan, however, knowingly designed the device’s online enrollment process to steer unwitting doctors to select “telemetry” – which provided the highest rate of reimbursement – for all Medicare patients, even when they wanted to select one of the less expensive services. This marketing, promotion, and enrollment process resulted in the submission of false claims to Medicare.
In 2013, a former co-owner of Spectocor and AMI formed Medi-Lynx as an independent diagnostic testing facility that also marketed the PocketECG device under an agreement with MEDICALgorithmics. From 2013 through 2016, Medi-Lynx also employed the same device enrollment procedure and marketing scheme, resulting in the submission of false Medicare claims. In addition to manufacturing the PocketECG, MEDICALgorithmics acquired a controlling interest in Medi-Lynx in September 2016.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower – a former AMI employee who brought the misconduct to the government’s attention – will receive $2.4 million of the $13.4 million that the government recovered.
U.S. Attorney Fitzpatrick and Acting Assistant Attorney General Readler credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, as well as investigators with the U.S. Attorney’s Office in Newark, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Andrew A. Caffrey III of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The U.S. Attorney’s Office reorganized its health care fraud practice in 2010, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.36 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The case is captioned United States ex rel. Doe v. Spectocor Enterprise Services LLC, et al. (D.N.J.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Defense counsel:
Sean McKenna Esq., Dallas, Texas
Counsel for AMI Monitoring Inc., Spectocor LLC, and Joseph H. Bogdan
Buffalo Man Pleads Guilty to Narcotics ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that William Padovani, 36, of Buffalo, NY, pleaded guilty before U.S. District Court Judge William M. Skretny to narcotics conspiracy. The charge carries a minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in November 2014, the U.S. Postal Inspection Service intercepted a package shipped from Puerto Rico to an address in Buffalo. A search warrant was executed on the package, which contained cocaine and heroin packaged inside coffee grounds. After removing the controlled substances, the Drug Enforcement Administration conducted a controlled delivery of the package. During the delivery, the defendant arrived at the address and placed the package inside of his car. Subsequently, law enforcement officers observed Padovani drive away from the residence, stop his car, and exit the car to begin inspecting the package. The defendant was arrested at that time.
The conviction is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled for September 27, 2017, before Judge Skretny.
Bladensburg Man Sentenced to 10 Years in Federal Prison for Credit Fraud and Identity TheftRead the Press Release
JUNE 26, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – On Friday June 23, 2017, U.S. District Judge George L. Russell, III sentenced Alfred Musa, a/k/a “Gucci,” age 29, of Bladensburg, Maryland to 120 months in prison, followed by three years of supervised release for conspiracy to commit access device fraud, identification document fraud, and aggravated identity theft. Judge Russell also ordered Musa to pay $109,297.04 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Superintendent of the Maryland State Police, Chief William M. Pallozzi; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from October 2014 through August 2015, Musa conspired with others to obtain gift cards, cellular telephones, and goods from retailers by fraudulently obtaining access devices and driver’s licenses in the names, addresses, dates of birth, social security numbers, and other means of identification of real persons. Musa and his co-defendants used the means of identification of at least 90 real people and obtained over $250,000 in fraud proceeds.
Musa obtained personal identifying information of real people and used that information to obtain fraudulent driver’s licenses bearing the victim’s information and a co-conspirator’s photograph. Those driver’s licenses were used to open lines of credit at various retail stores, including Lowes Home Improvement, Nordstrom, and others across Maryland, Virginia, the District of Columbia and Delaware. Once the lines of credit were opened, Musa and the others used them to purchase gift cards as well as high end designer goods. The fraudulent driver’s licenses were also used at Apple stores to open lines of credit and purchase cellular telephones that were resold to a third party for a profit.
In November 2014 a search warranted was executed at Musa’s residence in Montgomery County, Maryland. During the execution of the search warrant, Musa hid in a trash chute to avoid detection. Fraud documents, including screen shots from Bank of America’s internal computer systems containing personal identifying information of several victims were recovered. A box of ammunition with Musa’s fingerprints was also recovered. Musa is prohibited from possessing firearms or ammunition based on a prior felony conviction.
In March 2015, Musa and co-defendant Abubakah Kromah used the identity of a law enforcement officer to open a line of credit at a Lowes in Glen Burnie, Maryland, then used that line of credit to purchase over $11,000 in gift cards at various Lowes stores. On March 26, 2015, Musa and Kromah were apprehended outside the Christiana Mall in Delaware after attempting to open new lines of credit in the law enforcement officer’s name at Nordstrom and Macy’s. When Musa was arrested, a credit application in the officer’s name as well as receipts of other fraud purchases were recovered from his vehicle.
