Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
22 June 2017
Michigan man convicted of heroin trafficking chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Detroit, Michigan man was convicted today in federal court of heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Julian Michael-Thomas “Cain” Johnson, age 22, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.” The crime occurred November 2016 near West Virginia University in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michal John Aloi presided.
Merced County Resident Indicted for Conspiracy to Grow Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jose Manuel Sanchez-Zapien (Sanchez), 37, a native and citizen of Michoacán, Mexico, residing in Dos Palos, charging him with conspiring to manufacture marijuana and damaging public lands and natural resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez was found in April and June of this year at a drop point delivering supplies to growers at a marijuana cultivation site in the Slick Rock Creek drainage in the Sequoia National Forest. The drop point has been used numerous times in the past as a supply drop point for marijuana growers to access grow sites in the Slick Rock Creek drainage.
This case is the product of an investigation by the U.S. Forest Service with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife and the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy, Sanchez faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. If convicted of the environmental crime, Sanchez faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Sanchez is also liable for restitution to the U.S. Forest Service for damages stemming from the marijuana cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Members of Duquesne Heroin Trafficking Ring Guilty of Conspiracy to DistributeRead the Press Release
PITTSBURGH - United States District Court Judge Reggie B. Walton found Anthony Pryor and Lance Yarbough guilty of one count each of Conspiracy to Distribute Heroin, Acting United States Attorney Soo C. Song announced today.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Pryor and Yarbough participated in a large-scale heroin distribution operation centered in Duquesne, Pennsylvania. The verdict is the culmination of an investigation that began in 2010 and resulted in the convictions of nineteen individuals for heroin distribution and firearms charges, most of whom are from Duquesne. The core of the group called themselves Hardcore Entertainment, and some of the members of the conspiracy recorded music and video under that name as well. Some of videos, which they posted on YouTube, included members of the conspiracy bragging about their drug dealing activities.
Members of Hardcore Entertainment typically pulled their resources and obtained large quantities of heroin from New Jersey. They typically transported the heroin and money in vehicles with hidden compartments. Once the heroin reached the Pittsburgh area, members of the conspiracy split the heroin and sold it to other heroin distributors in the Pittsburgh area. During portions of the conspiracy, members of the conspiracy were making weekly trips between New Jersey and the Pittsburgh area transporting, on the monthly basis, hundreds of thousands of dollars and multiple kilograms of heroin. The conspiracy lasted from at least 2008 until 2012. The evidence presented at trial included controlled purchases of heroin, firearms, heroin, money, cellular telephone, and other evidence seized pursuant to search warrants, communications among the conspirators intercepted pursuant to Court authorization, and the seizure of heroin from the hidden compartment of one of the vehicles used to transports money and heroin between New Jersey and the Pittsburgh area.
Judge Walton scheduled sentencing for both defendants for October 16, 2017 The law provides for a total sentence for Pryor of 40 years in prison, a fine of $5 million, or both. The law provides for a total sentencing for Yarbough of life imprisonment, a fine of $10 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the and the prior criminal history, if any, of the defendants.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Dept, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Pryor and Yarbough. The Duquesne Police Department and the Pennsylvania State Police also participated in the investigation.
McLean County Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
PEORIA, Ill. – Stephen F. Croker, 43, of Normal, Ill., was sentenced today to five years (60 months) in federal prison for receiving child pornography. The court also ordered that Croker remain on supervised release for eight years following his release from incarceration. Croker will be required to register as a sex offender.
Croker pleaded guilty on January 12, 2017. According to court documents, Croker was a member of Playpen, a hidden website dedicated to the sharing of child pornography that operated on the Tor anonymity network from August 2014 until March 2015. Between September 2014 and March 2015, Croker logged into Playpen and downloaded content depicting the sexual exploitation of children. Upon a search of his residence, agents located a USB thumb drive that contained more than 2,000 images and 54 videos of child pornography.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The FBI conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Maryland Doctor Charged with Conspiracy to Commit Bank Fraud and Making False Statements in Loan RequestsRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Dr. Zahid Aslam, 44, of Elkton, Maryland, was charged by the federal grand jury on June 15, 2017, in a three-count Indictment with conspiracy to commit bank fraud and false statements on loan applications.
Count 1 charges the defendant with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties for Count 1 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
Counts 2 and 3 charge the defendant with making false statements in loan requests, in violation of Title 18, United States Code, Sections 1014 and 2. The maximum penalties for each of Counts 2 and 3 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
The Indictment alleges that Dr. Aslam, a doctor with practices in Delaware, Maryland, New Jersey, and Pennsylvania, entered into a bank fraud scheme with Tae Kim, his loan officer at Citibank and WSFS Bank, respectively. According to the Indictment, Aslam recruited two other associates to misrepresent in loan applications that they were the true borrowers and operators of medical practices, when, in actuality, Aslam owned and operated the practices and ultimately controlled the loan proceeds. The Indictment alleges that Aslam used the third parties to apply for the loans because Aslam knew that he would not otherwise qualify for financing had he applied on his own behalf. In addition, the Indictment alleges that Aslam and Kim concealed the existence of an extensive financial relationship between the two from Citibank and WSFS during the period in which Kim acted as Aslam’s loan officer, including their joint ownership of businesses, as well as large cash payments and a BMW sedan that Aslam provided to Kim.
Acting U.S. Attorney Weiss said, “The indictment alleges that the defendant defrauded two financial institutions by misrepresenting the actual owners and operators of two medical practices and by failing to disclose a significant financial relationship with his former loan officer. It is critical that borrowers provide accurate information to financial institutions and our office is committed to prosecuting those who fail to do so.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Jennifer L. Hall.
Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.
Mandaree Man Found Guilty of Sexual Abuse and Attempted Tampering with a WitnessRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on June 21, 2017, a federal jury convicted Kalolo Nathaniel Iu, 28, Mandaree, ND, on charges of Sexual Abuse and Attempted Tampering with a Witness.
Evidence presented at trial showed that between November 20, 2016, and November 21, 2016, Kalolo Iu physically assaulted and sexually abused the mother of his children on the Fort Berthold Indian Reservation. Specifically, on November 20, 2016, Iu punched and kicked the victim multiple times and, because of this assault, the victim sustained several bruises across her body, including a black eye that was swollen shut. The next morning, on November 21, 2016, approximately twelve hours after assaulting the victim, Iu climbed on top of and engaged in forcible sexual intercourse with the victim. introduced at trial also demonstrated that when Iu got on top of and engaged in sexual intercourse with the victim, she told Iu “no.” She tried to push Iu away using her hands and legs, and held up her underwear as the defendant pulled them down because she was scared that Iu would physically assault her again. She was also in substantial pain as a result of Iu assaulting her the previous night.
On March 10, 2017, law enforcement arrested Iu on the federal sexual abuse warrant. Subsequent to Iu’s arrest on this warrant, and in order to influence and prevent the victim’s testimony at trial, Iu contacted the victim multiple times. Specifically, when Iu spoke with the victim, he attempted to intimidate, threaten, and persuade her to both lie to law enforcement and to drop the sexual abuse charge against him.
Furthermore, evidence introduced at trial demonstrated that Iu had previously physically assaulted, threatened, and stalked the victim and, on January 5, 2012, because of one of these prior physical assaults, Iu received a federal conviction for Assault Resulting in Serious Bodily Injury in the United States District Court for the District of North Dakota.
Sentencing for Kalolo Iu has been scheduled for October 2, 2017, at 9:00 a.m. in Bismarck, ND.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jonathan O’Konek prosecuted the case.
Man from Grants Pleads Guilty to a Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Moises Eufelio Martinez, Jr., 43, of Grants, N.M., pled guilty this morning in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Martinez was arrested in Jan. 2017, on a criminal complaint charging him with possessing methamphetamine with intent to distribute and possessing firearms in furtherance of a drug trafficking crime. The complaint alleged that Martinez committed the crimes on Dec. 19, 2016, in Lea County, N.M. According to the complaint, officers of the Lea County Drug Task Force seized approximately 901.5 gross grams of methamphetamine, drug paraphernalia, firearms and ammunition following the execution of search warrants on Martinez’s person and a hotel room.
During today’s proceedings, Martinez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Martinez admitted that on Dec. 19, 2016, he was in possession two bags containing methamphetamine and a loaded handgun when he was searched by Lea County Drug Task Force officers. Martinez acknowledged that he intended to distribute the methamphetamine to others and that he was carrying the firearm to protect himself, the methamphetamine, and any money he received from the sale of the methamphetamine.
At sentencing, Martinez faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the New Mexico HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Man Sentenced on Federal Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that Asuncion Sarminento Arguello a/k/a Asuncion Arguello Sarminento, age 34, of Veracruz, Mexico, was sentenced in federal court today to 108 months imprisonment followed by a term of three years’ supervised release. On February 27, 2017, Arguello entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and distribution a quantity of heroin and a quantity of cocaine in violation of 21 U.S.C. §§ 841(a)(1) and 846. United States District Judge R. Bryan Harwell, of Florence, imposed the sentence.
This case was part of an extensive investigation conducted by agents of the Drug Enforcement Administration (DEA), the Fifteenth Circuit Drug Enforcement Unit (DEU) and the Florence County Sheriff’s Office (FCSO) into the sale of heroin and other illegal drugs in the Horry County, South Carolina area. Arguello was identified as a possible heroin distributor. Evidence presented at the change of plea hearing and sentencing hearing established that agents made a controlled purchase of a quantity of heroin from Arguello in January 2016. Several months later, based on additional information learned during the investigation, agents stopped a vehicle occupied by Arguello. Agents searched the vehicle and located a loaded firearm, over 1 kilogram of heroin and nearly 500 grams of cocaine.
The case was investigated by agents of the Drug Enforcement Administration (DEA), the Fifteenth Circuit Drug Enforcement Unit (DEU), and the Florence County Sheriff’s Office (FCSO). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
#####
Man Sentenced for Illegal Re-Entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jose Hernandez Guerrero, age 39, from Pamplico, was sentenced in federal court in Florence, South Carolina, for Illegal Re-entry into the United States after deportation, in violation of 8 U.S.C. § 1326(a)(2). United States District Judge R. Bryan Harwell, of Florence, sentenced Guerrero to 15 months imprisonment followed by three years of supervised released.
Evidence presented at the change of plea hearing on February 27, 2017, established that on October 19, 2016, ICE-Enforcement and Removal Operations Officers from Charleston discovered Guerrero while he was in custody at the Florence County Detention Center on state charges. Records checks revealed that Guerrero was a native and citizen of Mexico who had previously been deported from the United States. Guerrero has never received permission to enter or remain in the United States.
The case was investigated by agents of Immigration and Customs Enforcement-Enforcement and Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
Man Sentenced for Illegal Re-Entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Efran Bautista-Ayala, age 45, from Myrtle Beach was sentenced in federal court in Florence, South Carolina, for Illegal Re-entry into the United States after deportation, in violation of 8 U.S.C. § 1326(a)(2). United States District Judge R. Bryan Harwell, of Florence, sentenced Bautista-Ayala to 18 months imprisonment followed by three years of supervised released.
