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15 June 2017
Former Manchester Man Sentenced for Role in Cocaine DealRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney John J. Farley announced today that Luis D. Capo-Nieves, 33, formerly of Manchester, New Hampshire, was sentenced to 24 months in federal prison for conspiracy to distribute cocaine.
According to court documents and statements made during court proceedings, on July 1, 2016, the Nashua Police department dispatched several officers to the parking lot of a city apartment complex in response to a citizen complaint about drug dealing activity there. In the parking lot, the responding police officers observed Capo-Nieves engage in an exchange with another individual, Wilfredo Tanon Rodriguez, that appeared to be part of a drug transaction. After Capo-Nieves and Tanon Rodriguez left the parking lot in Capo-Nieves’s car, police stopped the car for a variety of motor vehicle violations. A police inspection of a bag the police saw in the car during the traffic stop revealed 279 grams of cocaine.
Capo-Nieves, who pleaded guilty on February 28, 2017, will be on supervised release for three years after he serves his prison sentence. In addition, the Court directed that $2121 recovered from Capo-Nieves at the time of his arrest should be used to pay for his court-appointed defense attorney, instead of being returned to Capo-Nieves.
On June 2, 2017, Tanon Rodriguez, a former Nashua resident, was sentenced to 30 months in prison for his participation in the drug transaction.
“Even as we continue to address the opioid epidemic, the law enforcement community remains committed to stopping the distribution of all illegal drugs,” said Acting U.S. Attorney Farley. “Thanks to good police work, over a quarter kilogram of cocaine has been removed from the streets of Nashua.”
This matter was investigated by the Nashua Police Department. Assistant United States Attorney Bill Morse prosecuted the case.
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Former Managing Director at Swiss Bank Pleads Guilty to Money Laundering Charge in Connection with Soccer Bribery SchemeRead the Press Release
Earlier today, Jorge Luis Arzuaga, a citizen of Argentina and a private banker formerly employed by Swiss banks, pleaded guilty to a criminal information charging him with participating in a money laundering conspiracy in connection with the distribution and receipt of millions of dollars of bribes paid to soccer officials, including the late president of the Asociación del Futbol Argentina (“AFA”), the Argentinian soccer federation. The plea was entered before United States District Judge Pamela K. Chen at the federal courthouse in Brooklyn, New York.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Richard Weber, Chief of IRS Criminal Investigation.
Swiss authorities are expected to announce the resolution of charges against Arzuaga in a related matter soon.
According to court filings and facts presented during the plea proceeding, beginning in around 2010 and continuing through 2015, while employed as a private banker at two financial institutions based in Switzerland, Arzuaga managed several accounts controlled by Alejandro Burzaco, a principal of Torneos y Competencias, S.A. (“TyC”), a sports media and marketing business headquartered in Argentina. In that capacity, Arzuaga assisted Burzaco and others in paying bribes to various soccer officials, including to the then-president of AFA, who is identified in the information as Soccer Official #1. Arzuaga furthered the bribery conspiracy in a variety of ways, including by opening a bank account in the name of a shell company established to effect certain transactions on behalf of TyC. The true beneficial owner of this account was Soccer Official #1. Arzuaga assisted Burzaco in paying more than $25 million in bribes into the account for the benefit of Soccer Official #1. Burzaco pleaded guilty to racketeering conspiracy and other offenses on November 16, 2015 in connection with his involvement in paying bribes to soccer officials.
Following Soccer Official #1’s death in 2014, Arzuaga arranged for the balance of the funds remaining in the account to be distributed to Soccer Official #1’s heirs. In exchange for his assistance in facilitating the payment of these bribes, Arzuaga received approximately $1,046,000 in bonus payments from Burzaco for moving bribe money through the financial system. Arzuaga will forfeit that amount in connection with his plea.
“By facilitating the flow of bribe money through the Swiss and American banking systems, the defendant provided a critical service to those involved in corruption in international soccer,” stated Acting United States Attorney Rohde. “Today’s plea marks another important step in our continuing effort to hold accountable those who facilitate the movement of criminal proceeds in the United States and across the globe.” Acting United States Attorney Rohde extended her grateful appreciation to the authorities of the government of Switzerland for their invaluable assistance in this investigation and for their ongoing collaboration.
This plea shows how wide-ranging and systemic corruption once was in one of the world’s most popular sports,” stated FBI Assistant Director-in-Charge Sweeney. “Our work is nowhere near finished, and we will continue to pursue each and every corrupt member of this scheme until each is brought to justice.”
“The guilty plea announced today builds upon the ongoing investigation of corruption within FIFA, where we have continued to trace illicit funds through banks around the world,” said Chief Weber. “We are pursuing the bad actors - including soccer officials, sports marketing companies, financial institutions, and their bankers - who have intentionally and criminally violated the law by laundering illegal proceeds. Prospective private bankers and relationship managers should take note of Mr. Arzuaga’s conviction and think twice about the consequences of conspiring to launder money. These criminal actors will continue to be under the microscope of the financial investigative expertise of IRS CI.”
The guilty plea announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the Bank Integrity Unit in the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division in Washington, D.C., the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn and the Bank Integrity Unit are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Samuel P. Nitze, Paul Tuchmann, Lauren Howard Elbert, and Brian D. Morris of the Eastern District of New York and Trial Attorney Michael P. Grady of the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division are in charge of today’s prosecution.
The Defendant:
JORGE LUIS ARZUAGA
Age: 56Citizenship: Argentina
E.D.N.Y. Docket No. 17-CR-313 (PKC)
Former Doctor Sentenced to 23 Years in Prison for Distributing Prescription Drugs, Health Care Fraud and Money LaunderingRead the Press Release
Sardar Ashrafkhan of Ypsilanti, Michigan, was sentenced today to 23 years in prison for participating in a conspiracy to distribute prescription pills, conspiracy to commit health care fraud, and money laundering, Acting U.S. Attorney Daniel Lemisch announced.
Ashrafkhan, also known as “Dr. Khan,” 59, was sentenced by U.S. District Judge Robert H. Cleland.
Lemisch was joined in the announcement by Timothy Plancon, Special Agent in Charge of the Drug Enforcement Administration; David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services; and Manny Muriel, Special Agent in Charge of the Detroit office of the Internal Revenue Service, Criminal Investigation.
Sardar Ashrafkhan was found guilty, along with two co-defendant doctors, after a seven week jury trial. Ashrafkhan was convicted on felony counts of conspiracy to illegally distribute prescription drugs, conspiracy to commit health care fraud, and two counts of money laundering. The convictions arose from the operation of the defendant’s fraudulent medical practice known as Compassionate Doctors. The medical practice purported to be a visiting physician’s practice, but was actually a scheme that involved patient marketers bringing paid “patients” to residences to obtain fraudulent prescriptions for controlled substances. Medicare was billed for medical examinations and tests that were not conducted properly or were not conducted at all. Marketers filled the controlled substance prescriptions at cooperating pharmacies and sold the drugs on the street market.
According to evidence submitted at trial and at sentencing, Ashrafkhan operated Compassionate and related health care corporations from 2006 until 2013.
Ashrafkhan was responsible for participating in illegally distributing over 200,000 dosage units of oxycodone (including Oxycontin) and opana, powerful Schedule II opiates. He was responsible for over 1 million dosage units of another opiate, hydrocodone (Vicodin, lortab), and over 3 million dosage units of controlled substances of all kinds. He was responsible for over $8 million in health care fraud.
Oxycontin, oxycodone, and hydrocodone are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These powerful and addictive drugs in the opioid class are easily abused, and can lead to addiction and eventual heroin use.
“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” Lemisch said. “In addition, prescription drug addiction has led to resurgence in heroin use. Licensed professionals who participate in the diversion of prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”
“Dishonest and unethical Doctors and Pharmacists who provide prescription drugs, especially Opioids, to individuals with no medical need are fueling a national crisis which has resulted in alarming levels of addiction, overdose deaths, and violence at the hands of criminal enterprises competing to flood our streets with illegal drugs,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “To those prioritizing profit over their pledge to honestly service the health needs of the public, the message should be clear that the collective resources of local, state and federal law enforcement will expose your illegal activities and bring you to justice.”
“When you exploit every business principle to enrich your pocket with illegal proceeds,” stated Special Agent in Charge Manny Muriel, “IRS Criminal Investigation will use their financial expertise to shut you down.”
Ashrafkhan was one of 44 defendants named in a multi-count second superseding indictment unsealed in March of 2013. Six doctors and five pharmacists were convicted, either by guilty plea or at trial, and all received custodial sentences. The longest custodial sentence imposed on a pharmacist was 78 months, and the longest custodial sentence imposed on a doctor was 228 months. As the owner and manager of the fraudulent clinic, Sardar was the leader of the activity and obtained the largest share of the profits from this illegal activity.
Ashrafkhan is a citizen of Pakistan who came to the United States in approximately 1991 to study medicine. He no longer has legal status in the United States, and is subject to deportation after service of his sentence.
Acting United States Attorney Lemisch thanked the agents of the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals, the Internal Revenue Service Criminal Investigation, the U.S. Immigration and Custom’s Enforcement’s Department of Homeland Security Investigations, the Department of Health and Human Services Office of Inspector General, the Detroit Police Dept., Portsmouth, Ohio, Police Dept., Scioto County Sheriff’s Office, and the Detroit Violent Crimes Task Force and Michigan State Police for their successful investigation of the case.
Former Commerce Employee Convicted of Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a former information technology official with the Department of Commerce today of conspiracy to pay and receive bribes, and acceptance of bribes by a public official.
According to court records and evidence presented at trial, Raushi J. Conrad, 42, of Bristow, served as the Director of Systems Operation and Security within the Bureau of Industry and Security (BIS), a branch of the Department of Commerce. In that position, Conrad was designated to oversee and manage a project whereby computer files were transferred from an old BIS computer network that had been infected by a virus to a new, uninfected network. Conrad was also to ensure that the transferred files were free of viruses and, in some instances, retained the full functionality of the files that had resided on the old network.
“Conrad took bribes in exchange for official acts,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The contracting process should be one of integrity and fairness, and this case should send a strong message that public corruption will be vigorously prosecuted. I want to thank the trial team and our investigative partners for their outstanding work on this case.”
According to court records and evidence presented at trial, while serving as the project manager for the data migration project, Conrad solicited and received bribes from James Bedford, a local businessman, in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in part by Bedford. One of Bedford’s companies made $208,000 in payments to a restaurant business owned by Conrad, and many of these payments were concealed through false and fictitious invoices created by Conrad. The fake invoices made it appear that Conrad’s restaurant business had performed various services for Bedford’s company, when in fact no such services had ever been provided. Bedford’s company also arranged for various subcontractors to perform over $7,000 worth of free renovation work at Conrad’s residence. Bedford has pleaded guilty and is scheduled to be sentenced on June 30 (see case number 1:16-cr-264).
“Raushi Conrad received bribes from a local businessman in return for steering a lucrative subcontract and contract to perform the data migration work to companies owned in whole or in party by the bribe payer,” said Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office. “Conrad, who served as the Director of Systems Operation and Security within the Bureau of Industry and Security, a branch of the Department of Commerce, received more than $200,000 in payments that were made to a restaurant business owned by him. The fake invoices made it appear that Conrad’s business had performed various services for the bribe payer’s company, when in fact no such services had ever been provided. Today’s verdict underscores the dedication of the FBI and our partners in pursuing and disrupting fraudulent acts against the government.”
Conrad faces a maximum of 20 years in prison when sentenced on September 8. 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; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Duane E. Townsend, Special Agent in Charge of the U.S. Department of Commerce, Office of Inspector General; and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the verdict. Assistant U.S. Attorneys Matthew Burke and Jamar K. Walker are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-169.
Former City of Nashua Volunteer Charged with Fraudulent Use of Social Security NumberRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dana Michelle Lawrence, 43, of Nashua has been indicted by a federal grand jury and charged with fraudulent use of a social security number.
According to court documents, in 2006, Lawrence was sentenced in a Rhode Island state court to a one-year period of incarceration followed by nine years of probation for a theft offense. Shortly after Lawrence completed the prison sentence, she absconded from supervision and a warrant was issued for her arrest. In November 2016, Lawrence, using the alias “Genevieve Kaplan,” began working as a volunteer for the City of Nashua, preparing grant applications. On May 7, 2017, the Nashua Police Department (NPD) and FBI were told that “Kaplan” tried to obtain routing numbers and account numbers for bank accounts that belonged to the City.
While investigating the matter, the NPD and FBI obtained a copy of a lease application that “Kaplan” had used to rent an apartment in Nashua. On the application, “Kaplan” used a different first name, “Genna,” and a social security number assigned to another person. searching “Kaplan’s” Nashua apartment, the NPD and FBI found documents that contained different names, addresses, dates of births, and social security numbers.
On May 11, Lawrence was arrested and charged in state court with Identity Fraud, a felony under state law.
If convicted, Lawrence faces a maximum of five years in prison and a fine of up to $250,000.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
The investigation, which is ongoing, has been conducted by the Federal Bureau of Investigation, the Office of Inspector General of the Social Security Administration, and the Nashua Police Department. Assistant United States Attorneys Robert Kinsella and Anna Dronzek are prosecuting the case.