Abubakah Chiko Kromah was also convicted of conspiracy to commit access device fraud and aggravated identity theft. On February 9, 2017, he was sentenced to 60 months imprisonment.
Co-defendant Terri Ashely Hooks was convicted of conspiracy to commit access device fraud and aggravated identity theft related to this scheme. On April 27, 2017, she was sentenced to 18 months imprisonment.
Co-defendant Jasmine Young was convicted of Bank Fraud and Aggravated Identity Theft related to this scheme. On May 10, 2017, she was sentenced to 66 months imprisonment.
Co-defendant Olayinka Amidatu Bangura, a/k/a “Amida,” was convicted of conspiracy to commit access device fraud and aggravated identity theft related to this scheme. On May 17, 2017, she was sentenced to 12 months and one day imprisonment.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, the Maryland State Police, and the Montgomery County Police Department for their work in the investigation. Mr. Schenning also thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.
Bakersfield Woman Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. — Crystal Ferguson, 37, of Bakersfield, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute cocaine base, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 1, 2016, and November 1, 2016, Ferguson distributed approximately 79.8 grams of cocaine base and approximately 28.6 grams of cocaine.
This case is the product of an investigation by the FBI Violent Crime Task Force, which includes the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case.
Ferguson is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on October 16, 2017. Ferguson faces a maximum statutory penalty of 40 years in prison and a $5 million fine. 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.
Bakersfield Man Sentenced in Scheme to Defraud Bakersfield Pipe and Supply Inc.Read the Press Release
SACRAMENTO, Calif. — Kye Aaron Dunbar, 30, of Bakersfield, was sentenced today by U.S. District Judge Dale A. Drozd to three years and 10 months in prison and ordered to pay $287,945 in restitution for conspiring to defraud Bakersfield Pipe and Supply Inc. (BPS), U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 17, 2014, and October 22, 2014, Kye Dunbar, his wife Lynnsi Dunbar, and Daniel Harte conspired to defraud BPS, which is headquartered in Bakersfield, by creating false invoices for payment. Lynnsi Dunbar was an employee of BPS who, with the help of Kye Dunbar and Daniel Harte, created a fictitious trucking company in the name of Harte Trucking. Harte Trucking existed in name only and was created by the defendants for the sole purpose of submitting fraudulent invoices to BPS for payment for services never performed. As a result of this conspiracy, the defendants were able to defraud BPS out of $287,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Lynnsi Dunbar pleaded guilty and is scheduled to be sentenced on January 8, 2018. Harte is scheduled to go to trial on November 7, 2017. The charges against Harte are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bakersfield Man Sentenced for Unlawful Possession of FirearmsRead the Press Release
FRESNO, Calif. — Martin Patino Jr, 25, of Bakersfield, was sentenced today by U.S. District Judge Lawrence J. O’Neill to five years and 11 months in prison for two counts of being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
Patino pleaded guilty on January 30, 2017. According to court documents, on December 22, 2015, while law enforcement officers were preparing to execute a search warrant at Patino’s residence, they observed Patino exit the residence and walk over to an older model truck that had its front engine compartment hood open. Later, officers searched the truck and found a Black Rock Island Armory, .45‑caliber M1911 A1 handgun with an extended magazine under a sheet in the engine compartment. They also found an additional .45‑caliber handgun magazine at the property. Patino admitted that he was a previously convicted felon and that the firearm and ammunition were his.
On February 12, 2016, law enforcement agents executed a federal search warrant at Patino’s residence and found a Ruger LCP .380 handgun, which was later determined to be stolen, inside a safe in the bedroom. They also found in the safe a 50-round box of Winchester 32 auto 71 grain ammunition and a Ruger brand magazine containing four rounds of ammunition.
According to the plea agreement, Patino admitted that he used or possessed these firearms in connection with the commission of a conspiracy to distribute methamphetamine.
This case was the product of an investigation by the FBI Violent Crime Task Force, which includes the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Albuquerque Felon Sentenced to Seven Years for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Steve Frank Candelaria, 42, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison for violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Candelaria will be on supervised release for three years after completing his prison sentence.
Candelaria was arrested on March 29, 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on Nov. 2, 2015, in Bernalillo County, N.M. According to the indictment, Candelaria was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses, including aggravated assault with a deadly weapon, possession of a controlled substance, trafficking a controlled substance, possession of cocaine with intent to distribute, and possession of cocaine.
