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8 June 2017
Jefferson County man admits to illegally possessing a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Ranson, West Virginia man was convicted today of illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Chad Aric Berry, age 29, pled guilty to one count of “Unlawful Possession of a Firearm.” Berry, having previously been convicted of a felony in the Circuit Court of Jefferson County, admitted to possessing a .380 caliber pistol in Jefferson County September 2015.
Berry faces up to ten years incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Illegal Alien Convicted of Illegal Possession of FirearmsRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that OCTAVIO BRINGAS-POSADAS, age 50, an illegal alien from Mexico, pled guilty before U.S. District Court Judge Shelly D. Dick to being an illegal alien in possession of several firearms and illegal re-entry into the United States by a removed alien. BRINGAS-POSADAS faces imprisonment, fines, restitution orders, forfeiture, and a term of supervised release as well as deportation following imprisonment. A sentencing date has not yet been scheduled.
BRINGAS-POSADAS acknowledged during his guilty plea hearing that he illegally possessed three (3) firearms, two (2) revolvers, and one (1) pistol, as well as three (3) different types of ammunition. BRINGAS-POSADAS further acknowledged that he was illegally in the United States and had been previously deported from the United States in 2012.
This matter was investigated by the U. S. Department of Homeland Security, Immigration and Customs Enforcement; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Louisiana State Police; and the East Baton Rouge Sheriff’s Office. This matter is being prosecuted by Assistant U.S. Attorneys Kevin R. Sanchez and Jessica M.P. Thornhill.
Houston, Texas Man convicted of Smuggling Korean Human Growth Hormone Drugs to Local Patients and Professional WrestlersRead the Press Release
St. Louis, MO – George Patino, 57, of Houston, Texas, was convicted by a jury on Wednesday after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.
According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.
A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.
Mr. Patino now faces a maximum penalty of five years in prison for his conspiracy conviction, ten years in prison for his HGH distribution conviction, and twenty years in prison for the smuggling conviction, and/or fines up to $250,000 for each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”
This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.
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Honduran Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that OSCAR OMAR CAMPOS-ROJAS, age 32, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
United States District Court Judge Jane Triche Milazzo sentenced CAMPOS-ROJAS to 14 months of imprisonment, 1 year of supervised release, and a $100 special assessment fee.
According to court documents, CAMPOS-ROJAS, was previously removed from the United States on April 4, 2011. He was later found in the Eastern District of Louisiana on August 17, 2015, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Helena-West Helena Men Sentenced Following SNAP Benefits Fraud SchemeRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Dax Roberson, Acting Special Agent in Charge of the Office of Inspector General Southwest Region of the United States Department of Agriculture (USDA), announced today the sentencings of the two lead defendants in a scheme to defraud USDA and the SNAP food benefit program.
Thursday, United States District Judge Kristine G. Baker sentenced Khalid Alkarsh, 40, of Helena-West Helena, to 16 months in federal prison, and Bakil Mohamed Alqirsh, 27, also of Helena-West Helena, to three years’ probation, with the first 10 months spent in home confinement. In addition, the two are jointly responsible for repaying the USDA $107,486.36 in restitution.
Alkarsh and Alqirsh each pleaded guilty on January 24, 2017, to conspiracy to defraud the USDA of money from the SNAP benefit program. SNAP benefits provide economic assistance for low-income individuals to purchase food. Alkarsh, who owned the Stop and Shop convenience store in Helena-West Helena, and Alqirsh, who was a cashier and manager at the store, allowed SNAP recipients to trade their SNAP benefits for ineligible items such as beer and cigarettes, and for cash. When a SNAP recipient redeemed their benefits for cash, Alkarsh and Alqirsh paid the recipient approximately 60% of the transaction amount, and the Stop and Shop kept 40%.