Evidence presented at the change of plea hearing on February 27, 2017, established that on November 9, 2016, ICE-Enforcement and Removal Operations Officers from Charleston discovered Bautista-Ayala while he was in custody at the Horry County Detention Center on state charges. Records checks revealed that Bautista-Ayala was a native and citizen of Mexico who had previously been deported from the United States. Bautista-Ayala has never received permission to enter or remain in the United States.
The case was investigated by agents of Immigration and Customs Enforcement-Enforcement and Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
MS-13 Member Sentenced to 160 Months in Prison for Racketeering-Related ChargesRead the Press Release
Today, an MS-13 gang member was sentenced to 160 months in prison and three years of supervised release for conspiring and attempting to murder on behalf of the gang.
Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen Schenning of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
“Transnational criminal organizations like MS-13 cannot continue to devastate our communities and our children. They must be stopped. Today’s sentencing sends a warning to all gang and cartel members: we are coming for you,” said Attorney General Sessions. “This outcome shows how strong cooperation between federal, state and local law enforcement can help us win the fight against violent gangs. I applaud the efforts of the fine Assistant U.S. Attorneys and all the dedicated men and women who brought this violent criminal to justice.”
Celvin Eulice Ramos-Meija, aka “Cadejo,” 21, of Columbia, Maryland, was sentenced by U.S. District Judge Peter J. Messitte of the District of Maryland. Ramos-Mejia previously pleaded guilty to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering.
MS-13 is an international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the U.S., operate throughout the U.S., including in Prince George’s County, Montgomery County, and Frederick County, Maryland. Members engage in racketeering activity including murder, extortion, robberies, obstruction of justice and other crimes. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement, Ramos-Mejia admitted that for the purpose of maintaining and increasing his position in MS-13, he conspired with other MS-13 members to murder a victim that he and his co-conspirators had identified as a “chavala.”
Specifically, the Ramos-Mejia admitted that on June 6, 2016, he and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia admitted that he made an MS-13 sign in the face of the victim, and that he and his co-conspirators then began to attack the victim. According to the plea agreement, the victim survived the attack, but sustained multiple stab wounds and injuries, including lacerations to his abdomen, liver and diaphragm. The victim was hospitalized for 10 days as a result of the attack.
HSI Baltimore, the Greenbelt Police Department, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case.
Loris Man Sentenced on Federal Drug and Firearm ChargesRead the Press Release
Florence, South Carolina---- United States Attorney Beth Drake stated today that Norod Arcane McCullough, age 24, of Loris, South Carolina, was sentenced today in federal court in Florence, South Carolina, for possession with intent to distribute a quantity of heroin and for possession of a firearm in furtherance of a drug trafficking crime. United States District Judge R. Bryan Harwell, of Florence, sentenced McCullough to a total of 72 months imprisonment and five years’ supervised release.
Evidence presented at the guilty plea hearing established that on October 21, 2016, Norod Arcane McCullough was arrested in Conway, South Carolina, for possession of a firearm in a drug trafficking crime and possession of heroin with intent to distribute. The arrest and convictions resulted from the seizure of a backpack containing the firearm and the heroin found in a repossessed vehicle by a local car dealer who called the police. While the police were on the scene McCullough called the car dealer and said that his backpack had been left in the repossessed car and that he wanted it back. When McCullough arrived to retrieve the backpack, he was arrested by the police.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and local Horry County Police departments. Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office prosecuted the case.
#####
Long Island MS-13 Member Sentenced to 40 Years’ Imprisonment for Two Gang-Related MurdersRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Melvin Marquez-Sanchez, a member of La Mara Salvatrucha, also known as the MS-13, was sentenced to 40 years in prison by United States District Judge Joseph F. Bianco. Marquez-Sanchez previously pled guilty to racketeering charges in connection with the August 25, 2012 murder of Douglas Martinez in Brentwood, New York, the September 8, 2012 murder of Jose Vallejo in Hempstead, New York, and a conspiracy to kill a rival gang member in Maryland in early 2013.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Timothy D. Sini, Commissioner, Suffolk County Police Department (SCPD); and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
“This defendant killed two young men here on Long Island, before fleeing to Maryland, where he sought to continue the murderous agenda of the MS-13,” stated Acting United States Attorney Rohde. “Due to our continuing work with the FBI’s Long Island Gang Task Force, the defendant’s role in these violent crimes has come to an end. Today’s sentence will ensure that the public is protected from this defendant for decades to come.” Ms. Rohde expressed her sincere appreciation to the United States Attorney’s Office for the District of Maryland for its invaluable assistance and cooperation during this prosecution.
“The brutal nature of MS-13’s crimes and the intimidation tactics they use in furtherance of their illegal activity pose a very serious threat to the communities in which they live,” stated FBI Assistant Director-in-Charge Sweeney. “Even more disturbing is the impact their presence has on the children in these neighborhoods, who face this disturbing reality in school and other places where they should be made to feel safe. Gang violence, whether directed toward rival gang members or not, negatively affects society as a whole. Today, thanks to the great work of our partners on the Long Island Gang Task Force and our colleagues at EDNY, we can assure the public we’re continuing to erode the influence of MS-13 in our communities and that Melvin Marquez-Sanchez will no longer have the chance to roam free.”
“The Suffolk County Police Department is staunchly committed to working with our regional and federal law enforcement partners in taking down every single member and associate of MS-13,” Commissioner Sini stated. “These vicious and inhumane individuals have no place in our society. The sentencing of Marquez-Sanchez guarantees he will never be on our streets again and reinforces this department’s strong message to all gang members – we will find you, and you will be prosecuted to the fullest extent of the law.”
“The arrest and sentencing of defendant Marquez-Sanchez is another positive step for our residents and families as it eliminates another MS-13 member from society,” stated NCPD Commissioner Krumpter. “Our main goal is to protect our communities with special emphasis on our young men and women, and I would like to congratulate all of the law enforcement professionals who assisted with this investigation.”
As set forth in the government’s sentencing memorandum and other court filings, Marquez-Sanchez committed two murders on Long Island during the summer of 2012, before fleeing to Maryland, where he continued his affiliation with the MS-13 and plotted to kill a rival gang member. Specifically, on August 25, 2012, Marquez-Sanchez shot Martinez multiple times at point-blank range with a .38 caliber revolver, killing him. Marquez-Sanchez and several other MS-13 members, including an MS-13 leader in El Salvador, decided to kill Martinez for violating the rules of the gang, namely, not “putting in work” (committing acts of violence against rival gang members), not sending enough money to gang leaders in El Salvador, and possibly cooperating with law enforcement authorities. In total, seven MS-13 members have been convicted of racketeering charges in connection with Martinez’s murder.
Two weeks later, Marquez-Sanchez and several other MS-13 members carried out the murder of Vallejo, a suspected rival gang member who was selling drugs in Kennedy Park in Hempstead, New York, which the MS-13 considered to be its turf. After the MS-13 members lured Vallejo to the park, under the guise of purchasing marijuana, Marquez-Sanchez shot Vallejo multiple times with the same .38 caliber revolver and another MS-13 member attacked Vallejo with a machete, slashing his throat and face. Marquez-Sanchez and four other MS-13 members have been convicted of racketeering charges in connection with Vallejo’s murder.
After committing the Martinez and Vallejo murders on Long Island, Marquez-Sanchez fled to Maryland, where he continued his membership in the MS-13. Beginning in January 2013, Marquez-Sanchez and other members of the Sailors clique members conspired to kill an individual who they believed to be a member of the rival 18th Street gang. On several occasions in early 2013, Marquez-Sanchez and other MS-13 members traveled to a specific neighborhood in Maryland for the purpose of killing the victim, but were unable to locate him. However, after Marquez-Sanchez had been arrested on other charges, on March 12, 2013, that victim was located and murdered by Marquez-Sanchez’s co-conspirators.
Today’s sentencing is the latest in a series of prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 35 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Bureau of Alcohol Tobacco Firearms and Explosives, New York State Police, Suffolk County Police Department, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Department, Suffolk County Sheriff’s Department, Hempstead Police Department, and Rockville Centre Police Department.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Paul G. Scotti are in charge of the prosecution.
The Defendant:
MELVIN MARQUEZ-SANCHEZ
Age: 22
Freeport, New York
E.D.N.Y. Docket No. 14-CR-068 (JFB)
Lockport Woman Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Colette Arne, 66, of Lockport, NY, with distribution of oxymorphone and maintaining a drug-involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment, on November 5, 2013, and January 6, 2014, the defendant sold oxymorphone to a confidential source working with law enforcement officers. Following the second sale, Arne’s Applewood Drive residence was search with her consent. Officers recovered $24,200 in cash and empty prescription pill bottles. The prescriptions were issued to the defendant and her now-deceased husband.
Arne was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and released.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division
The 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.
Local Physician, Dr. James M. Crumb, and Mobile Based Physician Group, Coastal Neurological Institute, P.C., paid $1.4 million to Settle False Claims Act AllegationsRead the Press Release
Acting United States Attorney Steve Butler, of the Southern District of Alabama, announced today that Dr. James M. Crumb, a Physical Medicine and Rehabilitative specialist currently practicing in Mobile, Alabama as Mobility Metabolism and Wellness, P.C. (MMW), and Coastal Neurological Institute, P.C. (CNI), a local neurosurgeon physician group, collectively paid $1.4 million to resolve allegations that they violated the False Claims Act (“FCA”) by engaging in fraudulent schemes to maximize payment from the Medicare, Medicaid, and TRICARE health care programs.
“Our office will protect federal health care programs by pursuing providers who bill for medically unreasonable and unnecessary services and engage in fraudulent billing practices to seek payments to which they are not entitled,” said Acting United States Attorney Butler. “We must prevent fraud, waste, and abuse of the Medicare, Medicaid, and Tricare programs as taxpayer dollars are at stake.”
In late December 2015, the United States Attorney’s Office filed a civil lawsuit against Defendants CNI, Crumb, and MMW, on behalf of the Department of Health and Human Services and the Department of Defense. The United States alleged that the Defendants knowingly billed federal health care programs for medically unreasonable and unnecessary ultrasound guidance used with routine lab blood draws, and with Botox and trigger point injections. The United States further alleged that CNI, Crumb, and other CNI physician employees unnamed in the lawsuit, knowingly manipulated billing codes in order to circumvent safeguards implemented by Medicare’s National Correct Coding Initiative to combat improper and fraudulent duplicate claim line billing of certain procedure codes, including ultrasound guidance used with needle placement. As a result of this billing scheme, the Defendants sometimes billed 15 to 30 identical ultrasound guidance claims for a single patient office visit.
The United States’ Second Amended Complaint separately alleged that Crumb knowingly falsified patient diagnoses in order to ensure payment by the federal health care programs. Because those programs do not cover Botox for pain management, Crumb allegedly used diagnoses of uncommon or rare neurological movement disorders for the sole purpose of obtaining reimbursement for the administered Botox injections. The United States further alleged that Crumb ordered inflated dosages of Botox medications paid by the Alabama Medicaid Agency that were not medically necessary and were not used on the patients for whom the medication was prescribed.
