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21 June 2017
McAlester Man Sentenced to 24 Months Probation, $5,000 Fine for Operating Motor Vehicle Under the Influence on A Military ReservationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEFFREY LEE MORRIS, age 35, of McAlester, Oklahoma, was sentenced to 2 years probation, and to pay a $500.00 fine for OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL, in violation of Title 47, Section 11-902(A)(2) of the Oklahoma Statutes, and Title 18, United States Code, Sections 7(3) and 13.
The Information alleged that on or about October 8, 2016, within the Eastern District of Oklahoma, the defendant, JEFFREY LEE MORRIS, did drive and operate a black Jeep Laredo motor vehicle while under the influence of alcohol at or near the Main Gate on C-Tree Road of the McAlester Army Ammunition Plant, land acquired for the use of the United States and under the exclusive jurisdiction thereof.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Man Found Guilty of Making False Statement About Combat DeploymentRead the Press Release
DENVER – Following a five-day jury trial in federal court before Senior U.S. District Court Judge John L. Kane, defendant Cameo Williams, Sr., age 34, of Denver, was found guilty of the single count of making a false statement, the U.S. Attorney’s Office and the Department of Veterans Affairs Office of the Inspector General announced. A sentencing hearing date has not yet been scheduled. Williams appeared at the trial free on a $5,000 unsecured bond.
Williams was indicted by a federal grand jury in Denver on March 24, 2016. After substantial litigation, his jury trial began on June 12, 2017. The jury found him guilty on June 19, 2016.
According to evidence presented to the jury at trial, Williams spent several years claiming to have post-traumatic stress disorder (PTSD) from a combat deployment. He was receiving disability compensation from the Department of Veterans’ Affairs (VA) for the PTSD. However, the defendant had actually served only a little more than two years in the Army—without a single day spent overseas—before being discharged for misconduct. Williams told the VA that the Army simply made an error in not mentioning his deployment on his discharge paperwork. However, the evidence at trial showed that not only did his personnel file lack any evidence of a deployment, he also had never received combat pay at any point in his Army career and had never had the necessary medical screenings and immunizations required for a deployment. In fact, Williams’ medical records showed him attending doctor’s appointments in Washington state during the time he claimed to have been deployed, and two soldiers from his unit testfied that no one from that unit had deployed during the time Williams said he was overseas.
The defendant faces not more than 5 years in federal prison and up to a $250,000 fine. This case was investigated by the Department of Veterans Affairs Office of the Inspector General, and prosecuted by Special Assistant U.S. Attorneys Tim Hoffman and Dan Burrows.
Louisville Felon Guilty of Possession of Multiple Drugs and A FirearmRead the Press Release
Admitted to possessing approximately 23 pounds of cocaine, heroin, meth and $170,000
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., announced the guilty plea of a Louisville felon, to possession with the intent to distribute cocaine, heroin and methamphetamine and to possession of a firearm by a convicted felon, in United States District Court before District Judge David J. Hale.
Ambrocio Jennings, 42, pled guilty yesterday, to all counts of a federal criminal complaint and remains in federal custody. At the time of his arrest Jennings possessed a stolen Glock 21 handgun, approximately $170,030 U.S. Currency, approximately 3 lbs. 4.2 ounces of heroin, approximately 6 pounds of meth, and 23 pounds 5.9 ounces of cocaine.
According to the Affidavit attached to the criminal complaint, on February 8, 2017, a U.S. Postal Inspector identified two packages being shipped from a Los Angeles California address to separate Louisville addresses, including one to defendant A. Jennings at Helck Avenue. The intercepted parcels contained 4 pounds of meth and two pounds of meth. With assistance from Louisville Metro Police and the Jefferson County Sheriff’s Office, controlled deliveries of the two packages were made. Jennings was observed entering and exiting the residence on Helck Avenue. When law enforcement attempted to stop Jennings, he began driving erratically and at high speeds, away from the officers. in the direction of Preston Highway near Gilmore Lane. LMPD Air Patrol followed Jennings and witnessed him throw three bags from his truck near Davies Avenue. Further, LMPD Air Patrol directed police to locate and arrest Jennings, then landed their helicopter in a field adjacent to the Davies Avenue location. The three bags were recovered and contained the U.S. currency, handgun, heroin, meth, and cocaine.
At the time of sentencing, the United States will recommend a sentence of 188 months’ incarceration followed by a period of supervised release. Sentencing is scheduled before Judge Hale on September 11, 2017, in Louisville.
Assistant United States Attorney Scott Davis is prosecuting this case. The United States Postal Inspection Service, Louisville Metro Police, and the Jefferson County Sherriff’s Department are investigating.
jennnings_criminal_information.pdfLeaders of Violent Bloods Street Gang Sentenced to 30 Years in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Two leaders of the Sex Money Murder set of the Bloods street gang were each sentenced to 360 months in prison for their respective roles in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced today.
Narik Wilson, a/k/a “Spaz,” 32, and Emil Rutledge, a/k/a “Diddy,” 28, both of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count Two of a superseding indictment charging them with racketeering conspiracy. Wilson was sentenced today by Judge Wigenton in Newark federal court. Rutledge was sentenced by Judge Wigenton on Jun 20, 2017.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.
Wilson and Rutledge, high-ranking members in Sex Money Murder, admitted that from 2007 to 2011, they committed a series of violent crimes to advance the gang’s objectives. Wilson, the leader, or “O.G.,” of Sex Money Murder, admitted that he directed the murder and attempted murder of eight rival gang members in and around Newark. Rutledge, a “captain,” or “shot-caller,” of Sex Money Murder, admitted that he and others carried out a number of the shootings ordered by Wilson, causing series injuries to others and the death of a victim.
Wilson admitted that he conspired with and directed other members of Sex Money Murder to murder the following individuals described in the indictment:
Feb. 4, 2007
Attempted murder of a rival gang member, (Victim 1)
Feb. 16, 2007
Attempted murder of a rival gang member (Victim 2)
Oct. 29, 2010
Attempted murder of a rival gang member (Victim 3)
June 16, 2011
Attempted murder of rival gang members (Victims 4-7)
July 14, 2011
Murder of a rival gang member (Victim 8)
Aug. 3, 2011
Attempted murder of a rival gang member (Victim 6)
Rutledge admitted that, acting at Wilson’s direction, he and others carried out drive-by shootings of Victims 3 through 7 on the above-described dates. Rutledge also admitted that he and others killed Victim 8 in a drive-by shooting. In addition, Wilson and Rutledge admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
Judge Wigenton also sentenced both defendants to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation.
He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Acting Special Agent in Charge Marcus S. Watson, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Dara Govan and Mary Toscano, Chief of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel:
Wilson: Michael N. Pedicini Esq., Chatham, New Jersey
Rutledge: Timothy R. Anderson Esq., Red Bank, New Jersey
Leader of New Haven Heroin Ring Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILSON VASQUEZ, also known as “Will” and “Pancho,” 44, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 151 months of imprisonment, followed by four years of supervised release, for heading a large heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that VASQUEZ obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 have pleaded guilty.
VASQUEZ has been detained since his arrest on July 15, 2015. On September 20, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Kenneth Matthew Adame, 24, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Adame and co-defendants Ricky Joe Garcia, 52, and Christopher Michael Sanchez, 24, both of Las Cruces, were arrested in April 2017, and were charged by criminal complaint with participating in a methamphetamine trafficking conspiracy on April 10, 2017, in Dona Ana County, N.M. According to the complaint, on that day, Adame, Garcia and Sanchez sold approximately 497.22 grams of methamphetamine to undercover law enforcement agents.
During today’s proceedings, Adame pled guilty to a felony information charging him with conspiracy to distribute methamphetamine and admitted that on April 10, 2017, he conspired with his co-defendants to distribute 497 grams of methamphetamine.
At sentencing, Adame faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Adame remains in custody pending a sentencing hearing, which has yet to be scheduled.
Garcia and Sanchez remain in custody on the charges in the criminal complaint. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by Homeland Security Investigations’ Border Drug Task Force and is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.
KC Man Sentenced for Stolen FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing a stolen firearm.
Timothy R. Day, 49, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to seven years and two months in federal prison without parole.
On Dec. 21, 2016, Day pleaded guilty to possessing a stolen firearm.
On July 30, 2014, Kansas City police officers received information that Day had been driving around and waiving a gun on a daily basis, stating he was going to kill a woman named Sheila. Day was located in a local motel room with a woman who had registered the room in her name. Officers established a perimeter around the room and contacted Day and the woman. After some negotiation, the woman exited the room.
Day told officers that he had a gun on the bed. After several more minutes of negotiation, Day came out of the room and was arrested. Inside the room, officers found a loaded Hafdasa .45-caliber pistol, which Day admitted he stole from his father a few weeks earlier.
While in federal custody awaiting sentencing, Day mailed a threatening letter to his ex-wife, in which he threatened to sexually assault her upon his release from prison. As a result, the court found Day in breach of his plea agreement because he continued to engage in criminal conduct after his guilty plea. The court today granted the government’s request for a sentence above the advisory sentencing guidelines range.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Justice Department Conducts Animal Fighting Investigations TrainingRead the Press Release
WASHINGTON - On June 21 to 22, the U.S. Attorney’s Office for the Eastern District of North Carolina, the U.S. Department of Justice’s Environmental Crimes Section and the U.S. Department of Agriculture’s Office of Inspector General (USDA OIG) hosted over 100 federal and state regulators, criminal investigators and prosecutors from across the country for an animal fighting investigations training held at the National Guard Joint Forces Headquarters in Raleigh, North Carolina.
“Animal fighting ventures are violent and unlawful,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “Ending these cruel practices will require a close partnership among local, state, and federal law enforcement agencies, including coordinated investigations and enhanced training programs. Our Division is proud to be a leader in this worthy cause.”
“Our office was pleased to host this important conference on the serious problem of animal fighting and abuse,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Federal, state, and local law enforcement, along with non-governmental animal welfare groups, are working together to stop these horrific crimes, and the associated crimes that usually accompany them.”
“As the criminal investigations agency of the U.S. Department of Agriculture, the Office of Inspector General has successfully conducted animal fighting investigations across the country, with the assistance of our Federal, State and local law enforcement partners,” said Assistant Inspector General for Investigations Ann M. Coffey.
“The USDA OIG is pleased to have worked closely with the Department of Justice to coordinate this important training initiative to combat animal fighting and the associated crimes which often occur in animal fighting ventures,” said Special Agent in Charge Karen Citizen-Wilcox for the USDA OIG Southeast Region Office of Investigations. “Special Agents from all of the OIG’s regional offices will share their knowledge of and experiences with animal fighting investigations with personnel attending from other law enforcement agencies and private organizations.”
During the training, animal fighting investigators from the Humane Society of the United States, along with prosecutors and USDA OIG agents who have successfully investigated and prosecuted animal fighting cases, shared their experiences with attendees. Instructors provided participants with an overview of the business of dog fighting, a description of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals and successful sentencing strategies.
State and national animal control associations estimate that upwards of 40,000 people participate in dog fighting in the United States at a professional level, meaning that dog fighting and its associated gambling are their primary or only source of income. An unknown but potentially larger number of people participate in dog fighting on an occasional basis. Cockfighting is thought to be similarly widespread. In addition, animal fighting activities attract other serious crimes, such as gambling, drug dealing, weapons offenses and money laundering. Children are commonly present at animal fighting events.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. In 2014, the Department of Justice designated the Environment and Natural Resources Division as the centralized body within the Department responsible for tracking, coordinating, and working with the U.S. Attorneys’ Offices on animal cruelty enforcement matters.
For more information on the Department's efforts, visit: https://www.justice.gov/enrd/animal-welfare.
Justice Department Conducts Animal Fighting Investigations TrainingRead the Press Release
On June 21 to 22, the U.S. Attorney’s Office for the Eastern District of North Carolina, the U.S. Department of Justice’s Environmental Crimes Section and the U.S. Department of Agriculture’s Office of Inspector General (USDA OIG) hosted over 100 federal and state regulators, criminal investigators and prosecutors from across the country for an animal fighting investigations training held at the National Guard Joint Forces Headquarters in Raleigh, North Carolina.
“Animal fighting ventures are violent and unlawful,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “Ending these cruel practices will require a close partnership among local, state, and federal law enforcement agencies, including coordinated investigations and enhanced training programs. Our Division is proud to be a leader in this worthy cause.”
“Our office was pleased to host this important conference on the serious problem of animal fighting and abuse,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Federal, state, and local law enforcement, along with non-governmental animal welfare groups are working together to stop these heinous crimes, and the associated crimes that usually accompany them.”
“As the criminal investigations agency of the U.S. Department of Agriculture, the Office of Inspector General has successfully conducted animal fighting investigations across the country, with the assistance of our Federal, State and local law enforcement partners,” said Assistant Inspector General for Investigations Ann M. Coffey.