On March 28, 2017, Candelaria pled guilty to the indictment and admitted that on Nov. 2, 2015, he possessed a firearm and ammunition despite his status as convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
24 June 2017
Youngstown man sentenced to 20 years in prison for selling heroin that resulted in overdose deathRead the Press Release
A Youngstown man was sentenced to 20 years in prison for selling heroin that resulted in a fatal overdose, said Acting U.S> Attorney David A. Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Shayne Mascarella, 23, distributed heroin that directly resulted in the July 19, 2015 death in Youngstown of a person identified in the court documents as L.Z.
“Heroin has caused an unprecedented wave of death, pain and destruction in Ohio,” Sierleja said. “No corner of the state is immune. Only though aggressive law enforcement -- combined with education and prevention efforts, changes in prescribing practices and making treatment available to those who want help -- can we turn the tide on the opioid epidemic.”
The case is being prosecuted by Assistant United States Attorneys Jason M. Katz and David M. Toepfer. The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Mahoning Valley Violent Crimes Task Force and the Mahoning Valley Law Enforcement Task Force, which includes representatives from the Boardman Police Department, the Youngstown Police Department, the Mahoning County Sheriff's Office, the Ohio Adult Parole Authority, and others.
Sister and brother from Willoughby indicted for a conspiracy to distribute marijuanaRead the Press Release
A sister and brother from Willoughby were indicted for a conspiracy to distribute marijuana, said Acting U.S. Attorney David A. Sierleja.
Natasha D. Lewis, 28, and Bennett M. Lewis, 26, were indicted on one count of conspiracy to possess with the intent to distribute a controlled substance and one count of possessing a controlled substance with the intent to distribute.
Natasha D. Lewis worked as a carrier for the U.S. Postal Service. She exchanged messages with Bennett M. Lewis regarding addresses to which packages containing marijuana could be sent. This took place between December 2015 through January 2017, according to the indictment.
Bennett M. Lewis then arranged for marijuana shipments to be sent via the United States Postal Service to those addresses. Natasha D. Lewis intercepted those packages and delivered them directly to Bennett M. Lewis. After the marijuana was sold, both defendants shared in the proceeds, according to the indictment.
If convicted, each defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall. The investigation was conducted by the United States Postal Inspection Service, Cleveland, Ohio, and the United States Postal Service Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Portage County man indicted for sexual exploitation of a child and distributing child pornographyRead the Press Release
A Portage County man was indicted on charges of sexual exploitation of a child, and receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, said Acting U.S. Attorney David A. Sierleja.
Thomas D. Brown, 40, of Atwater, used, persuaded, enticed and coerced a minor to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct. This took place from Jan. 1, 2014, through Dec. 31, 2015, and again from June 1, 2016, through May 22, 2017, according to the indictment.
The indictment also charges that Brown knowingly received and distributed numerous computer files which files contained visual depictions of real minors engaged in sexually explicit conduct. This took place from May 4, 2017, through May 9, 2017.
The indictment also charges that on or about May 12, 2017, Brown possessed a computer, a Lexar flash drive and an SD card, each of which contained child pornography.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. It was investigated by the Federal Bureau of Investigation and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Guatemalan indicted for illegally reentering the U.S.Read the Press Release
A federal grand jury returned an indictment charging Arelio Martinez-Perez, 37, of Guatemala, for re-entering the United States illegally after being deported, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Martinez-Perez has been deported on two previous occasions. He was last deported to Guatemala in February 2015. Martinez-Perez later reentered the country and was recently found in New Philadelphia, Ohio, according to the indictment.
Assistant United States Attorney Elliot D. Morrison is prosecuting the case following an investigation by the United States Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Canton men indicted for firearms violationsRead the Press Release
Two Canton men were indicted for federal firearms violations, said Acting U.S. Attorney David A. Sierleja.
Nazario Mendoza, 43, and Jose Argueta-Carrillo, aka Jose Armica-Argueta, 34, are named in the two-count indictment.
Count 1 of the indictment alleges that on Jan. 4 up to and including as late as Feb. 7, 2017, Mendoza transferred a Taurus 9mm pistol, Model: PT111 Millennium G2 firearm to Jose Argueta-Carrillo, a person he knew to be prohibited from possessing a firearm.
