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12 June 2017
Nevada Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Henderson, Nevada, man convicted of Attempted Trafficking in Involuntary Servitude and Forced Labor was sentenced on June 2, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Z. Preston, age 29, was sentenced to 24 months of imprisonment, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Preston was one of four men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2015 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet.
The conviction stemmed from Preston responding to an online advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Preston believed to be associated with a 15 year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $55.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Preston was immediately turned over to the custody of the U.S. Marshals Service.
Mesquite Man Sentenced to Life in Federal Prison for Child Sex TraffickingRead the Press Release
DALLAS — Martavious Detrel Banks Keys, a/k/a “Cheese” and “Matt,” 34, was sentenced this morning by U.S. District Judge David C. Godbey to Life in federal prison for felony child sex trafficking offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Keys was convicted in February 2017, following a three-day jury trial, on two counts of child sex trafficking and one count of sex trafficking through force, fraud or coercion. Keys has been in custody since the time of his arrest in May 2016.
“The absolute horror that these two girls were subjected to is unimaginable and profoundly sad,” said U.S. Attorney Parker. “The total depravity displayed by the shocking nature of this crime justifies this sentence.”
According to documents filed in his case, from approximately March 15, 2015, through April 18, 2015, Keys recruited, enticed, harbored, transported, provided, obtained or maintained two minor females, 15-year-old Jane Doe 1 and 14-year-old Jane Doe 2, causing them to engage in commercial sex acts. In addition, he used force, fraud or coercion to cause Jane Doe 1 to engage in commercial sex acts.
Specifically, Keys placed commercial sex advertisements on Backpage.com for Jane Doe 1 and Jane Doe 2. As a result of the Backpage advertisements, the two minor females engaged in numerous commercial sex acts at Keys’ direction. Keys would negotiate with “clients” over text messages pretending to be the minor females. Jane Doe 1 and Jane Doe 2 worked out of Keys’ residence. In addition, Jane Doe 1 also saw commercial sex clients at various hotels in the Dallas area. Jane Doe 1 and Jane Doe 2 engaged in numerous sex acts a day, sometimes even up to sixteen per day. Keys, who was unemployed, kept all of the proceeds from the commercial sex acts; purchasing various items with the money, including a Chevrolet Tahoe with aftermarket rims.
Keys sexually assaulted and physically assaulted both Jane Doe 1 and Jane Doe 2 during the ordeal. In addition, he threatened Jane Doe 1 with a gun, and threatened both girls with harm if they did not continue to engage in commercial sex acts.
Members of the North Texas Trafficking Taskforce, including the Mesquite Police Department, Department of Public Safety (Garland), U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, and Firearms and Child Protective Services investigated. Assistant U.S. Attorneys Cara Foos Pierce and Myria Boehm prosecuted the case.
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McLaughlin Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man convicted of Assault by Striking, Beating, and Wounding was sentenced on June 6, 2017, by U.S. District Judge Charles B. Kornmann.
George Little Eagle, Jr., age 33, was sentenced to 8 months and 1 week in custody, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Little Eagle was indicted by a federal grand jury on March 15, 2017. He pled guilty on May 18, 2017.
The conviction stems from an incident on February 13, 2017, when Little Eagle and his significant other, the victim, were at a residence in Little Eagle visiting friends. A protracted argument began between the two when the defendant began to accuse the victim of “being with” his friends. This upset the victim and she attempted to leave, but Little Eagle grabbed her purse and continued arguing with her. The victim left to go sit in her car, which caused Little Eagle to become more upset as he thought she was going to leave him in Little Eagle. The argument continued, with Little Eagle eventually striking the victim, causing a bruise to form under her left eye.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Little Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Manhattan Tax Attorney and Florida CPA Plead Guilty to Multimillion-Dollar Tax Evasion SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAROLD LEVINE, a Manhattan tax attorney, and RONALD KATZ, a Florida certified public accountant, pled guilty today in Manhattan federal court to tax crimes based upon their roles in a corrupt multi-year tax evasion scheme involving the failure to report to the Internal Revenue Service (“IRS”) millions of dollars in fee income stemming from tax shelter transactions. LEVINE and KATZ are scheduled to be sentenced by Judge Rakoff on October 11, 2017.
Acting U.S. Attorney Joon H. Kim said: “As tax professionals, both Harold Levine and Ronald Katz well knew their obligations to report their income to the IRS. As they have now admitted, they instead engaged in a corrupt scheme to evade taxes on millions of dollars of income. Now both defendants will be held to account for their crimes.”
According to the allegations in the Indictment to which LEVINE and KATZ pleaded guilty, and statements made during the plea proceedings and other court proceedings:
Between 2004 and 2012, LEVINE, a tax attorney and former head of the tax department at a major Manhattan Law Firm (the “Law Firm”), schemed with KATZ, a certified public accountant, to obstruct and impede the due administration of the Internal Revenue laws by evading income taxes on millions of dollars of fee income generated from tax shelter and related transactions that LEVINE worked on while a partner of the Law Firm. Specifically, LEVINE failed to report approximately $3 million in income to the IRS on his personal tax returns during the period 2005-2011. For his involvement in this scheme, KATZ received and failed to report to the IRS over $1.2 million in income on his personal tax returns.
As part of the scheme, for example, LEVINE caused tax shelter fees paid by a Law Firm client to be routed to a partnership entity he co-owned with KATZ and thereafter used those fees – totaling approximately $500,000 – to purchase a home in Levittown, on Long Island. LEVINE caused the home to be purchased as a residence for a Law Firm employee (the “Law Firm Employee”) with whom he had a close personal relationship. Although LEVINE allowed the Law Firm Employee to reside in the Levittown house for over five years without paying rent, LEVINE and KATZ prepared tax returns for the entity through which the home was purchased that claimed false deductions as a rental property.
In or about 2013, LEVINE was questioned by IRS agents concerning his involvement in certain tax shelter transactions and the fees received by LEVINE and KATZ from those transactions. During that questioning, LEVINE falsely represented that the Law Firm Employee paid him $1,000 per month in rent while living in the Levittown home. In addition, when the Law Firm Employee was contacted by the IRS and summoned to appear for testimony, LEVINE urged the employee to falsely represent to the IRS that she had paid $1,000 per month in rent to LEVINE.
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LEVINE, 59, of New York, New York, and KATZ, 59, of Boca Raton, Florida, each pled guilty to one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws, which carries a maximum sentence of three years in prison, and one count of tax evasion, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim thanked the IRS for its assistance in this investigation and praised the outstanding investigative work of both IRS-CI and IRS Civil – Large Business & International.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Stanley J. Okula and Assistant United States Attorney Daniel S. Noble are in charge of the prosecution.
Manhattan Beach Resident Convicted of Embezzlement and Filing False Tax ReturnsRead the Press Release
WASHINGTON – A federal jury convicted a Manhattan Beach resident today of wire fraud and filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Alana W. Robinson for the Southern District of California.
According to the evidence presented at trial, James Miller was the president and managing partner of MWRC Internet Sales LLC, an Internet sales company. As part of his duties, Miller had check signing authority for the company’s business bank account. From January 2009 through October 2012, Miller wrote unauthorized checks to himself, embezzling more than $300,000 from the company. Miller used this money to pay for personal expenses and did not report it on his personal tax returns for 2009 through 2012, causing a tax loss of approximately $58,000.
Sentencing is scheduled for Aug. 7, 2017. Miller faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Robinson commended special agents of FBI and Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Rebecca Kanter and Trial Attorney Benjamin Weir of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man Sentenced to 171 Months Imprisonment for Double ShootingRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Travis Donald Fender, 26, of Summerville, South Carolina, was sentenced to a total of one hundred and seventy-one months imprisonment for his involvement in a drug deal where he shot two people. Fender pled guilty in January, 2015, to one count of Discharge of a Firearm during a Drug Trafficking Offense and one Count of Possession of a Firearm by a Prohibited Felon. The Discharge of a Firearm offense carries a mandatory consecutive ten-year imprisonment sentence; the Illegal Possession of a Firearm offense carries up to ten years imprisonment.
Information presented at Fender’s guilty plea and sentencing established that Fender engaged in a drug transaction with two individuals in June of 2013. When Fender arrived at the transaction he robbed and shot both individuals, using a Glock 9mm handgun. Both individuals survived the shooting. At the time, Fender was a convicted felon and prohibited from possessing a firearm. United States District Judge David C. Norton imposed the sentence.
The conviction and sentence are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Dorchester County Sheriff’s Office. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.
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Lower Brule Man Acquitted of AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man was acquitted of Assaulting, Resisting, and Impeding a Federal Officer as a result of a federal jury trial in Pierre, South Dakota, on June 7, 2017.
Jade LaRoche, age 37, was indicted by a federal grand jury on July 19, 2016, for allegedly confronting two law enforcement officers with a knife.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule agency. The U.S. Attorney's Office prosecuted the case.
Lexington, Kentucky, Jury Convicts Clinical Psychologist for Role in $600 Million Social Security Disability Fraud SchemeRead the Press Release
A federal jury in Lexington, Kentucky, today convicted a clinical psychologist for his role in a Social Security disability fraud scheme that included a former Social Security Administration (SSA) administrative law judge and that involved the submission of thousands of falsified medical documents to the SSA, obligating the SSA to pay more than $600 million in lifetime benefits to claimants predicated on these fraudulent submissions.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of Internal Revenue Service Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.
“Today’s jury verdict holds accountable the final defendant for his role in the largest scheme to defraud the Social Security Administration in its history,” said Acting Assistant Attorney General Blanco. “Each defendant abused the trust placed in him as a professional for personal gain. We thank our law enforcement partners for their years-long investigation and commitment to this case.”
After a one-week trial in federal court in Lexington, the jury convicted Alfred Bradley Adkins, 45, of Shelbiana, Kentucky, of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud, and one count of making false statements. Sentencing has been scheduled for September 22, before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who presided over the trial.