“The USDA OIG is pleased to have worked closely with the Department of Justice to coordinate this important training initiative to combat animal fighting and the associated crimes which often occur in animal fighting ventures,” said Special Agent in Charge Karen Citizen-Wilcox for the USDA OIG Southeast Region Office of Investigations. “Special Agents from all of the OIG’s regional offices will share their knowledge of and experiences with animal fighting investigations with personnel attending from other law enforcement agencies and private organizations.”
During the training, animal fighting investigators from the Humane Society of the United States, along with prosecutors and USDA OIG agents who have successfully investigated and prosecuted animal fighting cases, shared their experiences with attendees. Instructors provided participants with an overview of the business of dog fighting, a description of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals and successful sentencing strategies.
State and national animal control associations estimate that upwards of 40,000 people participate in dog fighting in the United States at a professional level, meaning that dog fighting and its associated gambling are their primary or only source of income. An unknown but potentially larger number of people participate in dog fighting on an occasional basis. Cockfighting is thought to be similarly widespread. In addition, animal fighting activities attract other serious crimes, such as gambling, drug dealing, weapons offenses and money laundering. Children are commonly present at animal fighting events.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. In 2014, the Department of Justice designated the Environment and Natural Resources Division as the centralized body within the Department responsible for tracking, coordinating, and working with the U.S. Attorneys’ Offices on animal cruelty enforcement matters.
For more information on the Department's efforts, visit: https://www.justice.gov/enrd/animal-welfare.
Jury Convicts KC Man of Illegal Drugs, FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been convicted in federal court of illegally possessing PCP and a firearm.
Darrell L. Givens, 45, of Kansas City, was found guilty of one count of possessing PCP with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Givens has been detained in federal custody without bond since his arrest on March 31, 2016.
Evidence introduced during the trial indicated that Givens was in possession of a loaded Jimenez .380-caliber semi-automatic handgun on March 31, 2016. Officers were dispatched to Givens’s residence on that date for a reported disturbance. Upon arrival the officers heard the sounds of screaming coming from within the residence. A woman told the officers, “He’s trying to hide his gun; he’s trying to hide it in the sink.” Givens, who had been in the kitchen, walked towards the living room and told the officers that he didn’t have a gun. One of the officers saw a large red bowl upside down on the left side of the double-sided stainless steel sink; the firearm was hidden underneath the bowl.
When officers searched Givens they found a vial of PCP in the right cargo pocket of his pants. The vial also had small pieces of apparent tobacco floating in the brown liquid, which is indicative of tobacco cigarettes having previously been dipped into the liquid before being smoked. The amount of PCP Givens possessed is not considered a personal use amount and is more commonly found in the possession of individuals who engage in the sale of PCP. Givens was also in possession of $6,999 – in large quantities of multiple denominations (249 one dollar bills, 32 five dollar bills, 30 ten dollar bills, 92 twenty dollar bills, 13 fifty dollar bills, and 38 one hundred dollar bills), which is also commonly associated with sales of illegal narcotics.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Givens has four prior felony convictions for possession of a controlled substance and four prior felony convictions for distributing crack cocaine.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. District Judge Beth Phillips on Tuesday, June 20, 2017, ending a trial that began Monday, June 19, 2017.
Under federal statutes, Givens is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson City Man Sentenced to 24 Years for Enticing a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for enticing a minor to engage in illicit sex.
Andrew C. Clayton, 38, of Jefferson City, was sentenced by U.S. District Judge Brian C. Wimes to 24 years and four months in federal prison without parole. The court also sentenced Clayton to spend the rest of his life on supervised release following incarceration.
Clayton, a computer information technician employed by the state of Missouri at the time of the offense, sought out sexual relationships with juvenile males, some as young as 14. Clayton, who pleaded guilty on Nov. 21, 2016, admitted that he used the KIK instant messaging app on his cell phone to attempt to persuade a minor to engage in illegal sexual activity.
Clayton used KIK to contact a minor, identified as John Doe #2, on March 19 and 20, 2015. Clayton offered John Doe #2 cigarettes and other items if he would re-connect him with another minor, identified as John Doe #1, with whom Clayton had previously engaged in sexual relations. Clayton wanted to have sexual relations with John Doe #1 (which would constitute a criminal offense). Instead, John Doe #2 contacted the Cole County Sheriff’s Department. Officers executed a search warrant at Clayton’s residence on March 27, 2015. In an interview with officers, Clayton admitted to having sex with several boys.
According to court documents, Clayton also propositioned John Doe #2 while trying to persuade him to contact John Doe #1 on his behalf, and also propositioned another juvenile, identified as John Doe #3.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department Cyber Crimes Task Force and the Missouri State Technical Assistance Team.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Home Improvement Contractor Found Guilty of Defrauding Customers and Hiding Assets from Creditors in Bankruptcy ProceedingsRead the Press Release
WASHINGTON - Michael L. Rosebar, 53, of Washington, D.C., has been found guilty of defrauding customers of his home improvement business and personal creditors, making false statements in bankruptcy proceedings, and defrauding a government program for needy families, announced U.S. Attorney Channing D. Phillips and Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division.
A jury returned the guilty verdicts on June 20, 2017, following a trial in the U.S. District Court for the District of Columbia. Rosebar was found guilty of six federal counts of concealment of bankruptcy assets, three federal counts of false oaths and statements in bankruptcy, and three counts of wire fraud. He also was found guilty of violating District of Columbia laws, including three counts of first-degree fraud related to his home contracting business and one count of first-degree fraud related to a scheme to defraud the District of Columbia’s public assistance (or welfare) program.
The Honorable Senior Judge Thomas F. Hogan scheduled sentencing for Sept. 14, 2017. Rosebar, who was first indicted in this case in February 2016, was held pending sentencing.
Rosebar’s wife, Erin M. Rosebar, 40, is scheduled to stand trial on Nov. 6, 2017 on related charges in the case. She has pled not guilty.
According to the government’s evidence, Rosebar operated businesses under several names, including EMR Construction Contractors. From at least February 2008 through January 2015, according to the evidence, he misrepresented himself to clients as a licensed home-improvement, electrical and heating/ventilation/air conditioning (HVAC) contractor. However, at no time during that period did Rosebar have a business or professional license from the District of Columbia Department of Consumer and Regulatory Affairs.
Rosebar recruited customers at home improvement stores, through referrals, and by acting as a sub-contractor on projects. According to the government’s evidence, he negotiated contracts with customers for substantial home improvement or HVAC projects, which he could not, and did not intend to, complete. During the trial, the government presented evidence related to numerous home renovation projects and a project to install air conditioners at an apartment complex in Atlanta. According to the government’s evidence, Rosebar received more than $800,000 from 2008 through 2013 for these projects. Rosebar not only abandoned these projects before completion, his demolition and other improper and unskilled work destroyed many residents’ homes. One senior citizen victim paid Rosebar over $380,000, and her home was an uninhabitable disaster with no proper roof when Rosebar abandoned the job. This woman lost her life savings to Rosebar, and was forced to live in a small portion of the home for seven years.
While scamming numerous victims, Rosebar filed for bankruptcy protection three times in the period between 2008 and 2013. The jury found him guilty of charges related to false statements he made during these proceedings, in which he understated his income and overstated his expenses.
The jury also found Rosebar guilty of receiving benefits to which he was not entitled from the District of Columbia’s Department of Human Services. From 2010 until 2014, Rosebar earned hundreds of thousands of dollars from his contracting fraud victims, and yet received benefits through the Temporary Assistance for Needy Families program and Supplemental Nutrition Assistance Program after falsely reporting that he had no income, was unemployed, and had no assets other than his family home.
In announcing the verdicts, U.S. Attorney Phillips and Inspector in Charge Wemyss commended the work of those who investigated the case from the U.S. Postal Inspection Service, Washington Division. They also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Inspector General, the Metropolitan Police Department (MPD), and the District of Columbia Office of the Attorney General.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Nicole Hinson and Mark Fitzgerald; former Criminal Investigator Juan Juarez; Paralegal Specialists Aisha Keys and Jessica Mundi; Supervisory Litigation Technology Specialist Joshua Ellen; Assistant U.S. Attorney Arvind K. Lal, Chief of the Office’s Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Philip A. Selden, now with the U.S. Attorney’s Office for the District of Maryland. Finally, they commended the work of Assistant U.S. Attorneys John Marston and Anthony Saler, who prosecuted the case.
Harrison County man convicted of firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was convicted today of unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Matthew E. Boone, age 32, pled guilty to one count of “Unlawful Possession of a Firearm.”
Boone, having previously been convicted of heroin distribution in United States District Court, and five felonies in Harrison County Circuit Court, admitted to having a 9mm pistol in his possession. The crime occurred in January 2017 in Harrison County.
Boone faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Haitian National Sentenced to 108 Months in Federal Prison for Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
Guy Philippe, a former high-ranking Haitian National Police officer was sentenced today in Miami, Florida, to 108 months in prison with an order for a money judgement in the amount of $1.5 million to follow. Philippe previously pled guilty to a money laundering charge in connection with an international narcotics scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Philippe, 49, of Haiti was sentenced by U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, after having previously pled guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida and elsewhere in the United States in the late 1990s and early 2000s.
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted this case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
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.
Grape Street Crips Crack-Cocaine Wholesalers Get 18 Years in Prison for Racketeering, Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – Two crack-cocaine wholesalers for the New Jersey set of the Grape Street Crips were each sentenced today to 18 years in prison for their roles in racketeering and drug trafficking conspiracies operating in Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” 33, of East Orange, New Jersey, and Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” 30, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count 1 and Count 18 of a sixth superseding indictment charging them with racketeering conspiracy and conspiracy to distribute crack-cocaine. Judge Arleo imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Vanderhall, Concepcion and other members of the gang, including Jamar Hamilton, a/k/a “Gunner,” Tyquan Clark a/k/a “Tah,” and Rashan Washington, a/k/a “Shoota,” used and shared a dedicated cell phone to accept orders for, and distribute, thousands of clips of crack-cocaine to other distributors, including other gang members.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the area of 6th Avenue and North 5th Street in Newark used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison terms, Judge Arleo sentenced both Vanderhall and Concepcion to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the U.S. Attorney’s Office Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:Vanderhall: Joshua L. Markowitz Esq., Lawrenceville, New Jersey
Concepcion: Stephen Turano Esq., NewarkGardner Man Pleads Guilty to Conspiracy to Traffic Counterfeit SteroidsRead the Press Release
BOSTON – A Gardner, Mass., man pleaded guilty today in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids marketed on social media to bodybuilders and sold to customers around the country.
Robert Medeiros, 32, pleaded guilty to one count of conspiracy to traffic in counterfeit drugs and to distribute controlled substances. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 21, 2017.
On April 12, 2017, Medeiros and five others were arrested and charged with trafficking counterfeit steroids. It is alleged that, for at least two years prior to their arrests, members of the organization manufactured steroid products, marketed them falsely under the Onyx brand, and sold them to customers across the United States using email and social media platforms. Medeiros’ principal role in the conspiracy was to fulfill orders for anabolic steroids by obtaining the finished steroid products - branded with Onyx labeling and packaging - from other members of the conspiracy, prepare the steroids for shipment, and ship the steroids via the U.S. Postal Service to customers across the United States. Customers paid for the steroids through financial services companies like Western Union and MoneyGram. Members of the conspiracy allegedly used false identifications and multiple locations in an effort to collect the proceeds without attracting suspicion.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gain or loss of the criminal activity. 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement today. Assistance was provided by the Drug Enforcement Administration, New England Field Division; Massachusetts State Police; Boston Police Department; Massachusetts Bay Transportation Authority Police Department; Customs and Border Protection; and Lynn, Shrewsbury, Gloucester, Saugus, and Gardner Police Departments. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
Former Treasurer of Mahopac Volunteer Fire Department Sentenced to 77 Months in Prison in Connection with Embezzlement of More Than $5.6 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL KLEIN, the former treasurer of the Mahopac Volunteer Fire Department (“MVFD”), was sentenced today by U.S. District Judge Cathy Seibel to 77 months in prison for wire fraud, subscription to false tax returns, obstruction of the grand jury, and false statement charges arising out of his embezzlement of more than $5.6 million from the MVFD.
Acting U.S. Attorney Joon H. Kim said: “On hundreds of occasions over more than 13 years, Michael Klein stole from the volunteer fire department he was elected to serve. Klein took more than $5 million of the fire department’s money, and used it to buy himself several boats, luxury cars, cruises, and tens of thousands of dollars of jewelry. Then he lied about it on his taxes, and obstructed the investigation of his crimes. Now, Michael Klein has been sentenced to the lengthy prison term that his crimes merit.”