Alkarsh and Alqirsh were two of 24 individuals initially indicted in the scheme, with the other 22 alleged to be SNAP recipients who improperly redeemed their benefits at the Stop and Shop. Two defendants were later dismissed, and all others have pleaded guilty and either been sentenced or are awaiting sentencing.
The investigation was conducted by the FBI and USDA, and is being prosecuted by Assistant U.S. Attorney Julie Peters.
Health Care Worker Charged with Defrauding MedicareRead the Press Release
PITTSBURGH - A Pittsburgh woman has been indicted by a federal grand jury in Pittsburgh on a charge of health care fraud, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on June 7, named Rong Zhang, 55, of Pittsburgh, as the sole defendant.
According to the indictment, Zhang and others submitted billings to Medicare for services knowing that those services were outside the course of professional practice and not for legitimate medical purposes. The indictment further alleges that Zhang and others submitted billings to Medicare for medical procedures based on falsely diagnosed conditions. Zhang was an employee who provided various services to patients of B.E.C., a physician known to the grand jury, including drawing blood and conducting ultrasounds and electrocardiograms.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Cindy Chung and Brendan T. Conway are prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of the Inspector General for Health and Human Services and the Pennsylvania Attorney General’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hartford Man Sentenced to 46 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JIMMIE SMITH, also known as “Prime,” 44, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” Gerard Brown, also known as “Goldie,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford. Brown supplied both crack and cocaine to SMITH, and SMITH also converted cocaine into crack. He then sold the drugs to his own customers.
Twenty individuals were charged as a result of the investigation.
SMITH has been detained since his arrest on February 9, 2016. On February 14, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
SMITH has a criminal history that began in 1993 and includes eight felony convictions, including a conviction for first degree assault on which he was sentenced to 54 months of imprisonment. He also was on state probation while he engaged in the criminal conduct that resulted in this federal prosecution.
Gil-Grande, Shelton and Brown have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton and Brown await sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Harrisburg Woman Sentenced for Bankruptcy FraudRead the Press Release
Yesterday, Rietta M. Miller, 52, of Harrisburg, IL, was sentenced in federal court in Benton, Illinois, on her federal bankruptcy fraud conviction, United States Attorney Donald S. Boyce announced. The court ordered Miller to serve three years of probation, with the first six months of that time being spent under home confinement. The court also ordered Miller to pay a $100 fine and an additional $100 Special Assessment. Charges were filed against Miller on January 30, 2017, as part of the U.S. Attorney’s effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
Miller was charged with concealing assets in her bankruptcy case. When she pled guilty to that charge on February 16, 2017, Miller admitted that she concealed from the Bankruptcy Court a $47,736.12 worker’s compensation settlement she received approximately one month before she filed bankruptcy. Miller acknowledged that she attempted to conceal this money from the Bankruptcy Court by moving the funds in and out of her bank accounts. Miller also admitted that she lied on the bankruptcy petition and schedules she filed with the Bankruptcy Court, and again when she was asked questions under oath at a Meeting of Creditors held in her bankruptcy case. Miller’s chapter 7 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
"Concealment of assets in a Bankruptcy case is a serious crime," Mr. Boyce explained. "In essence, these criminals attempt to use the federal court system to defraud their creditors. Our office will continue to prosecute those who engage in this type of conduct."
"Together with U.S. Attorney Boyce and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois, and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, IN, and Peoria, IL.
The charges resulted from a referral by the U.S. Trustee and the investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI") with assistance from members of the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Hampton Man Sentenced for Heroin Overdose DeathRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced to 20 years in prison today for his role in distributing heroin to a person who overdosed and died.
Robert Alan Durkee, 58, pleaded guilty on March 10. According to court documents, in November 201, Durkee sold heroin that contained fentanyl to co-defendant Julie Rae Rock, who then gave the heroin to the victim, identified in court documents as E.H., at a hotel in Newport News. The victim almost immediately fell to the ground. Rock left E.H., and his body was recovered later that day by hotel staff. E.H.’s cause of death was determined to be acute combined heroin and fentanyl intoxication.