According to evidence presented at trial, Adkins conspired with former SSA administrative law judge David Black Daugherty and former Kentucky lawyer Eric Christopher Conn to defraud the U.S. Conn and Adkins submitted false and fraudulent medical documentation to the SSA, and Daugherty awarded disability benefits based on the same, in order to have the SSA pay claimants’ retroactive disability benefits, continue to pay claimants’ disability benefits in the future, award Medicare and Medicaid benefits to claimants, and pay Conn’s attorney fees (enabling him to pay Adkins), the evidence showed. The trial evidence demonstrated that the conspirators’ actions obligated the SSA to pay more than $600 million in disability benefits in more than 2,000 cases to claimants in Kentucky and elsewhere, irrespective of the claimants’ actual entitlement to benefits. During the nearly eight-year scheme, Conn received more than $7.5 million of taxpayer dollars in attorney’s fees, and paid more than $600,000 to Daugherty, and approximately $200,000 to Adkins, the evidence showed.
According to the trial evidence, Adkins performed perfunctory evaluations of claimants referred to him by Conn and used boilerplate reports to detail conditions to support disability findings. Additionally, the trial evidence showed that Adkins, at Conn’s request, altered his findings on certain reports and ultimately signed forms prepared by Conn purporting to show that claimants qualified for disability benefits, whether or not they did. Conn then submitted these artificially disabling reports and falsified forms to Daugherty and other administrative law judges in support of disability determinations.
Conn pleaded guilty on March 24, to a two-count information charging him with theft of government money and payment of illegal gratuities, and Daugherty pleaded guilty on May 12, to a two-count information charging him with receipt of illegal gratuities. Both Conn and Daugherty are awaiting sentencing.
The SSA-OIG, FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Leader of Plant City Money Laundering and Drug Trafficking Organization SentencedRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Saul Velazquez-Bazan (49, Plant City) to 17 years and 6 months in federal prison for conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine, and money laundering. The Court also ordered him to forfeit real property that was involved in the offenses and entered a money judgment in the amount of $3.823 million, the proceeds of the drug trafficking.
Velazquez-Bazan pleaded guilty on February 1, 2017.
According to court documents, Velazquez-Bazan was the leader of the Plant City arm of a Matamoros, Mexico-based money laundering and drug trafficking organization. He and his associates used his business, SAME Pallets Company, to receive, store, and distribute cocaine and collect proceeds from the sale of cocaine. From at least January 2016, through his arrest in August 2016, Velazquez-Bazan was supplying local drug distributors with between 20 and 50 kilograms of cocaine per month, and transporting millions of dollars in drug proceeds to Mexico. During the investigation, law enforcement seized cocaine, methamphetamine, and over $775,000 in drug proceeds from members of Velazquez-Bazan’s organization.
“Thanks to Homeland Security Investigation’s strong partnership with the Hillsborough County Sheriff’s Office, we’ve helped stem the flow of illegal drugs into our local communities,” said Ivan J. Arvelo, acting special agent in charge of HSI Tampa.
This case was investigated by U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Leader of Eight Trey Crips Gang Charged with Murder In-Aid-Of RacketeeringRead the Press Release
An indictment was unsealed today in the United States District Court for the Eastern District of New York charging Larry Pagett, also known as “Biz,” “Biz Loc” and “Molotovbizzz,” with murder in-aid-of racketeering. Pagett was arraigned today at the federal courthouse in Williamsport, Pennsylvania.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
As detailed in the indictment and detention memorandum, Pagett was a leader of the Eight Trey Crips gang. On August 28, 2015, in order to maintain and increase his position in the gang, Pagett shot and killed a rival gang member, Chrispine Philip, also known as “Droppa,” inside the Buda Hookah Lounge in the Prospect-Lefferts Gardens section of Brooklyn. Surveillance video from the Buda Hookah Lounge depicts the defendant removing a firearm in a crowded bar and shooting the victim several times in the back and in the head while the victim tried to escape. The defendant then fled the Buda Hookah Lounge, climbing over several of the customers who had fallen to the ground.
“As alleged, the defendant, a leader of the Eight Trey Crips, brazenly shot and killed a rival gang member in a Brooklyn bar crowded with patrons,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners, the FBI and the NYPD, we will use all available resources to hold accountable those who endanger the lives of the residents of our community.”
“Gang members have shown they will do whatever necessary to maintain their control over their turf and retaliate against those who they see as a threat,” stated Assistant Director-in-Charge Sweeney. “The suspect in this case allegedly shot and killed someone in a crowded nightclub, not considering the dozens of innocent people who could have been hurt or worse killed as well. The violence these gangs spread impacts people every day, so we will continue to go after the leadership who use murder and violence to threaten our communities.”
“As alleged, the defendant in this case shot and killed a rival gang member to elevate his status in the Eight Trey Crips,” stated NYPD Commissioner O’Neill. “The deadly shooting happened inside of a crowded lounge, injuring several others in the shooting, and several more with the panic that ensued. Today’s indictment reinforces the message that law enforcement is committed to fighting gun violence and gang activity wherever and whenever we find it.”
The charge contained in the indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces mandatory life imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Patrick T. Hein and Mathew S. Miller are in charge of the prosecution.The Defendant:
LARRY PAGETT
Age: 37
Brooklyn, New YorkEDNY Docket No. 17-CR-306
Lead Defendant in Federal Case Targeting Crips Gang Sentenced to Nearly 22 Years in Prison for Racketeering Offenses, including Murder PlotRead the Press Release
LOS ANGELES – A leader of the Five Deuce Broadway Gangster Crips (BGC) – who pleaded guilty to five federal charges, including being the leader a scheme that led to the murder of a former-gangster-turned-cooperator, was sentenced today to 262 months in federal prison.
Tyrine Martinez, also known as “Lil’ C-Bone,” 36, of Vernon, was sentenced this morning by United States District Judge S. James Otero.
Martinez admitted in court that he conspired with other BGC members to murder a fellow gang member who had provided law enforcement with information about a 2012 BGC gang shooting that killed an unarmed teenager with no gang affiliation and wounded three others, including a 10-year-old girl and her mother;
Martinez pleaded guilty last September to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiring to commit murder, conspiring to traffic crack cocaine, selling crack cocaine near schools, and illegally possessing a firearm in furtherance of his drug trafficking and violent crimes.
Martinez was a “vital leader” to the BGC subset, or “clique,” known as the Gremlin Riderz, which served as the gang’s “hit squad” and whose members bore tattoos from the 1984 movie “Gremlins,” according to court documents. As leader of the Gremlin Riderz, Martinez “served as the prototype of why and how gangs destroy communities (most often their own) through violence, intimidation, fueling crack cocaine addiction and by contriving a self-serving and morally corrupt ‘code,’” prosecutors wrote in a sentencing memorandum.
Martinez directed the group assault of another BGC member who had also provided information to law enforcement regarding a BGC murder (that fellow gang member was also murdered just over a month later in a case that remains under investigation). Martinez also “direct[ed] the killing of rivals” and discussed the stabbing of a man by a BGC member in front of the victim’s baby because the man was in BGC territory without permission, according to court documents.
Martinez was the lead defendant charged in a 213-page RICO indictment that charged 72 members and associates of the BGC, a street gang that claims territory in South Los Angeles and controls drug sales in an area just west of the “Skid Row” district of Los Angeles. The indictment outlined two decades of criminal conduct, including murders, robberies, extortion, illegal firearms possession, witness intimidation and narcotics trafficking.
In recent months, several other BGC leaders and significant members have been sentenced:
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Tracy Harris, aka “Woody,” 51, of Inglewood, was sentenced on May 30 to 15 years in federal prison after pleading guilty last year to participating in the racketeering conspiracy, conspiring to sell methamphetamine after having been convicted of a prior drug felony, and selling methamphetamine near schools. Harris, a gang leader or “Original Gangster” (OG), had negotiated his leadership position while in prison on a prior federal conviction, dealt drugs and presided over large gang meetings in which he called for enhancing the operations of the gang and increasing punishments for those who violated gang rules.
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Roosevelt Sumpter, aka “TuTu,” 43, of Los Angeles, was sentenced on November 7, 2016 to 20 years in prison after pleading guilty to participating in the racketeering conspiracy, conspiring to distribute crack cocaine, illegally possessing a firearm in furtherance of the RICO and drug conspiracies, and selling crack cocaine near schools. Sumpter, also an OG of the gang, was a main supplier of narcotics to BGC members, directed the operation of drug stash house locations in the gang’s territory, and employed other gang members and associates to transport the drugs.
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Tyrell Thomas, Sr., aka “Big Rave,” 53, of Los Angeles, was sentenced on January 30 to 10 years in prison after pleading guilty to participating in the racketeering conspiracy and conspiring to distribute crack cocaine. Thomas, also an OG member of the gang, led gang meetings where he instructed younger BGC members to guard the gang’s territory, retaliate against rival gangs, sell drugs, carry firearms, and to not cooperate with law enforcement;
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Keefe Dashiell, aka “Bugz,” 48, of Los Angeles, was sentenced last Friday to 10 years in prison after pleading guilty to participating in the racketeering conspiracy, conspiring to distribute marijuana, and possessing with intent to distribute marijuana near schools. Dashiell, another OG of the gang, operated an illegal marijuana grow that supplied other members of the gang, possessed firearms, and directed other members to obtain firearms and violently guard the gang’s territory against rival gangs.
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Akia Pete, aka “Studder Box,” 35, of Gardena, was sentenced on March 13 to 13 years in prison after pleading guilty to participating in the racketeering conspiracy and conspiring to distribute crack cocaine. Pete was a member of a BGC robbery crew that, armed with firearms, tasers and zip ties, followed victims home from banks and robbed them of their cash.
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Juan Tyars, 45, of Los Angeles, was sentenced April 3 to 11 years in prison after pleading guilty to participating in the racketeering conspiracy and conspiring to distribute crack cocaine. Tyars was a BGC associate who sold crack cocaine, converted powder cocaine into crack for resale by the gang’s members, and carried firearms to protect the gang’s drug selling territory.
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Patrick Swaffi, 41, of Los Angeles, was sentenced last Monday to 15 years in prison after pleading guilty to participating in the racketeering conspiracy, conspiring to distribute crack cocaine, selling crack cocaine near schools, and illegally possessing a firearm in furtherance of the RICO and drug conspiracies. Swaffi, a BGC member who admitted to engaging in a shootout with a rival, was a drug dealer who repeatedly carried firearms to further the gang’s drug dealing and to protect its territory.
