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Friday 5 May 2017
Defendants in Calcasieu Parish methamphetamine distribution conspiracy sentencedRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that five defendants were sentenced for their roles in a methamphetamine conspiracy.
United States District Judge Donald E. Walter sentenced Steven Paul Meaux, 32, of Lake Charles, La.; Arielle Marie Ardoin, 33, of Kinder, La.; Troy Lane Touchet, 42, of Jennings, La.; Jose Rosalio Mendez-Gonzalez, 41, of Garland, Texas; and Jorge Massu, 33, of Garland, Texas, on charges of possession with intent to distribute methamphetamine in the Lake Charles area. Sentencing information is detailed below:
Defendants Prison term Supervised release Counts* Meaux 44 months 5 years 2 Ardoin 24 months 3 years 3 Touchet 84 months 5 years 3 Mendez-Gonzalez 24 months 5 years 4 Massu 120 months 5 years 4* Counts 2 and 3 are possession of 50 grams or more of a mixture or substance containing methamphetamine with intent to distribute. Count 4 is possession of 500 grams or more of a mixture or substance containing methamphetamine with intent to distribute.
According to the guilty pleas, the defendants conspired to obtain methamphetamine from sources in the Houston and Dallas areas between March 2014 through September 2014, which they distributed in the Calcasieu Parish area. Law enforcement agents recovered approximately 2 kilograms of methamphetamine in the Lake Charles area for distribution.
The Department of Homeland Security and the Calcasieu Anti-drug Task Force conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Dallas Woman Sentenced to 24 Months in Federal Prison for Defrauding the IRS with an Aggravated Identity Theft SchemeRead the Press Release
DALLAS — Alicia Gardner, 43, of Dallas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 24 months in federal prison for aggravated identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.
Gardner pleaded guilty to one count of aggravated identity theft. Judge Fitzwater ordered Gardner to surrender to the Bureau of Prisons on June 20, 2017. Gardner was also ordered to pay $384,391.99 in restitution to the Internal Revenue Service.
According to documents filed in her case, from approximately January 11, 2013 to March 1, 2013, Gardner knowingly and intentionally participated in a scheme to defraud the Internal Revenue Service (IRS). More specifically, Gardner electronically filed tax returns for the tax year 2012 with her EFIN under taxpayers’ names and social security numbers without the taxpayers’ knowledge or consent. At her consent, the IRS issued refund checks to her as opposed to the unsuspecting taxpayers. Some of those checks were in the taxpayer’s names. Gardner and/or her unindicted coconspirator then proceeded to forge the signatures of the taxpayers on the refund checks and cash them. For instance, on November 11, 2013, Gardner electronically submitted a tax return with a refund request of $1,112 for K.V., without K.V.’s knowledge or consent. Gardner then endorsed and cashed the refund check.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Andrew Wirmani prosecuted.
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Dallas Man Sentenced to 240 Months in Federal Prison for Distributing Child PornographyRead the Press Release
DALLAS, Texas — Christopher Dale Gann, 30, of Dallas, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison, following his guilty plea in December 2016 to one count of distribution of a visual depiction of a minor engaged in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Gann has been in custody since the date of his arrest in October 2016.
According to plea documents, on August 22, 2016 law enforcement encountered Gann in Dallas, Texas. Gann was in possession of a cellular phone as well as three memory cards. A forensic examination of Gann’s phone revealed the presence of a still image of a minor engaged in sexually explicit conduct. Gann communicated that same day with an individual on the Kik Instant Messaging application and sent the image from his phone.
The cases were brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Dallas Man Sentenced to 110 Months in Federal Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
DALLAS — Al Torrell Beasley, a/k/a “Rody,” 39, of Dallas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 110 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to distribute a controlled substance, announced U.S. Attorney John Parker of the Northern District of Texas.
Beasley and twenty additional defendants, mostly from north Texas and Oklahoma, were arrested in May 2015 in a joint operation led by the Dallas Police Department, Dallas County Sheriff’s Office and the Dallas FBI – Violent Gang Safe Streets Task Force.
Of the twenty-one defendants who were indicted, 19 have pleaded guilty and 16 of those have been sentenced. Charges against one defendant were dismissed, and one remains a fugitive.
According to documents filed in the case, on several occasions between January 2013 and May 2015, Beasley possessed with the intent to distribute and distributed cocaine base in the Dallas area for co-defendant Roger Jackson from an apartment complex on Peabody Road in Dallas. Beasley often used a cellular telephone to discuss, negotiate, and facilitate drug transactions with his co-conspirators, which were his source of supply and/or customers.
During the period that the conspiracy was ongoing, Beasley possessed with the intent to distribute and/or distributed 189.75 grams of a mixture or substance containing a detectable amount of cocaine base and 148.75 grams of cocaine.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Phelesa Guy prosecuted.
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Dallas Man Arrested on Federal Child Sex Trafficking ChargeRead the Press Release
DALLAS, Texas — Johnathon Deontre Smith, 25, of Dallas, is in federal custody on a sex trafficking of children charge outlined in an indictment filed earlier this week, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith made his initial appearances today before U.S. Magistrate Judge Paul D. Stickney. A detention hearing is scheduled for May 11, 2017.
The indictment alleges that from January 23, 2017 through February 6, 2017, Smith recruited, enticed, harbored, transported, provided, obtained, advertised, maintained, patronized, and solicited Jane Doe, a female under the age of 18 years old, to engage in commercial sex acts.
A defendant is entitled to the presumption of innocence until proven guilty. However, if convicted, the maximum statutory penalty for each of the offenses charged is life in federal prison and a $250,000 fine.
The Federal Bureau of Investigation is investigating. Assistant U.S. Attorney Nicole Dana is in charge of the prosecution.
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Crawford County Man Sentenced for Distributing Child PornRead the Press Release
WICHITA KAN. - A Crawford County man was sentenced Thursday to five years in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Mark D. Busby, 48, Mulberry, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he installed software from the Ares file-sharing network on his computer and used it download child pornography and share it with other users. An investigator with the Kansas Internet Crimes Against Children Task Force downloaded child pornography from Busby’s computer.
Beall commended the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. attorney Jason Hart for their work on the case.
Colombian National Pleads Guilty to International Money LaunderingRead the Press Release
BOSTON – A Colombian National pleaded guilty yesterday in federal court in Boston for his role in a conspiracy to launder money from various international locations back to Colombia.
Pedro Mejia Salazar, 73, of Medellin, Colombia, was charged with one count of conspiracy to launder money. Mejia arrived in Boston from Colombia on May 3, 2017, and appeared in U.S. District Court in Boston yesterday to plead guilty to the charge against him. Mejia’s sentencing was set for July 27, 2017.
According to court documents, Mejia used a family business, which he ran, to launder drug proceeds for and on behalf of the criminal syndicate La Oficina de Envigado, based in Medellin, Colombia. Between May 2009 and June 2012, Mejia laundered at least $768,586 in drug proceeds at the direction of Colombian-based money brokers working for La Oficina.
Mejia controlled a series of bank accounts, which he used to launder drug proceeds and deliver them for the benefit of Colombian-based drug trafficking organizations. Mejia’s criminal activity was uncovered with the help of a cooperating source and an undercover federal agent who posed as a money broker. The undercover agent agreed to receive bulk cash from money couriers working for Colombian-based drug trafficking organizations and then send the money through Mejia’s business accounts. The ultimate recipients of the funds were the Colombian narco-traffickers and the money brokers that work for them. Once the undercover agent received bulk cash from money couriers, the agent would call Mejia, who directed the agent to transfer the cash to a series of accounts Mejia controlled. After the wire transfers were completed, Mejia withdrew the money from the accounts he controlled and distributed it in Colombia to whomever originally arranged the pick-up, either drug trafficking organizations or money brokers.
The charge of conspiracy to launder money provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $500,000 or twice the value of the property involved in the offense. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Operation Powerplay, an international undercover investigation targeting Colombia-based money brokers who launder drug proceeds for international drug trafficking organizations. The investigation targeted drug traffickers who import drugs into the United States and money launderers who use the international financial system and the Black Market Peso Exchange to return drug proceeds collected in the United States and other countries to Colombia. To date, the investigation has resulted in the seizure of approximately $15.2 million, 3,967 kilograms of cocaine, 32,000 doses of MDMA, nine kilograms of methamphetamine, 1,183 kilograms of marijuana, and 7.8 kilograms of heroin.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation, Boston Field Division; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant United States Attorneys Leah B. Foley and Nathaniel R. Mendell of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
Coleman, Texas Man Sentenced to 71 Months in Federal Prison on Firearm and Drug ConvictionsRead the Press Release
LUBBOCK — Calvin Joel Polk, 50, of Coleman, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 71 months in federal prison, following his guilty plea in January 2017, announced U.S. Attorney John Parker of the Northern District of Texas.
Polk pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of convicted felon in possession of firearms and ammunition. Polk has been in custody since the time of his arrest in December 2016.
According to documents filed in the case, on June 20, 2016, officers with the Coleman, Texas, Police Department responded to a domestic disturbance call. Officers arrived at the scene and made contact with Polk. Polk told officers that there was a female in the residence and officers entered the residence to check her welfare. While speaking with the female, officers noticed in plain view a clear plastic bag containing suspected methamphetamine. The female stated the substance belonged to Polk and he was placed under arrest. After being handcuffed, Polk ran from the officers and was eventually detained and taken to the Coleman Police Department. The female remained at the scene and gave officers consent to search the residence for other contraband. Officers located suspected methamphetamine in various locations in the residence. Officers also located digital scales and other items consistent with the sale of methamphetamine. The Texas Department Public Safety Crime Lab tested a portion of the substance and it showed positive for methamphetamine and weighed a total of 38.65 grams.