The investigation and litigation were conducted by the Office of Inspector General, Department of Health and Human Services (OIG-HHS), and the U.S. Attorney’s Office. Assistant United States Attorneys Deidre Colson and Daryl Atchison handled the case on behalf of the United States. As part of the settlement, Crumb entered into a Corporate Integrity Agreement with OIG-HHS, which obligates Crumb to undertake substantial internal compliance reforms and to submit his federal health care program claims to independent review for the next three years.
The FCA claims settled are allegations only, and there has been no determination of liability.
Lincoln Man Sentenced for Possession of Child PornographyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Richard Floyd Sandoval, 38, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 10 years in prison by United States District Judge John M. Gerrard, for possession of child pornography. In addition to the prison sentence, Sandoval will also serve an additional 15 years on supervised release and will continue to be required to register as a sex offender. Sandoval was already a registered sex offender after being convicted of Sexual Assault of a Child in Lincoln County, Nebraska, in December of 2001.
In May of 2016, the Lincoln Police Department was investigating computers sharing child pornography files via the internet. On that date, an investigator identified an IP address having files available for sharing and he was able to download child pornography over a three-day period. A subpoena was served on the internet service provider and determined that the IP address was registered to Sandoval’s apartment in Lincoln, Nebraska. Investigators then executed a search warrant at Sandoval’s residence. During that search, investigators found a laptop computer in a bedroom on which they were able to locate files depicting sexually explicit conduct involving children under the age of 18 years old. A later forensic investigation revealed 92 videos in a download folder of the user profile and approximately 66 videos of child pornography in the recycle bin and 38 deleted videos.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Lincoln Police Department.
Leesburg Man Sentenced to 20 Years for Distribution of Child PornographyRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced David Meadows (53, Leesburg) to 20 years in federal prison for distributing child pornography. The Court also ordered him to forfeit various computers and electronic devices that he had used to facilitate the offense. Meadows pleaded guilty on March 17, 2017.
According to court documents, federal agents determined that Meadows had distributed child pornography depicting infants and toddlers via email. The agents traced the activity to Meadows’s residence and executed a search warrant. They also conducted a consent search of his office. Multiple electronic devices, including laptop computers and a cellphone, were seized; forensic analyses confirmed that the devices contained more than 2,800 files depicting child pornography.
"This sentencing underscores the seriousness of the crime of child exploitation," said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. "HSI special agents will aggressively investigate the predators who target the most vulnerable in our society."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Leesburg Man Arrested and Charged with EspionageRead the Press Release
ALEXANDRIA, Va. – A Leesburg man made his initial appearance in federal court today on charges that he transmitted Top Secret and Secret documents to an agent of the People’s Republic of China.
According to the affidavit in support of the criminal complaint, Kevin Patrick Mallory, 60, travelled to Shanghai in March and April and met with an individual (PRC1) he believes works for the People’s Republic of China Intelligence Service (PRCIS).
“The conduct alleged in this complaint is serious and should send a message to anyone who would consider violating the public’s trust and compromising our national security by disclosing classified information,” said Dana J. Boente, Acting Assistant Attorney General for National Security and the U.S. Attorney for the Eastern District of Virginia.
“Kevin Mallory was previously entrusted with Top Secret clearance and therefore had access to classified information, which he allegedly shared and planned to continue sharing with representatives of a foreign government,” said Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office. “Furthermore, he allegedly misled investigators in a voluntary interview about sharing of this classified information. The FBI will continue to investigate those individuals who put our national security at risk through unauthorized disclosures of information.”
During a voluntary interview with FBI agents on May 24, Mallory stated that PRC1 represented himself as working for a People’s Republic of China think tank, the Shanghai Academy of Social Sciences (SASS). Since at least 2014, the FBI has assessed that Chinese intelligence officers have used SASS affiliation as cover identities.
Mallory told FBI agents he travelled to Shanghai separately in March and April to meet with PRC1 and PRC1’s boss. After Mallory consented to a review of a device he had been using to communicate with PRC1, FBI viewed a message from Mallory to PRC1 in which Mallory stated that he had blacked out security classification markings on documents transmitted to PRC1. Analysis of the device also revealed a handwritten index describing eight different documents. Four of the eight documents listed in the index were found stored on the device, with three being confirmed as containing classified information pertaining to the same U.S. government agency. One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET.
Mallory, a self-employed consultant with GlobalEx LLC, is a United States citizen who speaks fluent Mandarin Chinese. He has held numerous positions with various government agencies and several defense contractors. As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was arrested today and is charged with gathering or delivering defense information to aid a foreign government, and making material false statements. He faces up to life in prison if convicted. 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, Acting Assistant Attorney General for National Security and the U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney John T. Gibbs and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-mj-288.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Lancaster Man Charged with Illegal Reentry After DeportationRead the Press Release
Gabriel Bazan-Hernandez, of Lancaster, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 21, 2017, Bazan-Hernandez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about October 23, 2007 and March 14, 2012.
If convicted the defendant faces a maximum possible sentence of ten years.
and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kennewick Drug Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Anthony Joseph Cortinas, age 49, of Kennewick, Washington, was sentenced after previously having pled guilty on February 21, 2017, to Possession with Intent to Distribute Methamphetamine. Senior United States District Judge Edward F. Shea, sentenced Cortinas to a 15-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, in the early morning hours of May 29, 2015, officers with the Kennewick Police Department conducted a stop of a vehicle pursuant to a traffic violation. During the course of the stop, law enforcement officers obtained consent from the driver to search the vehicle. Both Cortinas and the driver of the vehicle disclaimed possession and ownership of multiple bags located in the rear passenger seat. One of the bags contained a safe disguised as a dictionary. Inside the safe, officers located a distribution quantity of methamphetamine. Cortinas was later identified as the owner of the safe and its contents. Cortinas was subsequently charged in Benton County Superior Court, and after posting bail, was released from the Benton County jail.
On September 9, 2015, officers with the Kennewick Police Department again encountered Cortinas during a vehicle stop for a traffic violation. Cortinas, the passenger, was arrested on an unrelated matter. The driver, a different individual than the driver of the vehicle during the prior contact, disavowed knowledge of a bag in the vehicle located behind the seat where Cortinas had been sitting. After further investigation, officers obtained a search warrant for the vehicle and located another safe, later determined to belong to Cortinas, containing a distribution quantity of methamphetamine.
At sentencing, Senior Judge Shea noted Cortinas’ lengthy history of drug distribution offenses, and the impact such crimes have on the local community.
Acting United States Attorney Harrington said, “I commend the Kennewick Police Department officers and the FBI Special Agents for their efforts in investigating this drug trafficking case. Their strong working partnership is reflected by the successful resolution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney’s Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities.”
The Federal Bureau of Investigation (Richland, Washington) and the Kennewick Police Department conducted the investigation of this matter. The case was prosecuted by Laurel J. Holland, an Assistant United States Attorney for the Eastern District of Washington.
Jury Finds Indiana Man Guilty of Fraud and Filing False Tax ReturnsRead the Press Release
PITTSBURGH - Acting United States Attorney Soo C. Song announced today that after deliberating six hours, a jury of 6 men and 6 women found Bernard M. Parker guilty of one count securities fraud, one count of mail fraud and four counts of filing false tax returns.
Parker, age 56, of Indiana, Pennsylvania was tried before United States District Judge Reggie Walton in Pittsburgh.
According to Assistant United States Attorneys Robert S. Cessar and Rachael L. Mamula, who prosecuted the case, the evidence presented at trial established that Parker, the principal of Parker Financial Services, solicited his clients, by signing of “Investors Contracts,” to invest in tax lien certificates, municipal bonds, computer software, real estate, and other undefined investments. Parker then used the vast majority of the monies taken from these investors for his personal expenses instead of the various investments agreed upon with his clients. Further, Parker filed false federal tax returns for tax years 2010, 2011, 2012, and 2013, each of which failed to report his income.
Judge Walton scheduled sentencing for October 16, 2017 at 2:00 p.m. The law provides for a maximum total sentence of 42 years in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Parker was remanded pending sentencing.
The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service conducted the investigation that led to the conviction of Bernard M. Parker.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was sentenced today in federal court in Boston with a federal immigration crime.
Selvin Jarquin-Felipe, 31, pleaded guilty to illegally reentering the United States after being deported before U.S. District Court Judge Indira Talwani, who subsequently sentenced Jarquin-Felipe to time served and one year of supervised release.
Jarquin-Felipe was previously deported in September 2014. In May 2017, federal agents in Framingham discovered Jarquin-Felipe and determined him to be unlawfully present in the United States.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with illegally reentering the United States after being deported.
Nestor Mendez Nolasco, 26, was charged today with one count of illegal reentry after deportation. Mendez Nolasco was previously deported on Jan. 31, 2013, April 9, 2013, and July 7, 2013. On April 25, 2017, Mendez was arrested in Hopkinton on an unrelated state charge.
Mendez faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was charged today in federal court in Boston with an immigration crime.
Eric Contreras, 29, was charged today with one count of illegal reentry after deportation. Contreras was previously deported on May 11, 2016. On June 7, 2017, Contreras was arrested in Waltham on unrelated state charges.
Contreras faces no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Greenville Felon Pleads Guilty to String of Armed Robberies and CarjackingsRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated that Trevis L. Bland, a/k/a “HellRell,” a/k/a “Rell,” age 24, of Greenville, South Carolina entered a guilty plea in federal court to Conspiracy to Carry a Firearm During a Crime of Violence, a violation of 18 U.S.C. § 924(o), Conspiracy to Commit Hobbs Act Robbery, in violation of 18 U.S.C. § 1951(a), Felon in Possession of Firearm, in violation of 18 U.S.C. § 922(g), three counts of Carjacking, in violation of 18 U.S.C. § 2119(1), two counts of Brandishing a Firearm During a Crime of Violence, in violation of 18 U.S.C. § 924(c), and two counts of Hobbs Act Robbery, in violation of 18 U.S.C. § 1951(a). United States District Judge Timothy M. Cain, of Anderson, accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on April 13, 2016, Trevis Bland conspired to rob the Crown Plaza in Greenville, SC. On April 23, 2016, Bland and others planned the robbery of a woman at the Phoenix Inn, in Greenville, SC. Bland and others robbed the woman at gunpoint, forcibly removed her from her car, and stole her car. On April 24, 2016, Bland and others planned the robbery of a man outside his home in Greenville, SC. Bland and others robbed the man and another woman at gunpoint, and stole the man's car. On April 24, 2016, Trevis Bland robbed the Spinx Gas Station on East Washington Street, Greenville, SC, at gunpoint.
On April 27, 2016, Trevis Bland robbed three victims outside of the Phoenix Inn at gunpoint. On April 30, 2016, Trevis Bland robbed and carjacked two victims at Endel and Doe Street in Greenville, SC. Bland had asked the individuals for a ride, but once they were driving, he pointed the gun at the female driver and male passenger. After Bland took control of the car, the woman fought with Bland and secured the firearm, firing multiple shots at Bland as he drove away. On May 2, 2016, Trevis Bland robbed the Plez U Convenience Store in Easley, SC, at gunpoint. Bland has prior felony convictions and is prohibited from possessing firearms or ammunition.
U.S. Attorney Drake stated the minimum penalty for these convictions is 25 years imprisonment with a maximum penalty of life imprisonment, and a fine of $250,000. The case was investigated by agents of ATF, the Greenville Police Department, the Greenville County Sheriff's Office, and the Easley Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville USAO is prosecuting the case.
#####
Grand Traverse Band Member Sentenced to 30 Years for Sexually Abusing A Five-Year-Old ChildRead the Press Release
GRAND RAPIDS, MICHIGAN — Jon Nathaniel-Nunghons Brenner, age 34, formerly from Hopkins and Grand Rapids, was sentenced to 30 years in federal prison for aggravated sexual abuse. The sexual assault occurred on lands held in trust for the Grand Traverse Band of Ottawa and Chippewa Indians in Leelanau County. The child victim and Brenner are both enrolled members of the tribe. Acting U.S. Attorney Andrew Birge stated, "It is crucial that we protect society’s most vulnerable members from sexual exploitation and ensure significant and certain punishment for those predators who would exploit children, especially in our tribal communities where sadly we see too many Native women and children subjected to such violence."
In announcing the sentence, U.S. District Judge Janet T. Neff remarked on the terrible nature of the sexual assault on a very young and vulnerable girl, and the likely lifelong consequences this would have on the victim’s life. Judge Neff further commented on the extreme longterm risk that Brenner posed and that he may forever be a danger to the community. Following his term of incarceration, Brenner will spend the rest of his life on supervised release. He will also be required to register as a sexual offender.
In October 2015, the 5-year-old victim reported to her mother that Brenner had sexually assaulted her. The resulting investigation disclosed that Brenner sexually assaulted the girl he was babysitting over a period of seven months. Federal charges were filed in May 2016 alleging six counts of aggravated sexual abuse of a minor. Brenner was arrested on June 7, 2016, and he has been held in custody since his arrest. He pleaded guilty to aggravated sexual assault in November of 2016.
"The sexual exploitation of children is sadly often perpetrated by adults who parents know and mistakenly trust," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
"As evidenced by the 30 year sentence in this case, sexual predators need to understand the FBI, our law enforcement partners, and our court system will utilize every tool in our toolbox to protect children from the Jon Brenners of the world and all those like him."
The U.S. Attorney’s Office works closely with the 11 Tribes in the District to ensure that crimes committed in their communities are addressed in a timely and appropriate manner. Cases such as these are a shared responsibility with the FBI, tribal law enforcement, and the U.S. Attorney’s Office. This case is a result of a collaborative investigation by the FBI and the Police Department of the Grand Traverse Band of Ottawa and Chippewa Indians. Assistant U.S. Attorneys Alexis M. Sanford and Jeff J. Davis prosecuted the case.
END
Founder of Purported Investment Company Charged with Commodities Fraud and Wire FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a criminal complaint charging MICHAEL WRIGHT with commodities fraud and wire fraud in connection with WRIGHT’s operation of an investment company, Wright Time Capital Group (“WTCG”). WRIGHT is alleged to have misrepresented to investors the trading performance of WTCG, and, after acquiring investor funds, misappropriating a large portion of those funds for his personal benefit. Additionally, after losing most of the funds he actually invested in foreign currency (“forex”) transactions, WRIGHT allegedly began operating WTCG as a Ponzi scheme, using funds obtained from investors to make payments to other investors. WRIGHT was arrested this morning and will be presented before the U.S. Magistrate Judge James L. Cott later today.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Michael Wright used his investment company as a personal piggy bank and issued fraudulent account statements to cover up foreign exchange trading losses, ultimately operating a classic Ponzi scheme. Thanks to the dedicated work of the FBI, Wright's alleged scheme has been brought to an end and he will now be held to account.”
FBI Assistant Director William F. Sweeney Jr. said: “Wright allegedly lured investors to Wright Time Capital Group by falsely representing his trading performance. Most of the currency received was used for his personal benefit; some of it was actually invested in foreign currency transactions. But when this money was eventually lost, he created another layer in his litany of crimes—a Ponzi scheme. For anyone who thinks they can manipulate people’s investments in this way, we remind you today that’s simply not the case.”
According to the Complaint[1]:
WRIGHT started WTCG in January 2011, and ultimately obtained more than $400,000 from various investors (the “Victims”). While WRIGHT did initially conduct some forex trades on behalf of the Victims, he then began to steal their money, using it to cover his personal expenses, including hotel and travel expenses. From the outset of WTCG, WRIGHT misrepresented to WTCG’s investors the gains he had achieved. WRIGHT claimed in statements to Victims that he had achieved double-digit gains for them through forex trading in WTCG’s first six months of existence. In reality, however, WRIGHT earned little to no money through his forex trading. WRIGHT also operated WTCG as a Ponzi scheme by using the Victims’ funds to make payments to other Victims who were demanding the return of their investments.
* * *
WRIGHT, 30, of Rockville Centre, New York, was arrested this morning in New Jersey. WRIGHT was charged with commodities fraud, which carries a maximum sentence of 10 years in prison, and wire fraud, which carries a maximumsentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the efforts of the FBI in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Founder and Former CEO of Technology Firm Pleads Guilty to Multimillion-Dollar Fraud on InvestorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, today announced that MARYSE LIBURDI pled guilty to defrauding investors in a technology company founded and operated by LIBURDI. As a result of LIBURDI’s fraud, the victim-investors lost more than $6 million. LIBURDI pled guilty earlier today in Manhattan federal court before United States District Judge Denise L. Cote, who is scheduled to sentence LIBURDI on September 29, 2017, at 10:00 a.m.
Acting U.S. Attorney Joon H. Kim said: “For at least five years, while her company earned little or no revenue, Maryse Liburdi, the founder and former CEO of a technology company, lied to investors about her company’s success and converted the funds they invested to her own use. In this way, Liburdi stole more than $1 million, and used it to pay rent on her Manhattan apartment, purchase luxury clothing, and pay spa bills. We are committed to fully enforcing the laws that ensure that executives are truthful with investors.”
According to the allegations in the Indictment to which LIBURDI pled guilty, a criminal complaint filed against LIBURDI, and statements made during the plea and other court proceeding proceedings:
Since at least in or about 2010, LIBURDI perpetrated a multi-year scheme to defraud individuals into investing in a technology company (the “Company”) founded and run by LIBURDI. LIBURDI repeatedly made misrepresentations to investors about the Company’s revenue and assets, manipulated Company bank accounts to hide the Company’s true financial condition and, contrary to LIBURDI’s express promises to the investors, converted investor funds to her own use.
While LIBURDI repeatedly told investors that the Company had millions of dollars in revenue, the Company’s bank records show that, from at least 2008 until the Company ceased operating in January 2015, the Company earned little or no revenue. Moreover, as reflected in the Company’s bank records, LIBURDI misappropriated investor funds, transferring over $1 million to her and her former husband’s bank accounts and to pay LIBURDI’s personal expenses, including luxury clothing. For example, LIBURDI used funds from one victim investor for, among other things, transfers to a personal bank account in the name of LIBURDI and her former husband; rental payments for LIBURDI’s three-bedroom Manhattan apartment; payments for personal credit cards; and substantial personal expenditures on corporate credit cards, including, among other things, expenditures at various retail clothing, accessories, and cosmetics stores, salons and spas, and wine and liquor stores.
In order to hide her scheme, LIBURDI manipulated the Company’s bank accounts by, on at least three occasions, writing checks for hundreds of thousands of dollars drawn on accounts with insufficient funds in order to fraudulently inflate the balance of a Company bank account and thereby hide the Company’s true cash balance from the investors. For example, in October 2013, LIBURDI wrote and deposited into the Company’s bank account a $700,000 check drawn on a different account that had a balance of only about $2,000. LIBURDI then falsely represented to the victims that the Company’s bank account held approximately $700,000 and showed investors a bank statement for the Company account listing the inflated balance. As result of LIBURDI’s fraud, victim-investors in the Company lost more than $6 million.
* * *
LIBURDI, 45, formerly of Victoria, Minnesota, and New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FBI. He also thanked Italian law enforcement authorities, including Interpol Rome, for their assistance in LIBURDI’s arrest, as well as the Department of Justice’s Attaché at the U.S. Embassy in Rome and the DOJ Office of International Affairs.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
Former Utility Executive of Pleads Guilty to Federal Gun ChargeRead the Press Release
BOISE – Kenneth Frank Morehouse, 59, formerly CEO of Intermountain Gas, pleaded guilty on June 21, 2017, in United States District Court to unlawful possession of a firearm, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, Morehouse was prohibited from possessing a firearm due to a 2015 conviction in Ada County District Court for a misdemeanor crime of domestic violence. On February 22, 2016, Ada County Sheriff’s deputies were called to Morehouse’s residence by his wife, who feared that Morehouse was suicidal. A deputy encountered Morehouse in his home holding a firearm.
Sentencing is set for September 13, 2017, before Senior U.S. District Edward J. Lodge. Unlawful possession of a firearm is punishable by up to 10 years imprisonment, a $250,000 fine, a term of supervised release up to three years, and a $100 special assessment. As part of his plea, Morehouse also agreed to forfeit the firearm in question.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms (ATF) and the Ada County Sheriff’s Office. It was brought as part of Project Safe Neighborhoods, a nationwide initiative launched in May 2001 by the Department of Justice to combat gun violence in the United States. Project Safe Neighborhoods marshals federal, state, and local resources to target and prosecute those who commit gun crimes. For more information about Project Safe Neighborhoods, visit https://www.bja.gov.
Former United States Tax Court Judge and Husband Sentenced for Multi-Year Tax Fraud ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of a former United States Tax Court judge and her husband for conspiring to defraud the United States. DIANE L. KROUPA, 61, was sentenced to 34 months in prison and ROBERT E. FACKLER, 63, was sentenced to 24 months in prison. Both defendants entered guilty pleas and were sentenced earlier today before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn. In addressing KROUPA’S extensive tax fraud committed while a sitting US Tax Court Judge, Judge Wright stated, “When a person in a position of trust violates that trust, the public is a victim,” and further noted that KROUPA’S fraud undermined the trust in the justice system.
“Over a nearly ten-year period, the defendants engaged in a deliberate and brazen tax fraud scheme,” said Acting United States Attorney Gregory Brooker. “Considering Ms. Kroupa’s position of public trust as a US Tax Court Judge, her crime is particularly egregious. Ms. Kroupa used her knowledge of the tax laws to further their fraud scheme, conceal their criminal conduct and maintain their acquisitive lifestyle. The sentences handed down today show that no one is above the law.”
“Diane Kroupa held a position of public trust as a federal tax court judge and made rulings based on the very tax laws she broke. She broke that trust when she thought she was above the law and committed the same crimes as those who appeared before her in court over the past decade,” said Hubbard Burgess, Acting Special Agent in Charge, IRS-Criminal Investigation. “Everyone in society must play by the same rules and IRS-CI will protect the integrity of the tax system by ensuring everyone pays their fair share, including federal officials.”
“The Postal Inspection Service will aggressively investigate all individuals, regardless of your job title, who chose to commit fraud. Today’s sentencing of Ms. Kroupa, a former U.S. Tax Court Judge, should send a clear message to those individuals contemplating committing fraud by using the US Mails. Don’t do it,” said Craig Goldberg, Postal Inspector in Charge of the Denver Division which covers the Twin Cities.
According to the plea agreement and documents filed in court, KROUPA was a former judge who was appointed to the United States Tax Court on June 13, 2003 for a term of 15 years. During the same period, KROUPA was married to FACKLER, a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, KROUPA and FACKLER owned a home in Plymouth, Minnesota. From 2007 to 2013, they also leased a second residence in Easton, Maryland, where KROUPA lived while fulfilling her duties as a Tax Court Judge in Washington DC.
According to the plea agreement and documents filed in court, between 2002 and 2012, KROUPA and FACKLER conspired to obstruct the Internal Revenue Service (IRS) from accurately determining their joint income taxes. As part of the conspiracy, KROUPA and FACKLER worked together each year to compile numerous personal expenses for inclusion as supposed “business expenses” for Grassroots Consulting in their joint tax return. Those expenses included: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand. In total, from 2004 through 2010, the defendants fraudulently deducted at least $500,000 of personal expenses as purported Schedule C business expenses. At times, KROUPA prepared and provided to FACKLER summaries of personal expenses falsely described according to business expense categories. On other occasions, KROUPA herself compiled and provided to their tax preparer the fraudulent personal expenses.
According to the plea agreement and documents filed in court, as part of the conspiracy, FACKLER also caused Grassroots Consulting business receipts to be understated by approximately $450,000 by fraudulently deducting purported business expenses which had previously been reimbursed. As a result, the defendants caused the amount of adjusted gross income, taxable income, and total tax shown on their income tax returns to be falsely understated.
According to the plea agreement and documents filed in court, KROUPA and FACKLER made a series of other false claims on their tax returns, including failing to report approximately $44,520 that she received from a 2010 land sale in South Dakota. The defendants also falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income.
According to the plea agreement and documents filed in court, KROUPA and FACKLER purposely concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit for their 2004 and 2005 tax returns. During a second audit in 2012, KROUPA and FACKLER caused false and misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting. After the IRS requested documents pertaining to their tax returns, KROUPA and FACKLER removed certain items from their personal tax files before giving them to their tax preparer because the documents could reveal they had illegally deducted numerous personal expenses. During the audit, KROUPA also falsely denied receiving money from the 2010 land sale. Later, when they learned the 2012 audit might progress into a criminal investigation, KROUPA instructed FACKLER to lie to the IRS about her involvement in preparing the portion of their tax returns related to Grassroots Consulting.
According to the plea agreement and documents filed in court, between 2004 and 2010, KROUPA and FACKLER purposely understated their taxable income by approximately $1,000,000 and purposely understated the amount of tax they owed by at least $450,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank prosecuted the case.
Defendant Information:
DIANE L. KROUPA, 61
Minnetonka, Minn.
Convicted:
- Conspiracy to Defraud the United States, 1 count
Sentenced:
-
34 months in prison
-
Three years of supervised release
-
$457,104 joint restitution
ROBERT E. FACKLER, 63
Minnetonka, Minn.
Convicted:
-
Obstruction of an IRS audit, 1 count
Sentenced:
-
24 months in prison
-
One year of supervised release
-
$457,104 joint restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former South Carolina DJJ Lieutenant Indicted on Federal Civil Rights and Obstruction of Justice ChargesRead the Press Release
Columbia, South Carolina--------United States Attorney Beth Drake stated today that a federal grand jury in Columbia, South Carolina, returned a three-count indictment charging Nicole Jenice Samples, of Columbia, with depravation of rights under color of law, in violation of Title 18, United States Code, Section 242, and obstruction of justice under Title 18, United States Code, Section 1513(b)(3). Samples faces up to ten years on each Section 242 offense and twenty years on the Section 1513(b)(3) offense, along with a fine of $250,000.00 and three years of supervised release.
According the grand jury’s indictment, on January 1, 2017, Nicole Jenice Samples directed the use of excessive force as punishment for two juveniles housed at the Department of Juvenile Justice (DJJ). It is alleged that in response to juveniles making noise, Samples, a Lieutenant at DJJ, ordered two of her subordinate correctional officers to apply mechanical restraints to two juveniles, directing that the leg restraints be connected to the hand restraints, a practice known as “hog-tying.” In contravention of DJJ policy that limited use of restraints and specifically forbade any hog-tying of juveniles, Samples oversaw the application of the hog-tie restraints as punishment, leaving the juveniles face down on their stomachs for over two hours.
U.S. Attorney Beth Drake thanked DJJ Acting Director Freddie Pough, SLED and the FBI: “These three law enforcement agencies have great, cooperative working relationships, and on matters of joint interest, their investigative work ensures that nobody is above or outside the law.”
Alphonso Norris, Special Agent in Charge for the FBI, added, “This matter was aggressively pursued by the FBI and our law enforcement partners. We continue to be committed to ensuring these violations are investigated and that the violators are brought to justice.”
Acting Director Freddie Pough stated, “We at DJJ make full review of allegations of abuse and/or mistreatment of all juveniles in our care, and we will not tolerate mistreatment by any staff or other residents. When this allegation was raised, after an initial review, we notified SLED, the FBI and the U.S. Attorney’s Office in order that there was a full investigation. No officer is above the law. I would like to thank our State and Federal counterparts for their support and assistance with this investigation.”
This case was investigated by the Federal Bureau of Investigation and SLED at the request of, and with the assistance of, the Department of Juvenile Justice and Acting Director Freddie Pough. It is being prosecuted by Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
Former Physician Sentenced for Health Care FraudRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Kansas City, Mo., physician who lost his medical license due to an earlier fraud scheme, has been sentenced in federal court for his role in a fraud scheme that involved disability examinations of veterans.
Wayne W. Williamson, 74, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs on Wednesday, June 21, 2017, to one year and three months in federal prison without parole. The court also ordered Williamson to pay $39,155 in restitution.
Williamson was a medical consultant at Industrial Medical Center (IMC) during various periods beginning at least as early as 2013 through at least March 2015. IMC was a medical clinic in Independence, Mo.; among other things, it was a drug and DNA testing center, had contracts with various entities to provide medical services to patients, and provided drug testing and physical examinations for drivers of commercial motor vehicles.
Williamson was formerly a medical doctor but voluntarily surrendered his medical license in 2010 after he pled guilty to health care fraud; conspiracy to distribute Oxycotin, Percocet, and Xanax; and harassing or attempting to harass an investigator with the Missouri State Board of Healing Arts. Williamson was sentenced to three years in federal prison and permanently excluded from participation in Medicare or Medicaid programs.
Williamson performed disability examinations for the Department of Veterans Affairs under IMC’s contract with Logistics Health, Inc., to determine the extent of veterans’ impairments and eligibility for benefits. This was done in violation of Logistic Health’s contract with the Department of Veterans Affairs, which required that disability examinations be conducted by credentialed providers and that the examiners must have a clear and unrestricted license and not be excluded from participation in the Medicare or Medicaid programs. However, after the only trained and licensed provider at IMC left on July 16, 2013, Williamson and another defendant conducted the examinations.
IMC falsely represented that a physician had completed and electronically signed the Disability Benefits Questionnaires. IMC submitted invoices to Logistics Health to be paid for 209 disability examinations on 53 veterans. In turn, Logistics Health submitted invoices to the Department of Veterans Affairs for the disability examinations performed by its subcontractor, IMC. The Department of Veteran’s Affairs paid Logistics Health $39,155 for the disability examinations performed by its subcontractor, IMC.
In April 2014, Logistics Health contacted the Department of Veterans Affairs—Office of Inspector General hotline and reported the fraudulent activity. Because a credentialed provider did not conduct the disability examinations, the Department of Veterans Affairs had to re-adjudicate all those claims. Some veterans had to be physically re-examined, and others had their claim file reviewed.
This case is being prosecuted by Assistant U.S. Attorney Cindi S. Woolery and Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the Department of Veterans Affairs—Office of Inspector General, the Department of Transportation—Office of Inspector General, the Department of Labor—EBSA and the Department of Health and Human Services—Office of Inspector General.
Former P&G Employee Pleads Guilty to Defrauding CompanyRead the Press Release
CINCINNATI – Susan M. Ruhe, 53, of Cincinnati, pleaded guilty in U.S. District Court to one count of bank fraud. Ruhe defrauded her former employer, Procter & Gamble, of more than $454,000.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason A. Hayden, Acting Special Agent in Charge, U.S. Secret Service announced the plea entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Ruhe was employed by Procter & Gamble, the multinational consumer goods company headquartered in Cincinnati, from July 1989 through June 2013. Her last job title was Executive Assistant in the Global Beauty Care Business Development Group. In that capacity, her primary job duties were executive travel planning, expense reporting, calendar management and the scheduling of team meetings and events.
From November 2007 through the end of her employment, Ruhe defrauded the company by requesting that the payment department issue corporate checks to be used to pay for expenses that Procter & Gamble had incurred in the ordinary course of business. In reality, she used the corporate checks to make payments on her personal credit card accounts. Both credit accounts were through Citibank. Ruhe also defrauded Procter & Gamble by using her corporate credit card to pay for more than $13,000 of her personal expenses.
To conceal her scheme, Ruhe used the email of an executive without consent to approve her requests for corporate checks. She would then designate an unwitting third party from whom she would retrieve the checks in accordance with company policy. In total, she obtained 40 fraudulent corporate checks through this scheme.
As part of the plea agreement, Ruhe has agreed to pay more than $454,000 in restitution to Procter & Gamble.
Bank fraud is punishable by up to 30 years in prison and/or a fine of up to $1 million.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Secret Service and Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.
# # #
Former Oak Harbor Police Officer Sentenced to 42 Months in Prison for Possession of Child PornographyRead the Press Release
A former Oak Harbor Police Officer was sentenced today in U.S. District Court in Seattle to 42 months in prison and 10 years of supervised release for possession of child pornography, announced U.S. Attorney Annette L. Hayes. JOHN LITTLE, 55, pleaded guilty in March 2017. LITTLE came to the attention of law enforcement in the summer of 2016, when he was identified as someone who had exchanged sexually explicit messages with a 13-year-old girl in New Mexico. When confronted by FBI agents, LITTLE admitted using the Kik internet messaging app to engage in sexually explicit chats and image/video exchanges with several minors. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez ordered LITTLE to register as a sex offender and said, “the possession of child pornography creates and maintains the market for the sexual exploitation of children.”