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Kenneth Washington, aka “Tiny Dulow,” 26, of Los Angeles, was sentenced on January 30 to 12 years in prison after pleading guilty to participating in the racketeering conspiracy and conspiring to distribute crack cocaine. Washington was a member of the Gremlin Riderz hit squad and participated in a violent takeover robbery of a jewelry store that netted over $40,000, sold drugs, carried firearms, committed robbery, and directed violence by other members of the BGC.
All the defendants discussed above agreed to be banned from living in the BGC territory after their release from prison, and subject to expansive search conditions after their release from prison.
Another BGC and Gremlin Riderz member faces a mandatory life sentence when he is sentenced next month. Tony Gordon, aka “Wodi,” 36, of Freeport, Illinois, was found guilty after a week-long trial at the end of 2016 of conspiring to commit RICO offenses, including murder, extortion, robbery and conspiracy to traffic crack cocaine. Gordon is scheduled to be sentenced by Judge Otero on July 17, and because of three narcotics-related prior convictions, he faces life without parole in federal prison.
The RICO indictment charged 72 defendants, 57 of whom have been convicted by guilty plea or at trial. The remaining 15 defendants are scheduled to go on trial in November.
The investigation into BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Mack Jenkins, Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorneys Max Shiner and Wilson Park of the Violent and Organized Crime Section.
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Laurens Man Sentenced in Federal Court for Robbing Pharmacy at GunpointRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Iquill Wayne Morrison, age 22, of Laurens, South Carolina, was sentenced in federal court in Greenville to 114 months in prison followed by a term of supervised release. Morrison pled guilty on February 28, 2017, to committing a Hobbs Act (armed) robbery, a violation of Title 18, United States Code, Section 1951, and for the use and possession of a firearm in furtherance of a violent crime, a violation of Title 18, United States Code, Section 924(c).
Evidence presented at the change of plea hearing established that on August 25, 2016, Morrison entered the Drug-Lo Pharmacy located in Laurens brandishing a firearm and demanding money. Morrison pointed the gun at employees, robbed the store of approximately $305, and then fled on foot. Officers responded quickly and found Morrison hiding nearby in the woods. Post-arrest, Morrison confessed to the armed robbery. Morrison showed officers where he disposed of the firearm and a backpack after the robbery. The recovered firearm Morrison used in the robbery was a loaded .38 caliber revolver.
The Laurens Police Department, the Laurens County Sheriff's Office, the State Law Enforcement Division (SLED), and agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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Latvian Cybercriminal Extradited for “Scareware” Hacking Scheme That Caused Millions of Dollars in LossRead the Press Release
WASHINGTON – A Latvian man made his initial appearance today in Minneapolis following extradition from Poland for his involvement in a “scareware” hacking scheme that targeted the Minneapolis Star Tribune’s website and caused millions of dollars in losses to Internet users. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division; Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
PETERIS SAHUROVS, 28, a/k/a “Piotrek,” a/k/a “Sagade,” was indicted in 2011 in the District of Minnesota on charges of wire fraud, computer fraud and conspiracy. SAHUROVS was arrested on the indictment in Latvia in June of 2011. He was released by a Latvian court and later fled. In November of 2016, SAHUROVS was located in Poland and apprehended by Polish law enforcement, after which the U.S. began extradition proceedings. SAHUROVS was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction.
Scareware is a type of malicious software, or malware, that poses as legitimate computer security software and purports to detect a variety of threats on the affected computer that do not actually exist. Computer users are informed they must purchase what they are told is anti-virus software in order to repair their computers. The users are then barraged with aggressive and disruptive notifications – and sometimes prevented from using their computer – until they supply their credit card number and pay for a fraudulent “anti-virus” product.
According to the indictment, SAHUROVS and members of the conspiracy relied on fraudulent online advertising to spread their malware. The defendants created a phony advertising agency and claimed that they represented an American hotel chain that wanted to purchase online advertising space on the Minneapolis Star Tribune’s news website, startribune.com. After their advertisement began running on the website, the defendants changed the computer code in the ad so that the computers of visitors to the startribune.com were infected with malware.
The indictment alleges that the malware caused users’ computers to “freeze up” and then generate a series of pop-up warnings in an attempt to trick users into purchasing purported “antivirus” software to fix the problems created by the malware. The “antivirus” software, if purchased, “unfroze” victim computers and stopped the pop-ups and security notifications, but the malware remained hidden on their computers. Users who failed to purchase the “antivirus” software found that all information, data and files stored on the computer became inaccessible. The scheme generated more than $2 million in proceeds.
This case is being investigated by the FBI-Minneapolis Field Office.
Assistant United States Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Department’s Office of International Affairs provided substantial assistance in this matter. The Department thanks the Latvian State Police, Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice for their assistance and cooperation.
Defendant Information:
PETERIS SAHUROVS, 28
Rezekne, Latvia
Charges:
- Wire fraud, 2 counts
- Conspiracy to commit wire fraud, 1 count
- Unauthorized access to a protected computer, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Latvian Cybercriminal Extradited for "Scareware" Hacking Scheme That Caused Millions of Dollars in LossRead the Press Release
A Latvian man made his initial appearance today in Minneapolis following extradition from Poland for his involvement in a “scareware” hacking scheme that targeted the Minneapolis Star Tribune’s website and caused millions of dollars in losses to Internet users. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division; Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota; and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office made the announcement.
Peteris Sahurovs aka “Piotrek” aka “Sagade,” was indicted in 2011 in the District of Minnesota on charges of wire fraud, computer fraud and conspiracy. Sahurovs was arrested on the indictment in Latvia in June of 2011. He was released by a Latvian court and later fled. In November of 2016, Sahurovs was located in Poland and apprehended by Polish law enforcement, after which the U.S. began extradition proceedings. Sahurovs was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction.
Scareware is a type of malicious software, or malware, that poses as legitimate computer security software and purports to detect a variety of threats on the affected computer that do not actually exist. Computer users are informed they must purchase what they are told is anti-virus software in order to repair their computers. The users are then barraged with aggressive and disruptive notifications – and sometimes prevented from using their computer – until they supply their credit card number and pay for a fraudulent “anti-virus” product.
According to the indictment, Sahurovs and members of the conspiracy relied on fraudulent online advertising to spread their malware. The defendants created a phony advertising agency and claimed that they represented an American hotel chain that wanted to purchase online advertising space on the Minneapolis Star Tribune’s news website, startribune.com. After their advertisement began running on the website, the defendants changed the computer code in the ad so that the computers of visitors to the startribune.com were infected with malware.
The indictment alleges that the malware caused users’ computers to “freeze up” and then generate a series of pop-up warnings in an attempt to trick users into purchasing purported “antivirus” software to fix the problems created by the malware. The “antivirus” software, if purchased, “unfroze” victim computers and stopped the pop-ups and security notifications, but the malware remained hidden on their computers. Users who failed to purchase the “antivirus” software found that all information, data and files stored on the computer became inaccessible. The scheme generated more than $2 million in proceeds.
An indictment is merely an allegation and defendants are presumed innocent until proven guilty.
This case is being investigated by the FBI’s Minneapolis Field Office. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Department’s Office of International Affairs provided substantial assistance in this matter. The Latvian State Police; and the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice also provided significant assistance and cooperation.
Kern County Man Pleads Guilty to Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Russell Lee Riggs, 69, of Weldon, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Riggs delivered supplies and material to a marijuana cultivation site containing over 3,000 marijuana plants in the Fay Creek drainage in Kern County in the Sequoia National Forest. He also received processed marijuana from growers at the site. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream. Law enforcement officers also seized marijuana cultivation equipment and supplies, 16 firearms and over 2,000 rounds of ammunition at the site and during follow-up searches of Riggs’ residence and that of co‑defendant Juan Penaloza-Ramirez, 46, a citizen of Mexico.
Fay Creek supports a variety of ecosystems and resources, including riparian habitat supporting trout, wildflowers and grasses, and willow, alder and cottonwood trees. Fay Creek also serves as the primary drinking water source for many wildlife in the area.
In pleading guilty, Riggs agreed to pay $1,719 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities. He also agreed to the forfeiture of the seized firearms and ammunition.
Riggs is scheduled for sentencing before U.S. District Judge Dale A. Drozd on September 11, 2017. Penaloza-Ramirez previously pleaded guilty and is scheduled for sentencing on June 19, 2017. Both men face a mandatory minimum statutory penalty of five years in prison and a maximum statutory penalty of 40 years in prison, along with a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Fish and Wildlife, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Justice Department Requires Divestiture of General Electric Company’s Water & Process Technologies Business Before Merger with Baker Hughes IncorporatedRead the Press Release
The Department of Justice announced that it will require General Electric Co. and Baker Hughes Incorporated to divest GE’s Water & Process Technologies business in order to proceed with their merger. The department said that the proposed transaction, without the divestiture, would substantially lessen competition for refinery chemicals and services in the United States, leading to higher prices and a reduction in service quality.
The Justice Department’s Antitrust Division filed a civil lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“Competition to provide refinery chemicals and services benefits a vital sector of our economy,” said Acting Assistant Attorney General Andrew Finch of the Antitrust Division. “Today’s action will ensure that oil and gas refiners continue to receive competitive prices for the chemicals and services needed to produce oil, gasoline, and other refined petroleum and natural gas products.”
According to the department’s complaint, the merger would create one of the largest oilfield service companies in the United States with $32 billion of combined revenue. The merger would unite two of the four companies that provide the sophisticated chemicals and services required to refine crude oil and natural gas. The complaint states that this reduction in the number of competitive alternatives would lead to higher prices and reduced service quality.
In conducting its investigation, the department’s Antitrust Division cooperated closely with its counterparts in a number of jurisdictions, including the European Commission, Canada, and Australia.
General Electric Co. is a New York corporation headquartered in Boston, Massachusetts. GE is a large, diversified corporation that, among other lines of business, supplies the oil and gas industry with a variety of products and services. GE generated $16 billion in revenues from oil- and natural gas-related products and services in 2015.