Durkee was arrested by the Newport News Police Department on June 29, 2016, and admitted to purchasing over 700 grams of heroin from June 2015 until the time of his arrest.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Richard W. Myers, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Megan M. Cowles and Lisa R. McKeel prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-84.
Georgia Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that William Curtis Oliver, 53, of Dover-Foxcroft, Maine, and formerly of Dougherty County, Georgia, pleaded guilty today in U.S. District Court to possessing child pornography.
Court records reveal that in January 2016, a detective with the Rosenberg, Texas police department, who was affiliated with the Houston Metro Internet Crimes Against Children Task Force, was monitoring certain internet sites. The detective was working in an undercover capacity and posing as a 14-year-old female child (“UC”). On January 27, 2016, the defendant wrote to the UC about traveling from Maine to see the UC and have sex. Over the next few weeks, the defendant sent several text messages to the UC. On about February 2, 2016, the defendant, using his cellular telephone, sent several images of prepubescent girls engaged in sexually explicit conduct to the UC.
defendant has been in custody since his arrest on September 15, 2016 following a related investigation by federal and state authorities that revealed that, in 2012, the defendant had been convicted of child molestation in Georgia and had moved to Maine in December 2015 without complying with federal sex offender registry requirements. On December 13, 2016, Oliver pleaded guilty to having failed to register as a sex offender.
Oliver faces up to 20 years in prison and a $250,000 fine on the child pornography charge. Because of his child molestation conviction, he may face a mandatory minimum sentence of 10 years in prison. The defendant will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Rosenberg, Texas Police Department; Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Marshal’s Service and the Dover-Foxcroft Police Department.
General Manager of South Jersey Car Dealership Sentenced to Five Years in Prison for Bank Fraud Conspiracy, Tax ChargesRead the Press Release
CAMDEN, N.J. – A Vineland, New Jersey, man was sentenced today to 60 months in prison for his role in a scheme to defraud a bank and for filing a fraudulent tax return, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard T. Pepe, 70, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to a superseding information charging him with one count of conspiracy to commit bank fraud and one count of fraud and false statements on his 2008 U.S. Individual Income Tax Return. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From 2004 through October 2008, Pepe was the general manager of Chevrolet 73. The object of the conspiracy was for Pepe and others acting on his behalf to fraudulently obtain money from M&T Bank, intended as floor plan financing for Chevrolet 73, by providing phony information to the bank, including false liabilities and profits on Chevrolet 73’s monthly financial statements. Pepe then used that money – over $2.95 million – for personal expenses.
Pepe also admitted falsely claiming that his income was $36,628 on his 2008 individual tax return when he knew his actual income exceeded that amount.
In addition to the prison term, Judge Simandle sentenced Pepe to three years of supervised release and ordered him to pay forfeiture in the amount of $2,950,270.57.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Philadelphia Division’s Cherry Hill Resident Agency, under the direction of Special Agent in Charge Michael Harpster, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Former Silicon Valley CEO Indicted for Allegedly Defrauding Employees of Tech Company Start-UpRead the Press Release
The founder and chief executive officer of a now-defunct Silicon Valley technology start-up company was charged in an indictment unsealed yesterday in Orange County, California with allegedly defrauding several of his company’s former employees by luring them to join his company based on false and misleading statements about his educational, professional and financial background, and by allegedly enticing them to continue working for his company by providing them with forged documents purportedly reflecting payments for unpaid salaries.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Brian J. Stretch of the Northern District of California and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office made the announcement.
Isaac Choi, aka Yi Suk Choi, aka Yisuk Choi, aka Yi Suk Chae, aka Isaac Chae, (Choi), 36, most recently of Orange County and previously of Santa Clara, California, was charged with five counts of wire fraud.The indictment alleges that Choi, while working at his company, known publicly as WrkRiot, falsely claimed that he received a degree from a prestigious New York business school, worked as an analyst at a major financial instution, had access to significant personal wealth, and was investing significant amounts of that money into the company. The indictment further alleges that after certain WrkRiot employees came to learn that WrkRiot’s bank accounts did not contain the capital that Choi claimed to have invested, Choi falsely claimed that a significant portion of the money he pledged to invest was tied up overseas and elsewhere.
The indictment further alleges that in August 2016, Choi sent a series of individualized emails to WrkRiot’s employees stating that salary payments were forthcoming, and attaching documents purporting to confirm wire transfers from a U.S.-based bank to the bank accounts of the recipient WrkRiot employees. In reality, as alleged in the indictment, Choi sent forged wire transfer confirmations in order to induce WrkRiot employees to continue working for the company without being paid.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. Trial Attorneys Cory E. Jacobs and L. Rush Atkinson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jeffrey B. Schenk of the Northern District of California are prosecuting the case.
Former Orange County Income Tax Return Preparer Sentenced to One Year in Federal Prison for Falsifying Deductions on Clients’ ReturnsRead the Press Release
LOS ANGELES – The former owner of a Tustin income tax preparation business called First Quality Tax Services was sentenced today to one year and one day in federal prison for preparing and filing fraudulent federal income tax returns claiming false deductions for his clients.
Thomas P. Butcher, 62, of Rancho Santa Margarita, was sentenced by United States District Court Judge John A. Kronstadt.
In addition to the prison term, which he will begin serving by July 25, Butcher was ordered to pay $197,549 in restitution to the Internal Revenue Service.
Butcher pleaded guilty in January to two counts of aiding and abetting in the preparation of a false income tax return.
According to court documents Butcher prepared and filed tax returns for tax years 2009 through 2011 that claimed false credits and deductions that his clients were not entitled to receive.
Butcher “inflated or completely fabricated various itemized deductions on his clients’ Schedules A, particularly those involving gifts to charity and alleged job expenses,” prosecutors wrote in a sentencing memorandum filed with the court.
The fraudulent deductions and credits lowered the taxpayers’ income tax liability. During the course of the scheme, Butcher prepared and filed with the IRS hundreds of false federal income tax returns that resulted in tax losses to the United States of at least $1,045,956. The IRS was able to recoup much of that money through audits of Butcher’s clients. These clients “are victims of his scheme, as many of them underwent lengthy and costly IRS audits to not only pay back the refund to which they were not entitled, but interest and additional penalties,” according to the sentencing memo.
The investigation into Butcher was conducted by IRS Criminal Investigation’s Los Angeles Field Office. The case was prosecuted by Assistant United States Attorney Valerie L Makarewicz of the Tax Division.
Former Las Vegas Strip Club Owner Pleads Guilty to Evading More than $1.7 Million in Employment TaxesRead the Press Release
The former owner of a Las Vegas, Nevada strip club pleaded guilty today in U.S. District Court in the District of Nevada to evading employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to documents filed with the court, Frederick John Rizzolo, 58, of Las Vegas, the former owner of The Crazy Horse Too, evaded paying more than $1.7 million in employment taxes that he owed for 2000 through 2002. Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of the Crazy Horse Too to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo lied to an IRS collections attorney, falsely stating that he had no income or assets and no ability to pay the taxes owed.
Sentencing is scheduled for Sept. 15. If the court accepts the parties’ agreement, Rizzolo will be sentenced to a period of 24 months in prison and will be ordered to pay restitution in the amount of $2,637,290 to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Las Vegas Strip Club Owner Pleads Guilty to Evading More Than $1.7 Million in Employment TaxesRead the Press Release
LAS VEGAS, Nev. – The former owner of a Las Vegas, Nevada strip club pleaded guilty today in U.S. District Court in the District of Nevada to evading employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to documents filed with the court, Frederick John Rizzolo, 58, of Las Vegas, the former owner of The Crazy Horse Too, evaded paying more than $1.7 million in employment taxes that he owed for 2000 through 2002. Rizzolo paid The Crazy Horse Too’s floormen, bouncers, bartenders and shift managers in cash, but failed to provide accurate records of these payments to the Club’s bookkeepers. As a result, Rizzolo caused false employment tax returns to be filed with the Internal Revenue Service (IRS), which underreported wages paid and thus the taxes due. In 2006, Rizzolo admitted this conduct and pleaded guilty to conspiring to defraud the United States. Following his plea, however, Rizzolo took affirmative steps to conceal his assets and income to thwart the IRS from collecting the delinquent taxes that he owed. For example, Rizzolo directed $900,000 that he received from the sale of the Crazy Horse Too to an offshore bank account in the Cook Islands. He also withdrew $50,000 from a bank account, writing a check to a third party, who in turn provided the money back to Rizzolo, thereby avoiding an IRS levy and seizure of the funds. Additionally, Rizzolo lied to an IRS collections attorney, falsely stating that he had no income or assets and no ability to pay the taxes owed.
Sentencing is scheduled for Sept. 15, 2017. If the court accepts the parties’ agreement, Rizzolo will be sentenced to a period of 24 months in prison and will be ordered to pay restitution in the amount of $2,637,290 to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Phillip N. Smith Jr. and Trial Attorney Rebecca J. Sable of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Former Employee with Non-Profit Group in Dallas Sentenced to Nine Months in Federal Prison for Embezzlement SchemeRead the Press Release
DALLAS — Evetta Galloway Griffin, 49, of Grand Prairie was sentenced this afternoon by U.S. District Judge Jane J. Boyle to nine months in federal prison. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Griffin pleaded guilty in December 2016 to one count of theft or bribery concerning programs receiving federal funds. Judge Boyle ordered Griffin to pay $129,196.48 in restitution. Griffin was ordered to surrender to the Bureau of Prisons on September 6, 2017.
According to documents filed in the case, Griffin, a/k/a Evette Griffin, was the Director of Facilities and Administration for the Child Care Group (CCG) until late March 2015. The CCG is a non-profit corporation that receives federal grant funding to provide, among other things, Head Start services to promote the school readiness of young children from low-income families in the Dallas area. Together, Head Start and Early Head Start programs support the comprehensive development of children from birth to age five, in centers, child care partner locations and in their own homes.
Griffin had many duties at CCG that were related to the operation of their child care centers, as well as other responsibilities related to the administration of the corporate office and the procurement process related to federal grants.
As part of the scheme, Griffin created and executed an embezzlement, theft and fraud scheme in which she fraudulently billed CCG for fictitious printing services allegedly provided by A-1 Express Co or A-1 Express Inc. In fact, between April 25, 2011 and January 30, 2015, Griffin submitted approximately 100 fraudulent invoices to CCG that they paid. Griffin usually converted the checks that were made payable to A-1 Express Co or A-1 Express Inc. to cash, ultimately receiving approximately $115,000 from her embezzlement scheme.
The case was investigated by the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG). First Assistant U.S. Attorney Chad Meacham prosecuted.
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Former Clemency Grantee Ordered Back to PrisonRead the Press Release
HOUSTON – A Texas City woman who was granted clemency by the former presidential administration has been ordered back to federal prison for violating the terms of her supervised release, announced Acting U.S. Attorney Abe Martinez.
A federal jury convicted Carol Denise Richardson, 49, of Texas City, for conspiracy to possess with the intent to distribute 50 grams or more of cocaine base as well as two counts of possession with the intent to distribute cocaine base. On June 16, 2006, U.S. District Judge Keith P. Ellison noted her extensive criminal history and ordered her to federal prison for the rest of her life.
However, former U.S. President Barack Obama granted Richardson clemency in early 2016. On July 28, 2016, she was released from the U.S. Bureau of Prisons and placed on supervised release for a term of 10 years. During that time, she is required to abide be several conditions or face a return to prison for up to the remainder of that term. Less than a year after her release, Richardson has committed five separate violations of those terms.
On April 13, 2017, she was arrested by the Pasadena Police Department for theft. Not only was that a commission of a law violation, but she is also required to report any law enforcement contact to her probation officer within 72 hours, which she failed to do. She has also failed to maintain regular contact with the U.S. Probation Office and failed to report that she had been terminated from her employment with Home Health Providers for abandoning her position. She also failed to report a change in her residence. In fact, as of May 15, 2017, attempts to reach her were unsuccessful, and her whereabouts were unknown.
Richardson was later located and arrested May 31, 2017, for violating the terms of her federal supervised release. At the hearing today, the government presented evidence in support of her return to prison. “This defendant was literally given a second chance to become a productive member of society and has wasted it,” said Assistant U.S. Attorney Ted Imperato. “She has clearly shown a willful disregard for the law and must face the consequences for her crimes and actions.”
Judge Ellison expressed his disappointment with the defendant, noting that she had wasted the extremely rare opportunity she was given. He then ordered her back to federal prison for 14 months. After serving her sentence, she will again be placed on similar terms of supervised release for five years.
Former Auto Body Repair Shop Owner Sentenced for Role in Odometer and Title Fraud SchemeRead the Press Release
A Lawrenceville, Georgia man was sentenced in Norfolk, Virginia for his role in an odometer tampering and title fraud scheme, the Justice Department announced today.
Paul Robinson, 38, was sentenced to serve 37 months in prison, followed by three years of supervised release by Judge Robert G. Doumar in the Eastern District of Virginia. Judge Doumar also ordered Robinson to pay $320,797.82 in restitution to victims who purchased vehicles with rolled back odometers.
In February, Robinson pleaded guilty to one count of conspiracy to commit odometer tamping and securities fraud. Robinson, who formerly owned Affordable Auto Body Repair in Chesapeake, Virginia, admitted that he purchased high mileage vehicles, and that he, or someone acting at his direction, altered the vehicles’ odometers to reflect a fraudulent low mileage reading. Robinson and his co-conspirators then acquired Virginia motor vehicle titles with false, low mileage odometer readings. Those titles were used to sell the vehicles to unsuspecting purchasers.
“Not only does odometer fraud result in consumers paying more for their vehicles and having higher repair costs, there are significant safety risks in unknowingly driving high mileage vehicles,” said Acting Assistant Attorney Chad A. Readler of the Justice Department’s Civil Division. “We are committed to protecting consumers by prosecuting individuals who engage in these schemes.”
From 2012 to 2014, Robinson and his co-conspirators tampered with odometers and secured fraudulent motor vehicle titles for more than 100 vehicles. At times, the mileage readings on the altered odometers and fraudulent titles were 150,000 miles less than the vehicles’ actual mileage.
One of Robinson’s co-conspirators, Steven Bazemore, a former title clerk who assisted Robinson with securing fraudulent motor vehicles, previously pleaded guilty to conspiracy to commit securities fraud. On Sept. 22, 2016, Bazemore was sentenced to five years of probation, with the first year as home detention, and ordered to pay $219,552.82 in restitution to the victims.
This case was prosecuted by Trial Attorneys John W. Burke and Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch with assistance from Assistant U.S. Attorney Alan Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia. The investigation was handled by the Virginia Department of Motor Vehicles and the National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA).
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
For more information about the U.S. Attorney’s Office for the Eastern District of Virginia, visit https://www.justice.gov/usao-edva.
Former Attorney Sentenced for Bankruptcy FraudRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Josiah E. Hutton (60, Winter Haven) to six months in federal prison, followed by six months of home confinement, for concealment of assets from a bankruptcy estate. In addition, he was ordered to pay $93,255.27 in restitution to the victim of his offense.
According to court documents, