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22 June 2017
Destin Man Pleads Guilty to Shipping Jewelry Stolen from Walton County BurglariesRead the Press Release
PENSACOLA, FLORIDA – Mark Joshua Mitchell, 39, of Destin, pled guilty today to seven counts of interstate transportation of stolen property. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On various dates in 2015 and 2016, victims contacted the Walton County Sheriff’s Office to report that their residence had been burglarized and that jewelry and other items had been stolen during the burglaries. The victims reported six different burglaries in Santa Rosa Beach, Panama City Beach, and Destin. The stolen items included multi-carat diamond engagement rings, a three-piece platinum wedding ring set, other jewelry, cash, and Mexican gold coins. Mitchell then shipped diamonds taken from the rings or the entire stolen item to Missouri and Louisiana.
On each of the seven counts, Mitchell faces a maximum of 10 years in prison. The sentencing hearing is scheduled for September 18, 2017, at 3:00 p.m. at the United States Courthouse in Pensacola.
The investigation in this case was led by the Walton County Sheriff’s Office. The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) provided assistance. This case is being prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Dennis Crawford Imprisoned for Financial Exploitation of WardRead the Press Release
The United States Attorney for the District of Vermont announced that Dennis Crawford, 48, who now lives in St. Johnsbury, was sentenced today in United States District Court in Rutland to 18 months of imprisonment following his guilty plea to a charge of wire fraud. U.S. District Judge Geoffrey Crawford also ordered that Crawford serve three years of supervised release following completion of his prison term and pay restitution of more than $77,000. The court ordered Crawford to surrender to the Bureau of Prisons on August 1 to begin serving his sentence.
Last December, a federal grand jury returned a three-count superseding indictment charging Crawford with wire fraud, mail fraud and credit card fraud. According to the indictment and other court records, in April 2015, Crawford was appointed power-of-attorney for his elderly step-father, who was suffering from Alzheimer’s Disease and other illnesses. Under the terms of the power-of-attorney, Crawford was permitted to make financial decisions on his step-father's behalf. After acquiring the power-of-attorney, Crawford placed his name on bank accounts his step-father held. According to court records, between June and August 2015, Crawford transferred approximately $150,000 from his step-father's bank accounts to accounts controlled only by Crawford. Crawford used much of this money to buy several vehicles for himself and family members, as well as furniture and other household items. Crawford also used other funds in his step-father’s accounts to pay Crawford’s bills, and used his step-father’s credit card to make personal purchases. In August 2015, the Vermont State Police learned Crawford may have been abusing his step-father and started an investigation. Crawford's power-of-attorney was revoked, and in November 2015, Crawford was charged in state court with financial exploitation of a vulnerable adult. The state charge was dismissed when the federal grand jury returned its indictment.
Although Crawford eventually repatriated $130,000 to his step-father’s accounts, the victim still suffered out-of-pocket losses totaling more than $77,000.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Crawford is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Crips Gang Member Sentenced to Eight Years for Racketeering Conspiracy in NebraskaRead the Press Release
Today, a violent member of the Omaha-area Crips Gang was sentenced to eight years in prison, and five years of supervised release, for participating in a racketeering conspiracy involving acts of violence including attempted murder and assaults and drug distribution, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Gregory Bahati, aka “Pooh Bear,” aka “Murk 2x,” 22, of Omaha, Nebraska, was sentenced by U.S. District Judge Joseph F. Bataillon after he pleaded guilty to one count of conspiracy to participate in racketeering activity, one count of threatening violence in aid of racketeering, and one count of brandishing a firearm during a crime of violence.
According to the plea agreement, Bahati admitted to conspiring to conduct and participate in the affairs of the Omaha-area chapter of the Crips, known as the “40th Avenue Crips” and “44th Avenue Crips,” through a pattern of racketeering activity. As part of the plea agreement, Bahati admitted to personally committing acts of violence and distributing cocaine for the gang in furtherance of the racketeering conspiracy. According to the plea, these acts of violence included the assault of an individual for making statements disrespecting the gang and threatening violence with a gun toward another victim.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Crips Gang Member Sentenced to Eight Years for Racketeering Conspiracy in NebraskaRead the Press Release
WASHINGTON – Today, a violent member of the Omaha-area Crips Gang was sentenced to eight years in prison and five years of supervised release for participating in a racketeering conspiracy involving acts of violence including attempted murder and assaults and drug distribution, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Gregory Bahati, aka “Pooh Bear,” aka “Murk 2x,” 22, of Omaha, Nebraska, was sentenced by U.S. District Judge Joseph F. Bataillon after he pleaded guilty to one count of conspiracy to participate in racketeering activity, one count of threatening violence in aid of racketeering, and one count of brandishing a firearm during a crime of violence.
According to the plea agreement, Bahati admitted to conspiring to conduct and participate in the affairs of the Omaha-area chapter of the Crips, known as the “40th Avenue Crips” and “44th Avenue Crips,” through a pattern of racketeering activity. As part of the plea agreement, Bahati admitted to personally committing acts of violence and distributing cocaine for the gang in furtherance of the racketeering conspiracy. According to the plea, these acts of violence included the assault of an individual for making statements disrespecting the gang and threatening violence with a gun toward another victim.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Concord Man Sentenced to Five Years in Prison for Bank RobberyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Leeland Eisenberg, of Concord, New Hampshire, was sentenced to five years in federal prison for bank robbery and separately sentenced to five years of probation for possessing cocaine.
Court filings and statements made in court established that Eisenberg robbed the Citizen’s Bank located at 875 Elm Street in Manchester, New Hampshire on August 2, 2016 at approximately noon. Eisenberg walked into the bank, approached the teller station and handed a teller a robbery note that stated “No alarms. No dye packs. I have a gun and I will shoot you and others if you put a dye pack in. Fill the bag with cash now.”
A witness in the vicinity of the bank identified the robber as Eisenberg. The witness had known Eisenberg in the past and recognized Eisenberg as he left the bank. An image of the robber taken by the bank’s security system was distributed to law enforcement. Law enforcement officers familiar with Eisenberg also identified the robber as Eisenberg after reviewing the images.
Eisenberg was arrested by two Manchester officers in the area of the Pine Street Cemetery at 6:42 p.m. on August 2, 2016. At the time of his arrest, Eisenberg had a small quantity cocaine in his possession.
Eisenberg pleaded guilty to bank robbery and drug possession charges. After serving his prison sentence for bank robbery, he will be on supervised release for a period of three years. He also will be on probation for five years as a result of the drug possession conviction.
Eisenberg was sentenced on the bank robbery charge on June 16, 2017. He was sentenced on the drug possession charge on June 21, 2017.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Donald Feith.
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Columbia Man Charged with Attempting to Solicit a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was charged in federal court today with attempting to entice a minor, who was actually an undercover law enforcement officer, for illicit sexual activity.
Darren Wade Lasley, 27, of Columbia, was charged in a federal criminal complaint filed in the U.S. District Court in Jefferson City, Mo.
Today’s complaint alleges that Lasley attempted to entice a minor to engage in illicit sexual activity.
According to an affidavit filed in support of the complaint, Lasley responded to an online advertisement that was part of an undercover law enforcement investigation to seek out potential sexual predators. Lasley allegedly began sending e-mails to the decoy, who advised him that she was 14 years old.
Over the course of the next several days, the affidavit says, Lasley described his plans for a sexual encounter with the decoy through a series of e-mails. Lasley allegedly proposed visiting the decoy’s residence while her mother was at work or out of town.
On Wednesday, June 21, 2017, Lasley asked the decoy if she could sneak out of her house to meet him for a sexual rendezvous. When Lasley arrived at the meeting location in Columbia he was arrested.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI and the Boone County Sheriff’s Department Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Chicago Businessman Arraigned on Fraud Charges in Connection with $7 Million Reverse Mortgage Scheme That Targeted Elderly HomeownersRead the Press Release
CHICAGO — A Chicago businessman has been arraigned on federal fraud charges for his alleged role in a scheme to bilk elderly homeowners out of millions of dollars.
MARK STEVEN DIAMOND, a mortgage loan originator with offices in Chicago and Calumet City, engaged in a home repair and loan fraud scheme that targeted elderly homeowners and lenders, according to the indictment. Diamond fraudulently caused lenders to make reverse-mortgage loans to homeowners who either did not sign up for the loans or did so unwittingly after Diamond intentionally misrepresented the terms, the indictment states. Diamond fraudulently pocketed the loan checks by causing title company representatives, including an unindicted co-schemer, to provide the checks to Diamond rather than the homeowners. The indictment seeks forfeiture of $7 million from Diamond.
Diamond, 60, of Chicago, pleaded not guilty at his arraignment Wednesday to seven counts of wire fraud. U.S. District Judge Robert M. Dow Jr. scheduled a status hearing for Aug. 28, 2017, at 9:00 a.m.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Brad Geary, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
According to the indictment, Diamond targeted his victims, who ranged in age from 62 to 97, based on the equity in their homes and their relative lack of financial sophistication. If a victim’s relative questioned Diamond on the need for a reverse mortgage, Diamond would schedule a time to visit the victim’s home when he knew the relative would not be there, the indictment states.
Also charged in the indictment is CYNTHIA WALLACE, 47, of Chicago. Wallace solicited homeowners to have home repairs performed by Diamond, knowing that Diamond would not actually perform the work, the indictment states. Wallace, who used the aliases “Shree Box,” “Regina Johnson,” and “Sherry Rice,” also posed as a representative of the U.S. Department of Housing and Urban Development to fraudulently obtain money from victims, the indictment states.
Wallace has pleaded not guilty to nine counts of wire fraud and two counts of falsely pretending to be an employee of the United States.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Brian Netols and Matthew Ebert.