According to documents filed in court:
MICHAEL KLEIN was first elected treasurer of the MVFD in 2001. From in or about January 2002 to in or about September 2015, KLEIN embezzled MVFD funds under his control by writing checks to his two businesses, Abbie Graphic Services, Ltd. (“Abbie Graphic”) and Buckshollow Emergency Equipment Corp. (“BEEC”). KLEIN then deposited the checks to bank accounts held by Abbie Graphic and BEEC. He entered these checks into the MVFD’s books as having been made payable to various vendors other than Abbie Graphic or BEEC that sold firefighting equipment or services used by fire departments. To satisfy the MVFD’s auditors, KLEIN prepared numerous false invoices to match the entries in the MVFD’s books.
KLEIN embezzled more than $5.6 million by writing more than 275 checks over a period of more than 13 years. He used the money to purchase, among other things, a 37-foot Thunderbird Formula boat; a 29-foot Everglades boat; a 55-foot Neptunus motor yacht named “K’Bam;” a second residence in Palm City, Florida; a 2010 Mercedes-Benz S550; a 2008 Jeep Liberty; and an antique fire truck. In January 2013, KLEIN went on what appears to be a Caribbean vacation and made $38,658.46 worth of jewelry and cruise purchases within two weeks. KLEIN also used the money he stole from the MVFD to support Abbie Graphic and BEEC.
KLEIN failed to report most of this income on his personal tax returns for the period from 2009 through 2014, thereby subscribing to false tax returns for each of those years.
Following law enforcement’s discovery of KLEIN’s embezzlement in September 2015, KLEIN obstructed the grand jury’s investigation of his conduct by making false statements regarding his finances and by concealing and dissipating assets. In September 2015, KLEIN concealed the proceeds he received from the sale of a Corvette by giving the money to a relative for deposit to her bank account and then arranging for the relative to pay his household bills. KLEIN also concealed an antique fire truck to prevent law enforcement from seizing it; sold a 2012 Victory motorcycle, converting the proceeds to cash; and transferred $58,000 to his mother as purported repayment of a college loan. In April 2016, KLEIN sold his yacht “K’Bam,” which he had purchased for $260,000 in 2012, for $136,850.46. In May 2016, KLEIN gave the United States Attorney a financial statement in which he falsely claimed, among other things, that BEEC had a delinquent loan of $275,000, and that, as a result of that loan, a lien was filed against KLEIN’s Florida property.
On March 7, 2017, KLEIN pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison; six counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison; one count of obstructing the grand jury’s investigation, which carries a maximum sentence of 20 years in prison; and one count of making false statements to the United States Attorney, which carries a maximum sentence of five years in prison.
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In addition to the prison sentence, KLEIN, 49, of Mahopac, New York, and Palm City, Florida, was sentenced to three years of supervised release. Judge Seibel also ordered KLEIN to forfeit $5,675,360.49 in ill-gotten gains, as well as various assets, including his residence in Palm City, Florida. Judge Seibel also ordered KLEIN to pay $5,675,360.49 in restitution.
Mr. Kim praised the outstanding investigative work of the IRS, FBI, New York State Comptroller, and New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Olga Zverovich, James McMahon, Andrew Dember, Maurene Comey, Michael Maimin, and Lauren Schorr are in charge of the prosecution.
Former Owner of Montana Area Chili's Sentenced to 30 Months in Prison for Bank FraudRead the Press Release
GREAT FALLS – Kenneth James Hatzenbeller, 65, of Great Falls, Montana, former owner of several Montana restaurants, was sentenced today to 30 months in prison and 3 years supervised release for bank fraud. He was also ordered to pay $1,077,866.82 to two banks. U.S. District Court Judge Brian M. Morris presided over the sentencing.
In court documents, federal prosecutor Chad Spraker wrote that on August of 2014, Hatzenbeller contacted Zions Bank and requested a $500,000 loan to purchase furniture, fixtures, and equipment for five Chili's restaurants operated by Shoot the Moon. The collateral for the loan was to be the furniture, fixtures, and equipment purchased with the loan proceeds.
On September 2, 2014, Hatzenbeller signed a Disbursement Request and Authorization requesting that $500,000.00 in loan proceeds be disbursed to Penner Brokerage. That same day, Zions Bank initiated a wire transfer of $494,890 to Wells Fargo for the benefit of Penner Brokerage based on invoices listing Penner Brokerage as the vendor for various furniture, fixtures, and equipment. The account controlled by Hatzenbeller’s daughter who knew nothing of Penner Brokerage or the invoices until interviewed by the FBI. The funds were never used for furniture, fixtures and equipment and were redirected to other company debts leaving Zions uncollateralized and unsecured.
In early September 2015, Hatzenbeller contacted Yellowstone Bank in Billings and indicated that Shoot the Moon was planning to open a Chili’s restaurant at the Rimrock Mall in Billings. Hatzenbeller was looking for financing for the project and stated he needed a $600,000 loan in order to purchase equipment and furnishings for the new restaurant. Hatzenbeller advised he and his partners would also be contributing an unspecified amount of capital to the project, and they would be personal guarantors on the loan. The bank was to have a lien on all fees, fixtures, and equipment as collateral
Due to Hatzenbeller and his partners’ strong financial statements, Yellowstone Bank did not require invoices from Shoot the Moon prior to making loan disbursements. Nevertheless, a bank vice president asked for invoices to make himself feel comfortable that the loan money was being spent as agreed upon. Hatzenbeller provided invoices that were either fabricated or for expenses that Shoot the Moon never incurred.
Shoot the Moon filed for a Chapter 11 bankruptcy in October of 2015. Hatzenbeller was deposed in the bankruptcy proceeding and admitted he used the Yellowstone Bank loan proceeds to pay expenses unrelated to the Billings Chili's restaurant. Hatzenbeller said he used the money to pay a food vendor, pay taxes, and meet payroll. When questioned about the September 2, 2014, $490,000 deposit from Zions Bank, Hatzenbeller falsely claimed it was a loan from his daughter and her husband.
This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by Federal Bureau of Investigation and the United States Trustee.
Former Letter Carrier Pleads Guilty to Federal Charge, Admits Dumping More Than 15,000 Pieces of MailRead the Press Release
WASHINGTON - Christopher Newton, 22, a former U.S. Postal Service employee, pled guilty today to a federal charge for dumping more than 15,000 pieces of mail that he was supposed to deliver, announced U.S. Attorney Channing D. Phillips and Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General.
Newton, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to obstruction of mails. The charge carries a statutory maximum of six months in prison and potential financial penalties. He is to be sentenced on Sept. 6, 2017, by the Honorable Senior Judge Ellen S. Huvelle.
According to a statement of offense, signed by the defendant as well as the government, Newton worked from December 2015 until May 16, 2016 as a city carrier assistant. He was ultimately assigned to the River Terrace Post Office in Northeast Washington, and his responsibilities included collecting, sorting, and delivering mail to postal customers on routes he was assigned.
On May 16, 2016, a local television news station informed the Postal Service that mail had been found in a catch basin in an area serviced by the River Terrace Post Office. According to the statement of offense, managers went to the intersection of Douglas Street and Anacostia Avenue NE, where they recovered 74 pieces of mail that had been protruding from the catch basin. On the following day, postal investigators returned to the scene. A manhole cover near the catch basin was removed, and from the sewer, investigators recovered 17 large trash bags of mail – an estimated 15,000 pieces. The mail was soaking wet and clumped together, and it shredded to pieces as it was picked up. This mail was unsalvageable due to sewer contamination.
The catch basin was located on a route serviced by Newton. On May 16, 2016, after a supervisor confronted him about the first batch of dumped mail, Newton announced that he was quitting his job immediately. In his guilty plea, Newton admitted that he alone dumped the mail that was recovered on May 16 and May 17, 2016.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Bowman commended the work of those who investigated the case from the U.S. Postal Service, Office of Inspector General, including Special Agent Michael Wu. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Aisha Keys and Brittany Phillips, and Assistant U.S. Attorney Emily A. Miller, who is prosecuting the matter.
Former Dumas Police Officer Sold Drugs in Uniform, Sentenced to More Than 10 Years in PrisonRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that James Edgerson, 39, of Dumas, was sentenced to 135 months in federal prison for his role in a large-scale drug conspiracy.
On October 7, 2015, a federal Grand Jury returned an indictment charging Edgerson, who was a police officer at the time he committed his crimes, and five other people in a conspiracy to distribute methamphetamine, cocaine and crack cocaine, and marijuana. Edgerson also faced multiple drug distribution charges, as well as charges related to selling the drugs while carrying his police-issued firearm.
On February 2, 2017, Edgerson pleaded guilty to his role in the drug conspiracy. Edgerson also admitted to possessing a firearm and abusing his position of trust as a police officer. Today, Chief United States District Judge Brian S. Miller sentenced Edgerson to 135 months’ imprisonment, five years of supervised release, and a $100 special assessment.
“Police officers take an oath to protect and serve their communities,” Harris said. “Edgerson’s significant sentence reflects his absolute violation of this oath, and his abuse of the trust placed in him by members of his community. This sentence also demonstrates that no one is above the law, and people who sell drugs will be prosecuted, regardless of their position in society.”
Edgerson admitted to participating in the conspiracy from May 2015 through through September 2015. While he was working as a police officer for the Dumas Police Department, James Edgerson bought and sold cocaine, methamphetamine, and marijuana along with Kendrick Lamar Edgerson, Gregory Lamont Charles, Steven Sherrod Miles, Eli Haynes III and Rodney Lariel Edgerson.
James Edgerson obtained multi-ounce quantities of methamphetamine from Haynes for resale and redistribution to other individuals. For example, on August 25, 2015, James Edgerson called Haynes to arrange the purchase of methamphetamine. James Edgerson then traveled to meet Haynes in the Arlington, Texas, area, and purchased approximately nine ounces of methamphetamine. James Edgerson also purchased pound quantities of marijuana from Rodney Edgerson.
James Edgerson also sold drugs numerous times, including times while in uniform. As one example of multiple transactions, James Edgerson sold an informant nine ounces of cocaine for $11,300 on August 31, 2015, telling the source that he makes $50 on each ounce. On June 16, 2015, he completed a deal while in uniform and standing next to his police cruiser.
“James Edgerson betrayed the trust we place in police officers and the sentencing today is an indication of his total disregard for the citizens and law enforcement in our communities,” Upchurch said. “I commend the United States Attorney’s Office of the Eastern District and the Arkansas State Police for their efforts, and the great work of our FBI team.”
Charles, Miles, Haynes, and Rodney Edgerson have all previously pleaded guilty. Kendrick Edgerson has trial pending on September 11, 2017.
This investigation was conducted by the FBI and Arkansas State Police. It is being prosecuted by Assistant United States Attorneys Julie Peters and Edward Walker. All defendants are innocent unless and until proven guilty.
Former Church Youth Leader Sentenced for Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former church youth leader in Iberia, Mo., was sentenced in federal court today for attempting to entice a minor for illicit sex.
Jamey Lee Becker, 46, of Iberia, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
Becker, who pleaded guilty on Jan. 4, 2017, admitted that he used the Internet and a cell phone in an attempt to entice an individual under the age of 17 to engage in illegal sexual activity between Feb. 1 and June 10, 2016.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol and the Miller County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Charity President Pleads Guilty to Embezzling MoneyRead the Press Release
WASHINGTON – John Thomas Burch, 75, of Alexandria, Virginia, pled guilty today to a federal charge of wire fraud, arising from his embezzlement while he was the president of the National Vietnam Veterans Foundation, announced U.S. Attorney Channing D. Phillips and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Burch pled guilty in the U.S. District Court for the District of Columbia. Under federal sentencing guidelines, he faces an estimated range of 12 to 18 months in prison, as well as a fine of up to $55,000. He also is subject to a forfeiture money judgment of $75,000. The Honorable Ketanji Brown Jackson scheduled sentencing for Oct. 5, 2017.
According to a statement of offense, signed by the defendant as well as the government, Burch was the president of the National Vietnam Veterans Foundation, Inc. (“NVVF”), a nonprofit organization, incorporated in Washington, D.C. until 2016 when it was disbanded. NVVF solicited donations from the public, representing that their mission was “to provide help and support for American Veterans and their families through the generosity of the American people.” While the NVVF utilized some of its donated revenues to support the NVVF’s purported mission, Burch misappropriated portions of the donations to pay for food and lodging with no business purpose, and made repeated payments to women, who were personal acquaintances of Burch.
Burch had unilateral control over the NVVF’s “Emergency Assistance Program,” which accounted for tens of thousands of dollars of the NVVF’s operating expenses annually during the years 2012 to 2016. Burch represented to the NVVF’s Board of Directors the Emergency Assistance Program was a discretionary program that he ran as President of the NVVF, and that in fact, there was no oversight of Burch’s spending from the program in the distribution of smaller grants, generally between $100 to $300. In spite of Burch’s representation to NVVF employees and the Board of Directors that individual grants generally ran from $100 to $250 with the intent of providing only a one-time payment to recipients who were “usually Veteran family members with small children who are in chronic destitute circumstances,” Burch used the Emergency Assistance Program to give money to women who often were engaged in personal relationships with him. Burch also submitted expense reports claiming reimbursements for business lodging, travel, and meals, when in reality he spent the money on personal visits to clubs, restaurants, and hotels in Baltimore.