“Not only did this defendant betray the trust the community placed in him as a police officer, but the fact that he once served as a school resource officer makes his crimes all the more troubling,” said U.S. Attorney Annette L. Hayes. “Our children deserve better. The lengthy sentence imposed today will ensure this defendant can no longer victimize the most vulnerable in our communities.”
According to records filed in the case, after law enforcement identified LITTLE as the person engaged in the sexually explicit chats with the New Mexico teen, agents served a search warrant on LITTLE’s home. A forensic examination of LITTLE’s phone revealed a number of sexually explicit chats and picture/video exchanges between LITTLE and minors. Law enforcement also identified several dozen videos of child pornography stored on his phone.
LITTLE served for more than 27 years as an Oak Harbor Police Officer.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Former Larue County Sheriff Guilty of Embezzling Funds and Using His Public Office for Personal GainRead the Press Release
Agreed to pay $36,239 in restitution
BOWLING GREEN, – a former Larue County Sheriff pleaded guilty in United States District Court today before United States District Judge David J. Hale, to a felony information charging him with a single count of embezzling money, that was under his care and custody, and belonged to Larue County, announced United States Attorney John E. Kuhn, Jr.
“When any elected official uses public office for self-enrichment, we are all harmed,” said U.S. Attorney John Kuhn. “But when that elected official is a law enforcement officer, the theft is doubly shameful. Shoffner’s actions erode our faith in those honorable men and women of law enforcement who take their oath to uphold and enforce the law as a solemn and inviolate obligation. Thankfully, his greed and selfishness make him a rare outlier in the ranks of the valiant and dedicated law enforcement personnel who serve all throughout Kentucky.”
Bobby Carlton Shoffner, 58, of Hodgenville, Kentucky was the Larue Count Sheriff in 2011 and 2012 and during that time was responsible for collecting and remitting franchise tax payments and property tax payments. Shoffner admitted in court today, that between November 2011 and April 2012, he embezzled $21,901 in property tax receipts.
Shoffner was also responsible for collecting penalties on payments. Between 2011 and 2012 Shoffner accepted $1,138 in penalty payments from citizens of Larue County, but waived those payments in the County computer system, and kept the payments for his own personal use.
As Sheriff, Shoffner was provided a credit card for official business use. Through 2012, Shoffner used the credit card to pay for $3,200 in personal expenses, including expenses for DirectTV, golf shoes, and Abercrombie & Fitch.
In 2011, Shoffner hired a relative to work in the Sheriff’s Office. Although a previous employee was paid $12/hour part-time, Shoffner’s relative was paid over $30,000 per year to do the same job full-time. That relative did not work full time, and often was not in the office, resulting in a loss of $10,000. After Shoffner’s relative left employment with the Sheriff’s Office, a new part-time employee was hired at $12/hour.
If convicted at trial, Shoffner could be sentenced to no more than five years in prison, pay a $250,000 fine, and be sentenced to serve a three-year period of supervised release. In court today, Shoffner agreed to pay $36,239 in restitution to LaRue County, Kentucky and pay a $1,000 fine at the time of sentencing. Sentencing is scheduled before Judge Hale on September 21, 2017 at 10am in Louisville.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation (FBI) and the Public Integrity Unit of the Office of the Kentucky Attorney General.
shoffner_plea_agreement_6-22-17.pdfFormer Labor Organizer Pleads Guilty to Taking Money from Businesses He Was Attempting to OrganizeRead the Press Release
OAKLAND – Daniel J. Rush pleaded guilty in federal court today to three felony counts: receiving an illegal payment as a union employee; honest services fraud; and conspiracy to commit structuring and money laundering, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The plea was accepted by the Honorable Haywood S. Gilliam Jr., U.S. District Judge.
In pleading guilty, Rush, 56, of Crescent City, Calif. (formerly of Oakland, Calif.), admitted that between 2011 and 2015 he was employed by the United Food and Commercial Workers International (UFCW International) as the Organizing Coordinator for the unofficial medical cannabis and hemp division. Rush had fiduciary duties to the UFCW International, and the UFCW International constitution prohibited him from accepting dual compensation or expenses related to the performance of his duties. Notwithstanding these fiduciary duties, in today’s plea agreement, Rush admitted he violated the Taft-Hartley Act when he accepted compensation from employees in, or potentially in, a labor organization. Rush also admitted he committed honest services wire fraud with the intent to deprive the UFCW of its right to his honest services and he conspired with attorney Marc TerBeek, 50, of Berkeley, Calif., to launder money and to evade reporting requirements in an effort to conceal the source of the money. TerBeek pleaded guilty in February 2017 to making illegal payments to Rush in violation of the Taft-Hartley Act and to violating anti-structuring regulations.
According to Rush’s plea agreement, in January 2010, a marijuana entrepreneur loaned Rush $500,000 in cash, ostensibly to be used to develop pieces of real property under Rush’s control. Rush promised to pay the entrepreneur $3,000 in interest per month for 5 years and then pay the balance in a lump sum in January 2015. Rush knew that the money he borrowed had been earned in connection with illegal marijuana cultivation activities and that therefore the money was the proceeds of unlawful activity. Rush acknowledged that he and TerBeek conspired to structure the loan proceeds into the banking system and they further agreed to falsely characterize the $3,000 per month payments as consulting fees.
In January and February 2010, TerBeek made a series of deposits of less than $10,000 at Wells Fargo and Bank of America branches. Once TerBeek had deposited sufficient funds, he paid off a $420,000 note on a property owned by Rush.
TerBeek also began making the $3,000 monthly payments to the marijuana entrepreneur on Rush’s behalf. In exchange for these payments and other compensation from TerBeek, Rush referred medical marijuana employers to TerBeek. Terbeek provided assist to the employers regarding compliance and licensing. The clients included owners of businesses in the marijuana industry that Rush was purporting to attempt to organize for the UFCW. Rush did not disclose to the clients or the UFCW that he was receiving significant sums of money from TerBeek. This kickback scheme violated Rush’s duty to provide his honest services to the UFCW.
By 2014, the individual who loaned money to Rush in 2010 was an employer in the medical marijuana industry that Rush was trying to unionize. Rush used his position in the UFCW to make official recommendations to government entities for the individual’s marijuana business and accepted at least $250,000 of debt forgiveness from the individual.
The FBI’s investigation began with a tip from a medical marijuana dispensary owner regarding Rush’s activities.
A federal grand jury indicted Rush on September 17, 2015. He was charged with 15 felony counts, including one Taft-Hartley violation under 29 U.S.C. § 186(b)(1); ten counts of honest services fraud, in violation of 18 U.S.C. §§ 1341, 1343, and 1346; attempted extortion under color of law, in violation of 18 U.S.C. § 1951; conspiracy, in violation of 18 U.S.C. § 371; and money laundering by concealment, in violation of 18 U.S.C. § 1956(a)(1)(B)(ii). Under the plea agreement, Rush pleaded guilty to the Taft-Hartley violation, one count of honest services fraud, and one count of conspiracy to commit structuring and money laundering.
For his part in the scheme, on February 15, 2017, TerBeek was charged by information with one count of making a payment to a union employee, in violation of 29 U.S.C. § 186(a), and one count of willful violation of anti-structuring regulations, in violation of 12 U.S.C. § 1956. He pleaded guilty to both counts on February 16, 2017. TerBeek is scheduled to be sentenced by Judge Gilliam on August 21, 2017.
Rush is currently on release on a $100,000 bond. Judge Gilliam scheduled his sentencing hearing for October 2, 2017. The maximum statutory penalty for the Taft-Hartley violation is 5 years’ imprisonment and a $15,000 fine; the maximum statutory penalty for the honest services fraud count is 20 years’ imprisonment and a $250,000 fine; and the maximum statutory penalty for the conspiracy is 5 years’ imprisonment and a $250,000 fine. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the FBI and the Internal Revenue Service-Criminal Investigation Division.
Former Hoboken, New Jersey, City Council President Found Guilty After Trial for His Participation in A $7 Million Dollar Car Loan SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found former Hoboken, New Jersey, City Council President and attorney CHRISTOPHER CAMPOS guilty of bank and wire fraud and conspiracy to commit bank and wire fraud. CAMPOS and his co-conspirators fraudulently obtained millions of dollars in car loans by using at least 20 straw buyers to acquire more than 200 new automobiles based on false representations that, among other things, the straw buyers would use the cars for their personal use when, in truth and in fact, CAMPOS and his co-conspirators obtained the vehicles in order to lease as livery cabs. The week-long trial took place before U.S. District Judge Valerie E. Caproni, who is scheduled to sentence CAMPOS on September 20, 2017.
CAMPOS’s co-defendant, Julio Alvarez, pled guilty to bank and wire fraud and conspiracy to commit bank and wire fraud on June 9, 2017. Alvarez is scheduled to be sentenced on September 8, 2017, before Judge Caproni.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As a unanimous jury found, Christopher Campos, an attorney and former Hoboken City Council President, defrauded lenders out of millions of dollars. He recruited straw buyers to obtain loans for cars supposedly for ‘personal use,’ when in fact they made up a fleet of over 200 vehicles Campos and his co-conspirators leased to livery drivers. Campos now awaits sentencing for this massive fraud.”
According to the allegations contained in the Complaint, Indictment, and the evidence presented in Court during the trial:
Between approximately October 2012 and September 2013, CAMPOS and Alvarez, among others, orchestrated a scheme to fraudulently obtain new automobiles that they intended to lease to livery cab drivers. In order to secure financing in connection with the purchase of these new cars, CAMPOS and other co-conspirators enlisted and aided individuals with good credit histories (“straw buyers”) to submit fraudulent car loan applications to numerous lenders. In order to obtain the new vehicles, CAMPOS and other co-conspirators sent straw buyers to several car dealerships located throughout the New York City area, where dealership employees helped straw buyers submit fraudulent loan applications.
The auto loan applications submitted by the straw buyers falsely represented that the vehicles would be used for the buyers’ personal use, rather than as part of the defendants’ leasing business. In addition, in many cases, the car loan applications misrepresented personal information about the straw buyers, including their incomes and assets. CAMPOS also caused financing applications to be sent to multiple financial institutions at the same time so that the lenders would not know that the straw buyers were incurring obligations to other lenders in connection with the purchase of multiple new automobiles.
In total, the scheme carried out by CAMPOS, Alvarez, and others involved at least approximately 20 straw buyers, the purchase of more than approximately 200 new vehicles, and more than $7 million in fraudulently obtained loans from a variety of financial institutions. Most of the loans ultimately went into default.
* * *
CAMPOS, 40, of Palisades Park, New Jersey, was convicted of conspiracy to commit bank and wire fraud, bank fraud, and wire fraud. The conspiracy and bank fraud charges each carry a maximum sentence of 30 years in prison and the wire fraud charge carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI. Mr. Kim also thanked the National Insurance Crime Bureau, the New York Automobile Insurance Plan, and the New York State Department of Motor Vehicles for their substantial assistance in the investigation and trial.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Dina McLeod, Sagar K. Ravi, and Niketh Velamoor are in charge of the prosecution.