The female also told officers that Polk, a person who had previously been convicted of a crime punishable by a term of imprisonment exceeding once year, had several firearms in the residence. Officers located 6 firearms and approximately 263 rounds of .22 caliber ammunition.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and Coleman Police Department investigated the case. Assistant U.S. Attorney Sean Long prosecuted.
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Clearwater Man Pleads Guilty to Theft of Government FundsRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Craig Reckley (56, Clearwater) has pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the
plea agreement , Reckley deposited 37 U.S. Treasury checks made payable to others into his business bank account. These checks, totaling more than $166,000, were tax refund checks that had been issued by the Internal Revenue Service as the result of the filing of false and fraudulent income tax returns.This case was investigated by the Internal Revenue Service - Criminal Investigation, with the assistance of the Clearwater Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
California man pleads guilty to federal methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A California man pleaded guilty today to a federal methamphetamine crime, announced United States Attorney Carol Casto. Edgar Zendejas Bedoy, 35, of El Centro, entered his guilty plea to conspiracy to distribute five grams or more of methamphetamine.
Bedoy admitted that beginning in December 2011 and continuing into 2012, he conspired with Gary Liberty to send packages of methamphetamine and marijuana from California to an individual in Sissonville for distribution. The individual was actually a confidential informant cooperating with the Metropolitan Drug Enforcement Network Team. Through discussions with the informant, Gary Liberty agreed to arrange methamphetamine and marijuana deals for Bedoy with the informant. Liberty negotiated the price of the drugs for Bedoy with the informant, and the two then agreed to ship the packages containing methamphetamine and marijuana from California to the informant in West Virginia. Bedoy admitted to shipping 472 grams of methamphetamine and nearly 12 kilograms of marijuana to West Virginia for distribution.
Bedoy faces at least five and up to 40 years in federal prison when he is sentenced on July 27, 2017. Liberty was previously sentenced to 10 years in federal prison for methamphetamine trafficking.
The Metropolitan Drug Enforcement Network Team, U.S. Immigration and Customs Enforcement, part of the Department of Homeland Security, and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This prosecution is 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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California Man Sentenced for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Acting United States Attorney, Robert C. Stuart, announced that on May 4, 2017, Musa J. Harris, 27, of Oakland, California, was sentenced to five years and ten months (70 months) in prison for his involvement in a conspiracy to distribute methamphetamine and heroin between November of 2012 and April of 2015. Information obtained by law enforcement indicated that in the fall of 2013, Musa Harris was involved in the distribution of at least five kilograms (11 pounds) of methamphetamine and approximately one kilogram of heroin. Following the prison term, Musa Harris will serve three years on supervised release.
Musa Harris’s brother, Isa M. Harris, was sentenced on March 10, 2017, to 11 years and eight months (140 months) in prison, to be followed by a five-year term of supervised release for his participation in the same conspiracy.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Early, 32, of Buffalo, NY, pleaded guilty to possession with intent to distribute cocaine before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that on September 27, 2013, the Drug Enforcement Agency and Buffalo Police Department executed search warrant at 66 Connelly Avenue in Buffalo. During the search, officers found crack cocaine and $6,495 in cash.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 23, 2017, at 2:00 p.m. before Judge Skretny.
Bronx Attorney Sentenced to Prison for Preparing Fraudulent Tax Returns for ClientsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Stuart M. Goldberg, the Acting Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced today that WILLIAM DOONAN, an attorney who operated a tax preparation business in the Bronx, New York, was sentenced today to 24 months in prison by U.S. District Judge Vernon S. Broderick for preparing and filing thousands of false and fraudulent returns that claimed more than $6 million in bogus deductions. DOONAN pled guilty on November 1, 2016, before Judge Broderick to one count of aiding and assisting in the preparation of a false tax return, and one count of obstructing and impeding the due administration of internal revenue laws.
Acting Manhattan U.S. Attorney John H. Kim said: “William Doonan’s so-called ‘business’ didn’t prepare taxes, it manufactured lies and false tax returns that resulted in more than $1.8 million in lost revenue for the IRS. In filing thousands of federal tax returns, Doonan used his legal knowledge to circumvent the law. Thanks to the dedicated investigators of the IRS, he will be held to account for his criminal misdeeds.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “William Doonan used his status as an attorney to attract clients to his tax preparation business. But instead of performing honest and professional work, he routinely falsified their returns, adding more than $6 million in phony deductions and causing the IRS to incur more than $1.8 million in lost taxes. Doonan’s prison sentence today makes clear that those who prepare and file fraudulent returns face significant penalties.”
According to the allegations in the Information to which DOONAN pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
DOONAN, a New York-licensed attorney since 1982, carried out a tax preparation business in the Bronx using the firm name “William Doonan, Esq.” Every year from 2010 through 2013, DOONAN prepared and filed between 3,000 and 5,000 federal tax returns with the Internal Revenue Service (“IRS”) for taxpayer-clients in exchange for a fee. Several thousands of these returns were false and fraudulent in that they attached Schedules C to the clients’ returns that reported “consulting” businesses the clients did not own, operate, or materially participate in, and business losses that the relevant clients did not incur. DOONAN also prepared returns that attached Schedules A that reported false medical and dental expenses, state and local taxes, home mortgage interest, gifts to charity, job expenses, and other miscellaneous deductions. Between tax year 2009 through tax year 2012, DOONAN included in excess of $6 million in these fabricated and inflated items on his clients’ federal tax returns. As part of his plea, DOONAN agreed that he caused a tax loss of between $1.5 and $3.5 million.
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In addition to the term of imprisonment, DOONAN, 69, of the Bronx, New York, was sentenced to one year of supervised release, ordered to pay $65,820 in restitution to the IRS, and ordered to pay a fine of $10,000.
Mr. Kim and Mr. Goldberg praised the outstanding efforts of IRS-Criminal Investigation in the investigation.
This case is being handled by the U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit. Special Assistant U.S. Attorney Jorge Almonte of the Department of Justice’s Tax Division is in charge of the prosecution.
Bristol Man Charged with Intent to Distribute Heroin and FirearmRead the Press Release
Dwayne J. Lynch, 28, of Bristol, Pennsylvania, was charged on May 4, 2017 by Indictment[1] with possession with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and for being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Louis D. Lappen. The indictment charges that on or about March 21, 2016, in Bristol, Lynch possessed heroin, which he intended to distribute, and also possessed a Remington model 870 Wingmaster sawed-off shotgun with a 13-inch barrel cut from the original length of 18 inches, bearing serial number S096668V, loaded with four live rounds and one spent shell casing, during and relation to a drug trafficking crime, after having been convicted of a felony.
If convicted of all counts, Lynch faces a maximum sentence of life imprisonment, with a mandatory 10-year minimum sentence consecutive to any other sentence imposed, a $1,500,000 fine, a mandatory-minimum three years up to lifetime supervised release, and a $300 special assessment.
This case has been investigated by the Federal Bureau of Investigation (FBI), and the Bristol Borough Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bangor Man Sentenced to over 18 Years for Conspiring to Distribute HeroinRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Mario Lee, a/k/a “Moe”, 42, of Bangor, and formerly of the Bronx, New York, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 218 months in prison and eight years of supervised release for conspiring to possess with the intent to distribute 100 grams or more of heroin. Lee pled guilty on October 31, 2016.
According to court records, between August 2013 and September 2015, Lee conspired with others to distribute heroin in the Bangor area and elsewhere. Lee supplied heroin to dealers in the Bangor area and surrounding communities. Co-conspirators introduced customers to Lee, drove him to heroin transactions and allowed him to use their residences to distribute heroin. Lee paid them with heroin. Lee faced enhanced penalties as a result of a prior drug trafficking conviction in New York.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Atlanta Man Sentenced for “Operation Homeless” Fraud SchemeRead the Press Release
BOISE – Nichlas Simpson, 28, of Atlanta, Georgia, was sentenced to 10 months in prison followed by three years of supervised release for committing bank fraud, Acting U.S. Attorney Rafael Gonzalez announced. Senior U.S. District Judge Edward J. Lodge also ordered Simpson to pay back $21,249.17 in restitution to victims of his scheme. Simpson pleaded guilty on February 21, 2017.
Pursuant to his plea agreement, Simpson came to Idaho and perpetrated a fraud scheme known throughout the country as “Operation Homeless.” Simpson and his co-conspirators started by stealing local businesses’ checks from postal boxes. Simpson then traveled to Boise-area homeless shelters and recruited homeless youth for the scheme, telling them that they would be performing day labor for a construction business. Instead, the co-conspirators created forged checks that were made payable to the homeless individuals and were drawn on the accounts of the businesses whose checks had been stolen from the mail. Simpson then directed the homeless individuals to cash the checks at local banks. Simpson and his co-conspirators kept the vast majority of the proceeds.
“This sentence is a just punishment for Simpson’s fraud and for the financial harm he caused his victims,” said Gonzalez. “The Court’s restitution order is an important step in achieving justice for the financial damage Simpson caused his victims.”
"The Postal Inspection Service is dedicated to protecting the security of the U.S. Mail system and holding those accountable who would victimize the Postal Service and its customers,” said Anthony Galetti, Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service.
The case was investigated by the U.S. Postal Inspection Service and the Boise Police Department.
Alleged Bank Robbers Face Federal Indictments; Edmunds Charged with Seven Robberies,Read the Press Release
SALT LAKE CITY – A federal grand jury returned two indictments Wednesday afternoon charging two individuals with recent alleged robberies of banks and credit unions in Salt Lake, Utah, and Davis counties.
Bret Michael Edmunds, age 41, of Salt Lake City is charged with seven counts of bank robbery for a string note-job robberies between February and April in Salt Lake and Utah counties.
The indictment alleges Edmunds committed the following robberies:
Feb. 8, 2017, robbery of Jordan Credit Union in Midvale
Feb. 23, 2017, robbery of Zions Bank in Midvale
Mar. 1, 2017, robbery of Washington Federal Bank in Salt Lake City
Mar. 14, 2017, robbery of US Bank in Salt Lake City
Mar. 28, 2017, robbery of Zions Bank in Draper
April 3, 2017, robbery of Utah First Credit Union in Provo
April 13, 2017, robbery of University Federal Credit Union in HolladayEdmunds faces up to 20 years in federal prison for each robbery count. The case is being
investigated by the FBI’s Violent Crime Task Force, including the FBI, the Unified Police Department and the Salt Lake City Police Department. Other local agencies in Salt Lake and Utah County assisted with initial responses to the bank robberies.Kevin Dean Rasband, age 30, of Layton, Utah, is charged in a four-count indictment with a Feb, 2017, robbery of Goldenwest Credit Union in Kaysville and a March 29, 2017, robbery of Utah First Federal Credit Union in Farmington. Rasband also faces two counts of brandishing a firearm in relation to a crime of violence for allegedly using a firearm during both robberies.
Rasband faces up to 20 years in prison for each robbery count. In addition to the robbery counts, Rasband faces a mandatory-minimum seven years for the first firearm charge and an additional 25 years for the second firearm count for a total of 32 years. A conviction on the gun counts would run consecutive to any sentence imposed for a conviction on the robbery counts. The case is being investigated by the FBI, the Farmington Police Department, and the Kaysville Police Department.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty beyond a reasonable doubt in a court of law.
Federal arrest warrants will be issued for Edmunds and Rasband. The cases are being prosecuted by the U.S. Attorney’s Office in Utah.
Thursday 4 May 2017
Two Men Arrested on Federal Charges of Attempting to Smuggle Heroin Worth Nearly $500,000 on Commercial Flights Leaving LAXRead the Press Release
LOS ANGELES – Two men face federal drug trafficking charges after they were arrested earlier this week at Los Angeles International Airport for allegedly attempting to smuggle heroin in luggage on two commercial airline flights.
Cristian Santos, 21, of Compton, was arrested on Tuesday by special agents with the Drug Enforcement Administration after boarding a Delta Airlines flight.
Special agents with the DEA on Tuesday also arrested Joel Aron, 18, of Tijuana, Mexico, after he boarded a Hawaiian Airlines flight.
Both Santos and Aron appeared in United States District Court yesterday afternoon and were ordered to appear for arraignments on June 8.
A criminal complaint filed yesterday alleges narcotics were discovered in Santos’ luggage after he checked in for a flight bound for Indianapolis. After seeing something suspicious in one of Santos’ bags during a scan, the Transportation Security Administration inspected the bag. TSA officers discovered an item wrapped with black electrical tape concealed inside the inner layer of the luggage. After determining the package inside the luggage was not an explosive, TSA officers opened the package and found a brown, tar-like substance. A subsequent test confirmed the presence of heroin. The affidavit in support of the criminal complaint states that estimated street value of the heroin in Indiana is $250,000.
Los Angeles Airport Police located Santos on his Delta Airlines flight, and escorted him off the airplane. During a subsequent interview, Santos admitted to DEA special agents that the luggage belonged to him, and that he was working with other individuals in exchange for payment, according to the affidavit.
The complaint charges Santos with possession with the intent to distribute a controlled substance. If convicted, he faces a statutory maximum sentence of 20 years in federal prison.
In the case against Aron, a criminal complaint also filed yesterday alleges that narcotics were discovered in his luggage after he checked in for a flight bound for Honolulu. The drugs were discovered after TSA officers saw something suspicious in one of Aron’s bags during an image scan. The “mass” seen on an image scan tested positive for the presence of heroin with an estimated street value in Hawaii of $225,000.
Los Angeles Airport Police located Aron on his Hawaiian Airlines flight, and escorted him off the airplane. According to the affidavit in support of the criminal complaint, Aron admitted to DEA special agents during an interview that the luggage belonged to him and this was the fourth time he had acted as a courier. Aron allegedly admitted that, each time he acted as a courier, he travelled from Mexico to Los Angeles, where he received a bag that he brought to Hawaii in exchange for $3,000.
The complaint charges Aron with possession with the intent to distribute a controlled substance. If convicted, he faces a statutory maximum sentence of 20 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX, is conducting the two investigations. The Task Force is charged with providing a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States, and throughout the world.
In addition to the DEA, the Task Force is made up of representatives from the Federal Bureau of Investigation, the Los Angeles Airport Police, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration.
The cases against Santos and Aron are being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Track and Field Athlete Convicted in Federal Court of Stolen Identity Tax Refund FraudRead the Press Release
TALLAHASSEE, FLORIDA – After a two-day trial, Teona N. Rodgers, 27, of Tampa, was convicted yesterday of theft of government funds, possession of 15 or more unauthorized access devices, use of unauthorized access devices, aggravated identity theft, and false claims. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
While on a track and field scholarship at Florida State University, Rodgers participated in a scheme to file fraudulent income tax returns during the 2011 and 2012 tax years by using other people’s personal information. The scheme was discovered in November 2013, when two notebooks and 12 debit cards in other people’s names were discovered in the Tallahassee apartment Rodgers had recently vacated.
The notebooks contained handwritten names, dates of birth, Social Security numbers, tax refund amounts, account numbers, and other data of more than 150 individuals. The notebooks also included notations such as “rejected” and “filed,” and detailed instructions to file a return reporting $47,196 of interest income. This amount was used on multiple tax returns in this scheme (including Rodgers’s own 2011 and 2012 returns). Investigators determined that the returns had been filed from IP addresses linked to Rodgers and that the false returns had funded the debit cards. Rodgers used these debit cards to make purchases. In total, the information contained in the notebooks was used to file 64 fraudulent tax returns, seeking $465,948 in refunds.
The sentencing hearing is scheduled for August 4, 2017, at 11:00 a.m. at the United States Courthouse in Tallahassee. Rodgers faces a maximum of 15 years in prison on the use of unauthorized access devices count, 10 years in prison on the theft of government funds and possession of unauthorized access devices counts, 5 years in prison on the false claims count, and a consecutive 2 year sentence on the aggravated identity theft.
This case resulted from an investigation by the Emerald Coast Financial Crimes Task Force, comprised of the Internal Revenue Service-Criminal Investigation and the Leon County Sheriff’s Office, as well as the United States Secret Service and the Tallahassee Police Department. Assistant United States Attorney Gary Milligan is prosecuting the case.
The U.S. 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 public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Three San Antonio Men Arrested and Charged in Drug Trafficking ConspiracyRead the Press Release
In San Antonio, three men, including a member of the Bloods street gang, are in federal custody charged for participating in a drug trafficking conspiracy announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Earlier today, federal authorities took into custody 32–year-old Bloods gang member Lawrence Lamont Manor (aka Lawrence King, “Big Boy”) without incident. Manor, along with 44–year-old Michael Deshon Norman (aka “Mike”) and 32–year-old Tremal Rowe (aka Chi-Town”) are charged by a federal criminal complaint with conspiracy to possess with intent to distribute more than 280 grams of “crack” cocaine.
According to the complaint, from March 13, 2017 to May 1, 2017, Manor conspired with Norman and Rowe to convert cocaine into “crack” cocaine inside his house on the City’s east side, then package the “crack” cocaine and sell it to their customers. The complaint further alleges that on April 30, 2017, the defendants kidnapped one of Manor’s customers based on an unpaid drug debt. They transported the victim to Manor’s residence where he was held against his will. On May 1, 2017, agents conducting surveillance on Manor’s residence observed Rowe depart the residence. They subsequently detained Rowe and brought him back to Manor’s residence where they then executed a search warrant. Upon entry, agents discovered Norman inside as well as the victim with his hands and feet tied by a rope and his head covered with a black t-shirt lying on the floor.
All three defendants remain in federal custody. The defendants face between ten years and life in federal prison upon conviction.
The Federal Bureau of Investigation conducted this investigation with assistance from the San Antonio Police Department.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Three Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that three previously deported aliens were indicted separately on May 3, 2017, by a federal grand jury on illegal re-entry charges.
According to United States Attorney Bruce D. Brandler, Jose Cruz-Ramirez, age 32, of Mexico, was previously deported from the United States to Mexico on four occasions, October 2010, twice in December 2010, and February 2011. He is alleged to have illegally re-entered the United States sometime after February 2011, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Maynor Galiego-Mendoza, age 45, of Guatemala, was previously deported from the United States to Guatemala on two occasions, July 2009 and September 2010. He is alleged to have illegally re-entered the United States sometime after September 2010, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Edwin Mauricio-Flores, age 35, of Honduras, was previously deported from the United States to Honduras on two occasions, October 2009 and October 2011. He is alleged to have illegally re-entered the United States sometime after October 2011 and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Cruz-Ramirez, Galiego-Mendoza, and Mauricio-Flores face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations 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.
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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Three Hialeah Residents Convicted of Conspiracy to Commit Hobbs Act Robberies After Robbing Two Hialeah Jewelry Stores and Attempting to Rob a Third StoreRead the Press Release
Three Hialeah residents were convicted by a federal jury of conspiracy to commit Hobbs Act robberies, after robbing two Hialeah jewelry stores and attempting to rob a third store.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Sergio Velasquez, Chief, Hialeah Police Department (HPD), made the announcement.
Anibal Mustelier, 67, Jose Pineda Castro, 28, and Yamile Diaz Bernal, 29, all of Hialeah, were convicted after a seven-day trial before U.S. District Judge Frederico A. Moreno of conspiracy to commit Hobbs Act Robberies. Mustelier and Pineda Castro were also convicted of two counts of Hobbs Act Robbery, one count of attempted Hobbs Act Robbery, and two counts of brandishing a firearm in furtherance of a violent crime. Mustelier, a convicted felon and formerly one of FBI’s most wanted individuals, with prior pending federal indictments from 1996, was also convicted of felon in possession of a firearm and ammunition.
Mustelier, Pineda Castro, and Diaz Bernal face up to 20 years’ imprisonment for conspiracy to commit Hobbs Act Robberies. Mustelier and Pineda Castro face up to 20 years’ imprisonment for the two robberies and the one attempted robbery. Mustelier and Pineda Castro also face consecutive statutory mandatory minimum sentences of 7 and 25 years’ imprisonment, as to the two counts of brandishing a firearm in furtherance of a violent crime. Mustelier faces up to 10 years’ imprisonment for the felon in possession of a firearm and ammunition charge. All three defendants are currently scheduled to be sentenced on July 19, 2017.
According to the court record, including evidence presented at trial, between May 30, 2015 and August 8, 2016, Mustelier, Pineda Castro and his wife Diaz Bernal conspired to and robbed two jewelry stores in Hialeah, Florida. A third robbery attempt failed when Pineda Castro accidently cut the electricity to the shopping center.
The defendants would monitor the jewelry stores for months, including surveilling the store security features, in order to plan the robberies. Once they were ready to carry out the robbery, they would break into the adjacent business the night before the planned robbery. They would then carve out a hole from the adjacent business wall and prepare to enter the jewelry store once the employees arrived the following morning. At that time, they would bust through the drywall wearing ski masks and wielding guns. They would handcuff the employees and place all of the jewelry in large duffle bags. Just before they left the store with the jewelry, they would take the video recordings and exit through the same adjacent business wall. A confidential informant broke the case by recording Pineda Castro and Diaz Bernal discussing their participation in the prior jewelry store robberies. In these conversations, they implicated Mustelier as Pineda Castro’s mentor in committing robberies.
Law enforcement was able to independently corroborate Pineda Castro and Diaz Bernal’s admissions. In addition, unbeknownst to Pineda Castro, he also led law enforcement to the doorsteps of his mentor, Mustelier. There, law enforcement found, among other things, ski masks, guns, handcuffs and the jewelry belonging to two jewelry stores that had been robbed as part of this ongoing conspiracy.
Mr. Greenberg commended the investigative efforts of ATF and HPD. This case was prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Miesha Shonta Darrough.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Harrisburg Men Indicted for Firearms TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Chism, III, age 27, Richard Earl Davis, age 24, and Colby Syhur Grant, age 23, all from Harrisburg, Pennsylvania, were indicted on May 3, 2017, by a federal grand jury on charges related to an illegal firearms trafficking operation.
According to United States Attorney Bruce D. Brandler, the indictment charges Chism, (from October 28, 2016 to April 26, 2017), Davis and Grant (from April 13-26, 2017) with making false statements to a federally licensed firearms dealer in connection with the acquisition of firearms. The indictment also charges Grant with being an unlawful user of controlled substances in possession of firearms, possession of firearms in furtherance of a drug trafficking crime, and possession with intent to distribute crack cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Harrisburg Bureau of Police Street Crimes Unit. Assistant U.S. Attorney James T. Clancy 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 and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for false statements to a firearms dealer is 10 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine; for illegal possession with a firearm by a drug user is 10 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine; for possession of a firearm in furtherance of drug trafficking is lifetime imprisonment, a term of supervised release following imprisonment, and a $250,000 fine; and for possession with intent to distribute controlled substance is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $1 million 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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Third Member of Healthcare Conspiracy Pleads GuiltyRead the Press Release
Abingdon, VIRGINIA – A Bristol woman, who along with a husband and wife were accused of healthcare fraud, pled guilty today to related charges, Acting United States Attorney Rick A. Mountcastle, Virginia Attorney General Mark R. Herring and Nick DiGiulio, Special Agent in Charge, Philadelphia Regional Office for U.S. Health and Human Services - Office of Inspector General announced today.
Deborah Branch, 65, of Bristol, Va., pled guilty today to one count of conspiracy to commit healthcare fraud and one count of wire fraud. Previously, Bryan Harr Sr. and Melissa Harr, pled guilty to related charges for their roles in the conspiracy. Branch will be sentenced on July 13, 2017 at 10 a.m.
According to evidence presented at today’s guilty plea hearing, Bryan Harr Sr. and his wife, Melissa Harr, hired Branch to work with one of their children, who suffers from intellectual and physical disabilities and who qualifies for services paid for by Virginia Medicaid, including personal assistance, respite and residential support services. These services are available to qualified individuals pursuant to Virginia Medicaid’s Intellectual Disability (ID) waiver program. The ID waiver program is designed to provide critical services that enable a recipient to remain at home instead of being placed in an institution. Recipients or their guardians are permitted to hire workers of their own choosing to provide these services which are paid for by Virginia Medicaid. Branch was paid through two different Virginia Medicaid contractors: Public Partnerships, LLC and ResCare (formerly known as Creative Family Solutions).
From January 2010 until September 2015, Branch, with the knowledge of Melissa Harr and Bryan Harr Sr., submitted time sheets claiming Branch was providing services for Harr’s disabled son when she was not. In exchange for assisting Branch in being paid for work she did not do, Branch paid the Harrs approximately $200 every two weeks. Virginia Medicaid’s Department of Medical Assistance Services (DMAS) paid out $350,641.02 to the contractors based on these time sheets, of which $207,854.43 was paid to Branch. More importantly, the Harr’s disabled son did not receive the services he legitimately needed pursuant to the ID waiver program.
The investigation of the case was conducted by the Medicaid Fraud Control Unit of the Virginia Attorney General’s Office, the U.S. Department of Health and Human Services Office of Inspector General, and the Bristol Virginia Police Department. Special Assistant United States Attorney Janine M. Myatt, a Virginia Assistant Attorney General, is prosecuting the case for the United States.
Ten People Indicted in Connection to Tuscaloosa Methamphetamine, Cocaine Drug-Trafficking ConspiracyRead the Press Release
BIRMINGHAM – ATF agents and local task force officers fanned out across Tuscaloosa County today to arrest defendants indicted last month as part of a drug ring trafficking methamphetamine and cocaine in the county, announced Acting U.S. Attorney Robert O. Posey, Bureau of Alcohol, Tobacco, Firearms & Explosives Special Agent in Charge Steven L. Gerido and West Alabama Narcotics Task Force Captain Wayne Robertson.
A federal grand jury on April 27 indicted eight Tuscaloosa County residents with the drug-trafficking conspiracy. A 61-count indictment filed in U.S. District Court charges SANTONY MARKEI NOLAND, 32, also known as Santony Markies Noland,”“San T” and “Black,” SHAKEA CHYNESE PREWITT, 23, CHRISTOPHER KELLEY BOYD, 30, MICHELE DIANE SMITH, 40, also known as Michele Diane Sellers,” TIMOTHY JOE PATTON, 29, also known as “Timothy Joe Harless” and “Money,” KATHERINE LEE CANNON, 39, TREMAINE RAYMOND CANNON, 36, also known as “Juice,” and DANNY RAY BARRON JR., 27, also known as “Drizzle” and “Jug,” with conspiracy to distribute the drugs between December 2016 and March 2017. A federal judge unsealed the indictment following today’s arrests.
The indictment also charges BEVERLY DIANE TUBBS, 33, with possession of a firearm by a convicted felon, and charges AMY LEEANN BLIZZARD, 33, with possession with the intent to distribute 50 grams or more of methamphetamine.
Noland and Prewitt were in custody before today’s roundup. This afternoon, nine of the 10 defendants are in custody.
"This investigation has successfully taken down an established cocaine- and methamphetamine-trafficking organization operating in the Tuscaloosa area," Posey said. "This is an outstanding example of how federal, state and local law enforcement, working together, are able to successfully dismantle narcotics smuggling organizations and reduce the availability of illegal drugs on the streets," he said.
“The arrests today have shown that the resources provided by ATF and our partners diminished the violent crime that has affected the neighborhoods within the Tuscaloosa area,” Gerido said.