Baker Hughes Incorporated is a Delaware corporation headquartered in Houston, Texas. Baker Hughes serves customers across the oil and natural gas industries. Baker Hughes generated $15.7 billion in revenues in 2015.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments by mail concerning the proposed settlement during a 60-day comment period to Kathleen S. O’Neill, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth St. N.W., Suite 8000, Washington DC 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jamestown Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on June 12, 2017, Alexander Robert McManus, 55, Jamestown, ND, pled guilty before US District Judge Ralph R. Erickson to a three-Count Indictment. McManus pled guilty to one Count of Receipt and Distribution of Materials Containing Child Pornography and two Counts of Possession of Materials Containing Child Pornography.
This case came to the attention of law enforcement after McManus’s wife reported finding a cell phone wedged behind the refrigerator that contained child pornography. Upon questioning by law enforcement, McManus admitted that the child pornography on the cell phone belonged to him. McManus further admitted that other devices in his home, including a flash drive underneath his bedroom mattress, contained additional child pornography. A subsequent forensic examination of this media revealed thousands of images of children engaged in sexually explicit conduct, some of which depicted children as young as two years of age, as well as other images which depicted sadistic conduct involving children.
This case was investigated by the Jamestown Police Department and the North Dakota BCI.
Assistant US Attorney Jennifer Puhl is prosecuting the case.
Jackson Man Sentenced to over 11 Years in Federal Prison for Possession of Prescription Pills with Intent to DistributeRead the Press Release
Jackson, TN – George Ward, 49, was sentenced to 11 years in federal prison for possession of prescription pills with intent to distribute. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, George Ward, 49, of Jackson, Tennessee, unlawfully possessed with intent to distribute large quantities of Morphine, Amphetamine, Zolpidem(Ambien), Hydrocodone, Methadone, Alprazolam (Xanax), and Hydromorphone.
In February 2013, the Jackson Police Department (JPD) Gang Enforcement Team and the Jackson-Madison County Narcotics Unit executed a search warrant at a house as part of an ongoing narcotics investigation involving the defendant. Ward was present at the location during the search warrant’s execution. Law enforcement agents determined that he was staying in the house’s guest bedroom. While searching the room, law enforcement discovered approximately 6,500 pills contained in several different bags. The seized pills included: 2,317 Morphine pills; 2,247 Amphetamine pills; 684 Zolpidem pills; 482 Hydrocodone pills; 456 Methadone pills; 260 Alprazolam pills; and 89 Hydromorphone pills.
The pills were packaged in numerous Ziploc bags, indicative of pills that are being distributed. There were also numerous pills in wholesale pharmacy bottles that individuals are prohibited from possessing, indicative of pills for resale. Drug ledgers were also seized in Ward’s room, which referenced certain strengths of the narcotics, pills with certain markings, as well as the number of pills and prices.
At the time of the search, Ward was on parole for a state conviction of possession of cocaine with intent to sell.
A federal jury convicted Ward on August 17, 2016, of seven counts of unlawful possession with intent to distribute prescription pills – individual counts for Morphine, Amphetamine, Zolpidem, Hydrocodone, Methadone, Alprazolam, and Hydromorphone.
On June 8, 2017, the Honorable J. Daniel Breen sentenced Ward to more than 11 years in federal prison. On counts 1, 2, 4, 5, and 7, Ward was sentenced to 136 months to run concurrent with 120 months on counts 3 and 6. Ward received a total of 6 years supervised release to begin after his incarceration.
The case was investigated by the Jackson-Madison County Metro Narcotics Unit; Jackson Police Department Gang Enforcement Team; and the Drug Enforcement Administration. Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
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Israeli Executive Sentenced to Prison for Defrauding the Foreign Military Financing ProgramRead the Press Release
A former executive of an Israel-based defense contractor was sentenced today to 30 months in prison for his role in multiple schemes to defraud a multi-billion dollar United States foreign aid program, the Department of Justice announced.
After being extradited from Bulgaria in October 2016, Yuval Marshak pleaded guilty to one count of mail fraud, two counts of wire fraud and one count of major fraud against the United States in U.S. District Court for the District of Connecticut on March 13, 2017. In addition to his prison sentence, he was ordered to pay restitution to the U.S. Department of Defense (DoD) in the amount of $41,170 and pay a criminal fine of $7,500.
“The Antitrust Division is committed to prosecuting individuals who, like Yuval Marshak, commit crimes that corrupt the competitive process,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “Today’s sentence reflects the seriousness of these crimes and should serve as a warning to those, wherever located, who scheme to defraud essential, taxpayer-funded programs.”
According to court documents, Marshak carried out three separate schemes between 2009 and 2014 to defraud the DoD’s Foreign Military Financing (FMF) program. Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not. Marshak further caused false certifications to be made to the DoD stating that no commissions were being paid and no non-U.S. content was used in these contracts, when, in fact, Marshak had arranged to receive commissions and to have services performed outside the United States, all in violation of the DoD’s rules and regulations. Marshak arranged for these undisclosed commission payments to be made to a Connecticut-based company that was owned by a close relative to disguise the true nature and destination of these payments.
The United States spends billions of dollars each year through the FMF program to provide foreign governments, including Israel, with money which must be used to purchase American-made military goods and services. The rules and regulations of the FMF program require the disclosure of and approval for any FMF-funded commissions and require that all goods and services be of U.S. origin to qualify for FMF funding. These same rules also strongly encourage the use of competitive bidding in the award of all FMF contracts. American vendors who receive FMF funded contracts are required to certify their compliance with these regulations to the DoD.
The sentence announced today was the result of an investigation by the Antitrust Division’s New York Office and the Defense Criminal Investigative Service, with assistance from the Antitrust Division’s Foreign Commerce Section, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the District of Connecticut, and Israel’s Ministry of Defense. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to government contracts should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Individual Pleads Guilty to DogfightingRead the Press Release
SAN JUAN, P.R. – On the day jury selection was set to start, Ehbrin Castro-Correa, a.k.a. “Chino,” plead guilty to one count of animal abuse, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement- Homeland Security Investigation (ICE-HSI) handled the investigation.
Castro-Correa was facing trial on two counts of knowingly and unlawfully possessing and training an animal for purposes of having the animal participate in an animal fighting venture and one count for attempting to transport an animal for the purpose of having the animal participate in an animal fighting venture, specifically from Puerto Rico to the Dominican Republic.
On January 24, 2016, defendant used his cellphone to film his dog and another dog engaged in a brutal and bloody dogfight in Juncos. The video was discovered during a search of defendant’s cellphone at the Pan American dock when he attempted to transport six canines to the Dominican Republic for the purpose of dogfighting. The Dominican Republic is a notorious worldwide haven for dogfights. This discovery led to the execution of a search warrant at his residence, which resulted in the seizure of an additional 25 dogs, dogfighting training materials and instruments, and pharmaceuticals commonly used to condition dogs for dogfighting and treat their wounds.
“This is a bloody and brutal crime where dogs are trained and forced to tear each other apart for the amusement of sick and depraved individuals. It is important to inform the public that it is a violation of federal law to even attend a dogfight,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The protection of animals is a priority of the U.S. Attorney’s Office for the District of Puerto Rico. Today’s guilty plea demonstrates that individuals who attempt to profit from animal abuse crimes will be investigated, prosecuted and punished accordingly.”
As a result of the guilty plea, the defendant may be sentenced to a term of five (5) years in prison, a fine not to exceed two hundred fifty thousand dollars ($250,000.00), and/or a term of supervised release of not more than three (3) years. The sentencing hearing has been scheduled for October 16, 2017 by the presiding judge, U.S. Senior District Judge Juan Pérez-Giménez. Assistant United States Attorney Scott H. Anderson is in charge of the prosecution of the case.
Glendale Tax Return Preparer Who Stole over $1.2 Million in Refunds Owed to His Clients Sentenced to 46 Months in Federal PrisonRead the Press Release
LOS ANGELES – The operator of a Glendale tax preparation business who admitted defrauding his clients out of more than $1.2 million by diverting their tax refunds into his own bank accounts was sentenced today to 46 months in federal prison.
Michael Joseph Calalang Cabuhat, 42, a resident of the Hollywood Hills West neighborhood of Los Angeles, who refers to himself in online postings as “celebritytaxguy,” was sentenced by United States District Judge John F. Walter.
At this morning’s sentencing hearing, Judge Walter said Cabuhat’s scheme was “vicious” because it led to both financial and emotional harm to his victim-clients. Judge Walter noted that the stolen money was used simply to enhance Cabuhat’s lifestyle, allowing him to obtain a big house and a fancy car “all on the backs of these individuals who placed their trust” in Cabuhat.
Cabuhat is a half-owner of VisionQwest Resource Group, Inc., which operates VisionQwest Accountancy Group and Icon Tax Group, Inc., in Glendale. By pleading guilty, Cabuhat admitted that, from 2010 through 2016, he defrauded his clients in two ways.
In some instances, the client was given a copy of a tax return that showed a much smaller refund amount than on the tax return that Cabuhat actually filed with the IRS. Sometimes, Cabuhat would simply increase the amount of tax owed on the taxpayer’s copy of the return, thereby decreasing the refund; and sometimes he would manipulate the expenses reported on the filed returns to increase the refund. Without the taxpayer’s knowledge, Cabuhat filed paperwork that directed the IRS to deposit the small amount reflected on the taxpayer’s copy of the tax return into the taxpayer’s bank account, and to deposit the remainder into a bank account that Cabuhat controlled.
In other instances, Cabuhat gave the client a copy of a tax return that falsely showed a tax due, but Cabuhat would file with the IRS a tax return that sought a refund. In these instances, Cabuhat would tell the taxpayer to make the “tax payment” directly to him so he could remit the payment to the IRS. In fact, Cabuhat kept the “tax payment” and directed the IRS to deposit the refund that the client should have received into a bank account that he controlled.
Using these fraudulent means, Cabuhat stole more than $1.2 million that belonged to over 150 of his clients. Cabuhat also admitted that he failed to report this money on his own tax returns, which allowed him to evade the payment of approximately $268,000 that he owed to the IRS.
Cabuhat pleaded guilty in June 2016 to wire fraud and subscription to a false federal income tax return.
In addition to the prison sentence, Judge Walter ordered Cabuhat to pay $1,496,416 in restitution to his victims and the IRS. Cabuhat has already transferred and agreed to transfer to federal authorities $426,528 derived from the sale of his residence and a Ferrari 360 Spider that was seized from Cabuhat when he was arrested last year.
This case was investigated by IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration (TIGTA).
Glen Ruben, Jr. Sentenced to 60 Months Incarceration for Receiving Child Pornography from a MinorRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on June 12, 2017, GLEN RUBEN, JR., of San Roque, Saipan, was sentenced by Chief Judge Ramona V. Manglona, of the U.S. District Court in the Northern Mariana Islands, to 60 months incarceration and three years of supervised release.
This sentence follows RUBEN’s plea of guilty on July 20, 2016, to one count of Receipt of Child Pornography, in violation of 18 U.S.C. § 2252(a)(2). As part of his plea, RUBEN admitted to requesting and receiving one or more visual depictions of a minor engaged in sexually explicit conduct, using a mobile device with Internet access. In addition to the sentence of 60 months of incarceration and three years of supervised release, RUBEN was ordered to register with the Sex Offender Registry in any jurisdiction in which he lives, works or attends school.
Acting U.S. Attorney Anderson stated, “the receipt of child pornography is an unconscionable offense that targets the most vulnerable persons in our communities. Unfortunately, social media has become a common tool for the circulation of such images. The harm to child victims can last a lifetime. The Department of Justice, in coordination with Homeland Security Investigations, will continue to aggressively pursue those who prey on children through the use of cyber technology.”
Anderson additionally reminds the public that those who have committed sexual offenses involving children have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction, under federal and local law. Sex offenders who travel to the Northern Mariana Islands and who reside in the Northern Marianas must inform the CNMI’s Public Sex Offender Registry where they reside, work, or attend school. They must also periodically update their registration information. The Public Sex Offender Registry was created to protect the general public and victims, by informing the public of the whereabouts of sex offenders. The Public Sex Offender Registry for the CNMI can be found online at https://cnmi.nsopw.gov/.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by Homeland Security Investigations (HSI). The case was handled by Assistant U.S. Attorney James J. Benedetto.
Former Reeves County Judge Jimmy Galindo Pleads GuiltyRead the Press Release
Former Reeves County Judge Jimmy Galindo pleaded guilty to federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, San Antonio Division.
Galindo, age 53, of Selma, TX, appeared today in front of United States Magistrate Judge John W. Primomo to enter his plea of guilty to a criminal information charging one count of conspiracy to commit bribery and one count of failure to file income tax returns.
Galindo served as County Judge for Reeves County from January 1995 through December 2006. Galindo, on behalf of Reeves County, negotiated a contract with a company owned by Vernon C. Farthing, III, of Lubbock, TX, to provide medical services for inmates located in the Reeves County Correctional Center. Galindo signed the contract on September 13, 2006. The Information alleges that Galindo conspired with Farthing and District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract.
To secure the contract, the Information states that Farthing agreed to hire Uresti as a “consultant” and pay him approximately $10,000 a month. Uresti, in turn, agreed to pay Galindo one-half of the money he received from Farthing’s company. From January 2007 until September 30, 2016, Uresti paid Galindo approximately half of the monies Uresti received each month from Farthing. The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.
Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s sentencing date is set for August 17, 2017
The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
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Former Miami-Dade Police Department Officer Pleads Guilty to Unlawfully Exporting FirearmsRead the Press Release
Former Miami-Dade Police Department Officer Michael Freshko has entered a guilty plea to a criminal information charging him with conspiracy to unlawfully export firearms from the United States to the Dominican Republic, on flights from Miami International Airport.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Freshko, 48, entered his guilty plea today before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
As part of his guilty plea, Freshko admitted that after receiving firearms from a co-conspirator, he used his official position as a MDPD officer to transport the firearms past the passenger screening area and into the portion of Miami International Airport that housed the departure gates. Freshko thereafter would deliver the firearms to a co-conspirator, who in turn would store the firearms within carry-on baggage. Next, a co-conspirator would travel to the Dominican Republic aboard a commercial flight, with the firearms within carry-on baggage. After arriving in the Dominican Republic, a co-conspirator would deliver the firearms to an associate.
Freshko further admitted that one or more firearms were smuggled in this manner on October 5, 2012, and multiple firearms were smuggled on December 7, 2012. Freshko also admitted that he and his co-conspirators smuggled six firearms from Miami International Airport to the Dominican Republic. The smuggled firearms consisted of four Glock .9 mm pistols, one Sig Sauer .9 mm pistol, and one Sig Sauer 5.56 rifle.
As a result of his guilty plea, Freshko faces a maximum potential term of imprisonment of five years.
The case was investigated by law enforcement officers in South Florida and New Jersey. Mr. Greenberg thanked the FBI Miami Area Corruption Task Force; the MDPD Professional Compliance Bureau; the FBI Newark Division-Franklin Township Resident Agency; the Drug Enforcement Administration Newark Division-Patterson Post of Duty; and the Internal Revenue Service, Criminal Investigation, Newark Field Office. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
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.
Former Delhi City Clerk Pleads Guilty to Theft of City FundsRead the Press Release
A woman who used her position as the city clerk for the City of Delhi to steal city funds pled guilty on June 9, 2017, in federal court in Cedar Rapids.
Angela Billings, 42, from Anamosa, Iowa, was convicted of Theft Concerning a Program Receiving Public Funds.
In a plea agreement, Billings admitted that she held a position of public trust as the city clerk and that her position of trust contributed significantly to both the commission and concealment of her crime. By unlawfully using the city’s credit card for personal expenses and by either canceling water payments that she owed to the city or causing the city not to submit bills to her for amounts owed, Billings admitted to stealing at least $93,177 between March 2007 and January 2015.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Billings remains free on bond previously set. She faces a possible maximum sentence of 10 years’ imprisonment; a fine equal to the greater of twice the gross gain to defendant resulting from the offense, twice the gross loss resulting from the offense, or $250,000; $100 in special assessments; and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob A. Schunk and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2032.
Follow us on Twitter @USAO_NDIA.
Florida Man Sentenced in Manhattan Federal Court to 18 Months in Prison for Attempting to Gain Unauthorized Access and Cause Damage to the Computer Network of A Charitable OrganizationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TIMOTHY SEDLAK was sentenced in Manhattan federal court to 18 months in prison for attempting to access without authorization the computer network of a global charitable organization based in New York, New York (the “Organization”), and as a result of such conduct, recklessly causing damage to computers of the Organization. He was convicted on February 23, 2017, and was sentenced today by U.S. District Judge Ronnie Abrams.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Timothy Sedlak used dozens of computers and electronic devices to unlawfully access others’ computer networks, making hundreds of thousands of attempts to steal information from one charitable organization. Although he was ultimately unsuccessful, Sedlak’s efforts impaired the organization’s ability to operate. I want to thank our partners at the Secret Service for their work to combat cyber attacks like this one.”
According to the Superseding Information, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including the guilty plea:
SEDLAK made hundreds of thousands of attempts to gain access without authorization to the computer network systems of the Organization, and in so doing, impaired the availability of the email accounts and web-based applications of more than 10 employees of the Organization.
From June 2015 to July 2015, computers associated with two internet protocol addresses subscribed to SEDLAK at SEDLAK’s residence in Florida (the “IP Addresses”) made nearly 400,000 attempts to gain unauthorized access to the Organization’s computer network. As a result, numerous Organization employees experienced difficulty accessing their Organization email accounts, and were disrupted in their ability to conduct regular business functions. In particular, between June 22 and July 8, 2015, from one of the IP Addresses, there were approximately 195,000 attempts to log into approximately 20 email accounts of the Organization. Between July 8 and July 10, 2015, from the other IP Address, there were an additional approximately 195,000 attempts to log into approximately six email accounts of the Organization. SEDLAK has never been employed by the Organization, and was not authorized to access any email accounts of the Organization.
On September 11, 2015, U.S. Secret Service (“USSS”) agents executed a search warrant at the Sedlak Residence, from which they seized 42 computers and electronic devices (the “Sedlak Computers”). The forensic examination of the Sedlak Computers revealed that 31 devices contained known hacking software and/or artifacts, indicating they were used in attempts to gain unauthorized access to a network. The forensic examination of the Sedlak Computers also revealed that at least 11 personal email accounts were successfully accessed without authorization. The email accounts belong to individuals in the United States and abroad, none of whom are known to be associated with the Organization. In addition, unsuccessful attempts to gain unauthorized access to over 1,000 entities and IP addresses were uncovered. SEDLAK targeted international and domestic victim entities, including charitable organizations, political organizations, law firms, financial firms, and businesses. When he was interviewed by USSS agents, Sedlak claimed that he hoped to sell the information he found.
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SEDLAK, 44, of Ocoee, Florida, was sentenced to 18 months in prison, to be followed by three years of supervised release. The defendant’s right, title, and interest in specific property seized by the USSS – including 31 electronic devices – was ordered to be forfeited to the United States.
Mr. Kim praised the investigative work of the United States Secret Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Kristy J. Greenberg and Jennifer L. Beidel are in charge of the prosecution.
Doctor Pleads Guilty to Falsifying Medical Examination Records for Commercial Truck DriversRead the Press Release
ATLANTA - Dr. Anthony Lefteris has pleaded guilty to multiple counts of falsifying documents and to entering false information into the records of the U.S. Department of Transportation (“USDOT”) for selling false medical certifications used to obtain commercial driver’s licenses.
“Dr. Lefteris was entrusted to examine commercial vehicle drivers to make certain that they were physically fit to drive safely,” said U. S. Attorney John Horn. “Instead, he failed to perform the required examinations and falsified the results of his tests, ultimately making our roads less safe for the rest of us.”
“As evidenced by the guilty plea entered into today by Dr. Anthony Lefteris for falsifying U. S. Department of Transportation medical applications for commercial driver's licenses, we remain unwavering in our commitment to ensuring the safety of the traveling public on our Nation's roadways,” said Marlies Gonzalez, Regional Special Agent-in-Charge for the USDOT OIG. “Working with our departmental, law enforcement and prosecutorial partners, we will continue to identify, pursue, and bring to justice individuals who jeopardize the integrity of DOT's safety programs.”
“I am extremely proud of the men and women of the Motor Carrier Compliance Division for their role in this complicated and intricate case. We are honored to have such a strong working relationship with our federal partners and look forward to a continued partnership to ensure a safer environment for the motoring citizens of our state,” said Colonel Mark W. McDonough, Commissioner, Georgia Department of Public Safety.
According to U.S. Attorney Horn, the charges and other information presented in court: One mission of the USDOT is to promote the safety of America's roadways through the promulgation and implementation of medical regulations, guidelines, and policies for the physical qualification of commercial motor vehicle drivers. When individuals seek to obtain or renew a state issued commercial driver’s license, they must submit to a medical examination performed by a medical examiner listed on the National Registry of Certified Medical Examiners. They must also be medically certified as physically qualified to drive a commercial motor vehicle. These medical examinations ensure that these drivers do not suffer from ailments that would otherwise affect their ability to drive a commercial vehicle safely.
Lefteris was a USDOT medical examiner who admitted he failed to perform certain procedures during medical examinations. Some of the procedures he failed to perform were required vision and hearing examinations, and urinalyses. He then completed USDOT medical examination forms for drivers he examined on which he falsely included figures and information representing the results for procedures he did not perform.
Lefteris also issued USDOT Medical Examiner’s Certificates to drivers certifying them as physically fit to drive even though he did not conduct a complete examination. Lefteris subsequently transmitted his results to the USDOT, fraudulently certifying that the medical examinations were conducted in accordance with federal regulations. In return, the drivers paid him cash, sometimes $65 per certification.
Sentencing for Anthony Lefteris, 72, of Atlanta, Georgia, is scheduled for August 28, 2017, at 2:00 p.m. before U.S. District Judge Leigh Martin May.
This case is being investigated by the U.S. Department of Transportation and the Georgia Department of Public Safety Motor Carrier Compliance Division.
Assistant U.S. Attorney Tracia King is prosecuting the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Columbia Man Pleads to Possession of Firearm in Furtherance of Drug Trafficking ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced that Joshua Cain Sharpe, age 39, of Columbia, entered a guilty plea in federal court to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and, possession with intent to distribute a quantity of methamphetamine, in violation of Title 18, United States Code, Sections 841(a)(1) and 841(b)(1)(C). United States District Judge Mary Geiger Lewis, of Columbia, accepted the guilty plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court during the guilty plea hearing established that on November 20, 2015, the Columbia Police Department responded to a call of shoplifting at a clothing store on Bush River Road. When officers arrived, they encountered a vehicle driven by a woman matching the description of one of the two shoplifters. Upon approaching the vehicle, the police detected a smell of marijuana. Officers removed the woman from the vehicle and began searching the vehicle. Near the steering wheel, inside the fuse panel, police found a silver Raven Arms P-25 .25 caliber pistol with a magazine containing two bullets. The safety switch of the firearm was in the off position. Officers also located 11.2 grams of methamphetamine under the driver’s seat of the vehicle. Additionally, the police located a quantity of marijuana and drug paraphernalia including a black digital scale covered in white residue.
Officers entered the store and made contact with a man matching the description of the second shoplifter, Joshua Cain Sharpe. After waiving his rights, Sharpe admitted that the firearm and methamphetamine belonged to him. Sharpe also admitted to hiding the firearm and drugs in the vehicle without the woman’s knowledge. The woman also waived her rights and confirmed that she had no knowledge of the firearm and drugs. Pursuant to a cell phone search warrant, officers also observed text messages on the defendant’s phone referring to the buying and selling of drugs.
Sharpe is prohibited under federal law from possessing firearms based upon his prior state convictions for trafficking in cocaine, burglary (two separate counts), and armed robbery. Sharpe was out on bond when this incident occurred.
Sharpe faces a maximum of life imprisonment, a fine of $250,000, and five years of supervised release on the offense of possession of a firearm in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department and was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office handled the case.
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Chicago Men Sentenced for Printing, Spending MoneyRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that Christopher Pierce, 24, and Harold Jones, 20, both of Chicago, Illinois were sentenced before District Court Senior Judge James T. Moody for the passing of counterfeit securities.
Pierce was sentenced to 21 months imprisonment followed by 1 year of supervised release. Jones was sentenced to time served (113 days) followed by 1 year of supervised release.
According to documents in this case, beginning in December 2015 and continuing through spring of 2016, Pierce and Jones passed currency manufactured by Pierce four to five times a week. Pierce utilized a color scanner and printer to create counterfeit currency on linen paper. Pierce manufactured the counterfeit currency in $5, $10, and $20 denominations, because he felt they were less likely to be detected. The defendants used the counterfeit currency to make numerous daily small purchases at fast food restaurants, gas stations, and “mom and pop” neighborhood businesses so they could obtain legitimate change in return. According to documents in the case, the two allegedly made up to $250 in legitimate United States’ currency per day before they were caught.
United States Secret Service Special Agent in Charge John Koleno, Chicago Field Office stated, “This is one of many cases that are investigated daily with the help of state and local law enforcement. Businesses that handle cash are encouraged to go to www.uscurrency.gov to learn the security features of United States currency.”
This case was investigated by the United States Secret Service. This case was handled by Assistant United States Attorney Jill R. Koster.
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Cedar Rapids Man Sentenced to 50 Years in Federal Prison for Sexual Exploitation of a Child and Possession of Child PornographyRead the Press Release
A man who sexually exploited a child and possessed child pornography was sentenced today to 50 years in federal prison.
Michael Bordman, age 23, from Cedar Rapids, Iowa, received the sentence after a December 22, 2016 guilty plea to one count of sexual exploitation of a child and one count of possession of child pornography. At the plea hearing, Bordman admitted that, between 2015 and 2016, he knowingly used a child to produce child pornography. He also admitted that he possessed child pornography on a cell phone.
Bordman was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Bordman was sentenced to 600 months’ imprisonment. A special assessment of $200 was imposed, Bordman was ordered to pay $3,000 in restitution, and he must also serve a 25-year term of supervised release. He must also comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department, the Iowa Division of Criminal Investigation, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-81.
Follow us on Twitter @USAO_NDIA.
Carlsbad Man Charged with Unlawfully Possessing Firearm While Being Subject to a Protective OrderRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Joseph Torrez, 31, of Carlsbad, N.M., with violating federal firearms laws by unlawfully possessing a firearm while being subject to a protective order. Torrez remains in federal custody pending a detention hearing scheduled for June 14, 2017.
According to the criminal complaint, on Feb. 11, 2017, a fugitive investigator of the New Mexico Division of Adult Probation and Parole (NMDAPP) observed Torrez carry a gun case containing a rifle into a gun shop in Las Cruces, N.M. Based on that information, an officer of the NMDAPP obtained a state arrest warrant for Torrez, who was prohibited from possessing firearms as a condition of the probationary term he was serving as the result of a misdemeanor conviction for aggravated assault. On Feb. 13, 2017, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) assisted the NMDAPP in arresting Torrez and executing a probationary inspection at Torrez’s residence. During the search, the agents and officers allegedly seized a shotgun and multiple boxes of ammunition.
According to the criminal complaint, under federal law, Torrez is prohibited from possessing firearms or ammunition because he is subject to a protective order that is in effect until June 8, 2026. Torrez was arrested on the firearms charge in the criminal complaint on June 6, 2017, after he was transferred from state custody.
If convicted, Torrez faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case against Torrez was investigated by the Las Cruces office of ATF and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Capital Region Anti-Gang Project Reaches More than 1,800 Fifth-GradersRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian wrapped up the 2017 LEADership Project at noon today at a conference at the Troy Middle School.
Joining him were 4 fifth-grade students who completed the project this year, and many leaders and representatives of the participating federal, state and local law enforcement agencies. The LEADership Project, an anti-gang training for fifth-grade students, has been reaching over 1.800 students in the fifth-grade classrooms in the Albany, Schenectady, Troy and Lansingburgh School Districts each year for the past two years.
U.S. Attorney Richard S. Hartunian stated: “Over my tenure as United States Attorney, the LEADership Project has helped to prevent young people from becoming involved with gangs and other criminal activities. Through this initiative, we worked with educators, administrators and dedicated volunteers to provide real-world strategies that will help these youngsters break the cycle of violence and criminality that they too often experience. It is our hope that this positive message will make a difference, and that these children will develop the attitudes and values that will turn them into tomorrow’s community leaders.”
The charts below summarizes all the law enforcement agencies that assisted with this project.
Federal Agencies
- U.S. Attorney’s Office
- U.S. Marshals Service
- Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)
- U.S. Drug Enforcement Administration (DEA)
- Federal Bureau of Investigation (FBI)
- IRS-Criminal Investigation
- Transportation Security Administration
- Homeland Security Investigations
- U.S. Probation and Pretrial Services
- U.S. Department of Health & Human Services, OIG
- U.S. Customs & Border Patrol
- U.S. Postal Inspection Service
- U.S. Postal Service Office of the Inspector General
State and Local Agencies
- New York State Police
- New York State Attorney General’s Office
- Albany Police
- Schenectady Police
- Troy Police
- Schenectady Auxiliary Police Department
- Schenectady County District Attorney’s Office
- Rensselaer County District Attorney’s Office
- Schenectady County Probation Department
- Rensselaer County Probation Department
- Albany County Sheriff’s Office
- Schenectady County Sheriff’s Office
- Rensselaer County Sheriff’s Office
Through role-playing skits, centered on two fifth-grade characters who are lured by an older gang member to make some bad decisions, classroom discussions revolve around making good life decisions, focusing on the future, acknowledging positive personal traits, and becoming the best that students can be. The sessions introduce the students to the concepts of responsibility and accountability through learning about Victim Impact Panels and Community Accountability Boards.
In past student questionnaires, 84% of fifth graders stated it was very important to them to have help to stay away from gangs. These sessions help students learn how to do that. While 98% said they were not in a gang, 73% indicated they have friends who are in gangs. When asked who can help them stay away from gangs, students notably listed their parents, teachers, police officers and their LEADership instructors.
The LEADership Project is a small project with big returns. Even though it is only four sessions in each fifth-grade classroom, it reaches over 1,800 fifth-grade students in Albany, Schenectady, Troy and Lansingburgh. The project uses few resources; it is driven by over 80 volunteer law enforcement instructors. The LEADership Project is an investment in our future.
California Resident Convicted of Embezzlement and Filing False Tax ReturnsRead the Press Release
A federal jury convicted a Manhattan Beach, California resident today of wire fraud and filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Alana W. Robinson for the Southern District of California.