Former Energy Company Executive Sentenced in Embezzlement SchemeRead the Press Release
HOUSTON – The former CEO of Chase Power Development has been ordered to federal prison following his guilty plea to conspiracy to commit mail and wire fraud, announced Acting U.S. Attorney Abe Martinez. John David Upchurch, 54, of Spring, pleaded guilty Jan. 6, 2017.
Today, U.S. District Judge Sim Lake handed Upchurch a 24-month sentence to be immediately followed by two years of supervised release. He previously paid restitution in the amount of $1.5 million.
Houston-based Quintana Capital Group created Chase Power in order to head start an energy project in Corpus Christi. In July 2008, Upchurch was hired as CEO.
From about June 2008 to about June 2012, Upchurch embezzled a significant amount of money from Chase Power. Throughout his employment with Chase Power, he submitted false invoices for fake projects in order to receive company funds for personal expenses, such as personal travel, hotels, country club memberships, personal car restoration, fishing equipment and a hunting trip. He either mailed the company checks upon issuance or personally took the checks to the merchants.
In addition, Upchurch used his company American Express credit card for his own personal purchases. He would segregate illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
Upchurch was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
Fishers tax preparer sentenced in fraud schemeRead the Press Release
Preyed on the financially disadvantaged and filed over 2300 fraudulent returns
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that a tax preparation business owner was sentenced in federal court for his role in directing the filing over 2300 false tax returns. David R. Franklin, 44, previously pleaded guilty to three counts of making and filing false tax reports and was sentenced to 48 months (four years) imprisonment by U.S. District Judge Tanya Walton Pratt.
“Mr. Franklin did not steal from an agency in Washington, he stole from his fellow citizen,” said Minkler. “Judge Pratt’s sentence demonstrates the seriousness of his offense.”
Franklin owned and operated 27 Instant Tax Service (ITS) tax preparation stores in the Indianapolis area employing and training over 50 preparers. On August 8, 2013, United States District Judge Sarah Evans Barker granted a permanent civil injunction against Franklin and ITS. This action ordered Franklin and ITS from directly or indirectly preparing, filing or assisting in the preparation or filing of any federal tax return.
The Internal Revenue Service-Criminal Investigation initiated an investigation of Franklin that revealed Franklin trained and directed his employee return preparers regarding the preparation of federal income tax returns. Specifically, Franklin counseled and advised his employees to prepare false and fraudulent federal income tax returns for multiple clients from 2010 through 2012.
As a specific means of generating false returns, Franklin directed his employees to prepare Form 1040 Schedule C forms reporting inflated business income or losses, which then resulted in unauthorized earned income credits and refunds for taxpayer clients of ITS.
As a result of these efforts by Franklin, more than 2,300 false federal income tax returns were filed by ITS between 2010 and 2012, which resulted in a loss to the Internal Revenue Service and the American public of $1,501,000.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation, said, “Dishonest tax return preparers should take notice that your activities do not go unnoticed. IRS Criminal Investigation is focused on protecting taxpayers by exposing unscrupulous tax return preparers through criminal prosecution and today’s sentencing is another example of these efforts.”
Assistant United States Attorney James M. Warden, who prosecuted this case for the government said, Franklin must make restitution of $1,501,000 and serve three years of supervised release after his sentence.
###
Final Defendant Sentenced to 39 Months in Prison for Participating in Large Stolen Property Fraud RingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that this morning, in federal court in Benton, Illinois, Angel Speed, 26, of Columbus, MS, was sentenced to 39 months in federal prison for crimes arising from his participation in a large stolen property fraud ring. The stolen property ring operated in the Metro East and numerous other locations.
Co-defendant Jason J. Parmeley, 43, formerly of O’Fallon, MO, was the leader and organizer of the stolen property ring that victimized numerous retailers and equipment rental stores throughout the United States. At his plea hearing, Parmeley admitted that he used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. Parmeley further admitted that, after he placed the orders, he dispatched drivers to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were wire transferred to Parmeley in Mexico. The losses caused by this stolen property ring exceeded $4,000,000.
Parmeley lived in Mexico and controlled the fraud ring from that country. In late August of 2015, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley has been held in federal custody since that time.
At the sentencing hearing this morning, United States District Judge Staci M. Yandle found that Speed functioned as Parmeley’s "second lieutenant" while he operated the scheme in Mexico. Specifically, Judge Yandle found that Speed hacked into business’s accounts and obtained their financial information, laundered proceeds of the scheme, and helped to coordinate the activities of the conspiracy’s drivers. In addition to imposing the 39 month prison sentence, the judge also ordered Speed to pay restitution of $456,882.37 to the victims of the stolen property ring for the specific losses that could be identified.
Eight of the fifteen defendants in the case were sentenced to prison. On May 4, 2017, Parmeley received a total sentence of 14 years in prison. Parmeley was sentenced to 140 months for his role in organizing and leading the stolen property conspiracy. Parmeley received an additional 28 months for a bank fraud he committed in Alabama. On June 7, 2016, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, IL, was sentenced to 3 years in prison, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, was sentenced to 1 year in prison. Both of the brothers admitted to receiving large quantities of the stolen property. On October 4, 2016, Shannan M. Flora, 42, of O’Fallon, MO, and Rigoberto Gutierrez, 28, of Compton, CA, were both sentenced to 15 months in prison. Flora performed a wide variety of tasks for the conspiracy, including arranging sales of stolen goods. Gutierrez coordinated shipments of stolen goods in California. On October 12, 2016, Russell J. Witt, 34, of Mount Clemens, MI, was sentenced to 12 months in prison. Witt worked as a driver for the conspiracy for over a year. On December 13, 2016, Sean A. Shields, 48, of Ozark, MO, was also sentenced to 12 months in prison. Shields owned a store in Ozark, MO, and purchased large quantities of the stolen merchandise.
Seven other defendants in the stolen property case were sentenced to terms of probation. They are: Steven J. Belcher, 45, of St. Charles, MO; Nicholas A. Brockman, 20, of Wentzville, MO; Benedict G. Pellerito, 56, of Troy, MO; Bryce E. Atkinson, 22, of Lake Saint Louis, MO; Alice J. Hembree, 44, of Moscow Mills, MO; Tony G. Robertson, 45, of O’Fallon, MO; and Jessie S. Urias, 38, of Compton, CA. Belcher, Brockman, Pellerito, Atkinson, Robertson, and Urias all worked as drivers for the conspiracy. Hembree performed administrative and bookkeeping functions for the fraud ring.
The investigation of the stolen property ring was conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Federal and State Authorities in El Paso Arrest 14 Defendants on Federal Drug Trafficking/Money Laundering ChargesRead the Press Release
This week, federal and state authorities arrested 14 members of the Orrantia Drug Trafficking Organization, including ringleader Mario Armando Orrantia, on federal drug trafficking charges announced United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration.
Those arrested include:
Name Age Residence Mario Armando Orrantia (aka “Quezada”) 51 El Paso Carmen Alfredo Marquez-Castillo (aka “Viejo”, “Viejito”) 63 El Paso Angela Leon (aka “Menona”) 34 El Paso Humberto Aleman-Limas (aka “Paquetes”) 34 El Paso Eduardo Rubalcaba 42 El Paso Hugo Arturo Faudoa 51 El Paso Jerry Minsu Flowers 45 El Paso Pedro Jimenez 43 El Paso Erik Mendoza 34 El Paso Rosalina Gallegos 40 El Paso Bryan Ramirez-Guerrero 22 El Paso Joshua Angel Talamantes (aka “Pirata”) 27 El Paso Jerry Lewis 64 El Paso Jose Reyes Valdez (aka “Paco”, “Gordo”, “Gordito”) 39 Cincinnati, OHA federal grand jury indictment charges all of the defendants with the exception of Ramirez-Guerrero, and Gallegos with conspiracy to possess with intent to distribute cocaine. The indictment also charges Orrantia, Carmen Marquez-Castillo, Jimenez, Lewis and Talamantes with conspiracy to possess with intent to distribute marijuana. The indictment also charges Orrantia, Carmen Marquez-Castillo, Rubalcaba, Faudoa, Flowers, Valdez, and Mendoza with one substantive drug possession with intent to distribute charge. The indictment also charges Orrantia, Carmen Marquez-Castillo, and Leon with two counts; Valdez, Aleman-Limas, Rubalcaba, Faudoa, Flowers, Jimenez and Talamantes with one count of conspiracy to commit money laundering. The indictment also charges Ramirez-Guerrero with one count of bulk cash smuggling.
A separate, but related, indictment charges Talamantes and Gallegos with one count of conspiracy to possess with intent to distribute marijuana and one count of possession with intent to distribute marijuana.
Authorities allege that this organization, under the leadership of Orrantia, Carmen Marquez-Castillo and Valdez, was responsible for the smuggling into the El Paso area hundreds of kilograms of cocaine and marijuana. The narcotics would subsequently be transported to areas across the United States, including Ohio, South Carolina, and Colorado, for further distribution. Defendants would also collect, transport and launder cash proceeds derived from the sale of narcotics.
During this investigation, authorities seized approximately five kilograms of cocaine, 600 kilograms of marijuana, seven vehicles, and over $138,000 in U.S. currency attributed to the Orrantia DTO.
All of the defendants remain in federal custody pending detention hearings expected to occur in U.S. Magistrate Court in El Paso next week. Upon conviction, all but Gallegos and Ramirez-Guerrero face between ten years and life in federal prison. Gallegos faces up to five years imprisonment upon conviction of the conspiracy charge and up to 20 years imprisonment upon conviction of the marijuana possession charge. Ramirez-Guerrero faces up to five years imprisonment on the bulk cash smuggling charge.
“This week, DEA and our federal, state and local law enforcement partners severely disrupted the Orrantia Drug Trafficking Organization operating here in El Paso,” stated Will R. Glaspy, Special Agent in Charge, El Paso Division. “This organization was disguising criminal activity in the form of legitimate business and threatening the safety of the communities in which we work and live. DEA, along with our law enforcement partners, remains committed to bringing to justice those who import and then distribute illegal drugs in our communities.”