“Criminals should take note that state, local and federal law enforcement are combining their resources to investigate criminal activity and make our communities safe,” Robertson said.
The indictment includes special findings of the grand jury regarding the amount of methamphetamine and cocaine attributable to various defendants as part of the drug-trafficking conspiracy.
Noland, Prewitt, Boyd and spouses Tremaine and Katherine Cannon are charged with conspiring to traffic 50 grams or more of methamphetamine. That charge carries a minimum 10-year prison sentence and a maximum prison penalty of life. Noland and the Cannons, having previously been convicted in state and federal court for drug trafficking, could face a minimum of 20 years and a maximum of life in prison if convicted on the current charges. Smith, Patton, and Barron face a minimum of five years in prison and a maximum of 40 years on the conspiracy count.
Noland and Prewitt are also charged with multiple counts of distributing methamphetamine, which carries a minimum prison sentence of five years and a maximum of 40, plus a $5 million fine. Other counts charge Noland and Prewitt with possession with the intent to distribute 50 grams or more of methamphetamine, which carries a sentence of 10 years to life in prison.
Boyd also faces a separate count of distributing methamphetamine in February 2017.
Tremaine Cannon and Katherine Cannon face a count of possessing with the intent to distribute or distributing methamphetamine, in February 2017.
The indictment further charges Smith with possessing with the intent to distribute methamphetamine in February 2017.
Barron, along with the conspiracy charge, is also charged with possession with intent to distribute methamphetamine and possession of a stolen firearm on March 1, 2011.
Along with Tubbs, Noland and Patton also each face a count of illegal gun possession for being convicted felons in possession of a pistol. Patton and Tubbs have convictions in Tuscaloosa Circuit Court.
Noland has multiple felony convictions in Tuscaloosa County Circuit Court and a federal felony conviction from the Northern District of Alabama for being a felon in possession of a firearm on a previous occasion.
Thirty-eight counts of the indictment charge various defendants with using telephones to facilitate a drug-trafficking crime.
The remaining distribution and possession with the intent to distribute narcotics charges each carry a maximum sentence of 20 years in prison and a $1 million fine.
Each count of using a telephone in furtherance of a drug-trafficking crime carries a maximum penalty of four years in prison and a $250,000 fine.
The ATF, WANTF and the Drug Enforcement Administration investigated the case. The task force is composed of officers from the Tuscaloosa County Sheriff’s Office, the Tuscaloosa, Northport and University of Alabama police departments, and the Tuscaloosa County District Attorney’s Office. Assistant U.S. Attorney Brad Felton is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Stockton Men Indicted for Trafficking Heroin Near a School ZoneRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Stockton residents James Moore Jr., 42, and Calvin Daniels, 50, charging both men with distributing heroin near a school zone and conspiring to distribute heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Moore and Daniels conspired, together and with others, to distribute heroin in San Joaquin County in 2017. Court documents further allege that Moore and Daniels distributed heroin near public elementary schools in Stockton on at least two occasions. Specifically, Moore is alleged to have distributed heroin within 1,000 feet of the John Marshall Elementary School on Lever Boulevard in Stockton in April 2017, while Daniels is alleged to have distributed heroin within 1,000 feet of the Rio Calaveras Elementary School on East Bianchi Road in Stockton in February 2017.
This case is the product of an investigation by the FBI’s Stockton Safe Streets Task Force, the Reno Safe Streets Task Force, and the Stockton Police Department with special assistance from the San Joaquin County District Attorney’s Office. Assistant United States Attorney Jason Hitt is prosecuting the case.
If convicted of distributing heroin near a school zone, Moore faces a maximum statutory penalty of life in prison and a $16 million fine, while Daniels faces a maximum statutory penalty of 80 years in prison and a $10 million fine. If convicted of conspiracy to distribute heroin, both men face a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
South Boston Woman Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A South Boston woman pleaded guilty in federal court in Boston today to using false Social Security numbers.
Dana Whidbee, a/k/a Dana De Alasei, 53, pleaded guilty to two counts of falsely representing a Social Security number. U.S. District Court Judge Rya W. Zobel scheduled sentencing for June 22, 2017. Whidbee was indicted in March 2017.
Whidbee used two false social security numbers to apply for a job and housing in September 2013 and May 2014, respectively.
The charge of falsely representing a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit is prosecuting the case
Smith County Husband and Wife Sentenced in Health Care Fraud ConspiracyRead the Press Release
TYLER, Texas – A Smith County couple has been sentenced for health care fraud violations in the Eastern District of Texas announced Acting U.S. Attorney Brit Featherston today.
Gerard Dengler, 61, and Suzanne Dengler 52, of Tyler, Texas, pleaded guilty on Jan. 10, 2017, to conspiring to commit health care fraudand were sentenced today by U.S. District Judge Thad Heartfield. Gerard Dengler was sentenced to 24 months in federal prison. Suzanne Dengler received a sentence of five years of probation. The Denglers were also ordered to pay restitution in the amount of $161,695, which represented the loss to Medicare.
According to information presented in court, the Denglers owned and operated Elite Lab Services, a clinical diagnostic laboratory based in Tyler. As a Medicare provider, the company would bill Medicare for laboratory services provided to nursing homes located throughout east Texas, including the mileage associated with providing those services. Beginning in April 2014, Gerard and Suzanne Dengler conspired to fraudulently increase route mileage that Elite Lab used to calculate the travel allowances billed to Medicare. From April through October 2014, the company then sought reimbursement from Medicare for mileage that included the falsely inflated amounts.
Under federal statutes, the Denglers each face up to 10 years in federal prison at sentencing and have already agreed to pay restitution in excess of $160,000, which represents the loss to Medicare. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The criminal investigation arose from a civil qui tam action filed by former Elite Lab employee Karen Malcolm. In her complaint, Malcolm alleged, among other things, that Elite Lab and the Denglers submitted false claims to Medicare from approximately 2010 through 2014. The United States intervened in the action for purposes of settlement. The Denglers and Elite Lab agreed to pay the United States $3.75 million to settle the lawsuit. As a result of the settlement, Elite Lab will be excluded from participating in Medicare for eight years; Gerard Dengler will be excluded for 10 years; and Suzanne Dengler will be excluded for eight years. The settlement also resolved a separate civil lawsuit in which the United States sought to forfeit funds and property obtained by the Denglers and Elite Lab through their fraudulent conduct.
This matter was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General, the Texas Office of the Attorney General – Medicaid Fraud Control Unit, and the United States Attorney’s Office for the Eastern District of Texas. The criminal case was prosecuted by Assistant U.S. Attorneys Frank Coan and Nathaniel Kummerfeld and Special Assistant U.S. Attorney Ken McGurk. The civil settlement was negotiated by Assistant U.S. Attorney Josh Russ. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Bob Wells.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the Federal Bureau of Investigation (FBI). This case was prosecuted by Special Assistant U.S. Attorney Kenneth C. McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Six Arrested in Connection with Organized Criminal Ring Profiting from Prostitution EnterpriseRead the Press Release
Six people are under arrest and law enforcement served court authorized search warrants at more than 30 locations as part of an investigation into an organized crime ring involved with prostitution, announced U.S. Attorney Annette L. Hayes. FANG WANG, 28, of Queens, New York, YONGGUANG WU, 27, YUNZHONG CHEN, 44, YAOAN HE, 32, ZHAOFENG ZHANG, 22, all of Seattle, and STEVEN THOMPSON, 59, of Renton, Washington, are charged by criminal complaint with conspiracy to use a communication facility to promote prostitution. ZHANG was arrested in Columbus, Georgia. YAOAN HE made his initial appearance in U.S. District Court in Seattle today. The rest of the defendants arrested in Western Washington will make their initial appearances in U.S. District Court in Seattle at 2:00 p.m. on Friday, May 5, 2017.
“These defendants ran an organized prostitution ring with tentacles into many of our cities and towns,” said U.S. Attorney Annette L. Hayes. “The search warrants executed today are part of our ongoing investigation. We are committed to working closely with our state and local partners to ensure we identify and hold all those responsible to account, including anyone involved in human trafficking or exploitation crimes.”
“Partnership is critical in dismantling organized crime syndicates like this one because they span multiple jurisdictions,” said Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office. “Our goal is to disrupt networks, not just arrest select individuals or stem criminal activity in one area, only to watch it emerge in another. By working jointly across Washington, local, state and federal law enforcement partners can eliminate the threat that organized crime groups pose to our residents.”
“Our work with our partners continues to expose the underbelly of this industry, and the unequal power dynamics at work within it,” said Sheriff John Urquhart. “Organized crime is a threat to the safety of our community, and we will continue working with our partners to disrupt it.”
“The Bellevue Police Department will be relentless in its effort to rid our community of those who would take advantage of others for personal profit. I commend the hard work of our investigators and Federal partners in this joint effort,” said Bellevue Police Chief Steve Mylett.
According to the complaint, federal and local law enforcement partners worked jointly to investigate a criminal ring making hundreds of thousands of dollars through the prostitution of Asian sex workers. In partnership with the Federal Bureau of Investigation, the King County Sheriff’s Office (KCSO) and police departments in Bellevue, Redmond, Renton, Seattle and Tukwila identified numerous brothel locations through their analysis of Backpage.com, cell phone, and other business records. The joint team of local and federal investigators then conducted surveillance of the ring’s activities. Law enforcement determined that multiple locations were linked to the organization via ads placed with websites such as Backpage.com. The investigation revealed that the same internet protocol (IP) addresses were used for placing many of the ads, and phone numbers associated with the ads were linked as well – in some instances to call centers located in New York and Washington, D.C. In other cases, the law enforcement agencies followed up on citizen complaints about apartments being operated as prostitution locations and confirmed that the organization was in fact conducting prostitution in those locations.