Count 2 of the indictment alleges that on Feb. 7, 2017, Argueta-Carrillo, an alien illegally and unlawfully in the United States, and prohibited from possessing a firearm, possessed a Taurus 9mm pistol, Model: PT111 Millennium G2 firearm.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, FBI Safe Streets Task Force and Canton Police Department. The matter is being prosecuted by Assistant U.S> Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
23 June 2017
Virginia Woman Sentenced to Prison for Filing False Tax Returns and Using Customer IDs to Make Fraudulent Credit Card ChargesRead the Press Release
A Haymarket, Virginia woman was sentenced to serve 48 months in prison today for stealing customer IDs and filing a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana Boente for the Eastern District of Virginia.
According to documents provided to the court, Karen Holtz worked for JMS Ventures Inc. (JMS), which did business as the Kenyan Collection, and imported and distributed handmade Kenyan goods. Holtz was responsible for taking, processing, and fulfilling customer orders, accepting customer payments, including charging customer credit cards, preparing customer invoices, keeping track of JMS’s inventory and maintaining JMS’s books and records. Between 2008 and 2013, Holtz wrote herself unauthorized checks from JMS’s bank account and unlawfully diverted customer payments made using PayPal by transferring the payments directly to her personal bank account. Holtz also used JMS’s customers’ personal identification information to make fraudulent charges to their credit cards. For tax years 2008 through 2013, Holtz filed false individual tax returns on which she failed to report more than $400,000 in income.
In addition to the term of prison imposed, Holtz was ordered to serve one year of supervised release and to pay $529,544.81 in restitution to the Internal Revenue Service (IRS) and the victims of the fraud and identity theft scheme.
Acting Deputy Assistant General Goldberg and U.S. Attorney Boente thanked special agents of IRS Criminal Investigation, the U.S. Secret Service, and the Loudoun County Sheriff’s Department, who conducted the investigation, and Assistant U.S. Attorney Katherine L. Wong and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Virginia Beach Businessman Pleads Guilty to Tax CrimeRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to failing to pay nearly $1 million in payroll taxes to the IRS.
According to the statement of facts filed with the plea agreement, Michael Popina, 61, was the president and owner of Chesapeake Coatings & Decks, Inc., (CCD) a painting and sandblasting company hired primarily by government contractors and marine businesses. As part of its tax obligations, CCD had a duty to withhold from its employees’ paychecks certain federal taxes and pay the monies over to the IRS. During tax years 2010-2013, Popina failed to pay to the IRS approximately $130,000 in these withheld payroll taxes.
During an IRS investigation of Popina, agents learned that Popina utilized an additional scheme to avoid paying payroll taxes. Popina would spread his employees’ regular pay into two separate checks. The first payroll check was sent to Popina’s payroll company, taxes were withheld, and the income was reported to the IRS. However, the second payroll check was not sent to the payroll company, taxes were not withheld and the income was not reported to the IRS. The court records indicate that Popina utilized this system because his business was poorly managed and that he used the tax savings to continue keeping the business in operation. Investigators concluded that Popina failed to account for approximately $4 million using this system and that he failed to pay to the IRS a total of approximately $950,000 in payroll taxes.
Popina pleaded guilty to failure to pay over payroll tax, and faces a maximum penalty of 5 years in prison when sentenced on October 2. 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 Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-68.
Two Leaders of A Multi-Million Dollar Synthetic Drug Distribution Conspiracy Sentenced for Selling Illegal CannabinoidsRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of OMAR ZIAD WAZWAZ, 35, and VLADIMIR VLADIMIROVIC BRIK, 27, for conspiring to distribute synthetic cannabinoids. WAZWAZ and BRIK, who were charged in a superseding indictment on September 15, 2015, both pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute controlled substance analogues. BRIK also pleaded guilty to one count of conspiracy to commit money laundering. WAZWAZ and BRIK were sentenced on May 24, 2017, and June 23, 2017, respectively, before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minn. Six additional defendants were also charged in this case as part of the same synthetic drug trafficking conspiracy, pleaded guilty, and have been sentenced by the Court.
“It is important for the public to know that all synthetic drugs, including the synthetic cannabinoids involved in this case, are illegal and extremely dangerous,” said Acting U.S. Attorney Brooker. “I want to thank the investigators and prosecutors who have worked diligently to keep Minnesotans safe by shutting this down.”
“Smokable synthetic drugs known more commonly as “Spice” and “K2” have plagued Minnesota and the nation for years,” said DEA Minneapolis-St. Paul Division Assistant Special Agent in Charge Kenneth Solek. “The brand developed and marketed by the Wazwaz/Brik drug trafficking organization, known as ‘Kryptonite’ was marketed as a safe and harmless substance. In reality, these drugs contain dangerous chemicals that put users at an extreme risk of suffering adverse health consequences, including death. These drugs have no place in our society. The DEA is committed to protecting society from dangerous drugs and will continue to pursue peddlers of synthetic drugs and hold them accountable for the harms they cause.”
“This investigation could not have been accomplished without the law enforcement community working together to dismantle this organization. IRS Criminal Investigation, along with its law enforcement partners and the U.S. Attorney’s Office, worked tirelessly to stop this massive synthetic drug ring from making and selling more illicit drugs”, stated Acting Special Agent in Charge Hubbard Burgess of the IRS Criminal Investigation St. Paul Field Office. Hopefully, the lengthy sentences these defendants received will deter others from committing similar crimes.”
According to the defendants’ guilty pleas and documents filed in court, WAZWAZ, BRIK and their coconspirators imported pure synthetic cannabinoids from overseas using intentionally false U.S. Customs declarations forms, manufactured Smokable Synthetic Cannabinoids (“SSCs”) by combining those chemicals with herbal material, and then marketed the SSCs in misbranded packages that falsely claimed the drugs were “not for human consumption.” The conspiracy’s “Kryptonite” brand of SSCs retailed through Wazwaz’s smoke shops in Minnesota and elsewhere, and online through websites such as www.herbz4less.com, wholesaled by phone and mail order to retailers throughout the United States. Additionally, as part of the conspiracy, BRIK and others transferred by wire transfers, credit card transactions, and PayPal payments tens of thousands of dollars to locations outside the United States to pay for the synthetic cannabinoids and other supplies. The conspiracy manufactured and distributed approximately 2,408 kilograms of SSCs, yielding approximately $9,720,032 in gross sales revenue for the coconspirators.
To date, all eight members of the conspiracy have pleaded guilty and have been sentenced.
This case is the result of an investigation conducted by the Minnesota River Valley Drug Task Force, the U.S. Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation Division, the U.S. Food and Drug Administration, U.S. Customs and Border Protection, and Homeland Security Investigations.
Assistant U.S. Attorney Surya Saxena prosecuted this case.
Defendant Information:
OMAR ZIAD WAZWAZ, 35
New Brighton, Minn.
Charges:
- Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
Sentenced:
-
118 months in prison
- Three years of supervised release
VLADIMIR VLADIMIROVIC BRIK, 27
Duluth, Minn.
Charges:
-
Conspiracy to Distribute and Possession with Intent to Distribute Controlled Substance Analogues, 1 count
- Money Laundering Conspiracy, 1 count
Sentenced:
-
118 months in prison
-
Three years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Two District Men Sentenced to Prison for Assaulting Women in Separate Attacks Within 35-Minute PeriodRead the Press Release
WASHINGTON – Terrez Crocker, 21, was sentenced today to seven years in prison, and Andre Walker, 28, was sentenced to a five-year prison term on charges of robbing and assaulting two women in separate attacks, U.S. Attorney Channing D. Phillips announced.
In April 2017, a jury found Crocker guilty of one count each of conspiracy to commit a crime of violence, robbery, assault with intent to commit robbery, fleeing from law enforcement, reckless driving, destruction of property, and receipt of stolen property, as well as three counts of unauthorized use of a vehicle during a crime of violence. The jury found Walker guilty of one count each of conspiracy to commit a crime of violence, robbery, assault with intent to commit robbery, and fleeing from law enforcement.
The defendants, both of Washington, D.C., were sentenced by the Honorable Ronna Lee Beck in the Superior Court of the District of Columbia. Following completion of their prison terms, each will be placed on three years of supervised release.
According to the government’s evidence at trial, at about 6:45 p.m. on Sunday, August 30, 2015, a young woman was walking by herself on 61st Street NE at the intersection of Eads Street NE. She was walking home after work when she noticed a white Volkswagen Jetta parked in the intersection. Unbeknownst to her, Crocker and Walker were waiting in that vehicle, which had been stolen in Maryland approximately three weeks earlier. GPS evidence placed Crocker at the scene of the car theft during the time-frame in which the vehicle was stolen.
As they sat in the stolen Jetta, Crocker and Walker directed their two female accomplices to jump out of the vehicle to steal the woman’s purse and cell phone. The two female accomplices followed Walker and Crocker’s directive, jumped out of the vehicle, and snatched the woman’s purse and cell phone, and then returned to the vehicle where Crocker and Walker were waiting. The four assailants then fled the scene.