According to the evidence presented at trial, James Miller was the president and managing partner of MWRC Internet Sales LLC, an Internet sales company. As part of his duties, Miller had check signing authority for the company’s business bank account. From January 2009 through October 2012, Miller wrote unauthorized checks to himself, embezzling more than $300,000 from the company. Miller used this money to pay for personal expenses and did not report it on his personal tax returns for 2009 through 2012, causing a tax loss of approximately $58,000.
Sentencing is scheduled for Aug. 7, 2017. Miller faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and three years in prison for each count of filing a false tax return. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Robinson commended special agents of FBI and Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Rebecca Kanter and Trial Attorney Benjamin Weir of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Cabell County man enters guilty plea to tax fraud in connection to W.Va. Division of Highways pay-to-play schemeRead the Press Release
WHEELING, WEST VIRGINIA – A Lesage, West Virginia man pled guilty today to a federal tax charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Andrew P. Nichols pled guilty to one count of “Conspiracy to Impede the Internal Revenue Service.” Nichols admitted to conspiring with others to impede tax collection of the IRS by using the expense account of an engineering consulting firm to make multiple covert payments via cashier’s check to Bruce Kenney, then an engineer at the West Virginia Division of Highways (“WVDOH”). The criminal conduct in this matter occurred from 2009 until at least 2011.
Nichols was previously named in an indictment in November 2016, accused of being a part of a scheme which caused approximately $1.5 million worth of WVDOH work to be routed to the Dennis Corporation, a Columbia, South Carolina engineering consulting firm.
Nichols, age 38, formerly served as the manager of the West Virginia Division of the Dennis Corporation while also working as an engineering professor. According to the initial indictment, he was alleged to have managed the financial relationships between Dennis Corporation and a WVDOH employee, and to have ensured that illicit payments were made to the WVDOH employee.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The case was investigated by the U.S. Attorney’s Public Corruption Unit, which includes the Federal Bureau of Investigation, the West Virginia Commission on Special Investigations, IRS-Criminal Investigation, and the West Virginia State Police.U.S. Magistrate Judge James E. Seibert presided.
Brockton Man Sentenced for Trafficking FentanylRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for trafficking fentanyl.
Jeffrey Oliveira, 22, a/k/a Chubbs, was sentenced by U.S. District Court Judge William G. Young to 18 months in prison and three years of supervised release. In addition, Oliveira is prohibited from contacting members and associates of the Turner Street gang. In January 2017, Oliveira pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl.
In May 2016, Oliveira and six others were indicted on fentanyl trafficking and firearms-related charges following a seven-month state and federal investigation into violent crime in the Brockton area. The investigation revealed that Oliveira and his co-defendants were distributing drugs in the Brockton area, and on several occasions, law enforcement officers seized fentanyl from the defendants’ associates. In April 2016, Oliveira and Alezio Lopes were arrested after the investigation revealed that Lopes was supplying drugs to Oliveira and his co-defendants. Law enforcement officers seized three bags of fentanyl and a loaded gun from the car that Oliveira and Lopes were driving at the time of their arrest.
Oliveira is the fourth defendant of seven sentenced in this case. Lopes is charged with state violations.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Glenn A. MacKinlay of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
Bristol Woman Pleads Guilty to Participating in IRS Impersonation ScamRead the Press Release
United States Attorney Deirdre M. Daly and Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge William Kalb announced that NANCY J. FRYE, 51, of Bristol, pleaded guilty today in Hartford federal court to one count of conspiracy to commit wire fraud related to her involvement in an IRS impersonation scam that defrauded more than 500 victims in the United States and Canada.
An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately. The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.
According to court documents and statements made in court, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts. FRYE, in turn, recruited Douglas Martin and others to assist her in picking up wired funds from locations in central Connecticut. FRYE then deposited the money that she collected into the bank accounts.
Between October 2015 and May 2016, FRYE, and others working at her direction, received approximately $583,000 in wired funds from approximately 527 victims.
FRYE and Martin were arrested on September 15, 2016.
FRYE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 20, 2017, at which time FRYE faces a maximum term of imprisonment of 20 years.
Martin, 52, of Bristol, pleaded guilty to the same charge on May 18, 2017, and awaits sentencing.
Since October 2013, TIGTA has received reports of more than 1.9 million impersonation related calls with more than 10,400 victims reporting losses of over $56 million.
This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service. The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.
The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
U.S. Attorney Daly stated that the investigation is ongoing and encouraged individuals who receive impersonation calls, including those who have been victimized by this scheme, to report the information at https://www.treasury.gov/tigta/contact_report_scam.shtml.
Alien Located in Camden Pleads Guilty to Illegal Re-EntryRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ramon Orlando Alvarenga-Rodriguez, age 34, of Honduras, has entered a guilty plea in federal court in Columbia, to Illegal Re-Entry, a violation of 8 U.S.C. § 1326(a)(2) and (b). United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Ramon Orlando Alvarenga-Rodriguez was encountered by ICE-Homeland Security Investigations agents on February 27, 2017 at the Kershaw County Detention Center in Camden after he was arrested for unrelated charges. An investigation revealed that Alvarenga-Rodriguez is a citizen of Honduras. He had been deported three times pursuant to an order of removal and had been convicted of Improper Entry by an Alien, then re-entered the United States without permission.
U.S. Attorney Drake stated the maximum penalty for Illegal Re-Entry is imprisonment for 20 years and/or a fine of $250,000.
The case was investigated by agents of the ICE-Homeland Security Investigations. Assistant United States Attorney William E. Day, II, of the Columbia office, is prosecuting the case.
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Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jesus Parra, 30, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office
Parra was charged as the result of an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Parra was charged in indictment filed on June 30, 2016, with distribution of methamphetamine on May 12, 2016, in Bernalillo County, N.M. During today’s proceedings, Parra pled guilty to an information charging him with distribution of methamphetamine and admitted that on May 12, 2016, he distributed methamphetamine to an undercover law enforcement agent. At sentencing, Parra faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 54 of the 104 defendants have entered guilty pleas and 18 have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. This case is being prosecuted by Assistant U.S. Attorney Paul Spiers.
Albany Man Sentenced for Stealing Government PropertyRead the Press Release
ALBANY, NEW YORK – John E. Szumigata, age 70, of Albany, was sentenced today to serve 5 months in jail, to be followed by 5 months of home confinement, for stealing over $91,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Richard S. Hartunian and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
On June 1, 2016, Szumigata was convicted of theft of government property after a two-day trial. The evidence at trial demonstrated that between October 1999 and September 2012, Szumigata withdrew Social Security monies that were directly deposited into his mother’s checking account for her benefit, despite the fact that she had died in 1999. Szumigata used the money to write checks to himself, pay personal expenses, and transfer money to businesses that he owned.
Senior United States District Judge Gary L. Sharpe also ordered Szumigata to serve 3 years of supervised release and to pay $91,322.44 in restitution to the SSA.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Alaska Man Sentenced to 16 Years for Role in Drug and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today significant sentences in a recent drug ring case. Hakim Giddins, 36, was sentenced by Senior U.S. District Judge Ralph R. Beistline to serve 16 years in prison, followed by five years of supervised release, for his role in a drug trafficking conspiracy that brought controlled substances, including heroin and methamphetamine, into Alaska. On Feb. 14, 2017, Hakim Giddins pled guilty to drug conspiracy and money laundering, and was sentenced on May 24, 2017.
Hakim Giddins was indicted with multiple co-conspirators including Shakin Giddins, Markin Giddins, Tara McNutt, Kourtney Davis, and Briana Herndon. According to court documents, from 2014 to 2016, McNutt, Davis, and Herndon opened various mailboxes with Alaska addresses for the purpose of receiving heroin from California. This heroin was received and distributed in Alaska by Hakim Giddins and his co-conspirators. Hakim Giddins himself possessed and distributed heroin, and he knew or reasonably foresaw that the distribution of 1000 grams or more of heroin had been the central object of the agreement. As part of this case, Shakin Giddins pled guilty to drug conspiracy and money laundering, and Markin Giddins pled guilty to being a felon in possession of a firearm.
During this same time frame, Hakim Giddins and others also entered into an agreement to launder the proceeds obtained from the distribution of drugs brought into Alaska by the conspiracy. The cash proceeds from the sale of these drugs was laundered by making deposits into bank accounts located in Alaska in other people’s names. This money was then withdrawn in California. Cash was also shipped in bulk from Alaska to California. Hakim Giddins directed others to make bank deposits in his behalf with money that he knew had come from drug trafficking. Hakim Giddins believed that by having the deposit made that way it would conceal his connection to the money as well as to the true source of the money.
Hakim Giddins has been a lifelong criminal, with court documents indicating his criminal activity began as early as age 12. In this current case, while he was incarcerated, he supervised the activities of his co-defendants. Furthermore, he intimidated a witness with violence if the witness proceeded to provide testimony against his brother Markin, a co-defendant in this case.
Multiple conspirators were indicted for criminal conduct related to this drug conspiracy. The following defendants have pleaded guilty to criminal charges and have been sentenced to the following prison terms in the past month:
• Hakim Giddins, sentenced to 16 years in prison on May 24, 2017
• Shakin Giddins, sentenced to 6 years in prison on May 25, 2017
• Markin Giddins, sentenced to 5 years in prison on May 16, 2017
• Tara McNutt, sentenced to 42 months in prison on June 8, 2017
• Kourtney Davis, sentenced to 18 months in prison on May 16, 2017
• Briana Herndon, sentenced to 9 months in prison on May 24, 2017
The Alaska case was prosecuted by Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office for the District of Alaska, and was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Federal Bureau of Investigation (FBI).
10 June 2017
Former Providence, Kentucky Police Officer is Charged with Civil Rights Violations and ObstructionRead the Press Release
The Department of Justice announced that a former police officer with the Providence (Ky.) Police Department was charged Thursday, June 8, 2017, by federal grand jury indictment, with two counts of willfully violating the civil rights of an arrestee and one count of obstructing justice by filing a false report. The announcement was made by Acting Assistant Attorney General Thomas E. Wheeler, II, head of the Civil Rights Division, and U.S. Attorney John E. Kuhn, Jr., of the Western District of Kentucky.