Charleston man sentenced to over 20 years in federal prison for gun and drug crimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man who violated his federal supervised release by committing gun and drug crimes was sentenced to prison today, announced United States Attorney Carol Casto. Marcus W. Taylor, 39, previously pleaded guilty to possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime. In today’s hearing, he was sentenced to 20 years and eight months in federal prison and fined $20,000 for those offenses. As part of the sentence, the United States sought the forfeiture of assets or proceeds resulting from the distribution of controlled substances and the Court entered a $300,000 judgment against Taylor. Taylor was also sentenced to an additional two years in prison for violating his federal supervised release. The sentences will be served consecutively.
On September 2, 2016, law enforcement executed search warrants on two residences maintained by Taylor and a car he possessed. During the execution of the search warrants, officers found over 20 pounds of controlled substances, which included over 14 pounds of crystal methamphetamine that a drug laboratory determined to be more than 95% pure, over a kilogram of cocaine, approximately 828 grams of crack, 800 grams of heroin, over $65,000 in cash, multiple firearms, digital scales, and other items often used in the distribution or trafficking of illegal narcotics. The controlled substances seized during the execution of the search warrants had an approximate street value in excess of two million dollars.
The case against Taylor was investigated by the Metropolitan Drug Enforcement Network Team and Homeland Security Investigations. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case was also brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Charleston gun and drug dealer sentenced to federal prison for illegally possessing firearmsRead the Press Release
CHARLESTON, W.Va. – A Charleston felon who illegally possessed guns while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Damian Means, 29, previously pleaded guilty to being a felon in possession of a firearm. In today’s hearing, he was sentenced to four years and three months in federal prison for that offense. Means was also sentenced to an additional one year in prison for violating his federal supervised release. The sentences will be served consecutively.
Means admitted that on August 23, 2016, he sold heroin to a confidential informant working with law enforcement. Means also admitted that on September 13, 2016, he sold two loaded Hi-Point .40 caliber semiautomatic pistols and one Hi-Point 9mm Carbine semiautomatic rifle to an undercover police officer. Means further admitted that during the gun deal, he accidentally discharged one of the firearms. The undercover officer making the controlled firearms purchase also observed Means selling methamphetamine to another individual.
On September 15, 2016, law enforcement executed a search warrant on Means’ residence. During the search, officers discovered an H&R .32 caliber semiautomatic pistol. In a statement to law enforcement, Means admitted to selling guns and drugs. Means was prohibited under federal law from possessing any firearm because of a 2012 conviction in the United States District Court for the Southern District of West Virginia for distribution of crack.
The case against Means was investigated by the Sheriff’s Tactical Operations Patrol (STOP Team) of the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Central Falls Woman Pleads Guilty to Trafficking CocaineRead the Press Release
PROVIDENCE – Jeanlee Figueroa, 21, of Central Falls, pleaded guilty in federal court in Providence today to charges relating to her participation in a conspiracy to traffic between 3.5 and 5 kilograms of cocaine.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Figueroa pleaded guilty to one count each of conspiracy to possess more than 1 kilogram of cocaine with the intent to distribute and possession of in excess of 1 kilogram of cocaine with the intent to distribute.
Figueroa’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to court documents and information presented to the court, in July 2016, Figueroa learned of a drug operation in the greater Providence area that was receiving packages of cocaine shipped from Puerto Rico. She was aware that individuals who allowed their addresses to be used to receive the packages were paid cash for receiving the packages and turning them over to the drug operation.
At the time of her guilty plea, Figueroa admitted to the court that she contacted an individual and provided her address. Thereafter, Figueroa began to receive packages delivered through the U.S. mail addressed to fictitious persons at her home address. Wanting to increase her earnings, Figueroa opened a post office box at the Pawtucket post office with the express intention of receiving additional packages of cocaine.
According to court documents, Figueroa received 17 packages, each containing approximately 300 grams of cocaine. Eight were received at her residence and 9 were received at her Pawtucket post office box. Figueroa received and delivered between 3.5 and 5 kilograms of cocaine.
Jeanlee Figueroa, who is currently released on unsecured bond, is scheduled to be sentenced on September 19, 2017. Conspiracy to possess more than 1 kilogram of cocaine with the intent to distribute and possession of in excess of 1 kilogram of cocaine with the intent to distribute is punishable by statutory penalties of 40 years imprisonment, with a mandatory minimum 5 years imprisonment, and a term of supervised release of 4 years to life.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Rhode Island State Police High Intensity Drug Trafficking Area Task Force and U .S. Postal Inspection Service.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Newport and Cranston Police Departments, and the DEA for their assistance in the investigation of this matter.
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Cedar Rapids Man Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
A man who received child pornography was sentenced June 20, 2017 to 15 years in federal prison.
Donald Etheredge, age 51, from Cedar Rapids, Iowa, received the sentence after a March 8, 2017 guilty plea to one count of receipt of child pornography. At the plea hearing, Etheredge admitted that, between 2013 and 2015, he knowingly received child pornography. He also admitted that he was convicted of shipment and transportation of child pornography in the Northern District of Iowa in 2004.
Etheredge was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Etheredge was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed, and Etheredge must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-2.
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Buffalo Man Sentenced in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Coleman, 47, of Buffalo, who was convicted of conspiracy to possess with intent to distribute more than 100 grams of heroin, was sentenced to 78 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that Coleman was the courier of a heroin distribution conspiracy, which brought heroin to Buffalo from New York City. The defendant was stopped on February 26, 2014, and found in possession of more than $65,000 in cash, which was payment for the delivery of heroin.
Also, on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue in Buffalo. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash.
Coleman was arrested along with four other defendants. All five defendants have been convicted and sentenced.
The sentencing 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.
Bronx Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that SADDAM MOHAMED RAISHANI, a/k/a “Adam Raishani,” was arrested last night at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. RAISHANI was charged by a criminal Complaint earlier today with attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS” or the “Islamic State”), a designated foreign terrorist organization. RAISHANI is expected to be presented later today before Magistrate Judge James L. Cott in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Saddam Mohamed Raishani, a Bronx man, plotted to travel to Syria to join and train with the terrorist organization ISIS. Having already helped another man make that trip to ISIS’s heartland, Raishani allegedly acted on his own desire to wage violent jihad, planning to leave his family and life in New York City for the battlefields of the Middle East. Thanks to the excellent work of the FBI and NYPD, Raishani’s alleged plan to support this deadly terrorist organization was cut short at the airport and now he will face federal terrorism charges.”
Acting Assistant Attorney General Dana Boente said: “According to the complaint, Raishani attempted to travel overseas to join ISIS and to provide material support to the designated terrorist organization. The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “This case is another alleged instance of the nature of the terrorism threat and its reach into communities here at home. It is also a great example of the coordination which exists among local and federal law enforcement partners who work together to stop these alleged threats and interdict individuals allegedly determined on joining a terrorist organization intent on conducting violence around the globe. The FBI’s JTTF will continue to work with our partners, both here and abroad, to prevent acts of terrorism.”
NYPD Commissioner James P. O’Neill said: “As we have seen many times before, allegedly attempting to join a designated terrorist organization usually has one outcome: arrest. Thank you to the NYPD detectives and FBI agents who, through the original Joint Terrorism Task Force, remain relentless in their focus to keep New York City safe.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In January 2017, RAISHANI contacted an individual who was, unbeknownst to RAISHANI, a confidential source working at the direction of law enforcement (the “CS”) During a meeting with the CS, RAISHANI told the CS that RAISHANI had a friend (“Person-1”), who had left New York to join the Islamic State some time ago.[2] RAISHANI told the CS that prior to Person-1’s departure, RAISHANI took Person-1 shopping to buy supplies to bring to the Islamic State, and that on the day of Person-1’s departure, RAISHANI gave money to Person-1 and drove Person-1 to JFK Airport. In later meetings with the CS, RAISHANI expressed his regret at not having traveled with Person-1 to join ISIS. RAISHANI also indicated his desire to wage jihad and his belief that the Quran can be read to justify the violence, including beheadings, engaged in by ISIS.
As part of the investigation, the CS introduced RAISHANI to an undercover law enforcement officer (“UC-1”), who was posing as an individual who wanted to travel abroad to fight for ISIS. During meetings with the CS and UC-1, RAISHANI expressed his desire to travel abroad to join ISIS. For example, RAISHANI indicated that he had been in contact with other ISIS supporters and no longer felt comfortable in the United States. He also showed UC-1 a video that appeared to depict ISIS supporters discussing their desire to travel overseas to join ISIS and its ongoing fight. RAISHANI further showed the CS and UC-1 an ISIS video that appeared to depict ISIS members in Yemen killing civilians who did not support ISIS.
In addition, RAISHANI advised the CS and UC-1 as to how they could avoid detection by law enforcement. For example, RAISHANI advised the CS to cover the camera on the CS’s computer and turn off the computer’s microphone when watching pro-ISIS videos online. RAISHANI also advised the CS to use a particular Internet browser (the “Browser”) to hide their online activity, and explained that he used the Browser to watch ISIS and jihadi videos online. Furthermore, RAISHANI himself put on gloves when using a laptop and viewing pro-ISIS and pro-jihadi videos online. Moreover, RAISHANI conveyed to UC-1 that if they traveled together to join ISIS, RAISHANI, a home health aide, could pose as a nurse and UC-1 could pose as a refugee aid worker, in order to cross international borders without being stopped and questioned by authorities. Finally, RAISHANI told the CS and UC-1 that he (RAISHANI) had to be careful because he believed that federal authorities were monitoring his activities.
By April 2017, RAISHANI was actively planning to travel abroad to join ISIS. The CS told RAISHANI that, through a family acquaintance, the CS might be able to obtain contact information for an ISIS affiliate capable of facilitating travel to join ISIS. In reality, the purported facilitator was an FBI employee acting in an undercover capacity (“UC-2”). In May 2017, RAISHANI contacted UC-2 and indicated that he had previously helped another individual travel to join ISIS. RAISHANI further told UC-2 that he was seeking guidance for his own “hijrah,” an Arabic term normally used to refer to migration, but which is also used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. In subsequent conversations with the CS, UC-1, and/or UC-2, RAISHANI stated that he aspired to travel to Syria to join ISIS and that he aimed to travel before the end of Ramadan, an Islamic holy month that runs from approximately May 26 through June 24 this year. He indicated that he would be in contact with UC-2 about his travel. RAISHANI also stated that if he was arrested he will not care, because Allah would know that he tried.
In June 2017, RAISHANI told the CS that he was making preparations to leave, including paying off his remaining debts. Subsequently, RAISHANI and UC-1 purchased clothing that they intended to wear for their training with ISIS. Earlier this week, RAISHANI revealed to UC-2 his (RAISHANI’s) intention to meet an ISIS member in Turkey in the next few days, who would facilitate RAISHANI’s joining the terrorist organization in Syria. RAISHANI also purchased an airline ticket for a flight scheduled to depart on June 21, 2017, from JFK Airport to Istanbul, Turkey, via Lisbon, Portugal. On June 21, 2017, RAISHANI traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight to Lisbon.
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RAISHANI, 30, of the Bronx, is charged with one count of attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. 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 a judge.
Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the New York Office of U. S. Customs and Border Protection.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys George D. Turner, Sidhardha Kamaraju, and Jane Kim are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
17-186
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
[2] Communications and conversations discussed herein are described in substance and in part.
Brazilian National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national was charged today in federal court in Boston with a federal immigration crime.
Adilson Marcos Barbosa, 38, was charged today with one count of illegal reentry into the United States. Barbosa was previously deported on Jan. 12, 2009. On June 7, 2017, Barbosa was arrested in Framingham on unrelated state charges.
Barbosa faces a sentence of no greater than two years in prison, one year 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.
Binghamton Man Sentenced to 20 Years in Eddie Block Gang CaseRead the Press Release
BINGHAMTON, NEW YORK – Anthony Randolph, age 30, of Binghamton, New York, was sentenced today to 20 years in prison and 10 years of post-imprisonment supervised release for engaging in a drug trafficking conspiracy and possessing a firearm and ammunition as a felon.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Randolph admitted that between January 2014 and November 17, 2015, as part of an organization called the “Eddie Block Gang,” he and others conspired to and did acquire cocaine and cocaine base (crack) from a number of supply connections located in Broome County, New York, and also in the New York City area. He admitted that he packaged and stored crack at several locations and residences in Broome County, including his residence in Binghamton. He also admitted to selling crack.
Randolph also admitted that in November 2015, he possessed a Kahr Arms Model P40, .40 caliber pistol along with .40 caliber ammunition in his residence in Binghamton. He was prohibited from possessing the pistol and ammunition because he had two prior felony convictions, both for criminal sale of a controlled substance in Broome County.
This case was investigated by the FBI, Binghamton Police Department, New York State Police and Broome County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Bergen County, New Jersey, Man Sentenced to 46 Months in Prison for $1.5 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A Lyndhurst, New Jersey, man was sentenced today to 46 months in prison for fraudulently obtaining over $1.5 million from approximately 100 victims prior to high-profile initial public offerings (IPOs), Acting U.S. Attorney William E. Fitzpatrick announced.
Omar Hafez, 25, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him one count of wire fraud. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2014 through December 2015, Hafez operated an investment fraud scheme in which he and others created a number of entities, including Lotus Global. Several of these entities had websites and social media pages listing Hafez as the CEO and advertising themselves as successful wealth management companies.
In order to deceive victim investors, Hafez represented that he had access to shares of various companies prior to their initial public offerings and could use that access to provide significant profits to investors. However, bank records for accounts controlled by Hafez and certain Lotus Global entities revealed that none of the money provided by victim investors was used to purchase shares or invest in any of the pre-IPO companies.
Instead, Hafez used the funds for his own benefit, including several large purchases at luxury car dealerships, including an approximately $87,000 purchase at Prestige Motors, an approximately $24,160 purchase at Signature Car Collections, and an approximately $8,690 purchase at Dream Cars National LLC. In addition, Hafez purchased numerous luxury goods, including an approximately $17,250 purchase at Tourneau Inc., an approximately $5,613 purchase at Louis Vuitton, and an approximately $3,000 purchase at Tiffany & Co., as well as airplane tickets and hotel stays for a single trip to Chicago totaling approximately $10,000.
Hafez employed numerous strategies to maintain the victims’ confidence and induce further investments. For example, bank records showed that Hafez occasionally used money from earlier victim investors in order to pay future victims “lulling” payments. In classic Ponzi scheme fashion, Hafez lied to investors and told them that these payments were returns on their investments.
As funds began to run out and investors demanded their money with increasing frequency, Hafez provided certain victim investors with checks for thousands of dollars, claiming that they represented investment returns or a refund of initial investments. When victim investors attempted to deposit or cash these checks, the checks were rejected due to insufficient funds because Hafez and others had already spent the victims’ money.
In addition to the prison term, Judge Walls sentenced Hafez to three years of supervised release. Hafez must also pay restitution of $1.5 million.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Joseph D. Rotella Esq., Newark
Athens County Home Health Care Agency Owner Pleads Guilty to $2M in FraudRead the Press Release
COLUMBUS, Ohio – Cheryl McGrath, 49, of Guysville, Ohio, pleaded guilty today in U.S. District Court to health care fraud and willful failure to pay over tax.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office and Ohio Attorney General Mike DeWine announced the plea entered into before Chief U.S. District Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, McGrath owned and operated Home Health Care of Southeast Ohio in Guysville, Ohio since 1993.
From 2009 until 2015, McGrath executed a scheme to defraud the Ohio Medicaid Program by billing on behalf of Home Health Care of Southeast Ohio for home health nursing services that were never rendered. The defendant routinely changed the claim information in the billing software to falsely reflect that additional hours of nursing services had been provided and falsely increased the number of nursing visits from one visit per week to between three and five visits per week.
McGrath also submitted claims for nursing services of Medicaid patients who were ineligible because they were either residing in private nursing homes or deceased.
In total, her scheme included fraudulent claims in the amount of approximately $2.2 million.
From 2009 until 2013, McGrath maintained the books and records regarding payroll for the home health care business. During that time, she submitted Forms 941 to the IRS but did not pay over the federal employment taxes that were due, causing a loss of $366,825 to the IRS.
Health care fraud carries a potential maximum sentence of 10 years in prison and willful failure to pay over tax is punishable by a potential maximum of five years’ imprisonment.
As part of her plea agreement, McGrath has agreed to pay more than $2.2 million in restitution to the Ohio Medicaid Program and nearly $367,000 to the IRS.
“The conduct detailed in this case is egregious. These programs were designed to help the sick and infirm, and this defendant defrauded them out of millions of dollars,” said Ryan L. Korner, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “Business owners have a significant responsibility to collect and turn over all IRS withholding taxes. Employment tax fraud can also impact employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of their employers not complying with the law.”
“Billing for services not rendered, manipulating electronic claims information to falsify services provided, and billing for ineligible or deceased beneficiaries all adds up to health care fraud at taxpayer expense”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our Federal, State and local law enforcement partners to ensure that those who commit such crimes are held accountable.”
“This defendant took millions in taxpayer dollars by blatantly lying about the services her agency provided,” said Ohio Attorney General DeWine. “Health care fraud will not be overlooked in Ohio. My office works every day with our state, local, and federal partners to identify this type of fraudulent activity and ensure that those who unlawfully take taxpayer money are held responsible.”
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation, U.S. Department of Health and Human Services OIG, FBI and the Ohio Attorney General’s Office Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Jessica W. Knight and Kenneth F. Affeldt and Special Assistant United States Attorney Maritsa Flaherty with Ohio Attorney General Mike DeWine’s Office, who are representing the United States in this case.
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All Nine Defendants Sentenced in DEA "Operation Bear Trap"Read the Press Release
Wilmington, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that all nine defendants prosecuted in “Operation Bear Trap” have been sentenced to prison. The sentences are the result of a long-term New Castle County High Intensity Drug Trafficking Area (“HIDTA”) investigation spearheaded by the Drug Enforcement Administration’s (“DEA”) Drug Trafficking Task Force. The investigation involved wiretaps of five phones, and led to substantial cash, drug, and gun seizures including: more than $1,000,000; approximately 2.5 kilograms of cocaine; approximately one kilogram of crystal methamphetamine; and nine firearms.
The investigation uncovered two drug conspiracies involving overlapping participants. The methamphetamine supplier, Ariel Vergara-Sanchez, was sentenced to 12 years in prison in May 2016 after admitting that he obtained drugs from Mexico so that he and his associates could sell the drugs in the City of Wilmington, the greater New Castle County area, and southern Chester County, Pennsylvania. The cocaine supplier, Jamal Maddox, was sentenced yesterday to 10 years in prison after admitting that he trafficked 16 kilograms of cocaine, possessed four handguns, and stored $968,000 in drug proceeds in his home and at a local bank.
According to court documents, the defendants in this case received the following sentences:
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Ariel Vergara-Sanchez – 144 months of imprisonment followed by 5 years of supervised release;
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Jamal Maddox – 120 months of imprisonment followed by 5 years of supervised release;
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Richard Cephas – 66 months of imprisonment followed by 5 years of supervised release;
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Juan Rosas-Guadarrama – 57 months of imprisonment followed by 3 years of supervised release;
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Luis Bustos – 42 months of imprisonment followed by 3 years of supervised release;
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Juan Carlos Segura-Lorzo – 37 months of imprisonment followed by 3 years of supervised release;
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Sergio Flores-Lopez – 36 months of imprisonment followed by 3 years of supervised release;
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Leticia Beltran – 36 months of imprisonment followed by 3 years of supervised release; and
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Miguel Martinez – 12 months and one day followed by 2 years of supervised release.
Acting U.S. Attorney Weiss stated, “Operation Bear Trap resulted in the conviction and incarceration of nine drug traffickers who were infecting this community with substantial quantities of cocaine and methamphetamine. I applaud the work of all the federal, state, and local agencies who worked on this investigation and reiterate that this kind of result is a product of the New Castle County HIDTA partnership.”
DEA’s Drug Trafficking Task Force is part of the New Castle County HIDTA, a cooperative effort established in January 2015 among federal, state, and local law enforcement agencies. This Task Force consists of law enforcement officers from the Department of Homeland Security, Newark Police Department, Delaware State Police, New Castle County Police Department, Wilmington Police Department, and Delaware Probation and Parole. Other agencies who partnered in this investigation were the Chester County (Pennsylvania) District Attorney’s Office Drug Unit, Kennett Square Police Department, Pennsylvania State Police, Wilmington SWAT, and Delaware State Police SORT.
This case was prosecuted by Assistant United States Attorney Jennifer K. Welsh and Special Assistant United States Attorney Christopher L. de Barrena-Sarobe.
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Albuquerque Felon Facing Federal Firearms Charges Arising Out of Burglary of Federal Firearms DealerRead the Press Release
ALBUQUERQUE – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has filed a criminal complaint charging David Barber, 40, of Albuquerque, N.M., with federal firearms charges arising out of the burglary of an Albuquerque-based federal firearms dealer’s place of business.
The criminal complaint, which was filed yesterday, charges Barber with being a felon in possession of firearms and theft from a federal firearms dealer’s business inventory. The criminal complaint alleges that Barber committed the crimes in April 2017, in Bernalillo County, N.M. According to the criminal complaint, Barber and another man burglarized a federal firearms dealer’s business in the early hours of April 24, 2017, and stole 12 firearms. The business’s surveillance system video-recorded the burglary and law enforcement officers used the videotape of the burglary to identify Barber as one of the two alleged burglars. The criminal complaint alleges that in April 2017, Barber was prohibited from possessing firearms or ammunition due to his status as a convicted felon.
The criminal complaint alleges that on May 11, 2017, officers of the Albuquerque Police Department (APD) seized three of the 12 firearms stolen during the burglary when they executed a search warrant at an apartment in which Barber had been observed on several occasions. It also alleges that the officers found other evidence relating to the burglary when they executed a search warrant on a van allegedly used by Barber during the burglary.
APD officers arrested Barber on outstanding state warrants on June 20, 2017, following a high-speed vehicle chase through Albuquerque. Barber remains in state custody pending transfer to federal custody to face the charges in the criminal complaint.
If convicted, Barber faces a statutory maximum term of imprisonment of ten years on each of the two charges in the criminal complaint. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The ATF office in Albuquerque and APD investigated this case, which is being prosecuted by Special Assistant U.S. Attorney Timothy Trembley under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
21 June 2017
York County Man Indicted on Drug and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose M. Osorio, III, age 28, of York County, Pennsylvania, was indicted by a federal grand jury for crack cocaine trafficking and possession of a firearm and ammunition as a previously convicted felon.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Osorio distributed crack cocaine on September 22, 2016, in York, Pennsylvania. The indictment also alleges that on December 1, 2016, Osorio unlawfully possessed a .357 caliber revolver and ammunition as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is twenty years of imprisonment for the drug trafficking offense, ten years of imprisonment for the firearm offense, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wisconsin Produce Vendor Corporate Officer Indicted for Tax Evasion, Failing to File Corporate Tax Returns and StructuringRead the Press Release
A federal grand jury in Madison, Wisconsin indicted a Johnson Creek, Wisconsin produce vendor corporate officer today for tax evasion, failure to file a corporate tax return, and structuring currency transactions, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jeffrey M. Anderson for the Western District of Wisconsin.
According to the indictment, during the relevant timeframe, Thomas G. Paine was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company. Paine was allegedly responsible for the finance and tax aspects of the company. The indictment alleges that Paine failed to file corporate tax returns with the Internal Revenue Service (IRS) for 2010 through 2012 and attempted to evade the taxes due and owing by G.W. Paine Inc. According to the indictment, Paine concealed the company’s income by structuring cash deposits so they were made in amounts less than $10,000 in order to evade the bank’s reporting requirements. Banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction. The indictment alleges that from 2012 through 2013, Paine structured more than $400,000.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Paine faces a statutory maximum sentence of five years in prison for each of the tax evasion counts, one year in prison for each of the failure to file counts and 10 years in prison for each of the structuring counts.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Anderson commended special agents of the IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Waltham Investment Advisor Sentenced to Prison for Securities FraudRead the Press Release
BOSTON – The managing partner of a Waltham-based investment advisory firm was sentenced today in federal court in Boston in connection with a securities fraud scheme known as “cherry-picking” that netted over $1.3 million.
Michael J. Breton, 50, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years in prison and two years of supervised release. Breton was also ordered to forfeit $1,326,696 and to pay restitution in the same amount. In March 2017, Breton pleaded guilty to one count of securities fraud.
Breton was the managing partner of Strategic Capital Management LLC – a
state-registered investment advisory firm that provided financial planning and portfolio management services to individuals and small businesses. In that capacity, Breton had authority to purchase and sell securities on his clients’ behalf and often did so using a master brokerage allocation account, which allowed him to place block trades and later allocate the trades to specific clients or other accounts.
Beginning in least in 2011 and continuing through July 2016, Breton used the master allocation account to regularly purchase shares in publicly-traded companies the day that those companies announced earnings from the previous quarter. Breton purchased those shares shortly before the earnings announcements were made, but waited to allocate the trades among accounts until after he knew whether the company’s earnings were positive or negative, which determined whether the trade was likely to be profitable in the short term. Throughout the course of the scheme, Breton allocated more profitable trades to himself and allocated unprofitable trades to his clients, thereby stealing more than $1.3 million in potential profits from his clients.
In January 2017, the Securities and Exchange Commission (SEC) filed a parallel civil action against Breton and Strategic Capital Management. Breton agreed to partially resolve the SEC’s claims by, among other things, agreeing to the entry of an SEC order permanently barring him from working in the securities industry.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the SEC. The case was prosecuted by Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit.
United States Attorney Announces Americans with Disabilities Act Restaurant InitiativeRead the Press Release
COLUMBIA— United States Attorney Beth Drake announced today that the U.S. Attorney’s Office is reviewing selected restaurants in Greenville to ensure that the restaurants provide the access required by the Americans with Disabilities Act of 1990 (the “ADA”). The review stems from the Department of Justice’s Congressionally-mandated responsibility to ensure compliance with the ADA.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, which include restaurants, hotels, theatres, and other establishments. The ADA requires that these facilities be “designed, constructed, and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations. The ADA also requires the U.S. Department of Justice to investigate places of public accommodation and undertake periodic review of compliance with the ADA, and to bring civil enforcement actions to obtain compliance and penalties as appropriate.
As part of this review, restaurant owners are first asked to complete a survey regarding the restaurant’s accessibility. A Department of Justice investigator may then visit the selected restaurants to evaluate ADA compliance. If the site visit reveals ADA noncompliance, the U.S. Attorney’s Office will notify the owners and operators. The Department of Justice generally pursues voluntary compliance measures first. It may, however, commence a civil lawsuit in federal court if necessary. It does so, for example, in cases that involve a pattern or practice of discrimination or that raise issues of general public importance.
U.S. Attorney Drake noted that, “The ADA secures for people with disabilities access to our communities and the services that will allow them like every other American to reach their potential and be a contributing member of our society. Imagine, if you will, what life would be like if you could not get into a grocery store or a school or government office, or in this case, eat at a restaurant.” Drake added that the ADA is a critical tool in ensuring that people living with disabilities have access to our communities. “We look forward to working with our restaurants. If any restaurants are noncompliant, we will work with them to bring them into compliance, so that the entire community can enjoy their facilities.”
This initiative continues the U.S. Attorney’s Office and DOJ’s long commitment to enforcing the ADA, including: an agreement with the Richland County Election Board to ensure that Polling Places are ADA compliant; an agreement with the City of Columbia Police Department regarding treatment of arrestees who are deaf, and several ADA agreements with South Carolina municipalities as part of the DOJ project civic access.
The U.S. Attorney’s Office for the District of South Carolina enforces federal civil rights laws, including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes include monetary penalties, injunctions, civil judgments and more.
To learn more about the ADA and other laws protecting the rights of people with disabilities, log on to www.ada.gov/ta-pubs-pg2.htm or call the Justice Department's toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD). The U.S. Attorney’s Office Civil Rights Program webpages are located at https://www.justice.gov/usao-sc/civil-rights.
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Union County, New Jersey, Man Charged in Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – The owner of a purported business consulting firm was arrested today for operating a $1.1 million scheme that artificially inflated the stock price of a publicly traded company he controlled, Acting U.S. Attorney William E. Fitzpatrick announced.
James Farinella, 46, of Springfield, New Jersey, is charged by complaint with one count of securities fraud. He will make his initial appearance this afternoon before U.S. Magistrate Judge Leda D. Wettre in Newark federal court.
According to the complaint:
From June 2012 through December 2012, Farinella and others allegedly operated a “pump-and-dump” stock manipulation scheme to fraudulently inflate the prices of Pazoo Inc. (PZOO). Pazoo had little or no real business operations, and when it started trading in June 2012, Farinella controlled 98 percent of the free-trading shares in Pazoo.
Farinella and other conspirators allegedly “pumped” the price of those shares by orchestrating a series of trades between accounts they controlled to create the appearance that Pazoo stock was rising in price and heavily traded. In order to further inflate the prices, Farinella and his conspirators also disseminated misleading promotional materials to lure investors to purchase the stocks, including touting Pazoo as a leading provider of nutritional supplements for people and their pets.
After pumping the stocks, Farinella and his conspirators “dumped” them by selling large volumes of the stock to investors at artificially inflated prices. The companies’ stock prices then dropped, causing victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $1.1 million in gross trading proceeds.The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The U.S. Securities and Exchange Commission (SEC) is filing a civil complaint against Farinella today.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
U.S. District Court Blocks EnergySolutions’ Acquisition of Waste Control SpecialistsRead the Press Release
Senior Judge Sue L. Robinson of the U.S. District Court for the District of Delaware today ruled in favor of the Justice Department’s civil antitrust lawsuit to block radioactive waste disposal provider EnergySolutions’ $367 million acquisition of rival Waste Control Specialists. Judge Robinson entered an order ruling in favor of the United States and enjoining the merger.
“Substantial evidence showed that head-to-head competition between EnergySolutions and Waste Control Specialists led to better disposal services at lower prices,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Today’s decision protects competition in an industry that is incredibly difficult to enter. While EnergySolutions’ preference was to buy its main rival rather than continue to compete to win business, today’s decision ensures that customers will benefit from the competitive process.”
The Court’s decision follows a 10-day trial that concluded in May. The Justice Department filed suit in November 2016, alleging that the proposed acquisition would combine the two most significant competitors for the disposal of low-level radioactive waste available to commercial customers in 36 states, the District of Columbia and Puerto Rico.
Texas Resident Sentenced to Four Years in Prison for Bribing Public Official at San Francisco International AirportRead the Press Release
SAN FRANCISCO – Bobby Napier was sentenced to 48 months’ imprisonment for bribing a public official, announced Acting United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. The sentence was handed down yesterday by the Honorable Charles R. Breyer, United States District Judge, following a guilty plea in which Napier admitted to committing the crime.
Napier, 47, of Stafford, Tex., pleaded guilty on January 11, 2017, to bribing a public official in order to smuggle drugs through passenger security screening at San Francisco International Airport (SFO). The public official was an employee of a private company under contract to provide baggage and passenger screening services to the Transportation Security Administration (TSA).
The plea agreement describes five separate occasions between May 16, 2013, and April 17, 2014, in which Napier paid the public official for the purpose of smuggling cocaine through the security screening checkpoint at SFO. According to the guilty plea, Napier also admitted that even before the instances described in his plea agreement, he had smuggled marijuana through SFO. Napier acknowledged making payments in the form of cash deposits to the public official’s bank account, money orders or cash mailed to the official, and cash payments in face-to-face meetings. Napier admitted the payments were intended to allow persons carrying drugs in carry-on luggage to pass through the security checkpoint undetected. Napier facilitated the smuggling of a total of 23 kilograms of cocaine through the checkpoint and paid bribes totaling $13,500 to the TSA official.
On January 10, 2017, Napier was charged by superseding information with one count of bribing a public official, in violation of 18 U.S.C. § 201(b)(1). Pursuant to his plea agreement, Napier pleaded guilty to the charge.
In addition to the prison term, Judge Breyer sentenced Napier to three years of supervised release. Judge Breyer ordered Napier to surrender on or before September 8, 2017, to begin serving his sentence.
Assistant United States Attorney Laura Vartain Horn is prosecuting the case with the assistance of Rawaty Yim. This case is the product of an investigation by the Drug Enforcement Administration and the Federal Bureau of Investigation.
Tampa Man Pleads Guilty to Sexually Abusing 7-Year-Old ChildRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Richmond Joseph McDonald (40, Tampa) has pleaded guilty to enticing a minor to engage in sexually explicit conduct. He faces a minimum mandatory term of 10 years, up to life, in federal prison; the sentencing hearing is scheduled for September 28, 2017.
According to the plea agreement, McDonald and his wife, Shauna Maryann Boselli, engaged in sexual activity with a 7-year-old child with the consent of her relative, Jamie Esposito. Esposito had engaged in explicit conversations, via the Internet and text messages, with McDonald and Boselli regarding sexual acts with the victim.
On July 19, 2016, Esposito took the child to Tampa to meet McDonald and Boselli for the purpose of the three of them engaging in sex acts with her. Esposito brought the girl to the zoo in Tampa, where they met with McDonald and Boselli. After spending time at the zoo and taking the child for ice cream, McDonald and Boselli led Esposito and the child to their house in Tampa. While at the house, McDonald sexually abused the child, while Esposito watched. Afterwards, Esposito and the child returned to their hotel in Tampa. Two days later, McDonald and Boselli met with Esposito and the child at their hotel where McDonald and Boselli engaged in sex acts with the child.
Federal agents executed a federal search warrant at McDonald’s residence and seized numerous electronic devices and the vehicle that McDonald and Boselli had used in the commission of the offense. Forensic analyses of the devices revealed that McDonald possessed more than 1,300 images depicting child pornography, including images and videos of the 7-year-old girl performing sex acts.
Esposito and Boselli previously pleaded guilty for their roles in this case and are awaiting sentencing. Each faces a minimum mandatory penalty of 10 years, up to life, in federal prison.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Josephine W. Thomas.
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.
Syracuse Woman Pleads Guilty to Credit-Card Cloning OperationRead the Press Release
SYRACUSE, NEW YORK – Taylor Boyd-White, 26, of Syracuse, New York, pled guilty yesterday to operating a multi-year credit-card cloning operation, announced United States Attorney Richard S. Hartunian.
Boyd-White pled guilty to one count of wire-fraud conspiracy and one count of money-laundering conspiracy. As part of her guilty plea, she admitted her involvement in the scheme, which involved the purchase of hundreds of stolen credit card numbers belonging to victims. The credit card numbers were frequently obtained from computer hackers located overseas and were used to fabricate cloned credit cards. Boyd-White further admitted that she and her co-conspirators used the cloned credit cards to purchase tens of thousands of dollars in merchandise and prepaid gift cards. The prepaid gift cards were used to purchase United States Postal money orders, which were converted to cash. The scheme operated from 2014 through 2016 in Syracuse, New York, and in the state of Georgia. The wire fraud and money laundering conspiracy charges carry a maximum possible sentence of 20 years in prison, a fine of up to $500,000.00 and a term of supervised release of up to 3 years following any term of incarceration.
Boyd-White is scheduled to be sentenced on October 18, 2017, in Syracuse, New York. This case is being investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the City of Syracuse Police Department – Gang Violence Task Force, the New York State Police, and the Town of Dewitt Police Department, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Steven Wang aka Shui Cheng Wang Sentenced to Prison in Immigration CasesRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant STEVEN WANG, aka SHUI CHENG WANG, age 53, from Tamuning, was sentenced today in District Court to a 57-month term of imprisonment for Mail Fraud, Visa Fraud, Money Laundering, and Willful Failure to Pay Over Tax. WANG was also sentenced in a separate case to 57 months of imprisonment for Conspiracy to Commit Visa Fraud. The District Court ordered the terms to run consecutive. WANG will serve 114 months in federal prison for both cases. The Court also ordered three years of supervised release following imprisonment, in addition to a mandatory $500 assessment fee for both cases. WANG was also ordered to pay restitution in the amount of $1,622,352.98 to former Hua Sheng workers, $186,312.59 to the Internal Revenue Service, and $96,781 to an individual identified as J.P.W.
On January 30, 2012, WANG entered a guilty plea to an Indictment that charged Mail Fraud, in violation of 18 U.S.C. § 1341; Visa Fraud, in violation of 18 U.S.C. § 1546(a); Money Laundering, in violation of 18 U.S.C. § 1957; and Willful Failure to Pay Over Tax, in violation of 26 U.S.C. § 7202. WANG, as general manager of Hua Sheng International Group Corporation Limited (Hua Sheng), fraudulently petitioned over 173 H-2B workers. He represented that the workers would earn the Guam prevailing hourly wage for their occupations. WANG, among other things, further caused his office workers to print checks in the name of each Hua Sheng H-2B worker. The checks reflected the amount of legal wages owed and the appropriate deductions for Guam income tax, and Social Security and Medicare withholding. However, WANG never gave these checks to his workers. The investigation revealed that WANG actually paid the workers below prevailing wages, loaned them as labor to other companies, and housed them in deplorable conditions. WANG also falsely represented to Guam Department of Labor that Hua Sheng H-2B workers had departed Guam, when in fact they still remained on island.
While pending sentencing for the Hua Sheng matter, WANG also entered a guilty plea to a charge of Conspiracy to Commit Visa Fraud, in violation of 18 U.S.C. §§ 371, 1546(a) and 2. WANG worked for Dalian Hongda Baiye Group (USA), Inc., which was used by WANG to facilitate the fraud. WANG attempted to secure an L1 nonimmigrant visa for J.P.W. WANG further accepted approximately $96,781 knowing that J.P.W. had never worked for Dalian Hongda Baiye Group Co. Ltd., in China, all in violation of the L1 nonimmigrant visa requirements.
Acting U.S. Attorney Anderson stated, “This case demonstrates the importance of combined federal and local enforcement efforts to uphold the integrity of the H-2B visa program. The Hua Sheng workers suffered substantial financial losses as a result of Wang’s conduct. The Court’s sentencing order sends a strong message of accountability that these workers deserve.
The Guam business community continues to face difficulties in hiring qualified United States workers. The ability of employers to seek temporary relief though the H-2B visa program is diminished by those who engage in dishonest business practices that poison the foreign labor pools on which the program relies. This case further demonstrates the ongoing commitment by the Department of Justice to promote lawfulness in our immigration system.”
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations; Internal Revenue Service, Criminal Investigation; Federal Bureau of Investigation; and the U.S. Department of Labor, Wage & Hour Division working together with Guam Department of Labor. The case was prosecuted by Stephen F. Leon Guerrero, an Assistant United States Attorney for the District of Guam.
Statement by Attorney General Jeff Sessions on the Bishop International Airport Attack in Flint, MichiganRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the attack at Bishop International Airport in Flint, Michigan:
“I’ve just spoken with officials at the FBI about the attack on a police officer in Flint, Michigan that is being investigated as an act of terrorism. President Trump has prioritized the safety of all law enforcement officers, and this Department of Justice is committed to that goal. I want to assure all our law enforcement across the nation, any attack on someone who serves and protects our citizens will be investigated and prosecuted to the fullest extent of the law. I am proud of the swift response from the FBI and our federal prosecutors and their partnership with local police and the Canadian authorities. Our prayers are with the officer and his family for a full recovery.”
St. Lawrence County Man Convicted of Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Yesterday, following a seven-day trial, a federal jury in Utica, New York, convicted Stacey J. LaPorte, Jr., 26, of Massena, New York, of five counts of sexually exploiting four different children, and one count of receiving child pornography, announced United States Attorney Richard S. Hartunian and Russell Linstad, Resident Agent in Charge of Homeland Security Investigations (HSI), Massena, New York.
LaPorte was convicted of conspiring with Mackenzie Bailey, 21 of Massena, NY, to sexually exploit a child from infancy to age two, and with using that child to produce sexually explicit images on two specific occasions. He was also convicted of conspiring with Hillary Trimm, 26, also of Massena, to sexually exploit another child, who was less than one-year old. Both Bailey and Trimm pled guilty to the crimes they committed with LaPorte, and testified at trial.
LaPorte was also convicted of exploiting a twelve year-old boy and his sixteen year old sister by coercing them to have sexual contact with one another in order to provide explicit images of the conduct. He was further convicted of receiving child pornography from another user over the messaging program “Kik Messenger.”
“The jury heard a week’s worth of testimony about abhorrent acts and rendered a verdict that will hold the defendant accountable for his horrific criminal conduct. With our law enforcement partners, we will continue to investigate and prosecute such unfathomable crimes against the most vulnerable among us – babies and other children -- to the fullest extent of the law,” said United States Attorney Hartunian.
"The conviction of Mr. Laporte now paves the way to permanently block his access to children," said Russell Linstad, Resident Agent in Charge of HSI Massena." HSI special agents and our partners will remain relentless in our pursuit to ensure these predators are held accountable for their depraved acts."
At sentencing on October 19, 2017, LaPorte faces a mandatory minimum sentence of 15 years, but could be sentenced to up to 170 years in prison. He will also be required to serve a term of supervised release of at least 5 years, and up to life, after any term of imprisonment, and he will have to register as a sex offender.
This case was investigated by the New York State Police, the Massena Police Department, and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Sahar L. Amandolare.
This multi-agency approach is a hallmark of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
St. Albans man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. - A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Christopher Carte, 43, entered his guilty plea to conspiracy to distribute methamphetamine.
On February 9, 2017, Carte was stopped by law enforcement conducting surveillance after he was seen leaving a room at the Super 8 motel in Dunbar and officers found approximately one ounce of crystal methamphetamine in his jacket pocket. Carte admitted that he had gotten the methamphetamine from a known individual in the hotel room, and that he intended sell the drugs and pay that individual with the proceeds.
Carte faces up to 20 years in federal prison when he is sentenced on September 13, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge Joseph R. Goodwin is presiding over the case.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Somerville Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Somerville man pleaded guilty yesterday in federal court in Boston for failing to register as a sex offender.
James Mercer, 51, pleaded guilty to one count of failing to register as a sex offender before U.S. District Court Judge F. Dennis Saylor IV., who scheduled sentencing for Sept. 12, 2017.
Mercer was required to register as a Level 2 sex offender in Massachusetts after being convicted in 1992 and 1996 on state charges. He was convicted twice for failing to register – in 2007 in Florida state court and in 2015 in federal court in Boston.
Following his release from custody in relation to the 2015 federal conviction in Boston, Mercer left Massachusetts without reporting to authorities, as required by law. Mercer was located in California, where he was arrested for failing to update his sex offender registration in Massachusetts.
The charge provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. 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 U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sixteen Members and Associates of the Yung Money/Yung Gunz Bloods Street Gang Charged with Conspiracy to Transport Stolen Vehicles Across State Lines and Wire FraudRead the Press Release
LAS VEGAS, Nev. – Sixteen members and associates of the Yung Money/Yung Gunz Bloods street gang have been indicted with conspiracy to commit transportation of stolen vehicles and wire fraud, transportation of stolen vehicles, sale or receipt of stolen vehicles, and wire fraud, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
The 13-count indictment was returned by a grand jury in Las Vegas on June 14, 2017, and unsealed today. State and Federal law enforcement officials arrested individuals in Houston and Atlanta. The 16 defendants charged in the indictment are Channing Williams, a/k/a “Bhano,” 27, of Missouri City, Texas; Everly James, 27, of Houston, Texas; Korregan Washington, 28, of Houston, Texas; Keenan St. Hillaire, 26, of Missouri City, Texas; Maurice Lewis, a/k/a “Lew,” 22, of Missouri City, Texas; Kaleb Louis, a/k/a “Kay Lou,” 23, of Missouri City, Texas; Cody Williams-Jackson, a/k/a “Codeen,” 18, of Missouri, Texas; Torren James, a/k/a “Tee James,” 25, of Houston, Texas; Dominique Washington, a/k/a “D. Wash,” 24, of Missouri City, Texas; Demani Dancy, 21, of Houston, Texas; Trevionne Williams, 21, of Houston, Texas; Casey Walters Jr., 25, of Houston, Texas; Keith Bell, a/k/a “Daze,” 24, of Missouri City, Texas; Denzel Campbell, 26, of Houston, Texas; Trevaughn James, a/k/a “Lil Tre,” 21, of Missouri City, Texas; and Daniel Wilson, 24, of Missouri City, Texas.
The indictment alleges that, from July 2015 to about April 2017, the defendants conspired to fraudulently rent vehicles, then steal, transport, and sell the vehicles for profit, often at well-below the actual value of the vehicle. As alleged, they created and used fraudulent personal identification documents to open bank accounts and debit cards which they used to rent vehicles from car rental companies. The defendants are alleged to have stolen vehicles in Nevada, California, Texas, Tennessee, Arizona, and Florida, and transported some of the vehicles across state lines to sell them to unsuspecting victims. As alleged in the indictment, to further the scheme, the defendants produced fraudulent car titles and other documents to deceive buyers who were required to pay cash for the vehicle; the defendants placed advertisements to sell the stolen vehicles on websites such as Craigslist and OfferUp; and they used social media to communicate with each other and to brag about their criminal activities. The total approximate value of the stolen vehicles was $1,046,179.
The indictment also alleges that, on Nov. 15, 2016, Channing Williams and Lewis, transported a stolen Ford F-150 from California to Nevada, then sold the vehicle in Nevada and that, on Nov. 21, 2016, Channing Williams, Lewis, and Torren James transported a stolen Ford Expedition from California to Nevada then sold the vehicle in Nevada. The indictment further alleges that Channing Williams, Lewis, Williams-Jackson, Torren James, Washington, Dancy, Trevionne Williams, Walters, Bell, and Trevaughn James used fraudulent identifications to open bank accounts, to obtain debit cards, to rent vehicles, and to sell the stolen vehicles.
The defendants face a statutory maximum statutory penalty of five years in prison for conspiracy to commit transportation of stolen vehicles and wire fraud; a maximum penalty of 10 years each for transportation of stolen vehicles and sale or receipt of stolen vehicles; and a maximum penalty of 20 years for wire fraud. The defendants also face a period of supervised release, forfeiture, and monetary penalties.
The case is being investigated by the FBI Las Vegas Division, the Las Vegas Metropolitan Police Department, and the Houston Police Department with assistance from the FBI’s Houston and Atlanta Divisions. The case is being prosecuted by Assistant U.S. Attorneys Kilby Macfadden and Cristina D. Silva.
The charges contained in an indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Sex Trafficker Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – Rene Anthony Laureano, 31, of Roxbury, MA, was sentenced in U.S. District Court in Providence today to 24 months in federal prison for trafficking a Massachusetts female to Rhode Island for the purpose of prostitution.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Laureano to serve 3 years supervised release upon completion of his term of imprisonment. Laureano pleaded guilty on March 7, 2017, to transportation with the intent to prostitute.
Both the government and the defense recommended to the court a sentence of 60 months incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 46 to 57 months.
Laureano’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
At time of his guilty plea, Laureano admitted to the court that between January 2015 and March 2016, he met a female he knew to be engaged in prostitution and did aid and abet her in carrying out that endeavor by, among other things, driving her from Massachusetts to appointments with customers in Rhode Island, and by profiting directly and indirectly from her activity.
Laureano has been detained in federal custody since his arrest on May 23, 2016. A codefendant in this matter, Kedwin Vargas, 26, of Roxbury, MA, arrested on May 19, 2016, pleaded guilty on December 8, 2016, to transportation with the intent to prostitute. Vargas is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 30, 2017.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Rhode Island State Police and the FBI. Acting United States Attorney Stephen G. Dambruch thanks the Warwick, R.I., and Boston Police Departments for their assistance in the investigation.
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Rutland Man Sentenced to Three Years’ Imprisonment for Distribution of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kevin Williams (a.k.a. “Capone”and “Cap”), 44, was sentenced to three years’ imprisonment by U.S. District Judge Geoffrey Crawford for Williams’ distribution of heroin in the Rutland area in October 2015. Williams previously pled guilty to this offense. Williams is originally from Bronx, New York but more recently lived in the Rutland area. He has been in the custody of the U.S. Marshals Service since his arrest on February 16, 2016.
The maximum term of imprisonment for this offense is 20 years. In addition to imposing a three-year term of imprisonment, Judge Crawford sentenced Williams to the mandatory three-year term of supervised release, which will begin after Williams serves the prison term.
The government presented evidence at sentencing showing that Williams also organized a small prostitution ring in Rutland, in which Williams paid three women addicts with drugs in order to convince the women to prostitute themselves. Williams organized the prostitution and kept the cash the women earned, ranging from $50-$200 per session. The government’s evidence at sentencing showed that Williams used Backpage.com to advertise these women.