Shortly thereafter, at approximately 7:20 p.m., Crocker, Walker, and their two female accomplices spotted their second victim, another young woman walking near the intersection of Southern Avenue and Bass Place SE on her way home from church. The woman also noticed the white Volkswagen Jetta. Unbeknownst to her, as she walked, Crocker and Walker again directed their two female accomplices to jump out of the car to rob her. At the direction of Crocker and Walker, the two female accomplices again jumped out of the vehicle and attempted to take the woman’s purse. However, the woman fought back, fending off her attackers and thwarting the robbery. The two female accomplices then ran back to the Volkswagen Jetta, where Crocker and Walker were waiting.
Both victims were able to provide information to the Metropolitan Police Department (MPD), including the make and model of the vehicle used during the commission of the robberies and a partial license plate tag number.
Members of MPD’s Fifth and Sixth Districts canvased the area in search of the suspects’ vehicle, which was spotted at East Capitol Street and Benning Road NE. Officers attempted to pull over the vehicle. However, Crocker and Walker ignored the directive of the police and sped away. Crocker, the driver, fled from the police, driving at a high rate of speed, driving erratically, and committing multiple traffic violations during the pursuit. Eventually, Crocker crashed the Volkswagen Jetta near the intersection of 57th Place and A Street SE. All four assailants then fled on foot and were apprehended within blocks of the crash site. The two female accomplices, an adult and a juvenile, pled guilty to charges in the case.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer Kerkhoff, Paralegal Specialists Richard Cheatham, Lashone Samuels, and Donville Drummond, and Intelligence Research Specialist Zachary McMenamin. Finally, he commended the work of Assistant U.S. Attorneys Alicia Long and Laura Crane, who investigated and prosecuted the case.
Trucker Sentenced to Prison for Hauling CocaineRead the Press Release
Montgomery, Alabama--On Thursday, June 22, 2017, Robert Francis Kelly (56), of Pennsylvania, was sentenced to 64 months in prison for possessing approximately 15 kilograms of cocaine with the intent to distribute, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. In addition to the more than five-year prison sentence, Kelly will also be subject to five years of supervised release. There is no parole in the federal system.
In August 2016, Kelly was driving a tractor-trailer truck on Interstate 85 when he was pulled over by an Alabama State Trooper in Montgomery County for having suspicious registration information. During the stop, he told the State Troopers that he was driving down from Delaware. Troopers confronted Kelly with contrary log records and Kelly admitted that he had lied to them. Kelly actually started his trip just a few miles from the Mexican border, and was headed to Atlanta, Georgia.
The State Troopers then performed a search of the vehicle and found a suspicious section of the rear truck axle. They discovered that part of the drive shaft and rear differential had been completely removed from Kelly’s truck to create a compartment. When the Troopers looked inside this compartment, they found the cocaine. The Drug Enforcement Administration (DEA) estimates that the street value of 15 kilograms of cocaine is approximately a half-million dollars.
“We took 15 kilograms of cocaine off the street; that is 15 kilograms of poison that will not reach our citizens,” stated Acting U.S. Attorney Morris. “These well-trained State Troopers are to be commended for their ability to locate and seize drugs that are hidden in sophisticated secret compartments. Because of their perseverance, the poison Kelly was hauling will not make it to our communities.”
“This case is an example of the good that comes from law enforcement working together,” stated Bret Hamilton, DEA Assistant Special Agent in Charge. “Alabama State Troopers and DEA worked side-by-side to seize these drugs and put the drug dealers behind bars. Now, justice is served and our communities are safer.”
“This case demonstrates how effective teamwork is to combating the distribution of illegal narcotics,” said Acting Secretary of the Alabama Law Enforcement Agency Hal Taylor. “Our Troopers are trained to recognize situations that go beyond the routine traffic stop, some of which lead to such successful prosecutions as this.”
Acting U.S. Attorney Morris would like to thank the following entities for their assistance with this case: the Alabama Law Enforcement Agency’s (ALEA) Highway Patrol Division and the Drug Enforcement Administration (DEA). This case was prosecuted by Assistant United States Attorney Bradley Bodiford.
Three Men Charged with Larceny and Misprision of a FelonyRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, men, and a Howes, South Dakota, man have been indicted by a federal grand jury for Larceny and Misprision of a Felony.
Kolby Longbrake, age 24, Kelan Gesinger, age 28, and Matthew Houston, age 21, were indicted on June 14, 2017. They appeared before U.S. Magistrate Judge Mark A. Moreno on June 16, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 15, 2016, and April 3, 2016, Longbrake unlawfully took and carried away items valued at more than $1,000.
The Indictment also alleges that between March 11, 2016, and April 23, 2016, Longbrake, Gesinger, and Houston, stole a 2002 Delta 24’ goose neck trailer, valued at more than $1,000. All three defendants concealed stealing the neck trailer and did not, as soon as possible, make known the same to a judge or other person in civil authority under the United States.
The charges are merely accusations and Longbrake, Gesinger, and Houston are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Longbrake and Houston were released on conditions pending trial, and Gesinger was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Three High-Level Members of the Mustafa Family Crime Organization Sentenced to Federal PrisonRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of three members of the Mustafa family crime organization for their roles in a multi-million dollar conspiracy to traffic stolen cellular phones and other electronic devices. KANAN T. MUSTAFA, 40, JAMAL MUSTAFA, 45, and NIZAR MOHAMAD MUSTAFA, 26, were sentenced this week before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn.
“These three brothers were high-level members of the Mustafa Organization,” said Acting United States Attorney Gregory Brooker. “The Twin Cities was the hub for their criminal operations, but the organization trafficked in millions of dollars in stolen cell phones and electronics across the nation and overseas. The strategic cooperation and collaborative work of our law enforcement partners, has dismantled this crime ring, and these three defendants, among other co-defendants, will serve lengthy prison sentences.”
“Not only did these individuals commit crimes related to the purchase and sale of stolen cellular telephones, they also committed several tax fraud crimes, such as failure to file tax returns, preparation of false W-2s, and filing of false claims for tax refunds. This investigation was truly a coordinated effort by several members of law enforcement and the U.S. Attorney’s Office to bring this criminal organization down,” stated Acting Special Agent in Charge Hubbard Burgess of the IRS Criminal Investigation, St. Paul Field Office.
"This case is about more than cell phones being stolen. It is about a complex crime ring stealing identities and people's good names for criminal gain,” said Saint Paul Police Chief Todd Axtell. “The collaborative work that went into investigating, indicting and bringing these individuals to justice is impressive and will likely prevent much more crime in the future, which will protect others from becoming victims.”
According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2014, KANAN, JAMAL, NIZAR, and other members of the Mustafa family and their associates used stolen identity information and other criminal means to obtain at least $20 million of cellular telephones and other mobile devices for the purpose of trafficking them throughout the United States and overseas. KANAN, JAMAL, NIZAR, and three other Mustafa brothers owned and operated 13 mobile device stores in the Twin Cities metropolitan area, which were used to buy illegally obtained mobile devices. Members of the Mustafa Organization paid runners to steal mobile devices or obtain them fraudulently using stolen identification documents. They re-sold the stolen phones and tablets for substantial profits that were then distributed among themselves and used to pay for rent, utilities, payroll and other expenses to keep their stores in business and promote the criminal activity.
According to the defendants’ guilty pleas and documents filed in court, KANAN, JAMAL, NIZAR, and other members of the Mustafa Organization falsified loan applications and provided false documentation to get loans for vehicles that they used to transport stolen devices and the proceeds of their criminal activity. KANAN, JAMAL, NIZAR, and other members of the Mustafa Organization also made fraudulent credit card transactions to steal from credit card processing companies and used the proceeds to buy more cell phones, to pay operating expenses for the wireless stores, and to fund their personal expenses.
According to the defendants’ guilty pleas and documents filed in court, from at least 2010 through 2014, KANAN, JAMAL, NIZAR, and other members of the Mustafa Organization also conspired to defraud the IRS through numerous fraud schemes. For example, the defendants regularly paid themselves in cash, failed to file tax returns, filed false claims for tax refunds, failed to maintain financial business records, and prepared false W-2s or did not prepare W-2s at all.
To date, all 21 members of the conspiracy have entered guilty pleas before Chief Judge John R. Tunheim. Twenty of the 21 defendants have been sentenced.
Assistant U.S. Attorney Karen Schommer and former Assistant U.S. Attorney Steve Schleicher prosecuted this case.
This case is the result of an investigation conducted by the St. Paul Police Department, United States Secret Service, University of Minnesota Police Department, Minnesota Department of Public Safety and Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, United States Postal Inspection Service, Internal Revenue Service Criminal Investigations, Homeland Security Investigations, Edina Police Department, Minneapolis Police Department, Plymouth Police Department, Federal Bureau of Investigation, and the United States Marshal’s Service.