The indictment alleges that William Dukes, Jr., of Greenville, Kentucky, arrested J.L., a Webster County resident, on May 26, 2016, without probable cause to believe that J.L. had committed a crime, and that Dukes made this unlawful arrest to retaliate against J.L. for seeking to file a complaint against Dukes through state law enforcement agencies. The indictment alleges that the offense resulted in bodily injury to J.L. and that it involved the use of a dangerous weapon. A third count in the indictment charges Dukes with filing a false report with the intent to obstruct any investigation into the false arrest incident.
If convicted, Dukes faces a maximum statutory punishment of 10 years of imprisonment on each of the first two charges and a maximum statutory punishment of 20 years on the third charge.
An indictment is merely an accusation, and Dukes is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Owensboro Division, and is being prosecuted by Assistant U.S. Attorney Seth Hancock of the Western District of Kentucky, and Trial Attorney Roy Conn III of the Civil Rights Division’s Criminal Section.
9 June 2017
Woodbridge Man Sentenced to 35 Years for Murder and RobberyRead the Press Release
ALEXANDRIA, Va. – Bernardo Eugene Ford, Jr., 26, of Woodbridge, was sentenced today to 35 years in prison for his role in the armed robbery and murder of a drug dealer in Falls Church.
A federal jury convicted Ford on March 9. According to court records and evidence presented at trial, on Feb. 23, 2016, Ford and a co-conspirator went to the victim’s apartment in Falls Church, intending to rob the victim of his drugs and drug proceeds. When the drug dealer resisted, Ford and his co-conspirator hit him in the head with a firearm, and then shot him, first in the arm and then in the back as he attempted to flee, severing his spine. Ford and his co-conspirator then fled, taking with them one of the victim’s iPhones.
Telephone records introduced by the prosecution showed Ford’s and the victim’s phones contacting the same cell phone tower minutes after the murder and approximately two miles away from the victim’s apartment. Ford’s Facebook records contained communications in which he discussed with two different persons his intention to rob drug dealers. Cartridge casings and bullets recovered from the apartment were fired from two different semi-automatic handguns, leading to the conclusion that two persons were involved in committing the crime.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the verdict was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Michael Rich and Carina A. Cuellar are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-149.
Williamson County Man Pleads Guilty to Methamphetamine OffenseRead the Press Release
On June 7, 2017, Julian V. Rodriguez, 21, of Johnston City, pled guilty to methamphetamine offenses, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
At the plea hearing, Rodriguez pled guilty to one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of distribution of methamphetamine. Evidence at the plea hearing established Rodriguez was involved with others in the distribution of ice and marihuana. Ice is methamphetamine which has a purity level of at least 80%. The offenses occurred between December 2016 and January 23, 2017, in Williamson County. During his plea, Rodriguez admitted he was responsible for the distribution of more than 500 grams of ice and 540 pounds of marihuana. The offenses carry a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Offices also assisted in the investigation.
Williamson County Man Charged with Methamphetamine OffensesRead the Press Release
On June 6, 2017, a Williamson County man was indicted for methamphetamine offenses, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Shaundale E. Johnson, a/k/a "Shug," 36, of Marion, was charged in a two-count indictment charging distribution of methamphetamine. The indictment alleges the offenses occurred on March 17, 2017, and March 20, 2017, in Williamson County. Johnson made his initial appearance in federal court on June 7, 2017. At his June 9, 2017, detention hearing, he was ordered held without bond pending an August 14, 2017, jury trial.
The methamphetamine offenses carry a maximum penalty of up to 30 years of imprisonment, to be followed by six years of supervised release, and a $5,000,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office also assisted in the investigation.
Williamson County Man Charged with Methamphetamine OffenseRead the Press Release
On June 6, 2017, a Williamson County man was indicted for a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Rex A. Hopper, 43, of Creal Springs, was charged in a one-count indictment with conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges the offenses occurred on January 2016 and May 31, 2017, in Williamson and Franklin Counties. Hopper made his initial appearance in federal court on June 9, 2017. He was ordered held without bond pending a June 12, 2017, detention hearing.
The methamphetamine offenses carry a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Southern Illinois Drug Task Force, Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson and Franklin County States Attorney’s Offices also assisted in the investigation.
Waltham Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A Waltham man was sentenced today in federal court in Boston for possession of child pornography.
Christopher J. Sullivan, 20, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to time served, five years of supervised release, and ordered to pay restitution in the amount of $2,000. In February 2017, Sullivan pleaded guilty to one count of possession of child pornography.
In January 2016, federal agents in Portland, Ore., received information that a minor boy had been engaging in online sexually explicit conversations with an adult man living in Waltham, Mass. Following an investigation, a federal search warrant was issued for Sullivan’s residence in Waltham. During the search, a number of digital devices, which Sullivan later admitted belonged to him, containing multiple images and videos depicting children engaging in sexually explicit conduct were recovered. A forensic analysis revealed that the majority of the children depicted in the pictures and videos were between the ages of 7 and 12 years old.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Waltham Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Two Orlando Men Charged in Connection with Impersonating Homeland Security Agents and ExtortionRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrests and filing of a
criminal complaint charging Ronnie Rolland Montgomery (28, Orlando) and John Pierre Mack, III (25, Kissimmee, former member of the Florida National Guard) with conspiracy to commit wire fraud stemming from their participation in a criminal organization focused on extorting victims by impersonating agents with the Department of Homeland Security (DHS). If convicted, each faces a maximum penalty of 20 years in federal prison.According to court documents, in 2015, agents from U.S. Immigration and Customs Enforcement’s (ICE) Office of Professional Responsibility (OPR) (San Diego and Tampa) began investigating a criminal organization that was demanding money from victims nationwide by claiming to be “agents” of Homeland Security Investigation’s (HSI) Cyber Crimes Center (C3). Typically, the victims had responded to an online dating post and engaged in a conversation and exchange of photos with a female that they believed was an adult. The victims were later contacted by schemers posing as “agents,” who alleged that the female from the dating post was under the age of 18. The “agent” would claim that they had an arrest warrant for charges of soliciting a minor and would then direct the victim to make payments for “fines” and “penalties,” in lieu of being arrested. To further their scheme, the “agents” sent paperwork to the victims displaying the DHS seal, a judge’s name, and legal terms related to child exploitation. The schemers utilized email addresses containing variants of “child exploitation” and “cyber crimes center” in their correspondence.
The victims, many of whom were members of the military, sent multiple extortion payments, ranging from $200 to $1,900 per transaction, fearing they would otherwise be arrested. ICE’s OPR agents launched a nationwide investigation that resulted in the arrests of Montgomery and Mack in connection with this criminal organization. Law enforcement continues to investigate individuals involved in this scheme.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by ICE OPR and HSI, with assistance from the Naval Criminal Investigative Services (San Diego) and the Osceola County Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of the Principal Legal Advisor, ICE. Prosecutorial assistance was provided by the Southern District of California.
Three Methamphetamine Dealers Arrested on Federal Drug ChargesRead the Press Release
AMARILLO — Three Amarillo residents have been charged by a federal criminal complaint stemming from their role in selling large quantities of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the complaint charges Miguel Angel Bravo-Farias, 41, Hector Terrazas, 25, and Rogelio Xochitl Amparan, 29, with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The three defendants made appearances in federal court this week before U.S. Magistrate Judge Clinton E. Averitte, who ordered them to remain in custody pending the detention hearings set for June 14, 2017.
According to the affidavit filed with the federal complaint, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine. Law enforcement met with Bravo-Farias, an illegal immigrant, and Terrazas at a Denny’s Restaurant located on I-40 in East Amarillo. Bravo-Farias and Terrazas were in possession of a box containing five plastic bags filled with methamphetamine. Bravo-Farias and Terrazas were arrested at the scene.
A search of Terrazas’ residence revealed a white plastic container with crystal like residue, an igloo style container with a crystal like substance, and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were two igloo style containers with liquid substance believed to be liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
The investigation revealed Xochitl Amparan as the head of the methamphetamine distribution operation.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the offense charged in the criminal complaints is a maximum statutory penalty of life in federal prison and a $1 million fine.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, the Potter County Sheriff’s Office, the Texas Department of Public Safety and the Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell is prosecuting.
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Spokane Valley Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Thomas J. Montieth, age 65, of Spokane Valley, Washington, was sentenced today after previously pleading guilty on April 4, 2017 to Distribution of Child Pornography. Senior United States District Judge Justin L. Quackenbush sentenced Monthieth to a five-year term of imprisonment, to be followed by a ten-year term of court supervision after he is released from Federal prison. In addition, Monthieth agreed to forfeit to the United States a computer and related equipment that he used to distribute and possess child pornography images and videos. Upon release from prison, Montieth will be required to register as a sex offender.
According to information disclosed during the court proceedings, between July 22 and August 5, 2016, a Homeland Security officer working undercover in Spokane, Washington discovered that Monthieth was using peer to peer (P2P) file sharing to distribute images of child pornography over the internet. Special Agents from Homeland Security obtained a federal search warrant for Montieth’s residence in Spokane Valley, Washington. They executed the search warrant on September 7, 2016. During the execution of the search warrant, Montieth advised the Special Agents that he had been using P2P software to distribute and collect child pornography files. Law enforcement officers discovered approximately 21,244 child pornography images and 394 videos of child pornography on Mothieth’s desktop computer and a flash drive.
Joseph H. Harrington stated, “Prosecuting offenders who possess and distribute child pornography is a priority for the United States Attorney’s Office for the Eastern District of Washington. The United States Attorney’s Office is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
"The ceaseless efforts of our HSI Special Agents to identify criminals who target youth for sexual gratification are critical steps in making Washington communities safer," said Brad Bench, Special Agent in Charge of Homeland Security Investigations Seattle. "This case is an example of how HSI,
in partnership with the Department of Justice, will continue to track, investigate and prosecute predators to the fullest extent of the law."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May, 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
San Angelo Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Kelly Turner, 35, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in March 2017 to one count of distribution of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on July 6, 2016, Turner distributed two images depicting a minor female, under the age of eighteen years, engaged in sexually explicit conduct. In addition to the two images, Turner received and possessed hundreds of images and videos depicting minors engaging in sexually explicit conduct, which he intentionally sought out and found on the Internet.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Tom Green County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecutions.
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