The amount of the charity’s money spent by Burch on non-business related travel, clubs, restaurants, hotels, and women between the years 2012 and 2016 was at least $149,317.
In announcing the guilty plea, U.S. Attorney Phillips and Assistant Director in Charge Vale expressed appreciation for the work performed by those who investigated the case from the Washington Field Office of the FBI. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Christopher Toms and Special Assistant U.S. Attorney Kyle Bateman, who is assisting with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Florida Businessman Sentenced to Six Months’ Imprisonment for Failing to Remit Federal Payroll TaxesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Richard P. Conaboy sentenced Joel Fuller, age 46, currently a resident of Florida, to six months’ imprisonment and a two-year term of supervised release, for failing to remit employee payroll taxes to the IRS.
According to United States Attorney Bruce D. Brandler, Fuller, formerly owned Mabro Marketing, Inc. and Integrity Travel Solutions LLC, two Hazleton, Pennsylvania-based businesses that provided time-share marketing services to prospective clients on behalf of vacation companies. From 2010 through 2013, Fuller’s businesses withheld federal income taxes from employees’ paychecks, including income taxes and Federal Insurance Contribution Act taxes, but failed to remit those taxes and the businesses’ portions of those taxes to the IRS. The taxes were instead used by Fuller to fund his lifestyle. The total amount of unremitted taxes from both businesses combined was $180,783.
Fuller also failed to pay $136,734 that he owed to the IRS for his own personal income tax returns, from years 2005 through 2013.
In pronouncing the sentence, Judge Conaboy highlighted the interest in deterring others from committing similar crimes. Judge Conaboy also imposed a restitution order requiring Fuller to pay $317,517 to the IRS.
The investigation was conducted by the Criminal Investigation Division of the IRS. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Five Doctors Plead Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Five doctors today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
George Roussis, 44, of Staten Island, New York; Nicholas Roussis, 48, of Staten Island; Jorge J. Figueroa, 58, of Wayne, New Jersey; and Basel Batarseh, 57, of Franklin Lakes, New Jersey, each pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to separate informations charging them each with one count of accepting bribes in violation of the Federal Travel Act.
Yousef Zibdie, 53, of Wayne, New Jersey, who was indicted on June 6, 2017 with Aiman Hamdan and Kristina Hamdan, pleaded guilty before Judge Chesler to all 11 counts against him in the indictment, including participating in the bribery conspiracy, violating the Federal Anti-Kickback statute, violating the Federal Travel Act, honest services wire fraud and conspiracy to commit money laundering.
According to documents filed in these cases and statements made in court:
George Roussis, a pediatrician, and his brother, Nicholas Roussis, an obstetrician-gynecologist, both with practices in Staten Island, accepted cash payments totaling approximately $175,000 from BLS employees and associates between October 2010 and April 2013. In addition, at the request of the Roussis brothers, BLS paid for strip club trips, including paying women to perform lap dances and engage in sex acts with George and Nicholas Roussis. In exchange, George and Nicholas Roussis referred their patients’ blood specimens to BLS, generating more than $1,450,000 and $250,000 of lab business for BLS, respectively.
Figueroa, an internal medicine doctor with a practice in Fair Lawn, New Jersey, accepted checks, cash and other bribe payments totaling approximately $200,000 from BLS employees and associates between May 2007 and April 2013. In exchange, Figueroa generated more than $1,400,000 in lab business for BLS.
Batarseh, an internal medicine doctor with a practice in West New York, New Jersey, accepted monthly bribe checks of $3,200 totaling more than $104,000 from BLS employees and associates between November 2007 and August 2010. In exchange, Batarseh generated more than $1,300,000 in lab business for BLS.
Zibdie, an internal medicine doctor with a practice in Woodland Park, New Jersey, accepted monthly bribe checks totaling approximately $80,000 from BLS employees and associates, including co-defendant Kristina Hamdan. In exchange, Zibdie generated more than $930,000 in lab business for BLS.
The investigation has thus far resulted in 50 convictions – 36 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The Travel Act charges to which each of the five doctors pleaded guilty is punishable by a maximum potential penalty of five years in prison. It also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
The conspiracy to engage in bribery charge and Federal Anti-Kickback Statute violations to which Zibdie pleaded guilty are punishable by a maximum potential penalty of five years in prison. The honest services wire fraud charges and conspiracy to commit money laundering charges to which Zibdie pleaded guilty are punishable by a maximum potential penalty of twenty years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
The sentencings for all five defendants have been scheduled for Dec. 6, 2017.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Senior Litigation Counsel Joseph N. Minish and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.34 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
George Roussis: Peter Bennett Esq., Red Bank, New Jersey
Nicholas Roussis: Joseph R. Corozzo Esq., New York, New York
Jorge J. Figueroa: Gerald Krovatin Esq., Newark, New Jersey
Basel Batarseh: Curtis LaForge Esq., Saddle Brook, New Jersey
Yousef Zibdie: Eric Kanefsky Esq., Newark, New Jersey
Five Defendants Arraigned in 15-Kilogram Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – Five men who were arrested in California with 15 kilograms of cocaine bound for New Jersey were arraigned today in Newark federal court, Acting U.S. Attorney William E. Fitzpatrick announced.
Froylan Gil Palomares, a/k/a “Froilan Gill,” 39, a Mexican national; Efrain Cardenas Alcaras, a/k/a “Ifrain Alcaras Cardenas,” 39, of Sunnyside, Washington; Sergio Kevin Calvio Ayala, a/k/a “Kevin Calveo” 28, of Fontana, California; Luis Tomas Alba Urena, 53, of Prospect Park, New Jersey; and Javier Armando Cortes Quintal, 48, a Mexican national, are charged by indictment with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine. The defendants were arraigned in Newark federal court before U.S. District Judge William H. Walls and were detained.
According to documents filed in this case:
From Aug. 31, 2016, through Feb. 8, 2017, law enforcement officers monitored communications between Alba and others. Those communications led to the seizure of approximately one kilogram of cocaine that Alba and Quintal allegedly sold to another individual in California on Sept. 26, 2016. Alba, Quintal, and the individual later negotiated the sale of kilograms of cocaine that the individual would transport to New Jersey. After agreeing to the details of the cocaine delivery, Alba and the individual traveled from New Jersey to California to conduct the transaction.
On Feb. 8, 2017, law enforcement officers observed Quintal, Alba, Gil Palomares, Calvio and Cardenas Alcaras meet with the individual in the parking lot of a retail establishment in Burbank, California. Cardenas Alcaras and Calvio allegedly directed the individual to the interior of a Jeep to inspect the drug shipment. Once the presence of cocaine in the Jeep was confirmed, law enforcement arrested the defendants and seized 15 kilograms of cocaine from the scene, along with a .380 caliber pistol.
Each defendant faces a mandatory minimum term of 10 years in prison and a potential maximum sentence of life in prison. The defendants also face a maximum $10 million fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Froylan Gil Palomares: Mark Leibman Esq.
Efrain Cardenas Alcaras: Michael V. Calabro Esq.
Sergio Kevin Calvio Ayala: Bruce S. Rosen Esq.
Luis Tomas Alba Urena: Linwood A. Jones Esq.
Javier Armando Cortes Quintal: Julian Wilsey Esq.
Federal Judge Convicts Two Former Swisher Hygine, Inc. Executives on Securities Fraud Charges Following Bench TrialRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. delivered guilty verdicts yesterday against two former executives of Swisher Hygiene, Inc. (Swisher), for their respective roles in a securities fraud conspiracy carried out at Swisher throughout fiscal year 2011, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Michael Kipp, 63, of Charlotte, and Joanne Viard, 38, of Indian Trail, were convicted of conspiring to commit securities fraud, making false and misleading statements to auditors, and falsifying the books and records of Swisher. Defendant Kipp was also convicted of wire fraud, securities fraud, and bank fraud.
Special Agent in Charge John A. Strong, of the FBI’s Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to filed court documents, statements made in court, and evidence presented during the three-week bench trial:
Throughout fiscal year 2011, Kipp, who at the time was Swisher’s then chief financial officer, and Viard, a certified public accountant and Swisher’s then director of external reporting, and their conspirators, engaged in an accounting fraud scheme, to ensure that Swisher’s reported earnings had met or exceeded executive management’s forecasts, and to conceal the existence of the fraud from Swisher’s auditors, the investing public and others. In particular, the defendants manipulated Swisher’s books and records, so that Swisher would meet targeted goals despite actual earnings. When falling short of their target, the defendants utilized a number of ways to fraudulently inflate Swisher’s earnings.
The accounting fraud scheme began to unravel when Swisher’s then Controller pushed back on making a fraudulent entry during the year-end close. The Controller wrote in an email, “I’ll run it by BDO [Swisher’s auditors] so we’re on the same page,” to which Defendant Kipp responded, “You’ll run it by me since I’m the chief accounting officer. I’m out of patience with this.” Later, Kipp fired the Controller for his persistent refusal to book the fraudulent entry. Swisher’s Audit Committee learned of the Controller’s allegations and promptly commissioned an independent internal investigation.
Approximately eleven months following the announcement of the federal investigation, Swisher filed restated financial reports for the first three quarters of 2011 and filed its Form 10-K for the 2011 year. The restatement reflected, among other things, that Swisher had substantially overstated its earnings and significantly understated its losses during the relevant time-period.
Previously, Swisher had entered into a Deferred Prosecution Agreement with the United States, in which Swisher accepted and acknowledged responsibility for the conduct of its former employees and agreed to pay a $2 million penalty.
In October 2015, Swisher’s former senior-level accounting employee, John Pierrard, pleaded guilty to securities fraud conspiracy.
The conspiracy charge carries a maximum prison term of five years. The securities fraud and wire fraud charges each carry a maximum prison term of 20 years. The bank fraud charge carries a maximum prison term of 30 years. A sentencing date for the defendants has not been set.
The investigation as led by the FBI. U.S. Attorney Rose also thanked the U.S. Securities & Exchange Commission for their assistance in the case.
Assistant U.S. Attorneys Maria K. Vento and William Miller, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Federal Inmate Sentenced to 17 Months More in Prison for Attempting to Possess DrugRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of attempt to obtain contraband in prison, and immediately was sentenced to 17 months in prison, consecutive to the current prison term he is serving, followed by three years’ supervised release, Acting United States Attorney Soo C. Song announced today.
Michael Jackson, 28, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on October 12, 2016, Jackson attempted to obtain a quantity of Suboxone.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Jackson.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that, a Federal Grand Jury in Charleston, South Carolina, returned Indictments against the following:
Mullins Man Indicted for Illegal Re-entry into the United States After Deportation. Jorge Hernandez-Gomez a/k/a Jorge Hernandez-Rodriguez, age 34, of Mullins, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Hernandez-Gomez could receive is a fine of $250,000.00 and/or two years imprisonment. The case was investigated by the Immigration and Custom Enforcement-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.
Myrtle Beach Man Indicted for Illegal Re-entry into the United States After Deportation. Gaudencio Morgado-Martinez, age 32, of Myrtle Beach, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Morgado-Martinez could receive is a fine of $250,000.00 and/or two years imprisonment. The case was investigated by the Immigration and Custom Enforcement-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney Lauren Hummel of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Ex Secretary of Puerto Rico Department of Sports and Recreation Indicted for Receiving Kickbacks, Fraud, and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico– Ramón Orta, former Secretary of the Department of Sports and Recreation (PR DRD), his Special Assistant Edgardo Vazquez-Morales, and four other individuals have been indicted and arrested for their participation in a conspiracy to steal federal funds involving fraudulently obtained contracts from the PR Department of Education (PR DOE) and the PR Public Housing Authority (PR PHA), announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. Orta and Vázquez-Morales were also charged for soliciting and receiving multiple kickback payments from a seventh defendant pertaining to DRD’s lease of a facility in Guayama, Puerto Rico. The United States Department of Education, Office of Inspector General, is handling the investigation with the Federal Bureau of Investigation and the United States Department of Housing and Urban Development, Office of Inspector General.
The indictment returned yesterday, June 20, 2017, by a federal grand jury in the District of Puerto Rico, includes 50 counts against the following individuals:
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Ramón Orta-Rodríguez, the Secretary of the Puerto Rico Department of Sports and Recreation (PR DRD) from January 2013 until December 2016;
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Edgardo Vázquez-Morales, the Special Assistant to Ramón Orta-Rodríguez from January 2013 until December 2016;
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Oscar Rodríguez-Torres, President of Rosso Group, Inc.;
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Miguel Sosa-Suárez, owner of Global Sports Initiative, LLC (“Global”);
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Irving Riquel Torres-Rodríguez, President of Administrative, Environmental and Sports Consultants Corp. (“AESC”);
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Cecilia Amador-López, wife of defendant Riquiel-Torres; submitted proposals to PR DOE
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Juan Carlos Ortiz-Nieves, owner of Sports Consultants Inc.
The companies involved in the conspiracy are:
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Rosso Group Inc. (“Rosso”), created to fund projects awarded by Orta-Rodríguez as Secretary of the PR DRD. From 2013 to 2016, Rosso received approximately $8,767,446.52 from PR DRD.
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Global Sports Initiative, LLC (“Global”), was a domestic non-profit corporation managed by Sosa-Suárez; engaged in managing, organizing, and promoting boxing events in Puerto Rico and elsewhere. Global received approximately $500,000 during the conspiracy.
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Administrative, Environmental and Sports Consultants Corp. (“AESC”), a for-profit corporation. Irving Riquel Torres-Rodríguez was the president and treasurer of AESC from 2010 until 2012, and in 2015. AESC received $554,246.89 from Rosso.
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Sports Consultants Inc., a for-profit corporation incorporated by Juan Carlos Ortiz-Nieves; the company received in excess of $70,000 from Estate A to make kickback payments to Orta and Vázquez.
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Estate A (an estate with multiple members, including defendant Ortiz-Nieves) owns property in Guayama, Puerto Rico. In 2015, Ortiz-Nieves negotiated a lease agreement on behalf of Estate A for the PR DRD to utilize a portion of the land and building as a sports and recreation facility with a five-year term at $14,500 per month.
According to the indictment, the defendants used Orta-Rodríguez’ position as Secretary of PR DRD to benefit and enrich themselves and defraud the United States as follows:
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Orta-Rodríguez utilized his position as Secretary of PR DRD to solicit federal funds from the PR DOE and PR PHA based on material misrepresentations regarding PR DRD’s ability to perform the activities and the scope of the activities subject to the proposals. Orta-Rodríguez, as Secretary of PR DRD, entered into contracts with Rosso, for the administration of various projects funded with federal monies. Rosso did not participate in any competitive bidding or evaluation process for the award of these contracts, which totaled $10,510,460. The services were supposed to be rendered by PR DRD, pursuant to its contracts with the PR DOE and PR PHA.
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The PR DRD-Rosso contracts were inflated to provide net proceeds to Rosso, which were later distributed amongst co-conspirators. The co-conspirators split approximately $3.9 million in net profits from the PR DOE contracts. Orta-Rodríguez obtained net proceeds of approximately $799,740 for PR DRD on one education project. Orta-Rodríguez also disbursed $200,000 in discretionary funds to other co-conspirators to operate and promote boxing events through Global.
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DRD contracted the services of ROSSO to provide television programming services for one television show about public housing projects in Puerto Rico. SOSA agreed with the individual who provided the services, to inflate the invoices for those services and to produce a second television show, DRD.TV, for the DRD. In 2015, SOSA was paid the difference between the actual cost of the production of both shows and the inflated invoice cost, which was paid from HUD funds. In 2016, ROSSO was paid this difference. DRD was also able to use federal funding for the DRD.TV show, which was outside the scope of the federal funding. SOSA was paid $311,345.30 on the HUD contracts by the television producer. ROSSO was paid $237,609.12 by the producer on the HUD contracts. The total amount misapplied by ORTA and excessively paid on the HUD contract (including the DRD.TV show) was approximately $1,216,650. Federal funds fraudulently obtained by members of the conspiracy were utilized for business ventures, travel, and to make purchases for political campaigns and political parties.
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Orta-Rodríguez executed a five-year lease agreement with Estate A for $14,500 which was in excess of the $8,500 price proposed by Ortiz-Nieves. Ortiz-Nieves created Sports Consulting and caused the transfer of funds from Estate A to Sports Consulting so that cash withdrawals could be made to pay Orta-Rodríguez and Vázquez-Morales the kickback payments generated from the $6,000 difference of the lease agreement. Approximately $26,000 was paid, in cash, as kickbacks to Orta-Rodríguez and Vázquez-Morales.
The indictment also includes the following substantive charges: nine counts of wire fraud; two counts of mail fraud; five counts of aggravated identity theft; and twenty-seven counts of money laundering.
“Public corruption continues to erode the trust between government officials and our citizens. Defendant Ramón Orta, along with his coconspirators, exploited his government position to rob Puerto Rican taxpayers of more than $10 million,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “As Secretary of the DRD, Orta was entrusted with performing his duties honestly and ethically. The charged offenses are reprehensible, more so in light of Puerto Rico’s fiscal crisis. I commend the commitment of the agents, financial analysts, and prosecutors whose tireless work made these arrests possible.”
“These defendants knowingly and willfully abused their positions of trust for personal gain. That is unacceptable,” said Aaron Jordan, Assistant Inspector General for Investigations at the U.S. Department of Education. “I want to commend the OIG Special agents and our law enforcement colleagues whose efforts brought about today’s actions and helped stop such calculated plunder. The OIG will continue to aggressively pursue those who misappropriate Federal education funds for their own selfish purposes. Our students and taxpayers deserve nothing less.”
“The public must be able to trust the officials who are put in charge of government funds. Anyone who violates that trust will be brought to justice, because the citizens of Puerto Rico deserve no less. The FBI is proud to share this commitment with its partners from the United States Attorney's Office, and the Inspectors General for the Departments of Education and Housing and Urban Development,” stated Douglas Leff, Special Agent in Charge of FBI, San Juan.
“Our core mission is to investigate cases where there is evidence of waste, fraud and abuse involving H.U.D. programs. It is through the collective law enforcement effort present here today that we are able to ensure the integrity of those programs and to pursue those that would use them for personal gain,” stated Nicholas Padilla, Jr., Assistant Inspector General for Investigations, United States Department of Housing and Urban Development, Office of the Inspector General.
The case is being investigated by the United States Department of Education Office of Inspector General in conjunction with the FBI’s San Juan Division and the United States Department of House and Urban Development Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe. If found guilty, the defendants are facing possible sentences of up to 10 years for conspiracy, theft of government funds, and bribery, and up to 20 years for mail fraud, wire fraud and money laundering.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
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Essex County, New Jersey, Man Gets 108 Months in Prison for Crack-Cocaine DistributionRead the Press Release
Kenneth Hammond, a/k/a “Saleem,” 49, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of conspiracy to distribute 280 grams or more of crack-cocaine. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Hammond supervised a drug trafficking organization that employed multiple associates, including Antonio Bivens, a/k/a “Mo,” 44, also of Irvington. Hammond also stored and distributed multiple kilograms of crack-cocaine and powder cocaine in two residences that he owned in Irvington. In November 2015, law enforcement officers raided Hammond’s residences and seized approximately two kilograms of crack-cocaine and 12 kilograms of powder cocaine.
In addition to the prison term, Judge Hayden sentenced Hammond to five years of supervised release. Bivens previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced by Judge Hayden on June 27, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorneys Barry A. Kamar and Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John D. Lynch Esq., Union City, New Jersey
Elk Grove Man Arrested for Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — An Elk Grove man was arrested today on charges of sex trafficking of a child, U.S. Attorney Phillip A. Talbert announced.
On June 8, 2017, a federal grand jury in Sacramento returned a sealed indictment against Abdul Basier Hashimi, 25, charging him with one count of sex trafficking of children. The indictment was unsealed today after Hashimi’s arrest.
According to court documents, between August 2014 and November 2014, Hashimi recruited, harbored, transported, and advertised a minor victim, knowing that the minor would be caused to engage in prostitution.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.
If convicted, Hashimi faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and up to a $250,000 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Eleven Individuals Charged following Investigation of Drug Money Laundering in the Money Remitter IndustryRead the Press Release
ATLANTA - Eleven defendants have been charged with laundering drug money to Mexico through metro-Atlanta area money remitters during a three-year long federal investigation focused on money laundering by money remittance businesses.
“Using money remitters to launder illegal drug proceeds is just one more way drug cartels fuel their criminal enterprises,” said U. S. Attorney John Horn. “The business model of many Mexican cartels requires a means to get their cash profits across the border and into the hands of the supervisors and sellers. This investigation shows that they may have found an effective means through unscrupulous money remitters. We hope these cases will help to close this pipeline.”
“The criminal network uncovered by this investigation laundered millions of dollars in illegal drug proceeds back to Mexico and provided direct support to the drug trafficking organizations plaguing the region with dangerous illicit narcotics and the violence associated with drug trafficking activities,” said ICE Homeland Security Investigations Atlanta Special Agent in Charge Nick Annan. “HSI will continue to focus investigative efforts on dismantling and bringing to justice members of drug trafficking organizations and all those complicit in their activities.”
“Narcotics traffickers will attempt to create elaborate financial networks in an effort to launder illegal drug proceeds,” stated Acting Special Agent in Charge James E. Dorsey. “IRS Criminal Investigation will continue to work with our law enforcement partners to peel back every intricate layer used to launder those proceeds and expose everyone involved.”
According to U.S. Attorney Horn, the indictments, and other information presented in court: In 2014, federal law enforcement agents began investigating individuals in the metro-Atlanta area that were suspected of laundering drug proceeds to Mexico. Federal agents utilized cooperating sources to infiltrate these individuals’ networks and determined that the money launderers frequently used small businesses to send funds out of the country via money remittance services. These small businesses allow customers to wire funds to individuals in other countries without using traditional bank accounts.
Investigators determined that managers and employees of a number of metro-Atlanta money remitters were knowingly helping the money launderers send drug proceeds to Mexico. During the course of the investigation, cooperating sources and an undercover law enforcement officer brought money that was represented as coming from drug sales to different remitters. The cooperating sources or undercover law enforcement officer made clear that the money came from the sale of illegal narcotics. In exchange for a kickback, managers and employees of nine different businesses allegedly agreed to launder purported drug funds to Mexico by breaking the transactions into smaller amounts and by listing fake sender names, addresses, and telephone numbers.
The investigation revealed that these nine money remitters allegedly transmitted more than $40 million over a roughly four-year timeframe. Federal agents determined that these remitters transmitted thousands of wires to individuals in Mexico that listed fake addresses and telephone numbers, which is how the bulk of the undercover proceeds were laundered.
The indictments allege that the defendants tried to conceal the source of the funds by circumventing the Bank Secrecy Act, which requires financial institutions - including money remitters - to monitor their clients for suspicious conduct and to obtain valid identification for high dollar remittances. The defendants allegedly kept their transfers under certain dollar amounts to avoid raising suspicion. Several of the defendants allegedly served as the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) Compliance Officers for their respective stores and were responsible for detecting and reporting these types of illicit financial transactions.
Federal agents conducted search warrants at several metro-Atlanta area money remitters and arrested nine defendants. The following individuals were arraigned before U.S. Magistrate Judge Russell G. Vineyard:
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Oscar Gustavo Perez-Bernal, 34, of Atlanta, Georgia. Oscar Perez-Bernal was the manager and BSA/AML Compliance Officer at La Tienda and Cocina Linda Vista, which were both located in Chamblee, Georgia. From 2013 to 2017, these two stores allegedly transmitted over $16.9 million.
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Itzayana Guadalupe Perez-Bernal, a/k/a Lupe, 24, of Norcross, Georgia. Itzayana Perez-Bernal was an employee at La Tienda.
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Norma Dominguez, 57, of Atlanta, Georgia. Dominguez was the manager and BSA/AML Compliance Officer at La Veracruzana, which was located in Chamblee, Georgia. From 2013 through mid-2017, this store allegedly transmitted over $5.7 million.
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Norma Carrera, 39, of Atlanta, Georgia. Carrera was the manager and BSA/AML Compliance Officer at Hilos y Estambres Teresita, which was located in Chamblee, Georgia. From 2014 through mid-2017, this store allegedly transmitted over $6.1 million.
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Victor Perez, 30, of Lawrenceville, Georgia. Perez was the manager and BSA/AML Compliance Officer at Intercargo, which had offices in Lawrenceville, Georgia and Marietta, Georgia. From 2013 through 2015, this store allegedly transmitted over $7 million.
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Merli Sandy Tejeda-Bermudez, a/k/a Jorhley Adadlay-Bermudez, 30, of Duluth, Georgia. Tejeda-Bermudez was the manager and BSA/Compliance Officer at Mundo Cargo and RR Latinas, which were both located in Lawrenceville, Georgia. From 2015 through mid-2017, this store allegedly transmitted over $1.5 million.
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Daniel Castaneda-Garcia, 31, of Atlanta, Georgia. Castaneda-Garcia was the manager and BSA/AML Compliance Officer at Taqueria el Dany, which was located in Lawrenceville, Georgia. In 2015, this store allegedly transmitted over $300,000.
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Susan Fiorella Ayala-Chavez, a/k/a Pitus, 30, of Lawrenceville, Georgia. Ayala-Chavez was an employee at the Rainforest Chevron gas station in Lawrenceville, Georgia. From 2014 through mid-2017, this store allegedly transmitted over $3 million.
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Lidia Pineda-Altamarino, a/k/a Lily, 32, of Lawrenceville, Georgia.
The following individuals have been charged with money laundering, but have not yet been apprehended:
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Norma Eriza-Gomez, 41, of Mexico
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Marina Eriza-Gomez of Mexico.
Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service Criminal Investigation. The Gwinnett County Sheriff’s Department, Georgia State Patrol, and Powder Springs Police Department provided valuable assistance throughout the course of the investigation.
Assistant U.S. Attorneys Thomas J. Krepp and Alison B. Prout are prosecuting the case. The Justice Department’s Money Laundering and Asset Recovery Section provided significant assistance.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in U.S. District Court in Boston to a federal immigration crime.
Manuel Bienvenido Pimentel-Pimentel, 54, pleaded guilty today to illegal reentry of a deported alien before U.S. District Court Judge George A. O’Toole Jr., who scheduled sentencing for July 26, 2017.
On June 1, 2017, Pimentel-Pimentel was charged with illegally reentering the United States after being deported. In May 2017, federal agents discovered Pimentel-Pimentel in Billerica and found him to be illegally present in the United States. He had been previously deported in August 2010.
Pimentel-Pimentel faces a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. He will also be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
DEA Investigation Nets 47 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David Hurl Lemmon, age 44, of Alma, Arkansas was sentenced today to 420 months in federal prison followed by 5 years of supervised release on one count of Conspiracy to Distribute Methamphetamine and 180 months in federal prison to be served concurrently on one count of Felon in Possession of a Firearm, followed by 5 years of supervised release. Lemmon’s conviction was obtained after a 3-day jury trial last December.
Two of Lemmon’s co-defendants were also sentenced today. Pedro Valle, age 31, was sentenced to 120 months in federal prison followed by 3 years of supervised release for one count of Conspiracy to Distribute Methamphetamine. Co-defendant Lisa Zamora, age 24, was sentenced to 24 months in federal prison followed by 2 years of supervised release for one count of Conspiracy to Distribute Methamphetamine. The Honorable Chief Judge P.K. Holmes III presided over the sentencing hearings in the United States District Court in Fort Smith.
According to court records, on January 22, 2016, a deputy with the Potter County, Texas Sheriff’s Office stopped a vehicle traveling eastbound on Interstate 40 near Amarillo, Texas. After obtaining consent to search the vehicle from the driver, Lisa Zamora, and the passenger, Hector Vasquez, the deputy located a suitcase in the trunk that contained approximately 50 pounds of suspected methamphetamine. Testing conducted by the Drug Enforcement Administration (DEA) South Central Laboratory determined that it was 22.11kg of 98.7% pure methamphetamine.
Law enforcement investigation determined that the transport of the methamphetamine was being facilitated by Pedro Valle, and that the methamphetamine was to be delivered to David Hurl Lemmon, who resided in Alma, Arkansas. The investigation also resulted in law enforcement recovering seven firearms, including a .40 caliber pistol, a 20-guage shotgun, and an AR-style assault rifle at Lemmon’s residence. Lemmon has at least one prior felony conviction that prohibited him from being in possession of firearms.
Lemmon, Valle, and Zamora were indicted in the Western District of Arkansas in March 2016. Valle, Zamora, and another co-defendant, John Spencer, pled guilty. Spencer is set for sentencing on June 27, 2017. Hector Vasquez failed to appear for trial and is currently a fugitive.
This case was investigated by the Drug Enforcement Administration, the Department of Homeland Security, the Department of Alcohol, Tobacco and Firearms, the Potter County, Texas Sheriff’s Office, the Sebastian County Sheriff’s Office, the Crawford County Sheriff’s Office, the Fort Smith Police Department, and the Bernalillio County, New Mexico Sheriff’s Office. Assistant United States Attorney’s Aaron Jennen and Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Counterfeiters Sentenced for Convictions in Nationwide Conspiracy to Distribute Fake 5-Hour Energy DrinkRead the Press Release
SAN JOSE – Joseph Shayota and Adriana Shayota were sentenced to 86 months and 26 months in prison, respectively, for their roles in a conspiracy to traffic in counterfeit goods and conspiracy to commit criminal copyright infringement and to introduce misbranded food into interstate commerce.
The announcement was made by United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Food and Drug Administration (FDA) Office of Criminal Investigations’ Los Angeles Field Office Special Agent in Charge Lisa L. Malinowski. The sentences were handed down yesterday by the Honorable Lucy H. Koh, U.S. District Court Judge, bringing an end to all but one of the cases brought against 11 defendants charged in a scheme involving the manufacture and sale of millions of bottles of the liquid dietary supplement 5-Hour ENERGY.
On November 28, 2016, a jury in San Jose found Joseph Shayota, 64, and his wife, Adriana Shayota, 45, (the Shayotas) guilty of conspiracy to traffic in counterfeit goods, as well as conspiracy to commit criminal copyright infringement and to introduce misbranded food into interstate commerce. The criminal conduct began in late 2009 and ran through October 2012. Over 3,700,000 bottles of counterfeit 5-Hour ENERGY were placed in the stream of interstate commerce.
Besides the Shayotas, other defendants charged with various roles in the scheme include: Justin Shayota, 33, of Spring Valley, Calif.; Walid Jamil, 57, of Troy, Mich.; Raid Jamil, 48, of West Bloomfield, Mich.; Kevin Attiq, 52, of El Cajon, Calif.; Fadi Attiq, 59, of El Cajon, Calif.; Leslie Roman, 63, Rancho Cucamonga, Calif.; Mario Ramirez, 56, of San Diego; Camilo Ramirez, 32, of San Diego; and Juan Romero, 70, of Mexico City, Mexico.
“Acting out of pure greed, these defendants gambled with the health and safety of millions of users of this well-known consumer product," said U.S Attorney Brian Stretch. "Consumers can rightly expect that the commercial products they buy are safe to ingest. Those individuals who manufacture and distribute unsafe counterfeit food products will be prosecuted and sent to jail.”
“By trafficking in counterfeit dietary supplements, Joseph Shayota and Walid Jamil led an organized criminal conspiracy that violated intellectual property rights and endangered the health and safety of the public for their own financial gain,” said Special Agent in Charge Bennett. “The FBI is committed to identifying, arresting, and prosecuting those who defraud US businesses and put consumers at risk in an attempt to line their own pockets. I want to thank the FBI special agents and analysts, as well as our partners at the FDA and U.S. Attorney’s Office, for their tireless work on this investigation.”
“Criminals who mislead unsuspecting U.S. consumers by selling them counterfeit and false-labeled products cheat the American consumer and endanger the public’s health,” said Special Agent in Charge Malinowski. “We will continue to protect the U.S. consumer by working to bring to justice those who place profits above public health.”
At trial, the evidence demonstrated that the Shayotas, through their company Tradeway International Inc., (doing business as Baja Exporting, LLC), entered into an agreement with Living Essentials, LLC, to distribute 5-Hour ENERGY in Mexico. Living Essentials owns 5-Hour ENERGY and registered and owns all 5-Hour ENERGY trademarks and related copyrights. The company does not grant licenses to any individual or entity to manufacture 5-Hour ENERGY. As part of the distribution agreement, Living Essentials manufactured and provided the Spanish-labeled 5-Hour ENERGY bottles to the Shayotas, who were unable to sell it in Mexico. The Shayotas and their co-conspirators then removed the Spanish-language labels and replaced them with counterfeit English-language labels. They also removed the true lot numbers and expiration dates placed on the bottles by Living Essentials and replaced them with false lot numbers and expiration dates. The Shayotas and their co-conspirators sold this counterfeit-labelled product throughout the U.S.
The evidence at trial demonstrated that by early 2012, the Shayotas and their co-conspirators began to manufacture and sell an entirely counterfeit 5-Hour ENERGY product. They manufactured the counterfeit 5-Hour ENERGY liquid at an unsanitary facility using untrained day workers, and mixed unregulated ingredients in vats in an attempt to mimic the real 5-Hour ENERGY products. The Shayotas and their co-conspirators engaged a plastics manufacturer in Mexico to copy the 5-Hour ENERGY bottles and caps, and recruited co-conspirators in the San Diego area to create counterfeit display boxes and plastic sleeves (bottle labels), which appeared identical to the true boxes and labels. The Shayotas and their co-conspirators also copied true lot numbers and expiration dates from genuine 5-Hour ENERGY and placed those numbers and dates on the counterfeit bottles that they had manufactured.
From approximately December 2011 through October 2012, the Shayotas and their co-conspirators ordered more than seven million counterfeit label sleeves and hundreds of thousands of counterfeit display boxes, and placed false lot and expiration codes on the bottles and boxes. They often changed the lot and expiration codes on the counterfeit bottles and boxes to parallel the valid codes being used on the authentic product.
The government filed a Superseding Information on June 29, 2016, charging each of the defendants with one count of conspiracy to traffic in counterfeit goods, in violation of 18 U.S.C. §2320(a), and one count of conspiracy to commit criminal copyright infringement and to introduce misbranded food into interstate commerce, in violation of 18 U.S.C. § 371. Following this afternoon’s sentencing, the disposition as against eight of the defendants is as follows:
Defendant
Charges and Disposition
Sentence
Joseph Shayota
Found guilty by a jury on November 28, 2016, of
Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 2320(a), and Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371.
Sentenced June 20, 2017, to 86 months in prison, 3 years of supervised release, a $144,868 fine, and forfeiture of $750,000.
Adriana Shayota
Found guilty by a jury on November 28, 2016, of
Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 2320(a) (Count One), and Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371 (Count Two).
Sentenced June 20, 2017, to 26 months in prison, 3 years of supervised release, and a fine of $144,868.
Walid Jamil
Pleaded guilty on
October 7, 2016, to Conspiracy to Traffic in Counterfeit Goods, in violation of 18 U.S.C. § 2320(a) (Count One), and Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371 (Count Two).
Sentenced on April 26, 2017, to 84 months on Count One and 60 months on Count Two, to be served concurrently; three years of supervised release; and $555,801.32 in restitution to Living Essentials.
Leslie Roman
Pleaded guilty on September 23, 2016, to Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371.
Sentenced on May 24, 2017, to 32 months’ imprisonment, 3 years supervised release, and restitution of $91,065.91 to Living Essentials.
Raid Jamil
Pleaded guilty on September 13, 2016, Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371.
Sentenced on May 17, 2017, to 24 months’ imprisonment, and three years of supervised release, and $268,936 in restitution to Living Essentials. This sentence was ordered to run consecutive to a 6-month sentence imposed in a separate case in the Eastern District of Michigan under Docket No. 16-CR-20623-001-JCO.
Kevin Attiq
Pleaded guilty on November 4, 2016, to Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371.
Sentenced on June 14, 2017, to three years of probation (to include eight months of home confinement) and a $20,000 fine.
Justin Shayota
Pleaded guilty on
March 2, 2016, to Conspiracy to Traffic in Counterfeit Good, in violation of 18 U.S.C. § 2320(a), and Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371.
Sentenced on June 14, 2017, to six months’ imprisonment, six months’ home confinement, three years of supervised release, and $555,801.32 in restitution to Living Essentials.
Mario Ramirez
Pleaded guilty on November 9, 2016, to Conspiracy to Commit Criminal Copyright Infringement and to Introduce
Misbranded Food into Interstate Commerce, in violation of 18 U.S.C. § 371.
Sentenced on February 15, 2017, to five years of probation (to include six months home confinement) and a $30,000 fine. Agreed to pay restitution of $133,606.09 to Living Essentials.
The government referred defendants Camilo Ramirez and Fadi Attiq to pre-trial diversion and Juan Romero remains a fugitive. The charges against Romero are merely allegations that crimes have been committed. As with all defendants, he must be presumed innocent until proven guilty beyond a reasonable doubt.
Joseph and Adriana Shayota both were ordered to surrender on September 6, 2017, to begin serving their respective sentences.
Assistant United States Attorneys Matt Parrella, Susan Knight, and Joseph Springsteen are prosecuting the case with the assistance of Lakisha Holliman and Elise Etter. Assistant United States Attorney David Countryman assisted with forfeiture matters. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Food and Drug Administration Office of Criminal Investigations.
Chicago Man Charged with the Sex Trafficking of a 16-Year-Old Girl Who Was Allegedly Murdered by a CustomerRead the Press Release
CHICAGO — A Chicago man was arrested today on a federal sex trafficking charge for allegedly arranging a commercial sex encounter for a 16-year-old girl that ended in the child’s murder in a south suburban garage on Christmas Eve.
JOSEPH HAZLEY, 33, posted the girl’s information in commercial sex advertisements on Backpage.com, and arranged multiple meetings in December 2016 for her to engage in prostitution, according to a criminal complaint filed in U.S. District Court in Chicago. Hazley drove the girl to several meetings in the Chicago area, including an encounter in the early morning hours of Christmas Eve in a garage in south suburban Markham, the complaint states. During this encounter, the customer allegedly murdered the girl.
Hazley was arrested this morning at his home in Chicago. The complaint charges him with one count of sex trafficking. The charge is punishable by a minimum sentence of ten years in prison and a maximum of life in prison.
Hazley made an initial court appearance this morning before U.S. Magistrate Judge Daniel G. Martin in Chicago. Judge Martin ordered Hazley to remain in federal custody until a detention hearing on June 23, 2017, at 10:30 a.m.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation; Cook County Sheriff Thomas J. Dart; and Chicago Police Superintendent Eddie T. Johnson. Substantial assistance was provided by the Markham Police Department and the Cook County State’s Attorney’s Office.
The government is represented by Assistant U.S. Attorney Christopher V. Parente.
According to the complaint, the customer responded to Hazley’s Backpage.com posting to arrange the Christmas Eve meeting with the minor. Hazley drove the girl to Markham and waited in his car a few yards from the garage while she met with the customer, the complaint states. During the encounter in the garage, the customer allegedly murdered the girl, the complaint states.
The customer was subsequently arrested by the Chicago Police Department and charged with murder in Cook County Criminal Court.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, 7 days a week.
Cheektowaga Man 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 Justin Griffin, 28, of Cheektowaga, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, was sentenced to 24 months Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael P. Felicetta, who handled the case, stated that on four occasions in August and September of 2016, the defendant sold cocaine to a confidential source. On September 21, 2016, DEA agents executed a search warrant at 2067 Broadway Avenue (upper) in the Town of Cheektowaga. Griffin was located inside the apartment in the possession of three cellphones. A plastic bag with cocaine residue was located inside a closet of the apartment. One of the three cellphones in the defendant’s possession matched the phone number used by Griffin to set up the undercover sales he made with the confidential source.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Charlotte Insurance & Financial Executive Sentenced to Prison for Filing False Tax Returns and Obstructing Grand Jury InvestigationRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Patrick Emanuel Sutherland, 48, of Charlotte, to 33 months in prison, followed by three years of supervised release, for filing false tax returns and obstructing a federal grand jury investigation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Sutherland was also ordered to pay $597,122 as restitution to Internal Revenue Service.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigations (IRS-CI).
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, from at least 2007 to 2015, Sutherland was an actuary, and the owner and operator of numerous companies in the insurance and financial industries. Between 2007 and 2010, Sutherland engaged in an elaborate scheme to conceal a substantial amount of income. According to evidence presented at trial, Sutherland filed false tax returns with the IRS which underreported business receipts and personal income of approximately $2 million in income received from an offshore bank account in Bermuda, as well as from domestic sources. Trial evidence established that despite receiving substantial income for the relevant time period, Sutherland reported a combined income of approximately $276,697, and paid less than $10,000 in total federal income taxes. During the same four-year period, Sutherland’s lifestyle and expenditures for personal living expenses far exceeded his total income reported on his individual tax returns, including paying over $80,000 in private school tuition and purchases of high end jewelry.
To conceal the fraud, Sutherland falsely claimed that international wires to his domestic bank accounts were loans from his sister’s company. In reality, most of these funds were insurance commissions due to Sutherland or were funds obtained from a brokerage account in Bermuda, which Sutherland controlled.
According to trial evidence, Sutherland worked with offshore insurance companies and some of his commissions were paid to an offshore intermediary. Sutherland used his Bermuda-based shell company, Steward Technology Services Limited (STS) to funnel personal and business funds to Sutherland’s bank accounts in the United States. On numerous occasions, Sutherland mischaracterized the wire transfers from STS’s bank account in Bermuda to Sutherland’s various domestic accounts as capital contributions and loans.
According to court records and evidence presented at trial, on several occasions between June 2012 and September 2012, Sutherland sought to obstruct a federal investigation by providing fraudulent documents, including records of sham loans and documents purportedly reflecting his lack of control over his foreign business bank account in Bermuda.
In announcing today’s sentence, Judge Cogburn stated that, “The defendant used his intelligence to the detriment of paying taxes due,” and emphasized the importance of deterrence in tax cases, noting that they are difficult to detect.
Sutherland will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
IRS-CI led the investigation. Assistant United States Attorneys Jenny G. Sugar and Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charleston man sentenced to over eight years in federal prison for role in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to eight years and four months in federal prison for his role in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. David Huffman, 37, previously pleaded guilty to conspiracy to distribute methamphetamine.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several packages that contained crystal methamphetamine, commonly referred to as “ice.” Since January 2014, several pounds of crystal methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area.
Huffman admitted that he traveled to Nevada on multiple occasions to obtain methamphetamine from Joseph Cooper. Huffman then brought the drugs back to West Virginia to distribute. Huffman further admitted that in February 2016, he traveled to Nevada with a codefendant, Morgan Light, to pick up approximately two pounds of methamphetamine. Law enforcement stopped the vehicle on the way back to West Virginia and located over 400 grams of methamphetamine that was lab tested and found to be at least 95% pure.
Multiple defendants have been sentenced to federal prison as a result of this large-scale methamphetamine trafficking investigation. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. Mark Cobb and Shayne Shamblen were both sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine. Harold Parsons was sentenced to four years in prison for possession with intent to distribute methamphetamine. Light was sentenced to four years in prison for conspiracy to distribute methamphetamine. Jon Bowman was sentenced to a year and a half in prison for using the mail to facilitate a drug crime.
Other individuals involved in the drug trafficking organization have entered guilty pleas and are awaiting sentencing. Gregory Crum and Diana Salazar Gamboa both pleaded guilty to conspiracy to distribute methamphetamine. Crum faces a minimum of 10 years and up to life in federal prison. Gamboa faces at least five and up to 40 years in federal prison. Beth Hammonds pleaded guilty to using the mail to facilitate a drug crime and faces up to five years in federal prison for her role in the conspiracy. Crum, Gamboa, and Hammonds are all scheduled to be sentenced on August 3, 2017.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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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Canadian Man Arrested for Committing an Act of Violence at Bishop International AirportRead the Press Release
A 49-year old man from Quebec, Canada, was arrested this morning on charges of committing an act of violence at an airport, announced Acting United States Attorney Daniel Lemisch. Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation.
Arrested was Amor M. Ftouhi. Mr. Ftouhi will be making an initial appearance in federal court in Flint today.
According to the criminal complaint, Mr. Ftouhi walked up to the victim, who is a lieutenant with the Bishop Airport Authority and was in full uniform, and stabbed the police officer in the neck with a knife. As he did so, Ftouhi referenced killings in Syria, Iraq, and Afghanistan, and yelled “Allahu Akbar.”
The charges carry a statutory maximum penalty of up to 20 years in prison. Any sentence would ultimately be imposed under the United States Sentence Guidelines according to the nature of the offense and the criminal background, if any, of the defendant.
A complaint is only a charge and is not evidence of guilt.
Brockton Gang Member Pleads Guilty to Firearms PossessionRead the Press Release
BOSTON – A member of the Flameville Legend Boys gang pleaded guilty yesterday in federal court in Boston to illegal possession of a firearm.
Caetano Oliveira, 26, of Brockton, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 19, 2017.
In July 2016, law enforcement launched an investigation into Sariah Lynn Miranda, a suspected Brockton drug dealer. On Aug. 5, 2016, during a search of Miranda’s apartment, where Oliveira also lived, drug trafficking paraphernalia and heroin was recovered. Two loaded handguns – a Sig Sauer 9mm Magnum and a Taurus .40 caliber pistol – and ammunition were recovered in Oliveira’s bedroom. Oliveira admitted to law enforcement officers that the firearms were his.
According to court documents, Oliveira was been previously convicted of several gun and drug offenses. In 2010, Oliveira was sentenced to two 18-month jail sentences after being convicted in state court of illegal gun possession and of possession with intent to distribute cocaine. In 2013, Oliveira pleaded guilty to assault with a dangerous weapon for ordering an associate to open fire on a car in which two undercover police officers were meeting with an informant, who was one of Oliveira’s rivals.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. Assistant U.S. Glenn MacKinlay of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
Bluefield pain pill dealer sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Bluefield drug dealer who sold hydromorphone while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Marvin Gillespie, 65, previously pleaded guilty to distribution of hydromorphone. In today’s hearing, he was sentenced to a year and a half in federal prison for that offense. He was also sentenced to an additional year and three months in prison for violating his federal supervised release. The sentences will be served consecutively.
Gillespie admitted that on March 14, 2016, he sold hydromorphone to a confidential informant working with law enforcement. The drug deal took place in Bluefield.
The Southern Regional Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John File is responsible for the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
This case was prosecuted under the Bluefield Pill Initiative as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Bethel Man Sentenced to 5 Years in Prison for Distributing Heroin and Cocaine that Contributed to 2 Overdose DeathsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL MIGNANI, 51, of Bethel, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release for his conviction on one count of possession with intent to distribute, and distribution of cocaine and heroin. In imposing a sentence above the guideline range, Judge Meyer noted that MIGNANI had distributed cocaine and heroin involved in two overdose deaths and that one of the victims had died in MIGNANI’s bedroom. On March 28, 2017, MIGNANI waived his right to be indicted and pleaded guilty before Judge Meyer in New Haven.
According to court documents and statements made in court on July 31, 2016, Bethel Police responded to a report of a possible heroin overdose and found an unresponsive 54-year-old female. The victim was pronounced deceased shortly thereafter. The investigation revealed that MIGNANI distributed heroin, fentanyl and cocaine that was consumed by the victim shortly before her death. This toxic combination according to the Connecticut Chief Medical Examiner was the cause of this victim’s death.
On December 11, 2016, members of the Bethel Police and medical personnel responded to a report of an unresponsive 25-year old female at MIGNANI’s residence. The victim was pronounced deceased. Investigators seized three empty heroin folds from the victim’s purse, and six empty heroin folds from the victim’s jacket. MIGNANI provided heroin and cocaine to the victim that contributed to her untimely death.
On December 12, 2016, investigators conducted a court-authorized search of MIGNANI’s residence and seized three plastic bags of cocaine, each of which contained approximately one gram of the drug. Investigators also seized $1,531 in cash and multiple cellphones from the residence. MIGNANI was arrested on state charges on that date.
On December 28, 2016, after a federal criminal complaint was issued for MIGNANI, he was arrested and detained on federal charges stemming from his distribution of cocaine. According to statements made in court, MIGNANI was a drug dealer with approximately 10 customers to whom he regularly sold over several hundred grams of heroin and cocaine in total.
This case stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Bethel Police Department, with assistance from the States Attorney’s Office for the Judicial District of Danbury. The DEA Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
Bay County Sex Offender Convicted Again of Federal Child Pornography OffensesRead the Press Release
PANAMA CITY, FLORIDA – Michael Ray Alford, 50, of Youngstown, Florida, was convicted yesterday afternoon in the U.S. District Court in Panama City of receipt and possession of child pornography after a two-day trial. Alford had been previously convicted in the Northern District of Florida of a child pornography offense in 2002. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In 2014, a Montana retailer reported to law enforcement officers that someone had called their store and stated an intent to commit sexual acts on a minor. Through records, officers discovered the call was made from Alford’s Bay County residence. During a forensic review of computers discovered at the residence, officers located images and online search terms of child pornography. In addition, child pornography was discovered in Alford’s e-mail account.
For the receipt charge, Alford faces a minimum of 15 years and a maximum of 40 years in prison. For the possession charge, Alford faces a minimum of 10 years and a maximum of 20 years in prison. The sentencing hearing is scheduled for August 31, 2017, at 11:00 a.m. at the United States Courthouse in Panama City.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Walton County Sheriff’s Office, the Bay County Sheriff’s Office, the Hamilton (Montana) Police Department, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Austin Couple and Relative Indicted in Connection with Fraud SchemeRead the Press Release
Federal and state authorities today arrested 37-year-old Selica Lacole Dawson (aka “Selica Granderson”), her husband, 44-year-old Roosevelt Granderson, II, and her mother, 52-year-old Brenda Dawson of Waxahachie, TX, on federal charges in connection with a scheme to collect over $258,000 federal benefits they were not entitled to announced United States Attorney Richard L. Durbin, Jr.; and Social Security Administration Office of Inspector General (SSA-OIG) Special Agent in Charge Robert Feldt, Dallas Division.
A nine-count federal grand jury indictment, returned yesterday, charges Selica Granderson with three counts of theft of government funds; two counts of supplemental security income benefits fraud; and, one count of bankruptcy fraud. The indictment charges Roosevelt Granderson with one count of making a false statement to federal investigators and one count of misprision of felony. The indictment charges Brenda Dawson with one count of supplemental security income benefits fraud.
The indictment alleges that Selica Granderson defrauded the Social Security Administration’s Supplemental Security Income (SSA-SSI) program of more than $183,000 from April 2005 to May 2017; the Supplemental Nutrition Assistance Program (SNAP) of more than $26,000 from December 2010 through October 2016; and, the Medicaid Insurance Program of an estimated $49,000 from December 2010 to August 2016.
According to court documents, the fraud loss to these three programs stems back to 2008, when Selica and Roosevelt Granderson who were married, failed to report their marriage, living arrangements, and income/resources. Reporting the same would have disqualified Selica Granderson from receiving any benefits as a representative payee for their two children. Selica Granderson perpetuated the fraud through the years by failing to report these disqualifying events to the SSA when making Redetermination Statements related to her children’s continued eligibility for SSI benefits. The indictment alleges that in November 2015, Selica Granderson fraudulently filed a Chapter 7 Bankruptcy petition in the Western District of Texas. In her petition, she failed to disclose the true nature of their assets by requesting relief as “Selica Dawson” and “Roosevelt Dawson,” not Selica and Roosevelt Granderson.
The indictment also alleges that Roosevelt Granderson, who was interviewed by SSA-OIG regarding his wife’s SSI fraud as it related to her continued eligibility, denied living with his wife and children making other materially false statements, knowing the same to be false. Roosevelt Granderson’ s charges stem from materially false statements that were key to SSA’s determination of Selica Granderson’s eligibility for SSI, to which she was not entitled.
The indictment also alleges that on December 8, 2016, Brenda Dawson filed a fraudulent application for SSA-SSI benefit payments on behalf of Selica’s children.
Theft of Government funds calls for up to ten years in federal prison upon conviction. Bankruptcy fraud and supplemental security income benefits fraud both call for up to five years in federal prison upon conviction. Misprision of felony calls for up to three years in federal prison upon conviction.
Authorities arrested Selica and Roosevelt Granderson this morning without incident at the Austin Bergstrom International Airport. Dawson was arrested this afternoon in Waxahachie.
U.S. Magistrate Judge Mark Lane released Selica and Roosevelt Granderson on $10,000 unsecured bonds following their initial appearances this afternoon in Austin. Dawson is expected to make her initial appearance tomorrow in federal court in Dallas. No further hearings have been scheduled at this time.
Agents with the SSA-OIG together with the Texas Health and Human Services – Office of Inspector General investigated this case. The U.S. Marshals Service and the Austin Police Department assisted with today’s arrests. Special Assistant United States Attorney Yvonne Gonzalez is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
12 Indicted for Hampton Roads Heroin ConspiracyRead the Press Release
NEWPORT NEWS, Va. – An indictment was unsealed this afternoon charging 12 local residents with participating in a large-scale heroin distribution operation operating in Hampton Roads.
According to the indictment, from 2014 to 2017, the group conspired to distribute and possess with intent to distribute 1000 grams or more of heroin. Additional charges include money laundering, maintain drug involved premises, use of a communication facility, and possession of a firearm during drug trafficking.
Name
Hometown, Age
Charges
William Arthur Joe,
aka “Pops”, “Unc”, “Rudy K”
Hampton, 66
Counts 1, 2, 3, 4, 9, 10, 15
Marcus Lawrence Joe
aka “Mark”, “Lil Cuzo”
Norfolk, 39
Counts 1, 2, 3, 5, 10
Louis Sean McBride
aka “Lou”
Virginia Beach, 35
Counts 2, 3, 6, 12
Michael Paul Jones
aka “Mike”, “Homeboy”
Hampton, 27
Counts 2, 3
Phillip Henderson Joe
aka “Fat Boy”, “Phil”
Hampton, 40
Counts 2, 3, 11
Anthony Ray Stubbs
aka “Butch”
Hampton, 50
Counts 2, 3, 7, 13
Arnold Burgess
aka “True”, “Nephew”, “T”
Hampton, 49
Counts 2, 3
Michael Dwayne Boddie
aka “Vick”
Hampton, 55
Counts 2, 3, 14
Joseph Edward Massie
aka “Fat Joe”, “J”
Hampton, 44
Counts 2, 3, 8
Edward Henry Latimer, III
aka “Eddie”
Hampton, 37
Counts 2, 3
Candace Faith White
aka “Candy”
West Point, 25
Counts 2, 3, 4, 9
Kathy Lee Horsley
aka “Kath”
Hampton, 33
Counts 2, 3
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after the indictment was unsealed. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-65.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
"Homesource Partners Inc." Pleads Guilty to Wire Fraud and Engaging in Monetary Transactions in Property Derived from Wire Fraud as Part of Investment Fraud SchemeRead the Press Release
DENVER – Karen Lynn McClaflin, age 58, of Colorado Springs, Colorado, and owner of “Homesource Partners Inc.” pled guilty today before U.S. District Court Judge Christine M. Arguello to one count of wire fraud and one count of engaging in a monetary transaction in property derived from wire fraud, Acting U.S. Attorney Bob Troyer, FBI Special Agent in Charge Calvin Shivers and IRS Criminal Investigation Special Agent in Charge Steven Osborne announced. McClaflin appeared at the change of hearing free on a personal recognizance bond.
The defendant is scheduled to be sentenced by Judge Arguello on January 17, 2018. She was first charged by Information, after waiving her right to be indicted by a federal grand jury, on May 17, 2017. On that date she made her initial appearance, where she was advised of the charges pending against her and read her rights.
According to the stipulated facts contained in the plea agreement, in December 2005, McClaflin and a partner opened a franchise of “We Buy Ugly Houses” named Trademark Properties and Trademark Reality (“Trademark”) in Colorado Springs. Trademark’s business was to use investor money to purchase and renovate distressed houses in order to resell those houses at a profit. By 2011, Trademark had accumulated so much debt that McClaflin’s partner declared bankruptcy and their partnership was terminated. Rather than declare bankruptcy herself, McClaflin transitioned to another company with the same “fix and flip” business model as Trademark.
In late 2010, McClaflin started Homesource Partners Inc. (“Homesource”), and McClaflin rolled her investors from Trademark into Homesource. From late 2010 through early March 2017, McClaflin owned and operated Homesource in Colorado Springs, Colorado. In seeking investors for Homesource between March 2011 and early 2017, McClaflin told all involved that Homesource was seeking loans from investors to finance Homesource’s “fix and flip” business because Homesource was not able to use traditional bank loans. McClaflin represented that traditional bank loans took too long and some of the distressed homes might not qualify as collateral for such loans.
Through marketing materials and verbal statements, McClaflin represented to those involved that Homesource had access to distressed houses that were deeply discounted, which Homesource could purchase for no more than 80% of the “as is” value of the house. McClaflin further represented that Homesource then had exit strategies to profit from the distressed houses, including selling them within 30 days for an immediate profit, “fixing and flipping” the houses for sale within 31-90 days, or fixing the houses and renting them if the houses failed to sell within 90 days.
McClaflin represented that Homesource had a team of contractors who would fix and upgrade the properties so Homesource could resell the properties for a profit. McClaflin further represented that each property would be financed by an individual investor whose investment would be secured by a Deed of Trust in first position on that property, which McClaflin would record for the investor. Occasionally, McClaflin told the investor their Deed of Trust would be in second position. McClaflin further represented that investors would receive an interest rate of 6% to 15%. Finally, she represented that the properties would normally be sold in 3 months.
However, starting in late March 2011, McClaflin knowingly and intentionally began having multiple investors “invest” in the same property and began placing multiple Deeds of Trust on the same properties, such that the amount of the investments purporting to be secured by the Deeds of Trust exceeded the value of the property. Additionally, starting in late March or April 2011, McClaflin intentionally did not record all of the investors’ Deeds of Trust as promised. Nonetheless, McClaflin continued to falsely represent that investors would receive a first Deed of Trust and that McClaflin would record that Deed of Trust for the investor. McClaflin also sometimes forged the signature of an investor, without the investor’s knowledge or consent, on a release so McClaflin could remove that investor’s Deed of Trust from a property. McClaflin sometimes did not inform investors when “their” property sold and did not return the investor’s principal upon that sale as promised.
Additionally, starting in at least the beginning of 2013, Homesource’s debt had grown too high and the interest payments owed to investors far exceeded the gross profits earned by Homesource. By at least January 2013, McClaflin was aware of this problem and intentionally continued seeking additional investments so that she could keep making the interest payments owed to earlier investors.
Unbeknownst to the individual investors, the amount of investment funds, which were supposed to be secured by real property, far exceeded the value of the encumbered property and Homesource’s business assets. An analysis of Homesource’s finances shows that the influx of investor funds kept Homesource operating, particularly in its latter years, and without investor funding, Homesource would have failed years ago.
This case is being investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. The defendant is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
20 June 2017
Woonsocket Resident Sentenced for Robbing Two BanksRead the Press Release
PROVIDENCE – Edred Buchanan, 40, of Woonsocket, was sentenced today to 48 months in federal prison for committing two bank robberies a week apart in November 2015.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Buchanan to serve 3 years supervised release upon completion of his prison term and to pay restitution to the banks totaling $2,561. The government recommended a sentence of 70 months imprisonment, the low end of the U.S. Sentencing Guideline range in this matter.
Buchanan pleaded guilty on March 8, 2017, to two counts of bank robbery.
Buchanan’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Woonsocket Police Chief Thomas Oates.
At the time of his guilty plea, Buchanan admitted to the court that on November 5, 2015, he entered the Citizens Bank branch on Waterman Street in Providence and passed a note to a teller demanding money in $50 and $100 denominations. He left with $1,011 in cash and the note.
Additionally, Buchanan admitted that on November 12, 2015, he entered the Citizens Bank branch on Westminster Street and passed a note to a teller which read, “Robbery! Gun! Loose 50s N’100s. No Dye Packs! Quick!” He left with $1,550 in cash but without the note.
According to court documents, on November 9, 2015, Woonsocket police, who were assisting Blackstone, MA, Police investigate a bank robbery that occurred on that date in Blackstone, advised an FBI agent regarding information they had developed and evidence they had seized regarding the Blackstone bank robbery. The information and evidence they seized, and follow-up investigation by the FBI and Providence Police, eventually led the FBI and Providence Police to identify Edred Buchanan as the person responsible for the Providence bank robberies. Buchanan was arrested on March 30, 2016.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Woman Pleads Guilty to $1.6 Million Tax FraudRead the Press Release
NORFOLK, Va. – A Suffolk woman pleaded guilty today to her role in a fraud scheme that prepared hundreds of false tax returns that resulted in a loss of approximately $1.6 million to the United States.
According to the statement of facts filed with the plea agreement, Stephanie Towns, 43, was one of the principal tax preparers at A Plus Tax Service and NN Financial, which operated as tax preparation businesses at different periods between July 2009 and February 2014. Towns, along with co-defendants Brenda Benn and Kevin Towns, conspired to operate a business based on creating false tax returns that generated inflated refunds for their clients in order to cultivate good will and generate repeat business. They used methods such as claiming false education-related expenses, stating excessively high amounts of charitable contributions, and manipulating the amount of income to take advantage of certain tax credits. The customers did not persuade or instruct the tax preparers to generate the false returns.
Towns pleaded guilty to conspiracy to defraud the United States and aiding the preparation of a false tax return. She faces a maximum penalty of 8 years in prison when sentenced on September 27. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-30.
West Tennessee Man Convicted of Distributing Heroin That Resulted in Fatal OverdoseRead the Press Release
Memphis, TN – A man responsible for distributing a large amount of heroin that resulted in the fatal overdose of one person has been convicted of distributing heroin. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today.
According to information presented in court, on June 7, 2017, a federal grand jury returned a superseding indictment charging Marvin Foster with five counts for violating Title 21, United States Code, Section 841 (a)(1). According to the superseding indictment, Marvin Foster, aka "Pookie," 49, of Halls, Tennessee, distributed heroin to C.T. and the heroin distributed by Foster was the cause of C.T.’s death.
On June 16, 2017, Foster plead guilty to Count 1 of the superseding indictment. Had the case proceeded to trial, the United States would have shown that:
On or about July 1, 2014, Foster sold heroin to C.T.; C.T. used the heroin and overdosed. Subsequently, Foster drove C.T.’s truck, with C.T. in the truck, to a rural area, where Foster left the victim. On July 2, 2014, a farmer saw the truck and called police. The police arrived and found C.T. was dead. A medical examiner would have testified that the cause of death was heroin toxicity. Furthermore, C.T.’s blood was analyzed by a forensic toxicology lab and showed a lethal amount of heroinwas present in the blood. In addition, the United States would have presented witnesses that would have testified that Foster sells heroin and pills, and that Foster obtained heroin from a source of supply in Nashville.
Foster and the United States have recommended a 25-year sentence of imprisonment.
This case is being investigated by the 25th Judicial Drug Task Force and Drug Enforcement Administration. Special Assistant U.S. Attorney Sam Stringfellow and Assistant U.S. Attorney Beth Boswell are prosecuting this case on the government’s behalf.