Defendant Information:
KANAN T. MUSTAFA a/k/a “Kenny,” 40
Rosemount, MN
Convicted:
- Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
- Conspiracy to Defraud the Government With Respect to Claims, 1 count
Sentenced:
-
130 months in prison
-
Three years of supervised release
- $1,015,901.33 in restitution
JAMAL TALAL MUSTAFA, a/k/a “Jimmy,” 43
Apple Valley, Minn.
Convicted:
- Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
- Conspiracy to Defraud the Government With Respect to Claims, 1 count
Sentenced:
-
87 months in prison
-
Three years of supervised release
- $1,015,901.33 in restitution, $11,482.00 to the IRS
NIZER M MUSTAFA, a/k/a “Shaggy,” a/k/a “Mike,” 29
Savage, Minn.
Convicted:
- Conspiracy to Engage in Interstate Transportation of Stolen Goods, 1 count
- Conspiracy to Defraud the Government With Respect to Claims, 1 count
Sentenced:
-
87 months in prison
-
Three years of supervised release
-
$1,015,901.33 in restitution, $32,323.00 to the IRS
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Three Baltimore Area Residents Convicted in Arson and Wire Fraud Scheme, Obstruction, Witness TamperingRead the Press Release
FOR IMMEDIATE RELEASE Contact Elizabeth Morse
www.justice.gov/usao/md at (410) 209-4877
Baltimore, Maryland – On June 21, 2017, Greg Ramsey, 55, of Baltimore, Maryland, pled guilty to use of fire to commit wire fraud, malicious destruction of property by fire, and attempted witness tampering. Ramsey’s plea came on the third day of trial.
The conviction was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Daniel L. Board Jr., Baltimore City Police Commissioner Kevin Davis, Baltimore City Fire Chief Niles R. Ford, PhD, Maryland State Police Superintendent Colonel William M. Pallozzi, United States Secret Service Special Agent in Charge Christopher Caruso, and Department of Homeland Security Special Agent in Charge Andre Watson.
According to his plea agreement, Ramsey and Teryaeva-Reed set three separate residences between October 2012 and August 2013, two in Baltimore, and one in Weatherly, PA. The fires spread to adjoining residences and did substantial damage. Two of the residences were occupied at the time. In addition, the pair set two vehicles on fire in August of 2013 in the area of Walbrook Ave. and N. Dukeland Street, which spread to a nearby church. The fires were set in an effort to obtain money from insurance companies for the claims related to the fire damage.
Teryaeva-Reed was initially charged by the Baltimore City State’s Attorney’s Office and arrested at JFK airport as she was about to board a flight to Ukraine in 2013. In 2015, Ramsey planned to have a relative, Tyesha Roberts, testify falsely for Teyaeva-Reed at trial for $2,000. Ramsey also plotted to assist in the murder of another witness. In November 2015, Ramsey produced a loaded .357 Ruger revolver, which was to be used for the murder, and he was arrested.
Ramsey’s sentencing hearing is scheduled for September 15, 2017, before the Honorable George L. Russell III.
Coconspirator Julia Teryaeva-Reed, 33, a citizen of Ukraine, previously pled guilty to use of fire to commit a federal felony, wire fraud, and malicious destruction of real property by fire. Coconspirator Tyesha Roberts, 38, of Baltimore, previously pled guilty to Attempted Obstruction of an Official Proceeding. Both are pending sentencing.
Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Matthew J. Maddox, Judson T. Mihok, and Zachary Myers, who prosecuted the case.
Thibodaux Resident Sentenced for Theft of Social Security Disability BenefitsRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that CLINT A. SCHWAB, age 42, of Thibodaux, was sentenced yesterday after previously pleading guilty to theft of social security disability benefits.
U.S. District Judge Eldon E. Fallon sentenced SCHWAB to 12 months and a day of imprisonment, to be followed by one year of supervised release. SCHWAB was also ordered to pay restitution to the Social Security Administration in the amount of $165,413.
According to court documents, SCHWAB began receiving social security disability benefits in 1998. In or around 2008, SCHWAB returned to work, but did not inform the Social Security Administration as required by law. In January 2016, SCHWAB was interviewed by the Social Security Administration and falsely informed the agency that he had never worked as a disabled claimant. However, SCHWAB failed to inform the administration that he was working while also receiving monthly disability payments. From 2008 until early 2016, SCHWAB collected social security disability payments to which he was not entitled.
Acting U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General, in investigating this matter. Assistant United States Attorney Richard R. Pickens, II was in charge of the prosecution.