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Former California Police Officer Pleads Guilty to Conspiring to File Fraudulent Tax Returns and Cashing Stolen Refund and Social Security ChecksRead the Press Release
A Pittsburg, California man pleaded guilty to conspiracy to commit theft of government money and wire fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to documents filed with the court, while employed as a police officer, Gary Bostick, 39, participated in a conspiracy to cash stolen U.S. Treasury checks and file tax returns in the names of deceased individuals to obtain fraudulent refunds. Bostick filed some of the fraudulent returns from his residence and he and his co-conspirators directed the refund checks to addresses they could access. Bostick and his coconspirators, to include Hugh Robinson, also acquired stolen tax refund and social security checks, which they cashed at stores in various areas, including Kentucky. Bostick recruited and directed others who participated in the scheme. He admitted to causing a tax loss of more than $720,530.
Sentencing is scheduled for Sept. 19. Bostick faces a statutory maximum sentence of five years in prison for the conspiracy count and 20 years in prison for the wire fraud count. He also faces a period of supervised release, restitution and monetary penalties. Robinson was previously convicted at trial and sentenced to 144 months in prison for his role in the conspiracy.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Indicted for a Hate Crime for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
The Justice Department today announced that Gerald Wallace, 35, was indicted by a federal grand jury on a hate crime charge for obstructing the free exercise of religious beliefs by threatening to shoot members of a mosque in Miami Gardens, Florida.
According to court documents, during the evening of February 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida.
The defendant is alleged to have left a profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, "I'm gonna shoot all y'all."
Counts One and Two of the superseding indictment charge Wallace with obstructing the free exercise of religious beliefs and the interstate transmission of a threatening communication for leaving this threating voicemail. Wallace was previously indicted, on May 25, 2017, for the interstate transmission of a threatening communication for making this threat. If convicted of both counts, Wallace faces a maximum penalty of 25 years in federal prison.
The charges contained in this indictment are simply accusations, and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Florida Man Indicted for a Hate Crime for Making Telephonic Threat to Shoot Congregants at the Islamic Center of Greater MiamiRead the Press Release
Gerald Wallace, 35, of Miami, was indicted by a federal grand jury on a hate crime charge for obstructing the free exercise of religious beliefs by threatening to shoot members of a mosque in Miami Gardens, Florida.
Benjamin G. Greenberg, Acting Unites States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court documents, during the evening of February 19, 2017, Wallace left a voicemail message for the Islamic Center of Greater Miami, located in Miami Gardens, Florida. The defendant is alleged to have left a profanity laden message against Islam, the prophet Mohammed, and the Koran, during which he threatened to go to the mosque, and stated, "I'm gonna shoot all y'all."
Counts One and Two of the superseding indictment charge Wallace with obstructing the free exercise of religious beliefs and the interstate transmission of a threatening communication for leaving this threating voicemail. Wallace was previously indicted, on May 25, 2017, for the interstate transmission of a threatening communication for making this threat. If convicted of both counts, Wallace faces a maximum penalty of 25 years in federal prison.
The charges contained in this indictment are simply accusations, and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the FBI’s Miami Area Corruption Task Force and the Miami Gardens Police Department. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr. of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
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.
Final Man Convicted in Cocaine ConspiracyRead the Press Release
HOUSTON – With the final plea today, three Houston men have been convicted for their roles in a $1 million narcotics trafficking conspiracy, announced Acting U.S. Attorney Abe Martinez.
Today, Robert Ashleigh Whitten, 38, pleaded guilty to conspiracy to possess with intent to distribute cocaine. Lalo Buddy Perez, 26, and Michael Anthony Patran, 28, pleaded guilty to the conspiracy and to possession of cocaine with intent to distribute in February 2017.
In 2016, law enforcement personnel began investigating a drug trafficking organization distributing significant quantities of cocaine in the Houston area. Agents quickly confirmed that Patran and Perez were both major suppliers and distributors within the Houston and Magnolia, Texas, community. Through the course of the investigation, agents also confirmed that Patran and Perez conspired with Whitten to distribute cocaine and the proceeds from the narcotics trafficking.
On Sept. 6, 2016, authorities conducted a traffic stop on a vehicle Perez was driving with Patran as passenger. At that time, law enforcement discovered a blue Puma gym bag containing 20 individually-wrapped packages of U.S. currency, which totaled approximately $237,475. They also found an AK-47 assault rifle and Walther P99 pistol.
Shortly thereafter, law enforcement agents observed Whitten at a gas station and contacted him. He lied to the police about his identity and attempted to flee, but was captured immediately. Upon a search of his Dodge Ram truck, authorities found more than 18 kilograms of cocaine and approximately $666,638.00 in his vehicle. Some of the cocaine was open and spilled into a cooler which caused an odor that permeated the vehicle.
All three men have been and will remain in custody pending sentencing, set for Nov. 16, 2017, before U.S. District Judge Sim Lake.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Julie N. Searle and Rick Bennett are prosecuting the case.
Federal Jury Convicts St. Roch Resident in Cocaine Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday a federal jury has convicted LAZANDY DANIELS, age 40, of the St. Roch neighborhood, for his role in distributing kilograms of cocaine in the New Orleans area. Following a three-day trial, the jury found DANIELS guilty of conspiracy to distribute five kilograms or more of cocaine hydrochloride (powder) and 28 grams or more of cocaine base (“crack”); and two counts relating to the distribution of crack cocaine.
According to the evidence at trial, co-defendant CRAIG JAMES was a Houston-based cocaine supplier who, during 2014 and 2015, transported up to 30 kilograms of cocaine per month from Houston to New Orleans. JAMES’S method for transportation was to hide the cocaine in the door panels of used cars, load the cars onto a flatbed truck, and drive the truck from Houston to a salvage yard in New Orleans East. Upon arrival at the salvage yard, DANIELS and others would assist JAMES in unloading the drugs; distributing the drugs to local kilogram-level dealers like co-defendants LEON JACKSON and JOPPA JACKSON; and then collecting the drug proceeds that would then be used to purchase more cocaine for resale. The evidence further showed that DANIELS sold quantities of crack and powder cocaine from a home near the intersection of North Derbigny Street and Mandeville Street in the St. Roch neighborhood. DANIELS and JAMES were arrested on December 2, 2015, at the Super 8 Hotel on Chef Menteur Highway in New Orleans East. At the time of the arrest, the men were in possession of 164 grams of crack cocaine, numerous items used to weigh and package cocaine, and almost $300,000 in cash drug proceeds.
Because DANIELS has a prior felony drug conviction, he faces a mandatory minimum sentence of twenty years in prison, a maximum life sentence, a possible fine of $20,000,000, and a supervised release period of at least ten years. Sentencing before Judge Jane Triche Milazzo is scheduled for September 14, 2017.
Co-defendants CRAIG JAMES and LEON JACKSON, JR., both previously pled guilty to conspiracy to distribute 5 kilograms or more of a mixture containing cocaine hydrochloride and 28 grams or more of a mixture containing cocaine base (crack). Both defendants are scheduled for sentencing on July 13, 2017.
Co-defendant JOPPA JACKSON previously pled guilty to conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride and is scheduled for sentencing on August 10, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, New Orleans Police Department, Plaquemines Parish Sheriff’s Office, Kenner Police Department, and Border Patrol in investigating this matter. Assistant United States Attorneys Brandon S. Long and Theodore Carter are responsible for the prosecution.
Federal Jury Convicts Mission, Texas Man for Role in Drug Trafficking / Money Laundering ConspiracyRead the Press Release
In San Antonio this afternoon, a federal jury convicted 45–year-old Reymundo Villarreal-Arelis (aka “Mundo”) of Mission, TX, for his role in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; Acting United States Attorney Abe Martinez, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Jurors convicted Villarreal-Arelis on one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine and one count of conspiracy to commit money laundering. Jurors found that Villarreal-Arelis and others, including 12 relatives, conspired to (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Evidence presented at trial revealed that the defendant was a member of a significant Rio Grande Valley cocaine trafficking family known as “Los Piojos” led by brothers Gilberto Villarreal-Arelis, Reymundo Villarreal-Arelis, and Juan Villarreal-Arelis (aka ”Juando”) along with their nephew, Jose Luis Villarreal-Gonzalez (aka “Nune”). Since 2000, this organization was responsible for the importation and distribution of thousands of kilograms of cocaine supplied by the Gulf Cartel and subsequently, by Los Zetas. This organization maintained control over smuggling routes stretching from Guatemala to Diaz Ordaz, Mexico, across from McAllen, TX. Cocaine was smuggled into and kept in stash houses in McAllen before being transported to San Antonio, Houston, Dallas, New York, Chicago, Atlanta, Oklahoma, North Carolina and Florida.
Testimony during trial revealed that cocaine sales generated millions of dollars for this organization, some of which was used to purchase more than 50 quarter horses. The defendants used the horse racing industry as one money laundering mechanism for their illegal proceeds.
During this investigation, authorities seized 280 kilograms of cocaine and between $15-20 million in assets attributed to the criminal activity of the defendants including cash in various bank accounts, quarter horses, the Riverside Plaza shopping center in Mission, numerous residences and other real estate properties.
In addition to today’s verdict, this investigation resulted in fourteen (14) individuals and two companies pleading guilty to federal charges prior to jury selection. All are awaiting sentencing. Defendant Gilberto Villarreal-Arelis (aka “Beto”, “Betito”) remains a fugitive.
“Today’s verdict and previous guilty pleas are a testament to the tenacity of IRS-Criminal Investigation special agents when it comes to using their exceptional financial skills to help bring down drug cartels,” said IRS-CI San Antonio Field Office Special Agent in Charge William Cotter. “We’re proud to be a member of a resolute law enforcement effort that strives to dismantle drug trafficking and money laundering organizations.”
This investigation was conducted by the IRS-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Public Safety Department and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices, Homeland Security Investigations and the United States Marshals Service.
Federal Gun Charge Brought Against Shrewsbury ManRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury has returned a two-count indictment charging Frank Weir, 55, of Shrewsbury, with possessing a machine gun without a permit and possessing a firearm with an obliterated serial number. Both counts identify the same Thompson U.S. Navy 1928 submachine gun, .45 caliber (manufactured by Colt).
Weir is currently in state pursuant to the State’s second-degree murder charge against Weir for the shooting death of Donna Marzilli on February 15, 2016. The machine gun at issue in this federal case is not alleged to be involved in the Marzilli shooting. An arraignment in federal court on the federal charges has not yet been scheduled.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and he is proven guilty. Under the National Firearms Act, a person may not possess a machine gun unless it is registered to that person in the National Firearms Registration and Transfer Record. Violation of this offense carries a maximum penalty of ten years. Under the Gun Control Act, it is unlawful to possess a firearm with an obliterated serial number. This offense carries a maximum sentence of five years. If he is convicted, the Court would determine the actual sentence after consideration of the advisory sentencing guidelines.
This case is being investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Vermont State Police. The United States is represented by Joe Perella. Weir is represented by Peter Langrock, Esq. of Middlebury.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Fountain Inn Man Indicted on Federal Gun Charge. David Jerome Butler, age 42, of Fountain Inn, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Butler could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Laurens County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Greenville County Man Indicted on Federal Gun and Drug Charges. Travis Sanchez Hunt, age 32, of Greenville County, South Carolina, was charged in a three-count indictment with one count of possession of firearms by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute cocaine and cocaine base (crack), a violation of Title 21, United States Code, Section 841(a)(1); and possession of firearms in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Hunt could face is a fine of $1,500,000.00 and/or imprisonment of 450 years. The case was investigated by the Greenville Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
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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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville Resident Indicted on Possession and Distribution of Child Pornography. Micah R. Vickery, age 37, of Greenville, South Carolina, was charged in a 2-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B) and distribution of child pornography, a violation of Title 18, United States Code, Section 2252(a)(2). The maximum penalty Vickery could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Mauldin Resident Indicted on Federal Gun Charges. Alvin Andrae Drummond, age 41, of Mauldin, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1) and (g)(9). The maximum penalty Drummond could face is a fine of $250,000.00 and/or life imprisonment. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenville County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jamie Schoen of the Greenville office.
Individual Indicted on Federal Gun Charges. Nicholas La Shaun Finley, age 45, was charged in a one-count indictment with possession of ammunition by a prohibited person, in violation of Title 18, United States Code, Sections 922(g)(1) and (g)(9). The maximum penalty Finley could face is a fine of $250,000.00 and/or life imprisonment. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Greenville County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jamie Schoen of the Greenville office.
Four Aliens Arrested and Charged with Illegal Re-Entry into the United States. Rigoberto Morales-Hernandez, Tomas De La Cruz-Chingo, Luis Mario Olmos Betancourt, and Pedro Antonio Medina were each charged in separate indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by agents of the ICE-Homeland Security Investigations and are being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Spartanburg Man Indicted on Federal Gun and Drug Charges. Thomas Edward Norman, age 33, of Spartanburg, South Carolina, was charged in a three-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute heroin and cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Norman could face is a fine of $1,500,000.00 and/or imprisonment of 35 years. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Richard Lamar Chapman, age 24, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Chapman could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Brian Delquez Edwards, age 19, of Spartanburg, South Carolina, was charged in a three-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); and possession of a stolen firearm, a violation of Title 18, United States Code, Section 922(j). The maximum penalty Edwards could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Charles Alex Hamilton, age 47, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of firearms and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Hamilton could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charges. Vernard Buckman, Jr., age 32, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person previously charged with a criminal domestic violence conviction, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Buckman could face is a fine of $250,000.00 and/or imprisonment of 10 years. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
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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Fayette County Woman Indicted for Escape from Federal CustodyRead the Press Release
PITTSBURGH – A Fayette County woman has been indicted by a federal grand jury in Pittsburgh for escaping from federal custody following a prior federal felony conviction, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Tiffany Lilley, age 28, as the sole defendant.