These federal charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration with assistance from the United States Marshals Service and Homeland Security Investigations (HSI). The U.S Border Patrol, U.S. Customs and Border Protection Office of Field Operations (CBP-OFO), Federal Bureau of Investigation (FBI), El Paso Police Department, El Paso County Sheriff’s Office, Texas Department of Public Safety (DPS) , Texas Alcoholic Beverage Commission (TABC), and the Anthony Police Department assisted with local arrests.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Jury Convicts Columbia Man of 11 Federal ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that a federal jury in Columbia convicted Emanuel Cheeseboro, a/k/a “Mandoo”, age 35, of Columbia, South Carolina, of six (6) counts of possession with the intent to distribute crack cocaine and marijuana, a violation of 21 U.S.C. § 841(a)(1), two (2) counts of felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1), two (2) counts of possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c), and one (1) count of possession of marijuana, a violation 21 U.S.C. § 844(a). United States District Judge Joseph F. Anderson, Jr., of Columbia, presided over the three-day trial and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented during the trial established that after numerous citizen complaints, ATF and the Columbia Police Department began targeting drug dealers in the Martin Luther King Park area of Columbia. Law enforcement made multiple undercover purchases of crack cocaine from Cheeseboro in the spring of 2014. These purchases took place at different houses in the MLK Park area. In each case, Cheeseboro was captured on video selling crack cocaine. During one purchase, Cheeseboro bragged about and displayed a 9mm Taurus firearm with a laser sight that he kept during nighttime drug purchases.
Pursuant to a search warrant executed during the investigation on a house where Cheeseboro was present, police found crack cocaine, marijuana, and scales. Law enforcement was also able to locate a firearm sometime after the search warrant that they were able to link to Cheeseboro, a convicted felon.
On June 8, 2016, CPD officers detained Cheeseboro and a female who were both located in a vehicle at a residence in Columbia, known as “the Hole”. During their investigation and search of the car, officers found a Smith and Wesson .38 caliber pistol under the driver’s seat, a quantity of crack cocaine on the female driver and a quantity of marijuana in the trunk of the car. According to the female occupant, Cheeseboro asked her to hide the crack cocaine on her person and shoved the gun under her seat when the police arrived.
Ms. Drake stated that Cheeseboro faces a maximum penalty of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia Police Department. Assistant United States Attorneys William K. Witherspoon and Alyssa Leigh Richardson of the Columbia office prosecuted the case.
This case was prosecuted as part of Project CeaseFire, a joint federal, state and local law enforcement partnership, which aggressively prosecutes gun cases.
#####
Elkins home previously used as a drug house forfeited to the United StatesRead the Press Release
ELKINS, WEST VIRGINIA – The government has forfeited a house in Elkins, West Virginia, that was used to facilitate a clandestine methamphetamine operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
The forfeiture complaint filed by the government alleged that an investigation by the Mountain Region Drug and Violent Crimes Task Force revealed that the house, located at 451 Central Street, was determined to have been purchased with proceeds obtained from a large-scale methamphetamine operation, and was used by occupants of the house to sell narcotics.
A criminal investigation of the occupants of the house and others resulted in an indictment, unsealed in October 2016, that charged 20 individuals from Virginia and West Virginia with conspiring with one another to operate a methamphetamine distribution ring in the region. To date, 14 individuals have been sentenced to a combined 1,107 months incarceration for their participation in the methamphetamine distribution operation.The forfeiture demonstrates the United States’ intent to better the community by pursing actions to obtain property purchased and used by those trafficking in narcotics. The property will receive maintenance and repairs before being offered for public sale.
Assistant U.S. Attorney Danae DeMasi-Lemon filed the complaint and secured the forfeiture on behalf of the government.
U.S. District Judge John Preston Bailey presided.The related criminal prosecution was handled by Assistant U.S. Attorney Stephen D. Warner on behalf of the government and investigated by the Mountain Region Drug and Violent Crimes Task Force.
Dubuque Duo Charged with Maquoketa Bank RobberyRead the Press Release
Dante Rhodes, age 41, and Gregory Stapleton, age 31, both from Dubuque, Iowa, have been charged with two counts related to a March 2017 bank robbery. The charges are contained in an Indictment filed on June 21, 2017, in United States District Court in Cedar Rapids. Rhodes and Stapleton were initially charged in a Criminal Complaint filed in federal court on May 22, 2017.
The Indictment alleges that, on or about March 8, 2017, Rhodes and Stapleton robbed the Fidelity Bank and Trust in Maquoketa, Iowa, taking over $6,500.00 during the robbery. The Indictment also alleges that Rhodes and Stapleton conspired to rob the bank and that Stapleton went to the bank the day prior to the robbery to “case” the bank.
If convicted of both charges, Rhodes and Stapleton each face a possible maximum sentence of 25 years’ imprisonment, a $500,000 fine, $200 in special assessments, and 6 years of supervised release following any imprisonment. They may also be ordered to pay restitution.
Both Rhodes and Stapleton will appear for an arraignment on June 28, 2017 at 3:00 p.m. They are currently being held in custody without bond.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Federal Bureau of Investigation, the Maquoketa Police Department, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1022-LTS.
Follow us on Twitter @USAO_NDIA.
Downingtown Man Charged with Illegal Reentry After DeportationRead the Press Release
Armando Martinez Nunez, of Downingtown, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 5, 2017, Martinez-Nunez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about June 9, 2016.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Homeland Security Investigations (“HSI”) and Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Katayoun M. Copeland.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dominican National Pleads Guilty to Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to participating in a stolen identity refund fraud scheme that filed fraudulent federal income tax returns claiming hundreds of thousands of dollars in refunds.
Junior Alberto Lopez, 32, a Dominican national residing in Dorchester, pleaded guilty to one count of false claims conspiracy, three counts of access device fraud, and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 18, 2017. Lopez was originally arrested in April 2015 and fled to the Dominican Republic shortly after his release on bail. Lopez was re-arrested there in December 2016 and extradited to the United States in March 2017.
Between May 2011 and February 2013, Lopez and his co-conspirators unlawfully obtained the names, addresses and dates of birth of more than 700 residents of Puerto Rico and elsewhere. They created and filed with the Internal Revenue Service (IRS) false income tax returns for the tax years 2010, 2011, and 2012, claiming refunds on behalf of those identity fraud victims. Lopez and his conspirators directed the IRS to issue tax refund checks and to deposit tax refunds onto prepaid debit cards, which were delivered to addresses in Boston and elsewhere that the conspiracy controlled. Lopez and his co-conspirators cashed and redistributed the checks and debit cards.
This case is part of Operation Point Break, a multi-agency federal law enforcement initiative aimed at combatting stolen identity refund fraud across the country.
The charges of fraud and conspiracy provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory minimum sentence of two years in prison, to be served consecutively to the other charges. Lopez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Department of Justice’s Office of International Affairs provided assistance in securing Lopez’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Weinreb’s Criminal Division is prosecuting the case.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with a federal immigration crime.
Manolo Sosa-Nieves, 45, was charged today with one count of illegal reentry after deportation. Sosa-Nieves was previously deported on Aug. 21, 2002. On April 14, 2017, Sosa-Nieves was arrested in Lawrence on unrelated state charges.
Sosa-Nieves faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting this case.
Doctor and Two Others Charged in Manhattan Federal Court for Illegal Distribution of Oxycodone PillsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Scott J. Lampert, Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing of an indictment charging of DAVID TAYLOR, a state-licensed doctor, with writing medically unnecessary prescriptions for oxycodone over a five-year period. In addition to TAYLOR, VITO GALLICCHIO, and DANIEL GARCIA were arrested on charges that, from January 2012 through at least June 2017, they conspired with TAYLOR to distribute oxycodone. All three defendants are expected to be presented before U.S. Magistrate Judge James L. Cott later today. The case has been assigned to United States District Court Judge Andrew L. Carter, Jr.
Acting Manhattan U.S. Attorney Joon Kim said: “As the opioid epidemic wreaks havoc on too many of our communities, for years, Dr. David Taylor and his co-conspirators allegedly wrote prescriptions for and distributed medically unnecessary oxycodone. Doctors should be advancing the health of our citizens, not allegedly fueling the biggest health crisis facing the country, the opioid abuse epidemic. We are committed to holding accountable everyone involving in the illegal distribution of opioids, including allegedly corrupt doctors.”
DEA Special Agent-in-Charge James J. Hunt said: “It is alleged that millions of dollars’ worth of pain medication was diverted onto the streets of Staten Island, enabling addiction and overdoses on the borough. These arrests will impact Staten Island’s opioid market by shutting down an illicit pill distribution operation located at the heart of the borough, along Hylan Boulevard.”
NYPD Commissioner James P. O’Neill said: “As alleged, the defendants distributed Oxycodone for at least five years, at the expense of those addicted to these pain killers. The NYPD will aggressively pursue those who distribute illegal prescription drugs.”
According to the allegations in the Indictment unsealed today in federal court:[1]
From January 2012 through at least June 2017, in the Southern District of New York and elsewhere, DAVID TAYLOR, VITO GALLICCHIO, and DANIEL GARCIA, and others conspired to distribute and possess with the intent to distribute oxycodone.
* * *
TAYLOR, 74, GALLICCHIO, 48, and GARCIA, 57, are charged with one count of conspiring to distribute and possess with intent to distribute oxycodone. This offense carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the DEA’s Tactical Diversion Squad (Group TDS-NY), which comprises agents and officers from the DEA, the NYPD, the New York State Police, New York State Department of Financial Services, and New York City Department of Investigation. He also acknowledged the assistance of HHS-OIG and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Kiersten A. Fletcher and Dina Y. McLeod are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Dillon Man Sentenced on Firearm ChargesRead the Press Release
Florence, South Carolina---- United States Attorney Beth Drake stated today that Florwer Carlin Lizano, Jr., age 41, of Dillon, South Carolina, was sentenced today in federal court in Florence, South Carolina, for felon in possession of a firearm. United States District Judge R. Bryan Harwell of Florence sentenced Lizano to 48 months imprisonment and three-years’ supervised release.
Evidence presented at the guilty plea hearing established that On August 5, 2016, Florwer Carlin Lizano, Jr., was arrested by the Dillon Police Department after he was found asleep in a parked car with a loaded firearm in his belt. As a convicted felon, Lizano is prohibited from possessing firearms or ammunition. The firearm had been reported stolen out of Lumberton, N.C.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and by the Dillon Police Department. Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office prosecuted the case.
#####Detroit man sentenced to federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man who was part of a heroin trafficking ring was sentenced today to two and a half years in federal prison, announced United States Attorney Carol Casto. Darrell Eugene Woodside, 46, previously pleaded guilty to communicating by phone to facilitate the distribution of heroin.
Woodside admitted that from October 2015 through March 2016, while in Detroit, he communicated by telephone with his nephew, Daymeon Damar Johnson, who was residing in Seth in Boone County. Woodside additionally admitted that the purpose of these communications was to help arrange the delivery of heroin from Michigan to West Virginia for distribution. He also admitted making travel arrangements for runners carrying heroin and cash between Michigan and West Virginia.
This case is part of a long-term investigation of heroin trafficking in Boone County conducted by the West Virginia State Police and the U.S. Route 119 Drug and Violent Crime Task Force. The investigation has led to the convictions of several defendants. Daymeon Johnson, of Detroit, was sentenced to 14 years in federal prison for conspiracy to distribute heroin. Joyce Zornes, of Seth, was sentenced four years in federal prison for aiding and abetting the distribution of heroin. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Gregory Scott Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm.
The U.S. Route 119 Drug and Violent Crime Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence and is presiding over these cases.
These cases are 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.
- Follow us on Twitter: SDWVNews