A 19-year-old victim testified at sentencing that in June 2015, just after she was released from DCF custody at age 18, she met Williams in Rutland and began buying heroin from him to feed her addiction. She testified she helped Williams deliver crack and heroin in exchange for heroin, which she then used. She also testified that on a few occasions Williams paid her in heroin to have sex with him. Finally, she testified that Williams asked her to prostitute herself, but she refused.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Vermont State Police Drug Task Force. The United States is represented by Assistant U.S. Attorney Joe Perella. The defendant is represented by William Kraham, Esq. of Brattleboro.
Restaurants Sentenced for Illegal Harboring of Aliens; Owners Sentenced for Unlawful EmploymentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that HOLLYWOOD EAST d/b/a EAST BUFFET and GRAND BUFFET, INC. were sentenced today after previously pleading guilty to Illegal Harboring of Aliens.
U.S. District Judge Kurt D. Engelhardt sentenced HOLLYWOOD EAST d/b/a EAST BUFFET, 2750 Severn Avenue, Metairie, and GRAND BUFFET, INC., 800 South Clearview Parkway, Suite L, Harahan, to five years probation and a $35,000 fine. According to court documents, both restaurants funded two separate residences in Jefferson Parish that harbored illegal aliens who worked in the restaurants, transporting them by van each day.
The individuals who owned the businesses, CHUI CHEUNG, age 41, YIK CHENG, age 36, and SAU CHEUNG, age 44, were sentenced after previously pleading guilty to Unlawful Employment of Aliens. Each individual was sentenced to two years probation and a fine of $5,000.
The investigation started when United States Immigration and Customs Enforcement (ICE) agents performed inspections of the restaurants. The restaurants did not report the workers to the Louisiana Workforce Commission. Federal search warrants were executed at both residences that yielded evidence of the employment and harboring of the illegal aliens.
Acting U.S. Attorney Evans praised the work of Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. was in charge of the prosecution.
Putnam County man sentenced to 10 years in federal prison for possessing child pornographyRead the Press Release
HUNTINGTON, W.Va. - A Putnam County man was sentenced today to 10 years in federal prison for a child pornography crime, announced United States Attorney Carol Casto. Scott Allen Forloine II, 36, of Scott Depot, previously pleaded guilty to possession of child pornography. After Forloine is released from prison, he will be on federal supervised release for 25 years and will also be required to register as a sex offender.
Forloine admitted that in April 2015, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were discovered on his personal computer located in his residence. Forloine was using a peer-to-peer file sharing program to download, receive, and distribute child pornography. The investigation also revealed that Forloine engaged in a pattern of sexually abusing and sexually exploiting a minor for approximately eight years.
The FBI, the West Virginia Internet Crimes Against Children Task Force, the West Virginia State Police, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Plant City Woman Sentenced in Identity Theft SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Fontella James (37, Plant City) to two years and eight months in federal prison for conspiracy and aggravated identity theft. She pleaded guilty on April 11, 2017.
According to court documents, James worked at Rotech Healthcare, Inc.’s Lakeland billing center. As an employee of Rotech, she had password-protected access to the company’s secure computerized databases that contained medical records and personally identifiable information (PII) of Rotech’s customers and patients, including names, dates of birth, and social security numbers. James agreed with fellow Rotech employee, co-defendant Sharmekia M. Young, to steal Rotech patient records containing PII to give to co-conspirator Vickie Bryant. James and Young provided the PII of hundreds of Rotech customers to Bryant so that she could sell the information to another individual (a confidential informant) who manufactured, sold, and used counterfeit credit cards and counterfeit Florida driver licenses. On June 9, 2016, and again the following week, Bryant met with the informant and sold him 957 different victims’ PII contained in printed medical records that had been stolen by James and Young.
On December 13, 2016, Bryant was sentenced to four years’ imprisonment for access device fraud and aggravated identity theft. Young has pleaded guilty and is awaiting sentencing.
This case was investigated by United States Secret Service, the Florida Department of Law Enforcement, and the Tampa Police Department, as part of the Secret Service’s Financial Investigations Strike Team. It is being prosecuted by Assistant United States Attorneys Rachel Jones, Amanda Riedel, and Adam Saltzman.
Owner of Computer School Admits $2.8 Million Veterans’ Retraining Assistance Program Education FraudRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, woman who owned a computer training center today admitted stealing $2.8 million from a program designed to help veterans find employment, Acting U.S. Attorney William E. Fitzpatrick announced.
Elizabeth Honig, 52, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Peter Sheridan in Trenton federal court to an information charging her with one count of theft of government funds
According to documents filed in this case and statements made in court:
Honig owns Computer Insight Learning Center (CILC), a computer training school based in Eatontown, New Jersey. She helped 182 veterans enroll to receive federal funding under a program – funded by the Department of Veterans Affairs (VA) and the Department of Labor – designed to help older, unemployed veterans receive training and find employment in high demand occupations. The vast majority of these veterans were either not eligible or not actually attending the training.
Honig’s program was approved by the VA to provide education and training to military veterans, including veterans who received tuition assistance under the Veteran’s Retraining Assistance Program (VRAP), which offered up to 12 months of benefits for older, unemployed veterans between the ages of 35 and 60. This program provided training assistance to unemployed veterans for programs designed to lead to a high-demand occupation.
Honig admitted she logged on to the applications system more than 100 times and certified that she was the actual veteran who was applying for benefits. She supplied false information about employment status to qualify to attend her school and receive funding from the VA. Honig then certified to the VA that the veterans enrolled in her Business Software Applications Program – approved by the VA as a 14-week course costing approximately $4,000 – were attending for up to one year. Honig also certified that the veterans were attending full-time, in-class, knowing that 62 of those veterans lived out of the state. CILC is not eligible to be approved to provide online education.
Honig allowed veterans to attend less than the required hours, to stop attending prior to completion, or, in many cases, never attend at all. Honig failed to report the non-attendance to VA, which is required by law after 30 days of non-attendance, as long as the veterans continued to pay her a monthly fee. This caused the VA to continue payments to veterans who were not entitled to the funds. Honig’s monthly fee of approximately $750 also resulted in overpayments by veterans far in excess of the VA approved $4,000 course tuition.
The count to which Honig pleaded guilty carries a maximum punishment of 10 years in prison and a fine of either $250,000, twice the gross amount of her gain from the crime, or twice the loss suffered by any victims, whichever is greatest. Sentencing is scheduled for Sept. 25, 2017.
Acting U.S. Attorney Fitzpatrick credited the Northeast Field Office, U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Donna L. Neves; and the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the Healthcare and Government Fraud Unit in Newark.
Defense counsel: Evan Nappen Esq., Eatontown
Orlando Armed Career Criminal Sentenced to 15 Years for Possession of A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Mario Donate Lockhart (37, Orlando) to 15 years in federal prison for possessing a firearm as a convicted felon. Due to his multiple prior felony convictions, he qualified for an increased penalty as an Armed Career Criminal. He pleaded guilty on March 14, 2017.
According to court documents, on August 29, 2016, Lockhart threatened to kill an individual while holding a loaded semiautomatic firearm with a bullet in the chamber. He then pointed the firearm at another individual as officers from the Orlando Police Department arrived on the scene and ordered him to drop the weapon. Lockhart ignored these requests and ran from the officers with the firearm in his hand. He was apprehended a short time later and the firearm was recovered. At the time of the offense, Lockhart had multiple prior felony convictions and therefore was prohibited from possessing firearms or ammunition under federal law.
This case was investigated by ATF and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Operation “Real Time”: Pickens Man Sentenced in Federal Court for Possession of a Pipe BombRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Matthew Joseph Kelly, age 29, of Pickens, South Carolina, was sentenced to 46 months in federal prison today by United States District Judge Timothy M. Cain. Kelly previously entered a guilty plea in federal court on January 18, 2017, for possessing a destructive device.
Evidence presented at the change of plea hearing established that on August 19, 2016, agents with the U.S. Marshals Fugitive Task Force along with deputies from the Pickens County Sheriff’s Office had an arrest warrant for an individual believed to be at a residence in Easley, SC. While at this residence, agents encountered Kelly and obtained permission to search his belongings. This search revealed a pipe bomb in a bag belonging to Kelly.
Kelly was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to possess firearms in the Upstate community.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 115 defendants and seizure of over 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office adopting the case. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The case was investigated by the U.S. Marshals Fugitive Task Force, the Pickens County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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Operation "Real Time": Anderson Man Sentenced in Federal Court for Possessing Firearm and AmmunitionRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Nicholas Blake Cason, age 28, of Anderson, South Carolina, was sentenced to 78 months in federal prison today by United States District Judge Timothy M. Cain. Cason previously entered a guilty plea in federal court on July 21, 2016, for possessing a firearm and ammunition as a prohibited person.
Evidence presented at the change of plea hearing established that, on February 22, 2016, a deputy with the Greenville County Sheriff’s Office (GCSO) encountered Cason while looking for another individual. During that interface, GCSO discovered that Cason was in possession of drugs and a loaded 9mm pistol. Due to his prior criminal history and record, Cason is prohibited by federal law from possessing firearms or ammunition.
Cason was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 115 defendants and seizure of over 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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Okmulgee Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that THOMPSON CHRISTOPHER KYLE MANDRELL, age 30, of Okmulgee, Oklahoma, pled guilty to POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by up to 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that between on or about July 7, 2014, and on or about September 21, 2016, in the Eastern District of Oklahoma, the defendant, THOMPSON CHRISTOPHER KYLE MANDRELL, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
New Haven Man Admits Role in Large-Scale Fencing OperationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ANDREW SACCO, 44, of New Haven and formerly of Durham, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to charges stemming from his participation in a large-scale fencing operation.