The investigation revealed that FANG WANG – the apparent leader of the operation – spent approximately $100,000 to increase the traffic to her ads on the Backpage.com site. Other defendants played different roles – renting apartments, transporting sex workers to various locations, purchasing supplies, collecting money from the sex workers and placing ads. Prostitution activities associated with the ring occurred in apartments or hotels located in Bellevue, Kent, Kirkland, Lynnwood, Olympia, Lacey, Puyallup, Renton, Tukwila, Seattle, and Federal Way. Other locations where the ring operated include eastern Washington cities such as Richland, Kennewick, Wenatchee and Spokane. The sex workers were frequently moved throughout the area.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Conspiracy is punishable by up to five years in prison and a $250,000 fine.
The case is being jointly investigated by the FBI, the Bellevue Police Department, the King County Sheriff’s Office, the Redmond Police Department, the Renton Police Department, the Seattle Police Department, the Tukwila Police Department, and Homeland Security Investigation (HSI). Today’s operation involved assistance from police departments in Everett, Federal Way, Kennewick, Kent, Kirkland, Lacey, Puyallup, Richland, Spokane, and Wenatchee and assistance from the Snohomish County and Spokane County Sheriff’s Offices.
The case is being prosecuted by Assistant United States Attorneys Kate Crisham, Siddharth Velamoor and Vince Lombardi.
Sequoia National Forest Marijuana Cultivator IndictedRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Alan Fernando Gomez-Paniagua, 25, a citizen of Mexico residing in Delano, charging him with conspiring to cultivate, distribute, and possess with intent to distribute marijuana, cultivating marijuana, damaging public land and natural resources, and being an alien in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Gomez-Paniagua was connected to a marijuana cultivation site in the McFarland Creek area in the Sequoia National Forest. At the grow site, officers found over 15,000 marijuana plants, over 1,000 marijuana seedlings, and a loaded short‑barreled shotgun with a pistol grip.
The marijuana cultivation activities caused extensive damage to the environment. Numerous oak trees had been cut down and the hillside was terraced to make room for the marijuana plants. Pesticide containers and trash were strewn throughout the site.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County Central Valley California High Intensity Drug Trafficking Area (HIDTA) Task Force, the California Department of Fish and Wildlife, the Kern County Sheriff’s Office, and the California Multijurisdictional Methamphetamine Enforcement Team (CalMMET), a task force administered by the Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Gomez-Paniagua is scheduled to be arraigned in federal court in Fresno on May 8, 2017. If convicted of the most serious offenses, the drug charges, Gomez-Paniagua faces a mandatory minimum prison term of 10 years and a maximum term of life, along with a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencings for April 28 - May 4, 2017Read the Press Release
Fortino Arellano-Hernandez, 50, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 4, 2017, for illegal re-entry of a previously deported alien into the United States. Arellano-Hernandez received time served, plus ten days, to be followed by one year of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Department of Homeland Security Immigration and Customs Enforcement.
Timothy Andrew Neefe, 39, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 2, 2017, for possession of child pornography. Neefe was arrested in Cheyenne, Wyoming. He received 36 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $9,000.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Darrell Lyle Moss, Jr., 34, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 28, 2017, for assault resulting in serious bodily injury. Moss, Jr., was arrested in Riverton, Wyoming. He received 27 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution in this matter will be determined at a later date. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Sedgwick County Man Charged with Producing Child PornRead the Press Release
WICHITA, KAN. - A Kansas man was charged in U.S. District Court here Wednesday with producing child pornography, U.S. Attorney Tom Beall said.
Ian Nathanial Smith, 20, Viola, Kan., is charged with one count of sexual exploitation of a child and one count of possessing child pornography. An investigator’s affidavit alleges Smith used social media to communicate over the internet with a 14-year-old girl in another state. He asked the girl to send him live streaming video of herself engaged in sexual activities. Investigators found child pornography on his phone, including 204 images and four videos.
If convicted, he faces not less than 15 years and not more than 30 years in federal prison on the charge of exploiting a minor and up to 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Schuele Boys Gang Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kennedy, Jr. announced today that Demario Robbins, 26, of Buffalo, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from another gang member which he then repackaged into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
Robbins is one of 28 Schuele Boys Gang members, associates, and other individuals arrested in this case. To date, 19 of the 28 charged have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
San Jose Resident Pleads Guilty in False Tax Refund SchemeRead the Press Release
SAN JOSE – Trong Minh Nguyen, aka John Nguyen, pleaded guilty for his role in a conspiracy to file false claims announced United States Attorney Brian J. Stretch, United States Postal Inspection Service Inspector in Charge Rafael Nuñez, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the plea agreement entered yesterday afternoon, Nguyen, 57, of San Jose, began preparing false federal income tax returns in May of 2012 for individuals in the San Jose area. Nguyen told unemployed individuals that he was able to secure a tax refund on their behalf. He then obtained the individuals’ names and social security numbers and used that information to prepare tax returns. In each case, he claimed the person was employed and had earned income. Nguyen charged each person a fee of between $50 and $500 for preparing the false tax return and was typically paid after the IRS issued a tax refund check related the false claim he filed. When completing the false tax returns, Nguyen included fictitious information. For example, instead of using a taxpayer’s real home address, Nguyen used an address where he was able to intercept the mail. Nguyen also included false information for wages, federal tax withholdings, earned income tax credit, making work pay credit, and tax refund amounts.
In addition, in June of 2012, Nguyen conspired with others to file false federal income tax returns. As part of the conspiracy, Nguyen and his co-conspirators solicited individuals in the San Jose area, asking only for their names and social security numbers. Nguyen received forms that were signed by the individuals and then altered information on the forms by, among other things, inserting figures into the document. Nguyen also rented several private mailboxes and used numerous addresses on Senter Road in San Jose as well as other residential addresses in order to collect the tax refund checks that were issued by the IRS. In total, Nguyen and his coconspirators filed about 1,700 false federal income tax returns that claimed more than $1.5 million in fraudulent tax refunds.
A grand jury indicted Nguyen on June 10, 2015, and charged him with conspiracy to submit false claims, in violation of 18 U.S.C. § 286, and twenty-one counts of submitting false claims, in violation of 18 U.S.C. § 287. Pursuant to yesterday’s plea agreement, Nguyen pleaded guilty to one count of conspiracy and four counts of filing false claims. The remaining counts will be dismissed.
The maximum sentence for conspiracy to file false claims is ten years in prison and a fine of $250,000. The maximum sentence for submitting file false claims is five years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman and U.S. Department of Justice Trial Attorney Gregory Bernstein are prosecuting the case. The prosecution is the result of an investigation by the U.S. Postal Service and the Internal Revenue Service, Criminal Investigation.
Salamanca Man Indicted on Fraud and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 48-count indictment charging Sergiy Bezrukov, 33, of Salamanca, NY, with conspiracy to defraud, mail fraud, wire fraud, bank fraud, and money laundering. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Trini Ross, who is handling the case, stated that according to the indictment, the defendant operate fraudulent debt restructuring businesses out of two offices that he opened in the Western New York area.
Bezrukov sent solicitation letters under various false and fictitious names, offering to assist small businesses with restructuring high interest loans. After the small businesses agreed to work with the defendant and his company, Bezrukov withdrew sums of money from the accounts of the small businesses and used those funds for purposes not associated with assisting the small businesses. When the small business owners attempted to contact the defendant or others at the fraudulent company, they would get no response. Bezrukov used the fraudulent debt restricting business to defraud approximately 200 victims out of $1,200,000 dollars.
The defendant is being held pending arraignment on May 9, 2017, at 11:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Retired NYPD Officer Sentenced to 15 Months Imprisonment for Laundering Funds of A Multi-Million Dollar Prostitution ServiceRead the Press Release
Michael Rizzi, a retired New York City Police Officer, was sentenced today to 15 months’ imprisonment, to be followed by four months’ home confinement and three years of supervised release, for laundering the proceeds of a multi-million dollar prostitution enterprise that he operated. Additionally, United States District Judge Carol B. Amon ordered the forfeiture of 58 websites and $120,247 seized from merchant accounts, as well as the Florida vacation home that the defendant had purchased using proceeds of his prostitution operation. The sentence followed the defendant’s guilty plea to one count of conspiring to launder the proceeds of a prostitution enterprise between June 2012 and May 2016.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
As detailed in prior court filings, Rizzi operated a prostitution service under the name BJM/Manhattan Stakes and Entertainment (“BJM”). BJM advertised its services on dozens of websites, including nycescortsnyc.com, and eliteescortsnyc.com, among others. BJM employed “phone bookers” to arrange appointments between prostitutes and BJM’s customers, as well as drivers who collected cash and receipts from BJM’s prostitutes.
The prostitutes working for BJM charged their customers as much as $2,000 per hour. The investigation into the company’s financial records has revealed that several of BJM’s clients spent more than $100,000 on the company’s services, and that some clients paid more than $25,000 for a single night. Over the course of its operations, BJM collected millions of dollars in payments, including more than $2 million in credit card payments alone between October 2012 and March 2016.
BJM is a successor to Pure Platinum Models, another company that offered prostitution services. Following an investigation by HSI, Pure Platinum Models was closed in 2014 and its owner, Marc Schulman, was convicted in the Eastern District of New York of laundering more than $1 million dollars through the company.
“Michael Rizzi left behind a life of law enforcement for a new career in which he flagrantly disregarded the law and exploited others for his own enrichment,” stated Acting United States Attorney Rohde. “This Office is committed to dismantling money laundering organizations, including those which promote and capitalize on illegal prostitution.”
“Leaving behind a life of public service as a member of the NYPD, Michael Rizzi retired into the life of a pimp, running a high end prostitution ring and laundering the proceeds of those crimes,” Special Agent-in-Charge Melendez stated. “The forfeiture of Rizzi’s vacation home, on top of his jail sentence, shows that HSI will continue to aggressively target those who run illegal prostitution rings, as well as proceeds that are generated by this illegal activity.”
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorneys Jennifer M. Sasso and Erik D. Paulsen are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is in charge of the forfeiture.
The Defendant:
MICHAEL RIZZI
Age: 45
Staten Island, New York
E.D.N.Y. Docket No. 16-CR-487
Reno Man Indicted for Sexual Exploitation of an Infant and Distribution of Child PornographyRead the Press Release
RENO, Nev. – A Reno man was indicted on Wednesday for the sexual exploitation of an infant and distribution of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Derrick Joseph Rady, 35, was charged with one count each of sexual exploitation of a minor and distribution of child pornography. If convicted, the mandatory minimum sentence for sexual exploitation of a minor is 15 years and a maximum of 30 years, and the mandatory minimum sentence for distribution of child pornography is five years and a maximum of 20 years.
As alleged in the indictment, on or about Jan. 27, 2017, Rady used an approximately one-year-old infant to engage in sexually explicit conduct for the purpose of producing and distributing child pornography. According to the complaint, Facebook and Google both reported possible child pornography on their sites to the National Center for Missing and Exploited Children. During the execution of a search warrant at Rady’s residence, the Northern Nevada Child Exploitation Task Force seized multiple electronic devices containing child pornography and a mobile phone that was later identified as the device used to create the child pornography.
“It is a high priority of the FBI to protect the most vulnerable in our society: our children,” said Aaron C. Rouse, FBI Las Vegas Special Agent in Charge. “Every time child pornography is viewed on the internet it re-victimizes a child.”
The case is being investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Registered Sex Offender Sentenced to 16+ Years for Distributing Child PornRead the Press Release
WICHITA KAN. - A registered sex offender from Wichita was sentenced Thursday to 195 months in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Jeremy Michael Schmidt, formerly known as Jeremy Michael Davis, 41, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In 2013, Schmidt was convicted in Florida on a possession of child pornography charge and registered as a sex offender under the name Jeremy Michael Davis. He later changed his name to Jeremy Michael Schmidt.
Schmidt came to the attention of investigators in Wichita when they received four separate Cyber Tipline Reports from the National Center for Missing and Exploited Children. Investigators identified emails in which Schmidt provided links to child pornography.
Beall commended the Wichita Police Department, Homeland Security Investigations, the Internet Crimes Against Children Task Force and Assistant U.S. attorney Jason Hart for their work on the case.
Registered Sex Offender Charged with Enticement of A MinorRead the Press Release
James Johnman Jr., 36, of New Cumberland, Pennsylvania and a registered Megan’s Law offender, was charged today by Indictment with attempted enticement of a minor, distribution of child pornography, and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of life imprisonment and a mandatory of at least 15 years of imprisonment, a lifetime of supervised release, a $750,000 dollar fine, mandatory restitution, a $300 special assessment, and a $15,000 special victims assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Priya De Souza.
Philadelphia Pair Charged with CounterfeitingRead the Press Release
Garmonyou Wiles, 31, of Philadelphia, PA, and Michael Barnes, 29, of Camden, NJ, were charged today by Grand Jury Indictment with counterfeiting and narcotics charges announced Acting United States Attorney Louis D. Lappen. Wiles and Barnes were charged with possession and sale of counterfeit currency, as well as conspiring to sell and possess counterfeit currency. Additionally, Wiles alone was charged with possession with intent to distribute and sale of crack cocaine, as well as conspiring to possess and sell crack cocaine.
If convicted, Wiles and Barnes face guideline range sentences of 78-97 months and 70-87 months, respectively.
The case was investigated by Special Agent Harry Speer of the United States Secret Service and Special Agents Dale T. Keddie, James W. Crockett and Michael E. Roche of the United States Drug Enforcement Agency. The case is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Karie Tafari Anthony Hibbert of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 3, 2017, Hibbert, an alien, and native and citizen of Jamaica, was found in the United States after having been deported from the United States on or about October 22, 2001.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian National Pleads Guilty to Smuggling Counterfeit Currency Through Logan AirportRead the Press Release
BOSTON – A Peruvian national pleaded guilty and was sentenced on April 26, 2017, for smuggling counterfeit U.S. currency into the United States.
Alejendrina Elsa Quispe Ramirez, 48, pleaded guilty on April 26, 2017, to smuggling counterfeit U.S. currency into the United States. U.S. District Court Judge George A. O’Toole Jr. sentenced Quispe to time served. As part of the plea agreement, Quispe agreed to leave the United States following sentencing.
In July 2016, Peruvian National Police advised the United States Secret Service (USSS) that Quispe and two of her sons would be traveling to the United States on July 11, 2016, through Boston’s Logan Airport, carrying a large amount of U.S. currency concealed in their luggage. The family members, all Peruvian nationals, were traveling on visas that were issued, in part, for the purpose of allowing one of the sons to obtain medical treatment in the United States. When federal agents searched Quispe’s luggage, they found spindles, used for string or yarn for industrial sewing or textile manufacturing machines, wrapped within the travelers’ clothing. Shortly after entering the United States, Quispe was arrested and further investigation of the luggage contents revealed counterfeit $100 bills totaling $1,190,000, all concealed within 140 spindles of thread.
Acting United States Attorney William Weinreb and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement. The case was prosecuted by Lori J. Holik, Chief of Weinreb’s Major Crimes Unit.
Owners of Biofuel Company Indicted on Conspiracy and False Statement ChargesRead the Press Release
A Pennsylvania biofuel producer and two of its officers have been indicted on conspiracy and false statements charges for participating in a scheme that generated over $10 million in U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Keystone Biofuels, Inc., a company that purported to produce and sell biodiesel for use as transportation fuel.
Ben Wootton, 52, of Enola, Pennsylvania; Race Miner, 48, of Buena Vista, Colorado; and Keystone Biofuels, Inc. were indicted by a grand jury in Harrisburg, Pennsylvania yesterday, announced U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania, Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, Acting Special Agent in Charge Jennifer Lynn for the Philadelphia Office of the EPA’s Criminal Investigation Division, and Acting Special Agent in Charge Steven L. McQueen of the FBI’s Philadelphia Field Office.
According to the indictment, Wootton and Miner were co-owners of Keystone Biofuels, Inc. located in Shiremanstown, Pennsylvania and later in Camp Hill, Pennsylvania. Wootton, serving as President of Keystone Biofuels and Miner, serving as Chief Executive Officer, are alleged to have participated in a scheme with other coconspirators to fraudulently claim RIN credits on non-qualifying renewable fuel. Although the credits required that the fuel pass standards set by the American Society for Testing and Materials (ASTM), the fuel produced by Keystone did not meet this standard, the grand jury alleges, and was placed into commerce despite being “off-spec.” The conspirators also allegedly generated fraudulent documentation and manipulated samples to be sent to laboratories for testing as part of their scheme. Keystone, Wootton and Miner also allegedly made false entries into an EPA tracking system in violation of the Clean Air Act.
The investigation was conducted by the EPA and FBI. Senior Litigation Counsel Howard P. Stewart for the Department of Justice’s Environmental Crimes Section, Trial Attorney Adam Cullman, and Assistant U.S. Attorney Geoffrey W. MacArthur of the Middle District of Pennsylvania are prosecuting this case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines. The crime of conspiracy is punishable by up to five years in prison. The crime of False Statements is punishable by up to five years in prison. A fine of up to $250,000 for an individual and $500,000 for a corporation may also be imposed.
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, among other factors.
Owners of Biofuel Company Indicted on Conspiracy and False Statement ChargesRead the Press Release
WASHINGTON – A Pennsylvania biofuel producer and two of its officers were indicted on May 3, 2017, on conspiracy and false statements charges for participating in a scheme that generated over $10 million in U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Keystone Biofuels, Inc., a company that purported to produce and sell biodiesel for use as transportation fuel.
Ben Wootton, age 52, of Enola, PA, Race Miner, age 48, of Buena Vista, Co., and Keystone Biofuels, Inc. were indicted by a grand jury in Harrisburg, announced Bruce D. Brandler, U.S. Attorney for the Middle District of Pennsylvania, Jeffrey H. Wood, Acting Assistant Attorney General for the Department of Justice’s Environment and Natural Resources Division, Jennifer Lynn, Acting Special Agent in Charge for the Philadelphia Office of the Environmental Protection Agency’s Criminal Investigation Division, and Steven L. McQueen, Acting Assistant Special Agent In Charge of the Philadelphia Office of the Federal Bureau of Investigation.
According to the indictment, Wootton and Miner were co-owners of Keystone Biofuels, Inc. located in Shiremanstown, PA and later in Camp Hill, PA. Wootton, serving as President of Keystone Biofuels and Miner, serving as Chief Executive Officer, are alleged to have participated in a scheme with other coconspirators to fraudulently claim RIN credits on non-qualifying renewable fuel. Although the credits required that the fuel pass standards set by the American Society for Testing and Materials (ASTM), the fuel produced by Keystone did not meet this standard, the grand jury alleges, and was placed into commerce despite being “off-spec.” The conspirators also allegedly generated fraudulent documentation and manipulated samples to be sent to laboratories for testing as part of their scheme. Keystone, Wootton and Miner also allegedly made false entries into an EPA tracking system in violation of the Clean Air Act.
The investigation was conducted by the Environmental Protection Agency and Federal Bureau of Investigation. Department of Justice Environmental Crimes Section, Senior Litigation Counsel Howard P. Stewart, Trial Attorney Adam Cullman, and Assistant U.S. Attorney Geoffrey W. MacArthur of the Middle District of Pennsylvania are prosecuting this case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines. The crime of conspiracy is punishable by up to five years in prison. The crime of False Statements is punishable by up to five years in prison. A fine of up to $250,000 for an individual and $500,000 for a corporation may also be imposed.
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, among other factors.
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Oakland Man Charged with Transporting A Minor from Oregon to Engage in Prostitution in CaliforniaRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted Eugene Latrell McNeely on April 20, 2017, for transporting a minor from Oregon to California with the intent that the minor engage in prostitution, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge, John F. Bennett.
According to the indictment unsealed today, on October 3, 2015, McNeely, 34, of Oakland, transported a person who was under the age of 18 from Oregon, where she then resided, to Oakland, Calif. with the intent that she engage in prostitution. The indictment charges McNeely with one count of transportation of a minor for prostitution, in violation of 18 U.S.C. § 2423(a).
McNeely was arrested this morning in Oakland and made his initial appearance in the Oakland federal courthouse today before U.S. Magistrate Judge Kandis A. Westmore. McNeely is currently in federal custody pending further hearings, the next of which is scheduled for 9:30 a.m. on May 9, 2017, before U.S. Magistrate Judge Nandor J. Vadas, for identification of counsel and status regarding detention.
The maximum statutory penalty for a violation of 18 U.S.C. § 2423(a), is life in prison, a $250,000 fine, and a lifetime term of supervised release. McNeely also faces a mandatory minimum sentence of 10 years in prison and a mandatory minimum 5-year term of supervised release. In addition, the court may order forfeiture and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Oakland Police Department.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678. Indeed, a NCMEC tip led to the discovery and rescue of the victim in this case.
New Orleans Man Sentenced for Conspiracy to Commit Access Device FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RYAN CLAVERIE, age 37, of New Orleans, was sentenced today after previously pleading guilty today to conspiracy to commit access device fraud.
U.S. District Judge Jane Triche Milazzo sentenced CLAVERIE to two years probation and ordered to pay $7,460.06 in restitution.
According to court documents, CLAVERIE worked as a waiter in a restaurant in Metairie. During the course of his employment, CLAVERIE routinely handled the credit and debit cards of restaurant patrons. CLAVERIE had a credit card “skimmer” that extracted customer account information from the magnetic strip on the back of a credit card and a bank debit card and logged it for later download to a computer.
CLAVERIE and his co-conspirators used the captured electronic account information contained on the magnetic strips of these valid cards in order to manufacture and produce counterfeit credit cards. These counterfeit credit cards were used to fraudulently obtain things of value for their own personal gain at several retail stores and establishments in the metropolitan New Orleans area.
Acting U.S Attorney Evans praised the work of the U.S. Secret Service, New Orleans Field Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Office, and the Kenner Police Department. Assistant U.S. Attorney Loan AMimi@ Nguyen was in charge of the prosecution.
New Orleans Man Pleads Guilty to Possession of Ammunition as a FelonRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that AHMAD WATERHOUSE, age 32, of New Orleans, pled guilty today to one count of possession of ammunition as a felon.
According to court documents, on the morning of May 3, 2016, New Orleans Police Department (NOPD) officers responded to a 911 call reporting firearm violence at 2632 Deslonde Street, New Orleans. The caller stated that she had been in a fight with her ex-boyfriend, AHMAD WATERHOUSE, and that he shot a gun at her during the fight. She further stated that she saw the defendant leave the house with the gun, possibly in order to hide it.
NOPD officers responded minutes later and met with the victim. She confirmed that she had been in a fight with WATERHOUSE at his mother’s house where he was living. She stated that, during the altercation, WATERHOUSE went to his room, retrieved a gun, and fired it. Officers met with WATERHOUSE and performed a gunshot residue test on his hands. The test result was positive for the presence of gunshot residue. Officers obtained a search warrant for the premises and found over one hundred rounds of ammunition in the defendant’s bedroom. Most of the ammunition was .40 caliber Smith & Wesson bullets. Officers also found an empty box for a Glock .40 caliber Smith & Wesson handgun. Officers could not locate the gun despite bringing in a K-9 unit.
At the time of this incident, WATERHOUSE was on federal supervised release. He had been convicted in U.S. District Court for the Eastern District of Louisiana on August 7, 2014, for conspiracy to distribute crack cocaine and distribution of crack cocaine. WATERHOUSE had been sentenced to 43 months of imprisonment and three years of supervised release.
WATERHOUSE faces a maximum sentence of 10 years in prison, a $250,000 fine, and up to three years of supervised release. U.S. District Judge Jane Triche Milazzo set sentencing for August 10, 2017. WATERHOUSE also faces supervised release revocation proceedings on July 27, 2017, which will also be heard by U.S. District Judge Milazzo.
Acting U.S. Attorney Evans praised the work of the New Orleans Police Department along with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in investigating this matter. Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Ryan McLaren are in charge of the prosecution.
New Orleans Bail Bondswoman Sentenced for Mail Fraud ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JANET SMITH, age 54, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with conspiracy to commit mail fraud.
U.S. District Judge Jane Triche Milazzo sentenced SMITH to one year of probation.
According to court documents, SMITH became a licensed bail bondwoman in 1996. In about June 2006, she began working as a bailbondsman at an office operated by Rufus Johnson located at 538 S. Broad Street in New Orleans. Between June 2006 and July 2012, SMITH permitted her name, license, and contracts with two insurance companies to be used by Rufus Johnson, an unlicensed bailbondsman, to operate an illegal bail bonding business out of the Broad Street office.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant U.S. Attorneys Michael B. Redmann and Mark A. Miller were in charge of the initial prosecution. Jordan Ginsberg, Harry W. McSherry, and Brittany Reed were in charge of sentencing-related proceedings and the trial of Rufus Johnson.
New London Man Sentenced to 7 Years in Federal Prison for Heroin and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GABRIEL PAULINO, 28, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for heroin and firearm offenses.
According to court documents and statements made in court, on April 6, 2016, PAULINO was arrested after a court-authorized search of PAULINO’s New London apartment revealed a fully-loaded Beretta 9mm handgun, a Beretta “Silver Pigeon” 12-gauge shotgun, 12-gauge shotgun shells, 94 individually knotted bags of heroin, items used to process and package drugs for street sale, and several cell phones. The 9mm handgun had been reported stolen.
PAULINO has been detained since his arrest. On February 8, 2017, he pleaded guilty to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
PAULINO’s criminal history includes convictions for criminal possession of a firearm, possession with intent to sell, possession of narcotics, and violation of a protective order.
This matter was investigated by the New London Police Department, Connecticut State Police Statewide Narcotics Task Force and Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
New Hampshire Asbestos Abatement Company Sentenced for Defrauding Union Benefit FundsRead the Press Release
BOSTON – An asbestos removal company was sentenced today in federal court in Boston in connection with a scheme to pay union members at non-union rates and without benefits by setting-up and paying union members through a separate corporate entity.
AQE Inc. of Windham, NH, was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation and was ordered to pay restitution of $500,000 to the Massachusetts Laborers Benefit Fund (MLBF). In February 2017, AQE Inc. pleaded guilty to 18 counts of mail fraud, one count of benefit fund embezzlement and 18 counts of filing false documents with an ERISA fund.
AQE Inc. employed members of the Tewksbury Local 1421 of the Laborers International Union of North America. It paid members of Local 1421 for jobs that required union participation from the payroll of AQE Inc., which was a union signatory corporation. When the jobs did not require a union signatory company, union members were paid from the payroll of Air Quality Experts Inc.— an entity of AQE Inc.’s business, serving as a second corporate identity. In these instances, union members did not receive union rates, and benefits were not paid by AQE Inc. to the MLBF, which provides medical and pension benefits to 8,000 laborers and their families in Massachusetts. AQE Inc. sent “remittance reports” to the MLBF that failed to report thousands of hours worked by members of Local 1421. By significantly under reporting the hours worked by union members, AQE Inc. failed to pay hundreds of thousands of dollars to the MLBF.
Acting United States Attorney William D. Weinreb; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Susan Hensley, Regional Director of the Department of Labor, Employee Benefits and Security Administration, made the announcement today. Assistant U.S. Attorneys Fred M. Wyshak Jr. and Ryan M. DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.