According to the indictment, Lilley escaped from federal custody at Renewal Incorporated Community Correction Center in Pittsburgh, Pennsylvania on March 28, 2017.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ellwood City Man Sentenced to Prison for Distribution of Child PornographyRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, was sentenced in federal court to 135 months imprisonment, followed by 20 years supervised release, and $1,000.00 in restitution, on a charge of Distribution of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Lucas Avery Klobetanz, age 40.
According to information presented to the court, on or about October 8, 2015, Klobetanz distributed videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Pennsylvania State Police for conducting the investigation leading to the successful prosecution of Klobetanz.
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.justice.gov/psc.
Eight People Charged in Takedown of Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. - Federal and local law enforcement authorities arrested eight people this week for their alleged roles in a drug trafficking organization that distributed cocaine, crack cocaine, and heroin in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
John Gunther, 34, of Blackwood, New Jersey, George Williams, 42 of Oaklyn, New Jersey, Taleaf Gunther, 31, William Roland, 35, Daron Suiter, 23, Karim Johnson, 38, Latoya Whealton, 32, and Rajai Gaines, 33, all of Camden, are charged by complaint with one count of drug trafficking conspiracy.
Taleaf Gunther, Williams, Whealton, Suiter, and Johnson were arrested June 14, 2017. John Gunther, Roland, and Gaines were arrested June 13, 2017. All eight defendants appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court on their respective arrest dates – except for Taleaf Gunther who appeared today – and were detained.
According to the complaints:
The defendants are members of a drug trafficking organization that dealt cocaine, crack cocaine, and heroin in and around Camden, with criminal activities concentrated on the 1700 block of Filmore Street. The organization also supplied drugs to customers and other distributors elsewhere.
John Gunther and Taleaf Gunther, the alleged leaders and managers of the operation, obtained bulk supplies of narcotics, prepared and packaged those controlled substances for street level sale, provided crack cocaine and heroin to other members for resale to customers, collected drug proceeds, and oversaw the daily sales and operation of the organization. Other members of the organization – including Roland, Suiter, Johnson, and Whealton – assisted in the preparation, distribution, and sale of the drugs. Williams allegedly supplied the organization with heroin. Gaines allegedly assisted with the preparation of drugs for resale.
An investigation led by the FBI used surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, record checks, a GPS vehicle tracker, and multiple telephone wiretaps to uncover the operations of the drug trafficking organization.
The drug trafficking conspiracy count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Sherriff’s Department under the direction of Sherriff Gilbert Wilson; the Cherry Hill Police Department, under the direction of William Monaghan; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
He also thanked the Gloucester Township Police Department, U.S. Immigration and Customs Enforcement, and U.S. Department of Health and Human Services for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni and Special Assistant U.S. Attorney Erin M. Fay of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Eight Current and Former Law Enforcement Officers, Four Correctional Officers, and Others Sentenced for Their Participation in Drug Distribution ConspiracyRead the Press Release
Greenville - Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and United States Attorney John Stuart Bruce announced that eight current and former law enforcement officers, four correctional officers and two other individuals have been sentenced for their participation in trafficking narcotics and narcotics proceeds for a purported large-scale drug trafficking organization. The individuals used their affiliation with law enforcement to make money by protecting shipments of purported narcotics and narcotics proceeds.
Senior United States District Court Judge Malcolm J. Howard sentenced the following 14 defendants on a variety of charges, including conspiracy to distribute illegal narcotics, firearm charges and bribery charges: Lann Tjuan Clanton, 38, of Garysburg, NC was sentenced to 195 months; Ikeisha Jacobs, 33, of Rich Square, NC, was sentenced to 120 months; Jason Boone, 31 of Henrico, NC, was sentenced to 96 months; Wardie Vincent Jr., 37, of Henrico, NC, was sentenced to 72 months; Adrienne Moody, 38 of Roanoke Rapids, NC was sentenced to 87 months; Cory Jackson, 45, of Garysburg, NC, was sentenced to 87 months; Jimmy Pair Jr., 50, of Pleasant Hill, NC, was sentenced to 87 months; Curtis Boone, 37, of Gaston, NC, was sentenced to 87 months; Thomas Jefferson Allen, 39 , of Roanoke Rapids, NC, was sentenced to 87 months; Alaina Sue-Kam-Ling, 27, of Charlotte, NC, was sentenced to 38 months; Kavon Phillips, 26, of Rich Square, NC, was sentenced to 57 months; Alphonso Ponton, 44, of Weldon, NC, was sentenced to 48 months; Crystal Pierce, 32, of Roanoke Rapids, NC, was sentenced to 6 months; and Tohsa Dailey, 37, of Garysburg, NC, was sentenced to 24 months.
According to factual statements made in connection with the defendants’ guilty pleas, at the time of the crimes charged, Jacobs, Jason Boone, Pair Jr., Curtis Boone and Allen were Deputy Sheriffs at the Northampton County Sheriff’s Office; Clanton, Vincent Jr. and Jackson were former law enforcement officers; Moody, Sue-Kam-Ling, Phillips and Ponton were correctional officers; and Dailey was a 911 dispatch operator for Northampton County.
John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, stated: "Our office was pleased to partner with the FBI and the Criminal Division’s Public Integrity Section in this important case. When law enforcement officers breach their public trust by agreeing to assist criminal organizations for profit, they must be held accountable, as was done in this prosecution."
"They vowed to protect and serve, but instead these law enforcement officers sold their badges to line their own pockets. Public corruption is the number one criminal priority of the FBI and we will work aggressively to protect the public trust," said John Strong, Special Agent in Charge of the FBI in North Carolina.
The charges stemmed from a large-scale undercover investigation into allegations of systemic law enforcement corruption in Northampton County. Admissions made in connection with the defendants’ guilty pleas revealed that during the course of the undercover investigation, the defendants aided in transporting purported illegal narcotics and illegal narcotics proceeds through North Carolina and elsewhere in exchange for thousands of dollars of payments.
In May 2017, a jury convicted a fifteenth defendant, Antonio Tillmon, 34, of Windsor, NC of drug, firearm and bribery charges relating to this scheme. Tillmon, a former North Carolina police officer, will be sentenced on Aug. 8, 2017. All 15 defendants indicted in this case have now been convicted of various offenses.
The case was investigated by the FBI’s Charlotte Division, Raleigh Resident Agency. The case is being prosecuted by Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina and Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section.
Eight Current and Former Law Enforcement Officers, Four Correctional Officers, and Others Sentenced for Their Participation in Drug Distribution ConspiracyRead the Press Release
Eight current and former law enforcement officers, four correctional officers and two other individuals have been sentenced for their participation in trafficking narcotics and narcotics proceeds for a purported large-scale drug trafficking organization. The individuals used their affiliation with law enforcement to make money by protecting shipments of purported narcotics and narcotics proceeds.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina made the announcement.
Senior United States District Court Judge Malcolm J. Howard sentenced the following 14 defendants on a variety of charges, including conspiracy to distribute illegal narcotics, firearm charges and bribery charges: Lann Tjuan Clanton, 38, of Garysburg, N.C., was sentenced to 195 months in prison; Ikeisha Jacobs, 34, of Rich Square, N.C., was sentenced to 120 months in prison; Jason Boone, 31, of Henrico, N.C., was sentenced to 96 months in prison; Wardie Vincent Jr., 37, of Henrico, N.C., was sentenced to 72 months in prison; Adrienne Moody, 39, of Roanoke Rapids, N.C., was sentenced to 87 months in prison; Cory Jackson, 45, of Garysburg, N.C., was sentenced to 87 months in prison; Jimmy Pair Jr., 51, of Pleasant Hill, N.C., was sentenced to 87 months in prison; Curtis Boone, 38, of Gaston, N.C., was sentenced to 87 months in prison; Thomas Jefferson Allen II, 39, of Roanoke Rapids, N.C., was sentenced to 87 months in prison; Alaina Sue-Kam-Ling, 28, of Charlotte, N.C., was sentenced to 38 months in prison; Kavon Phillips, 27, of Rich Square, N.C., was sentenced to 57 months in prison; Alphonso Ponton, 45, of Weldon, N.C., was sentenced to 48 months in prison; Crystal Pierce, 33, of Roanoke Rapids, N.C., was sentenced to 6 months in prison and 6 months of house arrest; and Tohsa Dailey, 37, of Garysburg, N.C., was sentenced to 24 months in prison.
According to factual statements made in connection with the defendants’ guilty pleas, at the time of the crimes charged, Jacobs, Jason Boone, Pair Jr., Curtis Boone and Allen were Deputy Sheriffs at the Northampton County Sheriff’s Office; Clanton, Vincent Jr. and Jackson were former law enforcement officers; Moody, Sue-Kam-Ling, Phillips and Ponton were correctional officers; and Dailey was a 911 dispatch operator for Northampton County.
The charges stemmed from a large-scale undercover investigation into allegations of systemic law enforcement corruption in Northampton County. Admissions made in connection with the defendants’ guilty pleas revealed that during the course of the undercover investigation, the defendants aided in transporting purported illegal narcotics and illegal narcotics proceeds through North Carolina and elsewhere in exchange for thousands of dollars of payments.
In May 2017, a jury convicted a fifteenth defendant, Antonio Tillmon, 33, of Windsor, N.C., of drug, firearm and bribery charges relating to this scheme. Tillmon, a former North Carolina police officer, is set for sentencing during the Court’s September 12, term. All 15 defendants indicted in this case have now been convicted of various offenses.
The case was investigated by the FBI’s Charlotte Division, Raleigh Resident Agency. The case is being prosecuted by Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina.
Eastern District of Pennsylvania Observes World Elder Abuse Awareness DayRead the Press Release
As part of the U.S. Department of Justice’s Elder Justice Initiative, the Eastern District of Pennsylvania is one of 10 federal districts in the United States that formed an Elder Justice Task Force. The Eastern District of Pennsylvania announced its task force here in March 2016, and maintains a website for the public to access here.
The Eastern District of Pennsylvania’s task force met in Harrisburg, Pennsylvania, in Fall 2016 and Spring 2017, and will meet again in Fall 2017. Task force members include federal, regional, state, and local government officials within the Eastern District of Pennsylvania, as well as advocacy groups that focus on elder justice. Through collaboration, the Eastern District of Pennsylvania’s task force seeks to enhance government protection of vulnerable, elderly Pennsylvanians from harm, including from: (1) abuse, neglect, and failures of necessary care in nursing homes, hospices, hospitals, personal care homes, and other settings; and (2) financial fraud schemes. The task force also works to ensure the integrity of government spending by eliminating fraud, waste, and abuse in health care programs.
Our office welcomes an opportunity to speak to your group about the Elder Justice Initiative and the publicly available resources that can help us all to advance elder justice in Pennsylvania. If you are interested in a meeting, please send an email message to [email protected].
Dolton, Illinois Man Indicted for Stealing Firearms from A Licensed Gun Dealer in Loves Park, Ill.Read the Press Release
ROCKFORD — A Dolton, Illinois man was indicted Tuesday, June 13, 2017, by a federal grand jury in Rockford on gun charges. KELVIN CULPS, 20, of Dolton, Ill., also known as “Forty,” was charged with stealing twelve firearms from a licensed firearms dealer in Loves Park, Ill., on May 8, 2017, illegally possessing stolen firearms, and illegally possessing those firearms as a convicted felon. Culps, who has been in federal custody since his arrest on May 30, 2017, was arraigned before U.S. Magistrate Iain D. Johnston today and has pleaded not guilty. Culps remains in federal custody awaiting trial.
Each count of stealing firearms from a licensed firearms dealer, illegally possessing stolen firearms, and illegally possessing firearms as a convicted felon carries a maximum potential penalty of up to 10 years in prison, to be followed by up to 3 years of supervised release, and a fine of up to $250,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines, and the defendant shall be required to pay restitution to any victims of the alleged theft of the firearms.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Chuck Lynde, Chief of the Loves Park Police Department.
The government is represented by Assistant U.S. Attorney Talia Bucci.
Indictment.pdfDistrict Court Enters Permanent Injunction Against Florida and New Jersey Companies and Senior Managers to Stop the Distribution of Unapproved, Misbranded, and Adulterated DrugsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Stratus Pharmaceuticals Inc. of Miami, Florida; Sonar Products Inc. of Carlstadt, New Jersey; and individuals Alberto Hoyo and Juan Carlos Billoch, the Department of Justice announced today. The injunction permanently enjoins the defendants from distributing unapproved, misbranded, and adulterated drugs in violation of the federal Food, Drug, and Cosmetic Act (FDCA).
The Department filed a complaint in the U.S. District Court for the Southern District of Florida on April 28, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleges, among other things, that the defendants shipped drugs that had not been approved by the FDA and failed to abide by current good manufacturing practices.
Products Inc. (Sonar), a New Jersey corporation, manufactures drugs for Stratus Pharmaceuticals Inc. (Stratus). Stratus, a Florida corporation, distributes prescription and non-prescription drugs and, according to the complaint, owned 80 percent of Sonar. The complaint also included Alberto Hoyo, who is president of Stratus and was a member of Sonar’s board of directors, and Juan Carlos Billoch, who is vice president of operations of Stratus and was a member of Sonar’s board of directors.