According to court documents and statements made in court, between January 2012 and December 2014, SACCO participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resold the property at online websites. SACCO, his co-conspirator Matthew Harwood, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price.
After receiving the stolen merchandise, SACCO and Harwood stored the merchandise at multiple locations, including SACCO’s former residence in Durham and business locations in North Haven. SACCO and Harwood then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
SACCO pleaded guilty to one count of conspiracy to commit interstate transport of stolen property, which carries a maximum term of imprisonment of five years, and one count of interstate transport of stolen property, which carries a maximum term of imprisonment of 10 years.
In pleading guilty, SACCO also agreed to forfeit the house in Durham where he formerly resided.
SACCO has been released on a $100,000 bond since his arrest on July 15, 2016.
Judge Shea has scheduled sentencing for September 13, 2017.
On November 3, 2016, Harwood pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property. He awaits sentencing.
This matter is being investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
New Bedford Man Sentenced for Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON - A New Bedford man was sentenced yesterday in federal court in Boston for his role in a heroin and fentanyl drug trafficking operation based in and around Taunton.
Cory Nickerson, 33, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 71 months in prison and three years of supervised release. In March 2017, Nickerson pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
After a 15-month federal investigation, Nickerson and 25 others were arrested and charged with various drug offenses connected to the trafficking of heroin and fentanyl in Taunton and surrounding communities. The investigation targeted all levels of the drug trafficking operation: major suppliers, middlemen, and lower level dealers/users. Nickerson was in the mid-to-lower tier of the conspiracy, primarily arranging deals for a third party while he himself was using heroin.
Of the 26 defendants indicted, 21 have pleaded guilty and nine, including Nickerson, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Mother Who Fled Country with Daughters Sentenced for Identity TheftRead the Press Release
KANSAS CITY, KAN. – A Lawrence woman who pleaded guilty to forging her ex-husband’s signature on official documents when she fled to Europe with her daughters was sentenced Tuesday to three years on probation including six months home confinement, U.S. Attorney Tom Beall said today.
Samantha C. Elmer, 34, Lawrence, Kan., pleaded guilty to one count of aggravated identity theft. In her plea she admitted she forged her husband’s signature on a document giving her consent to take their two daughters to Europe. She filed the document as part of the process of getting passports for the girls.
Elmer was charged after she returned from Europe with the girls, who were 9 and 11 years old.
Beall commended the following agencies that worked on the investigation: the Lawrence Police Department, the FBI, Homeland Security Investigations, the Douglas County District Attorney’s Office, the Eudora Police Department, the Overland Park Police Department and the Johnson County District Attorney’s Office, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley.
Middleman Pleads Guilty in Foreign Bribery and Fraud Scheme Involving Potential $800 Million International Real Estate DealRead the Press Release
The middleman in a foreign bribery scheme pleaded guilty today to wire fraud and money laundering charges for his role in a scheme to bribe a foreign official in the Middle East to land a real estate deal, and to defrauding his co-schemers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
Malcolm Harris pleaded guilty to wire fraud and money laundering charges arising from his role as a middleman in a corrupt scheme to pay millions of dollars in bribes to a foreign official (“Foreign Official-1”) of a country in the Middle East (“Country-1”). The bribes were intended to facilitate the sale by South Korean construction company Keangnam Enterprises Co., Ltd. (“Keangnam”) of a 72-story commercial building known as Landmark 72 in Hanoi, Vietnam, to Country-1’s sovereign wealth fund (the “Fund”) for $800 million. Instead of paying an initial $500,000 bribe to Foreign Official-1 as he had promised, Harris simply pocketed the money and spent it on himself. Harris pleaded guilty before U.S. District Judge Edgardo Ramos who is scheduled to sentence Harris on September 27.
According to the allegations contained in the Indictment to which Harris pleaded guilty, and statements made during the plea and other court proceedings:
From in or about March 2013 through in or about May 2015, Harris co-defendants Joo Hyun Bahn, a/k/a “Dennis Bahn” (“Bahn”) and his father Ban Ki Sang (“Ban”) engaged in an international conspiracy to bribe Foreign Official-1 in connection with the attempted $800 million sale of a building complex in Hanoi, Vietnam, known as Landmark 72.
During this time, Ban was a senior executive at Keangnam, a South Korean construction company that built and owned Landmark 72. Ban convinced Keangnam to hire his son Bahn, who worked as a broker at a commercial real estate firm in Manhattan, to secure an investor for Landmark 72.
Instead of obtaining financing through legitimate channels, Bahn and Ban engaged in a corrupt scheme to pay bribes to Foreign Official-1, through Harris, who held himself out as an agent of Foreign Official-1, to induce Foreign Official-1 to use his influence to convince the Fund to acquire Landmark 72 for approximately $800 million. In furtherance of the scheme, Harris sent Bahn numerous emails purportedly sent by Foreign Official-1 and bearing Foreign Official-1’s name. In or about April 2014, following communications with Harris, Bahn and Ban agreed to pay, through Harris, a $500,000 upfront bribe and a $2,000,000 bribe upon the close of the sale of Landmark 72 to Foreign Official-1 on behalf of Keangnam.
Unbeknownst to Bahn or Ban, however, Harris did not have the claimed relationship with Foreign Official-1 and did not intend to pay the bribe money to Foreign Official-1. Instead, Harris simply stole the $500,000 upfront bribe arranged by Bahn and Ban, which Harris then spent on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
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Harris, 53, of San Miguel de Allende, Mexico, pleaded guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conducting monetary transactions in illicit funds, which carries a maximum sentence of 10 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.
The case against Bahn is pending before Judge Ramos, and Ban is a fugitive believed to be residing in South Korea. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in New York City investigated the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel S. Noble of the Southern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Middleman Pleads Guilty in Foreign Bribery and Fraud Scheme Involving Potential $800 Million International Real Estate DealRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Kenneth A. Blanco, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, announced that MALCOLM HARRIS pled guilty to wire fraud and money laundering charges arising from his role as a middleman in a corrupt scheme to pay millions of dollars in bribes to a foreign official (“Foreign Official-1”) of a country in the Middle East (“Country-1”). The bribes were intended to facilitate the sale by South Korean construction company Keangnam Enterprises Co., Ltd. (“Keangnam”) of a 72-story commercial building known as Landmark 72 in Hanoi, Vietnam, to Country-1’s sovereign wealth fund (the “Fund”) for $800 million. Instead of paying an initial $500,000 bribe to Foreign Official-1 as he had promised, HARRIS simply pocketed the money and spent it on himself. HARRIS pled guilty before U.S. District Judge Edgardo Ramos, who is scheduled to sentence HARRIS on September 27, 2017.
Acting U.S. Attorney Joon H. Kim said: “As he has now admitted, Malcolm Harris schemed to bribe a foreign official, and then double-crossed even his own co-conspirators, pocketing $500,000 intended as a bribe. Harris then spent that money on his own lavish personal expenses. As the saying goes, there is no honor among thieves, and Harris confirmed that today with his guilty plea.”
According to the allegations contained in the Indictment to which HARRIS pled guilty, and statements made during the plea and other court proceedings:
From in or about March 2013 through in or about May 2015, HARRIS’s co-defendants Joo Hyun Bahn, a/k/a “Dennis Bahn” (“Bahn”), and his father Ban Ki Sang (“Ban”) engaged in an international conspiracy to bribe Foreign Official-1 in connection with the attempted $800 million sale of a building complex in Hanoi, Vietnam, known as Landmark 72. During this time, Ban was a senior executive at Keangnam, a South Korean construction company that built and owned Landmark 72. Ban convinced Keangnam to hire his son Bahn, who worked as a broker at a commercial real estate firm in Manhattan, to secure an investor for Landmark 72.
Instead of obtaining financing through legitimate channels, Bahn and Ban engaged in a corrupt scheme to pay bribes to Foreign Official-1, through HARRIS, who held himself out as an agent of Foreign Official-1, to induce Foreign Official-1 to use his influence to convince the Fund to acquire Landmark 72 for approximately $800 million. In furtherance of the scheme, HARRIS sent Bahn numerous emails purportedly sent by Foreign Official-1 and bearing Foreign Official-1’s name. In or about April 2014, following communications with HARRIS, Bahn and Ban agreed to pay, through HARRIS, a $500,000 upfront bribe and a $2 million bribe upon the close of the sale of Landmark 72 to Foreign Official-1 on behalf of Keangnam.
Unbeknownst to Bahn or Ban, however, HARRIS did not have the claimed relationship with Foreign Official-1 and did not intend to pay the bribe money to Foreign Official-1. Instead, HARRIS simply stole the $500,000 upfront bribe arranged by Bahn and Ban, which HARRIS then spent on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
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HARRIS, 53, of San Miguel de Allende, Mexico, and formerly of New York, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of conducting monetary transactions in illicit funds, which carries a maximum sentence of 10 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.
The case against Bahn is pending before Judge Ramos, and Ban is a fugitive believed to be residing in South Korea. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
Mr. Kim praised the outstanding investigative work of the International Corruption Squad of the FBI’s New York Field Office. Mr. Kim also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
Mexican National Sentenced to Prison for Fraudulent Identification Document ConspiracyRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Humberto Ginez-Edmundo, 26, of Mexico, to 34 months in prison and one year of supervised release on fraudulent identification document conspiracy and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
According to filed court documents and today’s sentencing hearing, beginning in at least November 2015, Ginez-Edmundo produced and transfered fraudulent identification documents, including but not limited to, Social Security cards, state identification cards, driver’s licenses, and permanent residence cards. Ginez-Edmundo sold the falsified documents to other individuals, some of whom were undocumented aliens, knowing the documents would be used as proof of eligibility to remain in and work in the United States. Court records show that Ginez-Edmundo charged individuals between $130 to $600, depending on the type of fraudulent identification documents he provided.
Ginez-Edmundo is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.
ICE-HSI led the investigation. Assistant United States Attorneys Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.