According to the complaint, Sonar and Stratus manufactured and/or distributed a number of dermatological products that were not approved by the FDA. The complaint further details that on April 13, 2015, the United States seized unapproved and misbranded drugs held at Stratus’s facility and manufactured by Sonar. They included X-Viate 40 percent Gel and X-Viate 40 percent Lotion.
“Compliance with the Food, Drug, and Cosmetic Act is necessary to ensure the safety and effectiveness of the medicines we all use,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department will continue to work closely with the FDA to protect the public from conduct, like that alleged in the complaint, which poses a potential risk to consumers.”
The consent decree entered today resolves the litigation and requires that defendants cease the production and distribution of unapproved and misbranded drugs. The decree further requires that defendants adhere to current good manufacturing practices for drugs, and requires Sonar to cease manufacturing until the company implements specified remedial measures. The measures include among other things, establishing a quality assurance and quality control program and retaining an expert to conduct a comprehensive evaluation of Sonar’s operations.
As noted in the complaint, FDA inspections of Sonar’s facility in 2014 and 2015, and Stratus’s facility in 2014, revealed violations of current good manufacturing practices that demonstrated a lack of quality oversight of the manufacturing, processing, and testing of drugs such that, if they continued, posed a threat to the public health. The complaint alleged, for example, that Sonar failed to reject drug products that did not meet established standards or specifications. Sonar also knew that some products were exceeding microbial limits and contained objectionable microorganisms, but did not thoroughly investigate the cause of such problems, and instead released the products to the market.
Also, according to the complaint, several products manufactured by Sonar were recalled in 2015 for microbial contamination, and an inspection concluded Stratus did not have the proper controls in place or possess adequate quality oversight to assure that finished drug products meet established specifications for identity, strength, quality, and purity prior to release.
This matter was handled by Trial Attorneys Jacqueline Blaesi-Freed and Monica Groat of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Joshua Davenport of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Department of Justice Observes World Elder Abuse Awareness DayRead the Press Release
On World Elder Abuse Awareness Day, our nation joins the world in voicing our opposition to elder abuse, neglect, and financial exploitation. On this day, the Department of Justice extends its support to elder victims and their loved ones, recognizing with gratitude those who have committed their lives to protecting older Americans, and affirms its unwavering commitment to combatting elder mistreatment in all its forms.
The U.S. Census Bureau projects that that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double its estimated population of 43.1 million as of the most recent census. While many Americans are enjoying longer, healthier lives, far too many older Americans are suffering in the shadows. Some studies suggest that 10 percent of seniors may suffer some form of physical abuse, psychological or verbal abuse, sexual abuse, financial exploitation or neglect. Likewise, other studies suggest that older adults may suffer billions in losses as a result of financial fraud, and that being victimized by financial fraud could lead to higher rates of hospitalization and mortality.
“On World Elder Abuse Awareness Day, the Department of Justice gives voice to those who have suffered from elder abuse, neglect, fraud and exploitation and commits to supporting those who combat elder mistreatment every day,” said Attorney General Jeff Sessions. “The department is dedicated to actively working with our federal agency partners as well as state, local and international law enforcement, prosecutors and civil attorneys, counselors and case workers, and healthcare professionals to address the growing problem of crime targeting the nation’s seniors.”
The Department of Justice, through its Elder Justice Initiative, which includes the work of many Department components, is working on multiple fronts to protect older Americans from elder mistreatment. The Department has aggressively prosecuted mass mailing fraud schemes, such as Jamaican lottery and psychic scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country in California, Georgia, Kansas, Kentucky, Iowa, Maryland, Ohio, Pennsylvania, Tennessee, and Washington to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents. Additionally, in 2016, the Department’s Office for Victims of Crime and the Elder Justice Initiative, in partnership with the Corporation for National and Community Service, established the two-year Elder Justice AmeriCorps program, which received $2 million in Justice Department grant funding to provide legal assistance and support services to victims of elder abuse, neglect and exploitation. Lastly, the Department actively supports state and local efforts to prevent and combat elder abuse in a variety of ways, including:
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Helping older victims and their families by connecting them to available resources, assistance and information on its Elder Justice website: www.elderjustice.gov;
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Advancing our collective understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project: www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse;
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Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians; and
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Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings.
While some progress has been made in stemming the tide of elder abuse and financial exploitation, there is so much that we still must accomplish. So, on this World Elder Abuse Awareness Day, we ask all Americans to join the Department of Justice in redoubling its efforts to prevent and combat all forms of elder abuse, neglect, and financial exploitation.
More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.
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Department of Justice Observes World Elder Abuse Awareness DayRead the Press Release
WASHINGTON - On World Elder Abuse Awareness Day, our nation joins the world in voicing our opposition to elder abuse, neglect, and financial exploitation. On this day, the Department of Justice extends its support to elder victims and their loved ones, recognizing with gratitude those who have committed their lives to protecting older Americans, and affirms its unwavering commitment to combatting elder mistreatment in all its forms.
The U.S. Census Bureau projects that the population of Americans over 65 years of age will increase to 83.7 million in 2050, nearly double its estimated population of 43.1 million as of the most recent census. While many Americans are enjoying longer, healthier lives, far too many older Americans are suffering in the shadows. Some studies suggest that 10 percent of seniors may suffer some form of physical abuse, psychological or verbal abuse, sexual abuse, financial exploitation or neglect. Likewise, other studies suggest that older adults may suffer billions in losses as a result of financial fraud, and that being victimized by financial fraud could lead to higher rates of hospitalization and mortality.
“On World Elder Abuse Awareness Day, the Department of Justice gives voice to those who have suffered from elder abuse, neglect, fraud and exploitation and commits to supporting those who combat elder mistreatment every day,” said Attorney General Jeff Sessions. “The department is dedicated to actively working with our federal agency partners as well as state, local and international law enforcement, prosecutors and civil attorneys, counselors and case workers, and healthcare professionals to address the growing problem of crime targeting the nation’s seniors.”
“The U.S. Attorney’s Office in the Western District of Washington is working with its state, local and tribal partners to protect seniors from abuse, neglect, fraud and exploitation,” said U.S. Attorney Annette L. Hayes. “We recently posted a new complaint form on our website that allows those who have information about elder abuse in our community to get it to law enforcement authorities so that it can be properly addressed.”
The Department of Justice, through its Elder Justice Initiative, which includes the work of many Department components, is working on multiple fronts to protect older Americans from elder mistreatment. The Department has aggressively prosecuted mass mailing fraud schemes, such as Jamaican lottery and psychic scams, many of which are international in nature and target seniors. The Department also launched 10 regional Elder Justice Task Forces across the country in California, Georgia, Kansas, Kentucky, Iowa, Maryland, Ohio, Pennsylvania, Tennessee, and Washington to enhance the ability of federal, state, and local authorities to work together to combat elder financial fraud and to pursue those nursing homes that provide grossly substandard care to their Medicare and Medicaid residents. Additionally, in 2016, the Department’s Office for Victims of Crime and the Elder Justice Initiative, in partnership with the Corporation for National and Community Service, established the two-year Elder Justice AmeriCorps program, which received $2 million in Justice Department grant funding to provide legal assistance and support services to victims of elder abuse, neglect and exploitation. Lastly, the Department actively supports state and local efforts to prevent and combat elder abuse in a variety of ways, including:
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Helping older victims and their families by connecting them to available resources, assistance and information on its Elder Justice website: www.elderjustice.gov;
-
Advancing our collective understanding of elder abuse through projects like the Elder Abuse Prevention Demonstration Project: www.justice.gov/elderjustice/pr/national-institute-justice-awards-funding-study-elder-abuse;
-
Enhancing state and local efforts to combat and prevent elder abuse through the development and dissemination of training materials and resources for prosecutors, law enforcement, civil legal aid workers, victim specialists, and clinicians; and
-
Raising public awareness of elder abuse and financial exploitation through the Elder Justice website, webinars, and public meetings.
While some progress has been made in stemming the tide of elder abuse and financial exploitation, there is so much that we still must accomplish.So, on this World Elder Abuse Awareness Day, we ask all Americans to join the Department of Justice in redoubling its efforts to prevent and combat all forms of elder abuse, neglect, and financial exploitation.
More information about the Department of Justice’s elder justice efforts can be found on its Elder Justice Website at https://www.justice.gov/elderjustice.
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Denton County Man Guilty of Child Exploitation ViolationsRead the Press Release
SHERMAN, Texas — A 42-year-old Lewisville, Texas man has been found guilty of child exploitation charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston.
Jose Victor Hernandez-Cuellar was found guilty by a jury of production of child pornography. The verdict was reached on June 14, 2017, following a two-day trial before U.S. District Judge Amos Mazzant.
According to information presented in court, on Nov. 6, 2015, federal agents executed a search warrant at Hernandez’s residence based on a national investigation into individuals trading child pornography online. During the search, Hernandez advised agents that he had accessed the website for several years and obtained child pornography from it, but that his efforts were part of research for a story he was writing. During a forensic review of the seized devices, agents discovered images of child pornography that Hernandez had photographed. Agents spoke with Hernandez again and he admitted that he took the images of a minor child with a camera that he owned. Hernandez identified the child to law enforcement and stated he photographed the child at his residence in Lewisville.
Under federal statutes, Hernandez faces a minimum of 15 years and up to 30 years in federal prison. This is the maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
Dallas County Woman Guilty in Drug Distribution ConspiracyRead the Press Release
TYLER, Texas – A 33-year-old Carrollton, Texas woman has pleaded guilty to federal drug conspiracy charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Nimrose Khan pleaded guilty to conspiracy to distribute and possession with intent to distribute Schedule I controlled substances, conspiracy to distribute and possession with intent to distribute controlled substance analogues, and engaging in monetary transactions. Khan entered her guilty plea today before U.S. Magistrate Judge K. Nicole Mitchell.
On Aug. 4, 2016, a combined task force of federal, state and local law enforcement executed federal arrest and search warrants in Plano, Carrollton, Dallas and Tyler, Texas as a result of a joint investigation by the U.S. Drug Enforcement Administration, Plano Police Department, Internal Revenue Service, Bureau of Alcohol, Tobacco, Firearms and Explosives and Smith County Sheriff’s Office.
According to information presented in court, from at least April 2013, Khan and her co-defendants, conspired to distribute synthetic drugs at two retail establishments in the Eastern District of Texas: Minute Stop/Valero Gas Station located at 11874 Hwy 64 West in Tyler, Texas and Ashes Smokes and Tattoos located at 1428 Avenue K in Plano, Texas. Khan and four others were indicted by a federal grand jury on Aug. 3, 2016
Under federal statutes, Khan faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by DEA, Plano Police Department, IRS, ATF, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mary Ann Cozby. #####
Crips Gang Member Convicted of Murder In-Aid-Of Racketeering, Multiple Robberies and Drug TraffickingRead the Press Release
Following five weeks of trial, a federal jury in Central Islip, New York, returned a guilty verdict today against Eric Smith, a Crips street gang member also known as “Esama” and “Esco,” on 11 counts, including murder in-aid-of racketeering, racketeering, Hobbs Act robbery, and conspiracy to murder rival gang members. Smith faces a mandatory term of life imprisonment when he is sentenced by United States District Judge Joanna Seybert.
The verdict was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI).
During the trial, the government proved that Smith was a ranking member of the Rollin’ 60s set of the Crips, a racketeering enterprise based in Roosevelt, New York, that engaged in murder, attempted murder, narcotics trafficking and firearms trafficking to maintain control of the Roosevelt community for nearly a decade. Smith, who nicknamed himself “Esama da Bomba” in reference to Osama Bin Laden, bragged on social media and to fellow gang members about being the gang’s “top shooter.” The evidence at trial showed Smith lived up to this title. In accordance with the gang’s “on sight” rule, which required members to attack the rival Bloods in Roosevelt whenever possible, using whatever means available, Smith participated in a dozen shootings of rival gang members or their homes. The evidence also showed that Smith shot a man outside a busy nightclub in Freeport and brazenly shot at rivals on residential streets. In addition, the evidence showed that Smith participated in a half dozen robberies with his fellow gang members to acquire cash and drugs for the gang to sell on the streets of Roosevelt.
Among the crimes Smith was convicted of was the December 15, 2010 murder of 19-year-old James McClenic, a member of the rival Bloods street gang. In that December 2010 murder, Smith, drove through the streets of Nassau County for hours, looking for McClenic. At approximately 6:20 p.m., Smith found McClenic sitting in a parked car in a crowded gas station on Hempstead Turnpike in Hempstead, New York. With innocent bystanders standing nearby, Smith, wearing a black ski mask and armed with a .40 caliber semi-automatic pistol, crept alongside the vehicle in which McClenic was a passenger, and opened fire into the vehicle at close range. Smith fatally shot McClenic in the neck.
According to the evidence, in the wake of the murder and after attempted retaliation by the Bloods against Smith and his fellow Crips, Smith and the leader of the Rollin’ 60s Crips, Raphael Osborne, dispatched younger members of their gang to retaliate. The younger Crips, acted at Smith’s direction, and fired more than a dozen shots into the home of McClenic’s grieving family on the day of the victim’s burial.
Smith was also convicted for his role in two robberies that he committed with the aid of fellow members of the Rollin’ 60s in the fall of 2010. The first robbery involved Smith and a fellow gang member stealing crack cocaine and cash from a victim he pistol-whipped in an effort to force the victim to disclose the location of the drugs. In the second robbery, Osborne directed Smith and fellow Rollin’ 60s members to the home of a drug dealer where Smith and a fellow gang member robbed the dealer of cash and drugs at gunpoint.
“The defendant’s crimes and those of his fellow gang members demonstrated a disregard for human life and the safety of citizens of the Roosevelt community. The defendant took a young man’s life because of his allegiance to a violent street gang. Such gangs like the Rollin’ 60s terrorize communities through violence and drug dealing,” stated Acting United States Attorney Rohde. “This Office, together with our law enforcement partners, will remain vigilant in bringing gang members to justice.” Ms. Rohde thanked the Nassau County District Attorney’s Office and the Nassau County Police Department for their assistance in the investigation.
“The subject in this case had such little regard for human life he took pride in killing people and terrorizing the community, so much so that he nicknamed himself glorifying one of the world’s worst terrorists, Osama bin Laden,” stated Assistant Director-in-Charge Sweeney. “Our FBI Long Island Gang Task Force won’t rest until we search out and stop every gang member who believes they are above the law and can get away with being such immoral criminals.”The government’s investigation has led to the arrest and conviction of more than 20 members and associates of the Rollin’ 60s Crips, including its founder Raphael Osborne who was sentenced in January 2017 to three life sentences plus 135 years. To date, ten defendants have been sentenced:
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June 21, 2016, Jahmani Hamilton was sentenced to a term of imprisonment of ten years;
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August 4, 2016, Kurtis Philip was sentenced to a term of imprisonment of ten years;
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August 5, 2016, Courtney Smith was sentenced to a term of imprisonment of ten years;
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September 23, 2016, Merlyn Benitez was sentenced to a term of imprisonment of ten years;
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October 13, 2016, Derick Hernandez was sentenced to a term of imprisonment of 20 years that will run consecutively to a four-year state sentence that he is presently serving;
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October 19, 2016, Kwame Lake was sentenced to a term of imprisonment of five years that will run consecutively to an eight-year state sentence that he is presently serving;
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November 4, 2016, Tyshawn Gitto was sentenced to 13 years’ imprisonment;
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January 13, 2017, Branden Short was sentenced to 30 months’ imprisonment;
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April 21, 2017, Rommel Lobban was sentenced to 15 years’ imprisonment; and
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April 25, 2017, Daquanne Nunn was sentenced to 13 years’ imprisonment;
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann, Christopher C. Caffarone and Michael Maffei are in charge of the prosecution.
The Defendant:
ERIC SMITH (a/k/a Esama)
Age: 29
Roosevelt, Long Island
E.D.N.Y. Docket No. 14-CR264 (JS)
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Cleveland man sentenced to 26 years in prison for administering group that shared images of toddlers being tortured and sexually assaultedRead the Press Release
A Cleveland man was sentenced to more than 26 years in prison for administering a group that shared images of toddlers being tortured and sexually assaulted, said Acting U.S. Attorney David A. Sierleja.
Brian C. Keeling, 34, was sentenced to 320 months in prison by U.S. District Judge James Gwin. He pled guilty earlier this year to three counts -- advertising, possession of child pornography and receipt and distribution of depictions of minors engaged in sexually explicit conduct.
Keeling administered a group on Kik that shared images of child exploitation. The group was named “Toddlers” and had 50 members. Keeling posted messages to the group such as: “Wish we could find a babies group” and “who has some hardcore toddlers,” according to court documents.
Keeling possessed more than 30 movie files and hundreds of images of child pornography and sexual abuse, including a toddler bound by her ankles, which are secured to a rod, who is can be heard screaming while she it tortured and sexually abused, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations.
Citizen of Ghana and Canada Sentenced to 29 Months in Prison for Role in Gun Smuggling SchemeRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Joel A. Tetteh, 53, a citizen of Ghana and Canada, was sentenced to serve 29 months in prison for orchestrating a scheme in which he unlawfully purchased firearms in New Hampshire and smuggled them to Ghana.
According to court documents and statements in court, Tetteh purchased a total of six handguns from a federally licensed firearms dealer in Hooksett, New Hampshire on April 29, 2014, October 29, 2014, and May 6, 2015. In purchasing these handguns, Tetteh filled out a form in which he stated that he resided at a location in Merrimack, New Hampshire. A subsequent law enforcement investigation showed that this statement was false. At the time of the purchase, Tetteh was residing in Worcester, Massachusetts and never resided at the address in Merrimack. Under federal law, the firearms dealer could not have lawfully sold these firearms to the defendant because he was not a resident of New Hampshire.
During a subsequent interview with law enforcement officers, Tetteh acknowledged that he had purchased the guns and shipped them to Ghana inside motor vehicles. He further admitted that in 2012 he had arranged for another person to purchase two additional firearms in New Hampshire, which also were sent to Ghana.
The firearms that Tetteh purchased are defense articles that may not be exported without a license from the State Department. Tetteh did not have such a license.
Tetteh previously pleaded guilty on September 9, 2016, to three counts of making material false statements during the acquisition of a firearm, three counts of making false statements during the purchase of a firearm, and three counts of smuggling goods from the United States
“The United States Attorney’s Office will continue to work with our law enforcement partners to investigate and prosecute gun-related crimes.” Acting U.S. Attorney Farley said. “International gun smuggling is a serious crime that can lead to violent acts in other countries and undermine the stability of foreign governments. I commend the hard work of the law enforcement agents who investigated this significant case.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. It was prosecuted by Acting U.S. Attorney Farley.
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Chattanooga Man Sentenced for Solicitation to Burn Down a Mosque in Islamberg, New YorkRead the Press Release
Robert Doggart, 65, of Signal Mountain, Tennessee, was sentenced to 235 months in prison for soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York, announced Attorney General Jeff Sessions and United States Attorney Nancy Stallard Harr of the Eastern District of Tennessee. Doggart also was found guilty of soliciting another person to commit arson.
Evidence presented at trial established that, in February 2015, the FBI learned through a confidential source that the defendant was recruiting people online to carry out an armed attack on Islamberg, a community that is home to a large Muslim population. Doggart arranged to meet with the confidential source in Nashville, where he discussed details of his plan to burn down a mosque, a school, and a cafeteria in Islamberg. Doggart showed the confidential source maps of Islamberg, laid out the number of guns and types of ammunition they would need to destroy the community, and discussed different ways to burn down a mosque and other buildings. Through a court order, the FBI also began intercepting Doggart’s phone calls during which Doggart solicited and recruited people to join him in his attack on Islamberg.
Doggart specifically targeted the mosque because it was a religious building, and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device. At trial, the jury heard recorded conversations in which Doggart repeatedly discussed killing people, including one in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.”
“People of all faiths have the fundamental right to worship freely, and this administration will not tolerate attempts to violate that right,” said Attorney General Jeff Sessions. “The defendant solicited people to commit acts of violence in an effort to terrorize a community simply because of its Islamic faith. The Justice Department will continue to aggressively investigate and prosecute attacks against our faith-based communities.”
“The people of the Eastern District of Tennessee will not tolerate the type of threats and actions perpetrated by Doggart. The United States Attorney’s Office will aggressively prosecute those who seek to disrupt the safety of our community and others,” said U.S. Attorney Nancy Stallard Harr.
The case was investigated by the FBI’s Knoxville Division. This case was prosecuted by Trial Attorney Saeed A. Mody of the Civil Rights Division, Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee, and assisted by Trial Attorney Clement McGovern of the National Security Division’s Counterterrorism Section.
Chattanooga Man Sentenced for Solicitation to Burn Down A Mosque in Islamberg, New YorkRead the Press Release
CHATTANOOGA, Tenn. – On Wednesday, June 14, 2017, Robert Doggart, 65, of Signal Mountain, Tennessee, was sentenced by the Honorable Curtis L. Collier, Senior U.S. District Judge, to serve 235 months in prison for soliciting another person to violate federal civil rights laws by burning down a mosque in Islamberg, a hamlet outside Hancock, New York. Upon his release from prison, he will be supervised by the U.S. Probation Office for three years. Doggart was also found guilty of soliciting another person to commit arson.
Evidence presented at trial established that, in February 2015, the FBI learned through a confidential source that Doggart was recruiting people online to carry out an armed attack on Islamberg, a community that is home to a large Muslim population. Doggart arranged to meet with the confidential source in Nashville, where he discussed details of his plan to burn down a mosque, a school, and a cafeteria in Islamberg. He showed the confidential source maps of Islamberg, laid out the number of guns and types of ammunition they would need to destroy the community, and discussed different ways to burn down a mosque and other buildings. Through a court order, the FBI also began intercepting Doggart’s phone calls, during which he solicited and recruited people to join him in his attack on Islamberg.
Doggart specifically targeted the mosque because it was a religious building and he discussed burning it down or blowing it up with a Molotov cocktail or other explosive device. At trial, the jury heard recorded conversations in which Doggart repeatedly discussed killing people, including one in which Doggart said, “I don’t want to have to kill children, but there’s always collateral damage.”
“People of all faiths have the fundamental right to worship freely, and this administration will not tolerate attempts to violate that right,” said Attorney General Jeff Sessions. “The defendant solicited people to commit acts of violence in an effort to terrorize a community simply because of its Islamic faith. The Justice Department will continue to aggressively investigate and prosecute attacks against our faith-based communities.”
“The people of the Eastern District of Tennessee will not tolerate the type of threats and actions perpetrated by Doggart. The United States Attorney’s Office will aggressively prosecute those who seek to disrupt the safety of our community and others,” said U.S. Attorney Nancy Stallard Harr.
Special Agent in Charge Renae McDermott of the Knoxville Division of the Federal Bureau of Investigation states that, “We are committed to investigating violations of federal civil rights statues. We prioritize civil rights investigations which are designed to protect all persons.”
The case was investigated by the FBI, Knoxville Division. Trial Attorney Saeed A. Mody of the Civil Rights Division, Assistant U.S. Attorney Perry H. Piper of the Eastern District of Tennessee, and Trial Attorney Clement McGovern of the National Security Division’s Counterterrorism Section, represented the United States at trial.
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Calvert City, Kentucky Men Charged with Intentionally Distributing U-4 Which Resulted in the Death of the UserRead the Press Release
sheppard_hardin_charged_0.pdfFirst defendants charged with U-4 distribution resulting in death,
in the Western District of Kentucky
LOUISVILLE, Ky. – Two Calvert City residents were charged by grand jury indictment this week with intentionally distributing U-4770 commonly known as U-4 or by its street name, “Pink”, a Schedule I controlled substance, to a person known as “T.M.” whose death and serious bodily injury resulted from the use of such substance, and serious bodily injury to K.M. resulted from the use of such substance announced United States Attorney John E. Kuhn, Jr.
“My Office is committed to attacking the supply of deadly opioids and bringing some measure of justice to the victims and their families,” stated United States Attorney John Kuhn. “These federal charges carry a mandatory 20-year sentence upon conviction, without the possibility of parole. This indictment and prosecution, we hope, will deter others who consider trafficking this poison.”
Defendants Jevan M. Sheppard, 25, and Thomas Jared Hardin, 23, both of Marshall County, were charged by grand jury indictment on June 13, 2017. The indictment was unsealed today during initial appearances before Magistrate Judge Lanny King.
Sheppard and Hardin, were charged in a five count indictment with conspiring with one another to possess and intentionally distribute U-4 a Schedule I controlled substance. The death of T.M. resulted from the use of such substance and serious bodily injury to K.M. resulted from the use of the substance. The alleged activity took place between November 14, 2016 and March 22, 2017 in Marshall County, Kentucky.
Further, on March 13 and March 14, 2017, in Marshall County, Sheppard and Hardin are each charged with knowingly and intentionally distributing U-4, and the death of T.M. resulted from the use of such substance and serious bodily injury to K.M. resulted from the use of the substance.
Also, Sheppard is charged with a single count of possession with the intent to distribute U-4 on March 22, 2017 and with a single count of knowingly and intentionally importing into the United States, from China, an amount of U-4, a Schedule I controlled substance, and the death of T.M. resulted from the use of such substance and serious bodily injury to K.M. resulted from the use of the substance.
If convicted of the charges in the grand jury indictment, both defendants could be sentenced to no less than 20 years in prison, and up to and including a life sentence, fined no more than $1,000,000 and serve no less than a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth Hancock. The case is being investigated by the United States Drug Enforcement Administration (DEA), the Marshall County Sheriff’s Office, the McCracken County Sheriff’s Department, Paducah Police Department, and the Calvert City Police Department, with assistance from the Marshall County Attorney, the Commonwealth’s Attorney for Marshall County, and U.S. Customs and Border Protection.
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The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
California Man Sentenced to 45 Months in Prison for Leading Cell-Phone Fraud SchemeRead the Press Release
BOISE – Jeromy Reeves, 27, of Fullerton, California, was sentenced to 45 months in prison for using fake drivers’ licenses to fraudulently obtain approximately $24,000 of iPhones at local wireless retailers, Acting U.S. Attorney Rafael Gonzalez announced. Senior U.S. District Judge Edward J. Lodge also sentenced Reeves to three years of supervised release.
On September 15, 2016, a federal jury indicted Reeves and co-defendants Brittany Terry, Karina Flores, and Joseph Jancu for their roles in the scheme. All defendants have pleaded guilty, with Reeves pleading guilty both to wire fraud and aggravated identity theft. Terry and Flores pleaded guilty to wire fraud. Jancu pleaded guilty to misprision of a felony.
According to the defendants’ plea agreements, Reeves obtained real driver’s license information of California residents and fraudulently changed them to contain photos of Terry and Flores. He then brought the group to Idaho where he directed Terry and Flores to use the fake IDs to obtain iPhones at local wireless stores by signing up for service contracts. The phones were provided to Terry and Flores but the costs were billed to the victims as part of the fraudulent contracts. Jancu drove the group around town and provided support as they executed the scheme. Fortunately, the Boise Police Department detected the fraud and caught the defendants before they were able to flee town.
On June 14, 2017, Judge Lodge sentenced Terry to three years probation for her wire fraud conviction and Jancu to one year probation for his misprision of a felony conviction. Flores is set to be sentenced on June 22, 2017.
Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, and three years of supervised release. Aggravated identity theft is punishable by a mandatory two years in prison, to be served consecutively to the sentence imposed for the underlying felony. Misprision of a felony is punishable by up to three years in prison.
The case was investigated by the Boise Police Department.
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rasheen Newkirk, 42, of Buffalo, NY, who was convicted of possession with intent to distribute heroin and being a felon in possession of a firearm and ammunition, was sentenced to 151 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Wei Xiang and Patricia Astorga, who handled the case, stated that on December 11, 2013, Newkirk was arrested by Drug Enforcement Administration special agents in Buffalo. The defendant was identified through an investigative lead that was developed by DEA agents in Ohio, where a Chicago-based courier transporting a load of heroin was intercepted by an Ohio State Highway Patrol trooper.
A search of Newkirk’s house in Buffalo yielded, among other evidence, a quantity of heroin, 205 glassine envelopes, and a loaded Glock handgun. The defendant served a 112-month sentence for a previous federal firearm conviction and was prohibited from legally possessing any firearm and ammunition.
The plea is the result of an investigation by the Drug Enforcement Administration Resident Offices in Buffalo, Toledo, Ohio, and Chicago, Illinois, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Ohio State Highway Patrol.
Brooklyn New York Man Sentenced to Ten Years Imprisonment for Conspiracy to Distribute Heroin and Crack Cocaine in Rutland AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Joel Joyce (a.k.a. “Prince”), 27, of Brooklyn, New York was sentenced to ten years imprisonment by U.S. District Judge Geoffrey Crawford for his role as a leader in a conspiracy to distribute large amounts of cocaine base and heroin in Rutland County.
On December 23, 2016, after a one-week trial, a federal jury convicted Joyce of conspiracy to distribute heroin and 28 grams or more of cocaine base in the Rutland area. The minimum term of imprisonment for this offense is five years and the maximum term of imprisonment is 40 years. Judge Crawford imposed a 10-year term of imprisonment, and sentenced Joyce to a mandatory four-year term of supervised release, which will begin after Joyce serves the prison term.
According to the evidence presented at trial, Joyce used co-conspirators from Brooklyn, New York to bring heroin and crack cocaine from Brooklyn to the Rutland, Vermont area by bus and other means. Joyce then used drug addicts in the Rutland area to distribute the drugs and collect his money. The government presented evidence that Joyce and his coconspirators from New York would often stay at the homes of addicts in Rutland and West Rutland, and used these homes as a base of operations in which to operate Joyce’s drug trafficking enterprise. Joyce paid the addict hosts heroin and crack cocaine for assisting him. One female witness testified at trial that Joyce would “sit around” her State Street, Rutland apartment and “smoke weed while I went and did [drug] deals for him.” The government also presented evidence at trial showing that Joyce made tens of thousands of dollars selling drugs in the Rutland area. Joyce often managed the drug trafficking operation in Rutland by cell phone while he was in Brooklyn, New York.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Vermont State Police Drug Task Force. The United States is represented by Assistant U.S. Attorneys Joe Perella and Jon Ophardt. The defendant is represented by David Williams, Esq. of Burlington.
Bridgeport Man Charged with Distributing CarfentanilRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Norwalk Police Chief Thomas Kulhawik today announced that CHARLES THELUSMA, 43, formerly of Bridgeport, has been arrested on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, heroin, carfentanil and U47700.
Carfentanil is an opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which is itself 50 times more potent than heroin. It is typically used as a tranquilizing agent for elephants and other large mammals. U47700 is a synthetic opioid that is approximately seven times stronger than morphine.
As alleged in court documents, on two occasions in March and May 2017, law enforcement coordinated a controlled purchases of heroin from THELUSMA. In both instances, an individual working for THELUSMA completed the drug transactions at predetermined locations in Bridgeport. On May 24, 2017, law enforcement conducted a controlled purchase of three bundles heroin (30 dose bags) from THELUSMA in exchange for $200. THELUSMA directed the purchaser to a hotel in Elmsford, N.Y. to complete the transaction. Laboratory analysis of the drugs purchased on May 24 confirmed the presence of heroin, carfentanil and U47700.
THELUSMA was arrested on June 13, 2017, at the hotel in Elmsford, where he had been residing. He appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained. The charge carries a maximum term of imprisonment of 20 years.
“This is the first federal prosecution involving carfentanil in Connecticut,” said U.S. Attorney Daly. “We will continue to devote numerous federal resources to battle the scourge of opioid abuse and distribution, and our commitment becomes stronger as these illegal drugs become more sinister and deadly. This investigation is ongoing.”
“Those suffering from opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Ferguson. “But those responsible for the distribution of heroin and deadly synthetic opioids like carfentanil and U-47700 need to be held accountable for their actions. This investigation demonstrates the strength of collaborative law enforcement in Connecticut and our strong partnership with the U.S. Attorney’s Office to aggressively seek and bring to justice anyone who distributes these poisons.”
“I would like to commend my officers for their excellent work on following up with this investigation in regards to this very dangerous drug,” said Chief Kulhawik. “I also thank the DEA and U.S. Attorney’s Office for their valuable assistance and partnership in working on this case which lead to the arrest.”
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter 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 is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force (HIDTA) and Norwalk Police Department. The HIDTA Task Force includes participants from the Connecticut State Police and the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Amy C. Brown.
Boynton Beach Man Charged Federally for Sex Trafficking, Producing Child Pornography, and Enticing a MinorRead the Press Release
A Boynton Beach resident was detained today after being charged federally for sex trafficking, producing child pornography, and enticing a minor.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations, (ICE-HSI), and Jeffrey S. Katz, Chief of Police, Boynton Beach Police Department, (BBPD), made the announcement.
Marco Vinicio Orrego, 31, of Boynton Beach, Florida, was indicted on charges of sex trafficking a minor, in violation of Title 18, United States Code, Section 1591(a), production of child pornography, in violation of Title 18, United States Code, Section 2251(a), distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b) (Case No. 17-CR-XXX). If convicted, defendant Orrego faces a statutory maximum sentence of life in prison. Orrego is currently being detained pending trial.
According to court records, including the indictment, from May 2 through May 6, 2017, Orrego prostituted a sixteen-year-old girl using Backpage.com. He provided her transportation and a hotel for these illicit activities, taking all of the proceeds for himself. Additionally, Orrego, had sex with the minor during that same period created videos of the sexual abuse and texted the child pornography to another person.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigation efforts of ICE-HSI and the Boynton Beach Police Department. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Boston Man Arrested and Charged with Robbing Bank in Downtown BostonRead the Press Release
BOSTON – A Boston man was charged in federal court in Boston yesterday with bank robbery.
Thomas W. Nee, 46, was charged with robbing the Randolph Savings Bank on School Street in Boston on May 22, 2017. He was detained following an initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal.
According to court documents, Nee entered the Randolph Savings Bank and handed a bank teller a note that read: THIS IS A ROBBERY GIVE ME ALL 100’s 50’s 20’s “NO DYE PACK.” The teller then gave Nee $5,010 in cash. The robbery was captured on bank surveillance video.
Nee was arrested on unrelated state charges outside of Fenway Park on June 12, 2017. It is alleged that during questioning with a federal agent, Nee confessed to the Randolph Savings Bank robbery as well as other unsolved bank robberies.
The charge provides for a sentence of no greater than 20 years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Jerrell Charles Keeley, 59, of Boise, pleaded guilty yesterday in United States District Court to possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, in June of 2014, law enforcement in Ada County arrested Keeley for several criminal violations and booked him into the Ada County Jail. While incarcerated, Keeley called an acquaintance and requested he collect Keeley’s personal belongings from his residence. Keeley requested the acquaintance “throw away” some “inappropriate stuff” that was at the residence, and requested that he “drill holes” through his CDs, “erase” his zip drives and computer hard drives, and “throw them all.” Keeley’s acquaintance took Keeley’s personal belongings, including his computers, and stored them at a residence in Wilder, Idaho. The owner of that residence later observed images of child pornography in boxes containing Keeley’s belongings, and notified the Canyon County Sheriff’s Office and the Boise Police Department.
A detective with the Boise Police Department applied for a search warrant to search the electronic devices, which was signed by a State of Idaho Magistrate Judge. A computer forensics agent with Homeland Security Investigations examined the electronic devices and discovered at least 268 images and 10 videos containing child pornography, websites and search terms in the internet browser history indicative of child pornography, and identifying information showing Keeley owned and used the computers. The National Center for Missing and Exploited Children identified 122 images and 10 videos as depicting known child pornography victims.
Sentencing is set for August 31, 2017, before Chief U.S. District Judge B. Lynn Winmill. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,000 special assessment. As part of his plea, Keeley also agreed to forfeit the computers and electronic storage devices used in the commission of the charged offense.
The case was investigated by the Boise Police Department, the Canyon County Sheriff’s Office, and Homeland Security Investigations, and 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.”
Bala Cynwyd Man Sentenced to Prison for Hacking Computers of Public UtilitiesRead the Press Release
Adam Flanagan, 42, of Bala Cynwyd, PA was sentenced yesterday by the Hon. Paul Diamond to 12 months, 1 day in prison, based upon his plea of guilty to two counts of unauthorized access to a protected computer and thereby recklessly causing damage, announced Acting United States Attorney Louis D. Lappen. Flanagan was indicted on November 22, 2016, arrested without incident on November 23, 2016, and plead guilty on March 7, 2017.
Flanagan had worked as a radio frequency engineer for a company that made remote meter readers for utility systems. These readers would receive radio signals from individual meters and then process the data for billing. In these instances, the remote readers were installed to read water meters in municipalities spread throughout the eastern United States. After the company terminated Flanagan, he used his knowledge of how these readers operate to gain access to them through the Internet and to disable them. The result was that the municipal water authorities had to send people out to read the individual meters because the billing data was inaccurate. In addition, Flanagan’s former employer had to expend a large amount of time to conduct forensic examinations of the readers to determine what had happened and how to fix the problems.
The advisory Sentencing Guidelines provide for enhanced sentences for attacks on computers involved with critical infrastructure, such as water systems. In this case, Judge Diamond applied the enhancement for interfering with computers used to maintain or operate a critical infrastructure. (The Guidelines also provide a more serious enhancement for computer attacks that cause a substantial disruption of a critical infrastructure.)
The case was investigated by the FBI offices in Raleigh, NC and Philadelphia PA. The investigation was initially handled by the U.S. Attorney’s Office for the Eastern District of North Carolina and then transferred to the U.S. Attorney’s Office for the Eastern District of Pennsylvania, when the defendant was identified as the intruder. Assistant U.S. Attorney Michael L. Levy handled the case.
Avondale Man Charged with Illegal Reentry After DeportationRead the Press Release
Alberto Cruz-Gonzalez, of Avondale, PA was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 11, 2017, Cruz-Gonzalez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about November 17, 2015, November 22, 2015, March 6, 2016, April 4, 2016, and June 2, 2016.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alien Sentenced to 50 Months in Federal Prison After He Illegally Reentered the United StatesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Martin Tejada-Galvan (48) to four years and two months in federal prison for offenses related to his illegal reentry into the United States after prior deportations. He was previously convicted in Texas for the same conduct in 2014. The sentence imposed this week includes a 3-year sentence for illegal reentry and a consecutive 14-month sentence for violating the terms of his supervised release imposed after his Texas conviction. Tejada-Galvan pleaded guilty on March 22, 2017.
According to court documents, Tejada-Galvan is a citizen of Mexico and has been deported four times, most recently in 2014. He reentered the United States illegally after his deportation and was found in Hillsborough County after he was arrested for driving under the influence (“DUI”). Officers conducted a traffic stop after observing Tejada-Galvan’s vehicle going off the roadway and almost hitting multiple signs. He later pleaded guilty to the DUI offense, which is his fourth such conviction. Following his prison sentence, Tejada-Galvan is subject to deportation.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Albuquerque Felon Sentenced to Prison for Unlawfully Possessing a FirearmRead the Press Release
ALBUQUERQUE –Joshua Metts, 36, of Albuquerque, N.M., was sentenced today in federal court to 51 months in prison followed by three years of supervised release for unlawfully possessing a firearm.
Metts was charged with violating the Hobbs Act and federal firearms laws in an indictment filed in April 2015. In June 2016, a superseding indictment was filed that charged Metts with violating the Hobbs Act on Sept. 12, 2014, by robbing a commercial business in Albuquerque, and with being a felon in possession of a firearm on Oct. 2, 2014. According to the indictment, Metts was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated fleeing of a law enforcement officer and trafficking a controlled substance.
Metts was arrested on the federal charges in June 2015, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges later were dismissed in favor of federal prosecution. In July 2016, the court severed the Hobbs Act charge from the felon in possession charge for the purposes of trial.
A federal jury found Metts guilty of being a felon in possession of a firearm after a two-day trial on Oct. 12, 2016. The evidence at trial established that APD officers arrested Metts on an outstanding state warrant on Oct. 2, 2014. After arresting Metts, the officers found a firearm in Metts’ vehicle; the firearm was wedged between the driver’s door and the driver’s seat. After Metts was convicted on the felon in possession charge, the U.S. Attorney’s Office moved to dismiss the Hobbs Act charge.
The case was investigated by the Albuquerque office of ATF and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Samuel A. Hurtado and Paul Mysliwiec prosecuted the case.
Acting Manhattan U.S. Attorney Settles Race Discrimination Lawsuit Against New York CityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States settled a federal civil rights lawsuit alleging that the CITY OF NEW YORK (the “City”), and specifically the NEW YORK CITY DEPARTMENT OF TRANSPORTATION (“NYCDOT”), violated Title VII of the Civil Rights Act of 1964 (“Title VII”) by engaging in a pattern or practice of racial discrimination and retaliation in its Fleet Services unit (“Fleet Services”). The consent decree was approved yesterday by U.S. District Judge John G. Koeltl.
Acting U.S. Attorney Joon H. Kim said: “For almost a decade, in clear violation of federal law, supervisors in New York City’s Department of Transportation engaged in a pattern and practice of discrimination against racial minorities. They tolerated the use of racial epithets, systematically excluded racial minorities from preferred assignments, and discriminated against minority candidates for promotions. When the discrimination was brought to the attention of the Department of Transportation’s management, they inexcusably failed to take proper corrective action, and retaliated against those brave enough to speak out. This type of workplace discrimination is unacceptable, plain and simple, not now, not ever. This settlement reflects the Office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
The Complaint, which was filed in Manhattan federal court on January 18, 2017, alleges that from at least October 2007 through May 2016, Fleet Services management engaged in a pattern or practice of racial discrimination in violation of Title VII. Fleet Services is a unit within NYCDOT that employs approximately 200 individuals in a range of trades, such as machinists, auto mechanics, electricians, blacksmiths, and engineers. Specifically, the Complaint alleges that:
As of October 2007, all personnel within Fleet Services reported to an individual (“Executive Director I”) who routinely and openly used racial epithets, such as “monkey,” “nigger,” and “gorilla” to describe African American employees. In addition to overseeing all of Fleet Services operations, Executive Director I also served as the Equal Employment Opportunity (“EEO”) counselor to whom complaints of discrimination were directed. One illustrative example of Executive Director I’s conduct involved an incident where, in response to an African American employee’s request for a cell phone, Executive Director I stated, “that nigger gets nothing.”
In October 2009, NYCDOT’s EEO Office (“NYCDOT EEO”) received a complaint alleging that Executive Director I had engaged in race discrimination. In the course of investigating the complaint, NYCDOT EEO interviewed numerous current NYCDOT employees who stated that Executive Director I had routinely used racial epithets to describe African Americans. Following its investigation, NYCDOT EEO recommended that Executive Director I be demoted, suspended, and removed from his responsibilities as a NYCDOT EEO counselor. In response, Executive Director I chose to voluntarily retire. However, the Deputy Commissioner overseeing Fleet Services then promoted the individual who had been Executive Director I’s second-in-command (“Executive Director II”), who was complicit in the discrimination, to serve as the Executive Director of Fleet Services.
Beginning in 2010, and throughout his tenure, Executive Director II routinely and systematically excluded minorities from preferred assignments and special projects. Executive Director II instead exclusively chose white candidates for the assignments that would provide the best opportunity for further advancement within Fleet Services. Furthermore, at some point in 2010, and then again in 2013, NYCDOT took steps to promote auto mechanics to supervisory positions. In spite of a large number of minority applicants, including minority applicants who were already serving in a supervisory capacity within NYCDOT, only one minority candidate was ever selected for promotion. Rather, NYCDOT management actively took steps that discriminated against minority applicants and promoted the candidacy of white applicants. These steps included imposing new pretextual requirements for promotion and removing from decision-making those supervisors who advocated for minority candidates.
Throughout all time periods relevant to the Complaint, individuals who spoke out against the discriminatory practices at Fleet Services were subjected to retaliatory conduct by Executive Director II. Such retaliatory conduct included Executive Director II threatening to take an African American Fleet Services employee outside to “kick” his “fucking ass” when the employee complained about the discrimination in the promotion selection process. Several other members of Fleet Services’ executive leadership witnessed that threat and yet failed to take any action to discipline Executive Director II.
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Under the consent decree approved by the Court, the City has agreed to offer monetary compensation to 14 individuals who the City agrees are entitled to relief. These individuals are entitled to back pay and compensatory damages awards ranging from $60,000 to in excess of $168,000. In addition, the City has agreed to pay the complainant who brought this case to the attention of the Equal Employment Opportunity Commission (the “Complainant”) a total of $150,000 in compensatory damages and attorney’s fees. The City will also offer the Complainant and two other minority candidates, all of whom were promoted by the City after the U.S. Attorney’s Office informed the City of its investigation, retroactive seniority benefits commensurate with having been promoted during the time period relevant to the Complaint. The consent decree also requires the City to take steps to ensure that it complies with Title VII in its future promotional selection processes.
As part of the consent decree, the City also stipulates to admissions of fact relating to the allegations in the Complaint. These admissions include that:
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During a 2009 investigation into allegations of racial discrimination, employees reported to the City that Executive Director I had used racial epithets to describe African American employees and had taken personnel actions that were motivated by racial animus.
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At the time of his retirement, Executive Director I had never been subject to any formal disciplinary sanctions imposed by the City.
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During the time he served as the Executive Director of Fleet Services, Executive Director II instructed the Complainant’s direct supervisor to reassign Complainant’s supervisory duties to a non-minority auto mechanic who had fewer years of experience as an auto mechanic than Complainant. Executive Director II gave this instruction over the expressed preference of Complainant’s direct supervisor.
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During Executive Director II’s tenure, non-minority applicants were selected for promotion over minority applicants, even when the minority applicants had more years of automotive experience and had been serving in a supervisory capacity without commensurate compensation or title.
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When management employees challenged Executive Director II’s promotional decisions, they were removed from the promotional decision-making process. Moreover, when a non-management employee accused Executive Director II of discriminating against racial minorities within Fleet Services, Executive Director II verbally threatened the employee, including a threat of physical violence. This verbal threat of physical violence was made in the presence of several other supervisory personnel within Fleet Services.
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Up until June 2, 2016, the date on which the City was informed that the U.S. Attorney’s Office had conducted an investigation regarding the allegations in the Complaint, Executive Director II continued to serve as the Executive Director of Fleet Services.
Mr. Kim thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Jessica Jean Hu is in charge of the case.
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14 June 2017
U.S. Attorney’s Office Reaches Agreements with Local Restaurants over ADA ComplianceRead the Press Release
BOSTON – Acting U.S. Attorney William D. Weinreb announced that 13 restaurants located in the Seaport and Fort Point neighborhoods of Boston have resolved accessibility issues discovered during compliance reviews.
“As places of public accommodation, restaurants must ensure that their construction and operation comply with all requirements of the American with Disabilities Act, and that they provide equal access for all people,” said Acting U.S. Attorney Weinreb. “These restaurants have quickly and cooperatively worked to address the ADA violations discovered during our investigation, which will enable all prospective patrons to dine at their establishments.”
Weinreb’s Civil Rights Unit began compliance reviews in June 2015 with site visits to 18 restaurants in Boston’s Seaport and Fort Point neighborhoods to determine whether the restaurants were operating in compliance with the Americans with Disabilities Act of 1990 (ADA). Seven restaurants - Atlantic Beer Garden, the Barking Crab, Barlow’s, Bastille Kitchen, the Daily Catch, Del Frisco’s, and Row 34 - have entered into voluntary compliance agreements to address issues of accessibility highlighted during the site visits. The U.S. Attorney’s Office closed the compliance reviews of these restaurants after determining that they made the agreed-upon changes and achieved compliance. Among the changes made by the restaurants were the installation of accessible tables in dining areas, modification of bar surfaces for wheelchair access, removal of architectural barriers, and installation of directional signage required by the ADA.
Six other restaurants were determined only to require relatively minor work in order to achieve compliance with the ADA. Those restaurants are Empire, Morton’s Steakhouse, Legal Harborside, Temazcal Tequila Cantina, Babbo Pizzeria, and Gather.
Federal law requires public accommodations, including restaurants, to provide individuals with disabilities equal access to facilities. The ADA authorizes the U.S. Department of Justice and the U.S. Attorney’s Office to undertake periodic reviews of covered establishments. For more information on the ADA, visit www.ADA.gov.
These matters were handled by Assistant U.S. Attorney Jennifer Serafyn, Chief of Weinreb’s Civil Rights Unit, Assistant U.S. Attorney Michelle Leung, and Special Assistant U.S. Attorney Gregory Dorchak.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Sex Offenders Sentenced to Combined 39 Years in Federal PrisonRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Johnny Wayne Callen, age 49, of Harrison, Arkansas, was sentenced today to 355 months in federal prison on one count of Enticing a Minor to Engage in Criminal Sexual Activity. Greg Chiello, age 47, of Harrison, Arkansas, was sentenced to 120 months in federal prison on one count of Accessing a Device with Intent to View Child Pornography. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in June of 2016, the Harrison Police Department began investigating Callen for soliciting minors online to produce sexually explicit images. After obtaining a search warrant for Callen’s Facebook records, law enforcement determined that Callen specifically exchanged sexually explicit images with a 14-year old minor. In February of this year, Callen pleaded guilty in federal court. At sentencing, the Government presented the Court with proof that Callen had previously been convicted of Rape.
According to court records, in June of 2016, the Berryville Police Department received reports that Chiello was in possession of a cellular phone that contained images of minors being sexually abused. Chiello was subsequently located and arrested by the Berryville Police Department. An examination of his cellular devices revealed over 800 images of child pornography that were deleted from Chiello’s phone just prior to his arrest. Chiello pleaded guilty in February of this year. At sentencing, the Government presented the Court proof that Chiello had previously been convicted of a Child Pornography related offense.
These cases were investigated by the Harrison Police Department, the Berryville Police Department, and Homeland Security Investigations. Assistant United States Attorney Dustin Roberts 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
Two Men Who Defrauded Banks in Connection with USDA Export Financing Program Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two men involved in a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program were sentenced yesterday in New Haven federal court. Chief U.S. District Janet C. Hall sentenced BRETT C. LILLEMOE, 47, of Minneapolis, Minn., to 15 months of imprisonment and PABLO CALDERON, 61, Darien, Conn., to five months of imprisonment and five months of home confinement. Chief Judge Hall also ordered both men to serve a three-year term of supervised release, and to pay restitution in the amount of $18 million and forfeit more than $1.5 million of ill-gotten gains.
On November 9, 2016, a federal jury convicted LILLEMOE and CALDERON of conspiracy and fraud offenses. According to court documents, statements made in court and the evidence introduced during the trial, LILLEMOE and CALDERON submitted fraudulent documents to two United States banks in connection with a USDA loan guarantee program by which the USDA provides credit guarantees. The credit guarantees are part of the USDA Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions to approved foreign banks. As part of the program, the Commodity Credit Corporation (CCC), which is an agency and instrumentality of the USDA, enters into payment guarantees (“credit guarantees”) with the goal of encouraging exports of U.S. agricultural products, including products of American farmers and American ranchers.
The credit guarantees are designed to encourage exports to buyers in foreign countries – mainly developing countries. The program operates in cases where credit is necessary to increase or maintain U.S. exports to a foreign market and where U.S. financial institutions might otherwise be unwilling to provide financing without the guarantee backed by the U.S. government. In providing the credit guarantee facility, the CCC seeks to expand market opportunities for U.S. agricultural exporters and assist long-term market development for U.S. agricultural commodities.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter. The U.S. exporter then, consistent with the requirements of the GSM-102 program, presents proper shipping documents to an approved U.S. financial institution, including a copy of an original bill of lading, certificate of origin, and evidence of export. The U.S. financial institution then provides funds to the U.S. exporter which, in exchange, assigns the rights to the proceeds payable under the letter of credit from the foreign bank to the U.S. financial institution in the same dollar-denominated amount, less any fees. If the foreign bank defaults on its payments to the U.S. financial institution, the U.S. financial institution may submit a claim to the USDA FAS under the guarantee for up to 98 percent of the payment amount owed at the time of the default.
Between September 2007 and January 2012, LILLEMOE, CALDERON and others defrauded various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102. As part of the scheme, LILLEMOE and CALDERON established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were operating as separate and unrelated entities. The defendants then, in various ways, paid for, or otherwise acquired, bills of lading and other shipping documents for shipments of agricultural products that they did not physically ship and for which they did not participate in the physical movement of the products in any capacity.
LILLEMOE entered into agreements with foreign banks, including International Industrial Bank (IIB) in Russia, to provide them capital that would be made available to them from a U.S. financial institution through the use of the GSM-102 program. LILLEMOE subsequently obtained letters of credit from the foreign banks. LILLEMOE, CALDERON and others then altered copies of certain shipping documents, including bills of lading marked “Copy non negotiable,” by whiting out portions of the documents, stamping the word “original” on the documents, and adding shading on certain sections of the bills of lading. The defendants also prepared and executed documents termed “commercial invoices” purporting to represent sales of agricultural commodities between entities that they controlled, as well as between entities that they controlled and other entities.
The defendants then used these fraudulent documents to obtain millions of dollars from U.S. banks in connection with the GSM-102 program, and then provided the funds to the foreign banks in exchange for a percentage fee for themselves and their various entities. Although the foreign banks were contractually obligated to repay the funds to the U.S. by virtue of the letters of credit issued to the U.S. financial institutions, in a number of instances, the banks failed to do so. Nevertheless, LILLEMOE, CALDERON and their various entities retained more than $2.2 million in fees they had collected in connection with the GSM-102 transactions and in some instances, sent a portion of those fees to various financial backers in places such as Singapore.
The foreign banks defaulted on more than $25 million of the many loans guaranteed as a result of LILLEMOE and CALDERON’s scheme. Those losses, which were originally suffered by the victim U.S. banks, were ultimately reimbursed by the USDA because of the GSM-102 guarantees.
After a month-long trial, the jury found LILLEMOE and CALDERON guilty of one count of conspiracy to commit wire fraud and bank fraud, and LILLEMOE guilty of five counts and CALDERON guilty of one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Agriculture, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Michael S. McGarry, John H. Durham and John T. Pierpont, Jr.
Twenty Defendants Charged in White Plains Federal Court with Racketeering, Narcotics, and Firearms Offenses in Connection with the Southside Gang in NewburghRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, David M. Hoovler, the Orange County District Attorney, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Ashan M. Benedict, the New York Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Carl E. DuBois, Orange County Sherriff, and Joseph Cortez, the Acting Chief of the City of Newburgh Police Department, today announced the unsealing of an Indictment charging a total of 20 defendants with various racketeering, narcotics, and firearms offenses in connection with a street gang known as “Southside,” in Newburgh, New York.
Acting U.S. Attorney Joon H. Kim stated: “The defendants, members of the Southside gang, allegedly pumped dangerous drugs into their community and controlled their Newburgh neighborhoods with violence. Some of the defendants allegedly protected their drug territory with shootings. Today’s arrests stand as a testament to cooperation among our federal, state, and local partners and our shared commitment to stamping out gang violence and the drug trade in Newburgh.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “As alleged, evidence in this case shows the gang members arrested today by the FBI Hudson Valley Safe Streets Task Force used shooting other people as a way to maintain their standing in the gang. These gangs show no respect for human lives, and they have a direct impact on our communities. Our goal as law enforcement is to take out the leaders of these gangs, and make sure they can't recruit more members.”
ATF New York Special Agent in Charge Ashan M. Benedict stated: “The Southside gang and its members are alleged to be a criminal organization which spread poison on the streets of Newburgh. Some members are also alleged to have used firearms, with reckless and dangerous abandon, to protect their criminal operations, and to have engaged in other acts of violence. This investigation highlights how criminal gangs peddle violence and fear along with their narcotics. Thanks to the outstanding cooperative efforts of ATF, FBI, NPD, the U.S. Attorney’s Office, and the District Attorney’s Office, the City of Newburgh is safer today than it was yesterday. Targeting and dismantling violent street gangs remains one of ATF’s top priorities, and today’s arrests should serve as a clear warning to the gangs and criminals that we in law enforcement know who you are, and that it is only a matter of time before you face the same fate as the defendants in this investigation.”
District Attorney David M. Hoovler stated: “Narcotics is the number one driver of all types of crimes, particularly those involving weapons and violence. It is only through the coordinated efforts of police and prosecutors, on both the federal and local level, that violent street gangs can be effectively eliminated. I am pleased that we were able to coordinate our efforts with the United States Attorney's Office on this operation, and look forward to working with our Federal and local law enforcement partners, as we continue to combat violent street gangs and the opioid epidemic.”
Orange County Sherriff Carl E. DuBois stated: “We are committed to continue the fight to clean up our communities and fight the war on drugs and gun violence with our partners in the Federal Bureau of Investigation.”
Acting Chief of the City of Newburgh Police Department Joseph Cortez stated: "Once again, the City of Newburgh Police has been able to work with our federal, state and county partners to investigate and arrest individuals responsible for extreme violence within our City. While leadership may change, this department’s commitment to keeping Newburgh safe is unwavering. Violence committed by a few that has the potential to hurt many cannot be tolerated. It takes the efforts of all of us, including the Safe Streets Task Force, the Orange County Sheriff’s Office, US Attorney’s Office and the Orange County District Attorney’s Office, to arrest and prosecute these individuals and continue our crime reduction efforts in Newburgh."
As alleged in the Indictment filed today in White Plains federal court[1]:
From at least 2014 through June 2017, SKYLAR DAVIS, a/k/a “S-Dot,” ARDAE HINES, a/k/a “Young Money,” a/k/a “YM,” DAVONTE HAWKINS, a/k/a “Dirty D,” MICHAEL SIMMONS, a/k/a “LoSo,” DEMETRICE MCLEAN, a/k/a “Blocks,” a/k/a “Demit,” CHRISTOPHER DAVIS, a/k/a “Whitebread” DIAMANTE FRAZIER, a/k/a “Bro God,” DITAVIOUS WILLIAMS, a/k/a “Glock Doc,” DONTE NUGENT, a/k/a “Wildman,” CALVIN LEMBHARD, a/k/a “Forty,” and PARADISE BRANCH, a/k/a “Bigga,” a/k/a “Petey,” were all members of the Southside gang, whose territory centered around the intersection of South Street and Chambers Street in an area of Newburgh known as the “Southside.” In order to fund the gang, protect its territory, and promote its standing, members of Southside engaged in, among other things, narcotics trafficking, robbery, and acts involving murder. Southside members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites such as Facebook, possessed firearms, and engaged in shootings as part of their gang membership.
One of those shootings took place on or about December 11, 2015, when SKYLAR DAVIS, a/k/a “S-Dot,” shot at a car in which members of a rival Newburgh gang, known as the Yellow Tape Money Gang, or “YTMG,” were driving. Those shots caused the car to crash, which injured those YTMG members in the vicinity of South Street and Liberty Street in the City of Newburgh, New York.
Several members of the Southside gang also participated in conspiracies to distribute narcotics in and around Newburgh. In particular, HINES, FRAZIER, WILLIAMS, DONTE NUGENT, and BRANCH participated in a conspiracy with WILLIAM FENELL, a/k/a “Mills,” DAVANTE NUGENT, a/k/a “Trap God,” a/k/a “Tay Tay,” WILFREDO RUIZ, a/k/a “Pop,” and ROBERT ZUCHOWSKI to distribute more than one kilogram of heroin and/or more than 280 grams of crack cocaine from at least in or about 2012 up to and including in or about June 2017. TEVON ADAMS, a/k/a “Cooj,” DWIGHT McCARDLE a/k/a “Ike,” TRISTAN HILGERS, SETH BLAIN, and KYLE BLAIN participated in the same conspiracy, agreeing to distribute more than 100 grams of heroin and/or more than 28 grams of crack cocaine. Meanwhile, HINES and CHRISTOPHER DAVIS participated in separate a conspiracy to distribute more than 280 grams of crack cocaine from at least in or about 2014 up to and including in or about June 2017.
Between in or about 2015 and in or about May 2017, MCLEAN, FRAZIER, and LEMBHARD also possessed firearms in furtherance of the Southside racketeering conspiracy in which they all participated and the narcotics conspiracy in which FRAZIER participated.
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Eighteen defendants were taken into federal custody this morning. The defendants will be presented in White Plains federal court today before U.S. Magistrate Judge Paul E. Davison. MICHAEL SIMMONS and DWIGHT MCARDLE remain at large. The case has been assigned to U.S. District Judge Cathy Seibel.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Kim praised the outstanding investigative work of the FBI, ATF, the Orange County Sheriff’s Department, and the City of Newburgh Police Department. Mr. Kim thanked the Orange County District Attorney’s Office for its invaluable ongoing assistance in the case. Mr. Kim also thanked the Town of Newburgh Police Department, the New York State Police, the Town of New Windsor Police Department, and the New York Department of Corrections and Community Supervision for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Allison Nichols are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Skylar Davis, et al., 17 Cr. 364
COUNT
CHARGES
DEFENDANT(S)
MAXIMUM PENALTIES
1
Racketeering Conspiracy
SKYLAR DAVIS,
a/k/a “S-Dot,”
ARDAE HINES,
a/k/a “Young Money,”
a/k/a “YM,”
DAVONTE HAWKINS,
a/k/a “Dirty D,”
MICHAEL SIMMONS,
a/k/a “LoSo,”
DEMETRICE MCLEAN,
a/k/a “Blocks,”
a/k/a “Demit,”
CHRISTOPHER DAVIS,
a/k/a “Whitebread”
DIAMANTE FRAZIER,
a/k/a “Bro God,”
DITAVIOUS WILLIAMS,
a/k/a “Glock Doc,”
DONTE NUGENT,
a/k/a “Wildman,”
CALVIN LEMBHARD,
a/k/a “Forty,” and
PARADISE BRANCH,
a/k/a “Bigga,”
a/k/a “Petey”
20 years in prison
2
Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering
SKYLAR DAVIS,
a/k/a “S-Dot”
20 years in prison
3
Narcotics Conspiracy
(Conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin and/or 280 grams or more of crack cocaine.)
WILLIAM FENELL,
a/k/a “Mills,”
ARDAE HINES,
a/k/a “Young Money,”
a/k/a “YM,”
DIAMANTE FRAZIER,
a/k/a “Bro God,”
DITAVIOUS WILLIAMS,
a/k/a “Glock Doc,”
DONTE NUGENT,
a/k/a “Wildman,”
DAVANTE NUGENT,
a/k/a “Trap God,”
a/k/a “Tay Tay,”
PARADISE BRANCH,
a/k/a “Bigga,”
a/k/a “Petey”
WILFREDO RUIZ,
a/k/a “Pop,” and
ROBERT ZUCHOWSKI
Life in prison
Mandatory minimum:
10 years in prison
(Conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and/or 28 grams or more of crack cocaine.)
TEVON ADAMS,
a/k/a “Cooj,”
DWIGHT McCARDLE
a/k/a “Ike,”
TRISTAN HILGERS, SETH BLAIN, and
KYLE BLAIN
40 years in prison
Mandatory minimum:
5 years in prison
4
Narcotics Conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
ARDAE HINES,
a/k/a “Young Money,”
a/k/a “YM,” and
CHRISTOPHER DAVIS,
a/k/a “Whitebread”
Life in prison
Mandatory minimum:
10 years in prison
5
Possession and discharge of a firearm in furtherance of a crime of violence
SKYLAR DAVIS,
a/k/a “S-Dot”
Life in prison
Mandatory minimum:
10 years in prison
6
Possession of a firearm in furtherance of a crime of violence or a drug trafficking crime
DEMETRICE MCLEAN,
a/k/a “Blocks,”
a/k/a “Demit,”
DIAMANTE FRAZIER,
a/k/a “Bro God,” and
CALVIN LEMBHARD,
a/k/a “Forty”
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Statement by Deputy Attorney General Rod Rosenstein on the Shooting at the Congressional Baseball Practice in Alexandria, VARead the Press Release
Deputy Attorney General Rod Rosenstein today released the following statement on the shooting at the congressional baseball practice in Alexandria, VA:
“This morning, Members of Congress, Senators, congressional staffers, and Capitol Police officers were targets of a senseless and cowardly attack during a practice for a bi-partisan, charity baseball game. Our thoughts are with the victims and their families. We pray for their swift recovery. The Department of Justice will provide all resources necessary for a thorough investigation."
“I commend the heroic officers of the Capitol Police and the Alexandria Police Department. Their willingness to risk their lives to keep us safe is humbling and inspiring."
South Georgia Farmers to Pay up to $675,000 to Resolve False Claims Act SuitRead the Press Release
SAVANNAH, GA: Bacon County (Georgia) farmers Julian Rigby, Jasper Allen and Benjamin Swain, as well as several entities owned by Rigby, agreed to pay up to $675,000 to resolve allegations that they violated and conspired to violate the False Claims Act. This settlement is the first False Claims Act recovery involving the United States Department of Agriculture’s crop insurance program in the history of the Southern District of Georgia.
This settlement resulted from an investigation initiated by the United States Department of Agriculture (“USDA”). On July 1, 2016, the United States filed an action in the United States District Court for the Southern District of Georgia captioned United States of America v. Julian Rigby, et al., 5:16-CV-53. In its complaint, the United States contended that Rigby, Allen, and Swain misrepresented and conspired to misrepresent the individuals who had an insured interest in an attempt to obtain more favorable coverage. The United States also alleged that, after filing a claim for losses they supposedly suffered, Rigby, Allen, and Swain submitted and conspired to submit false and fraudulent documents to the USDA to ensure payment.
Acting United States Attorney James D. Durham said, “The federal crop insurance program serves an important role supporting farmers who suffer crop losses due to natural disasters. This United States Attorney’s Office will root out anyone who seeks to manipulate the crop insurance program for personal gain.”
“Today’s announcement shows how, working alongside our partners in the Department of Justice, we will ensure the integrity of the crop insurance program for American taxpayers and producers alike,” said Heather Manzano, Acting Administrator for USDA’s Risk Management Agency.
The claims resolved by this settlement are allegations only; there has been no determination of liability. The case was investigated by USDA- Risk Management Agency Investigator Randy Upton, Special Agents Andrew Ridgeway and Robin Wilcox of USDA-Office of the Inspector General, and Law Clerk Alison Slagowitz of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorney J. Thomas Clarkson. For questions, please call the United States Attorney’s Office at (912) 201-2522.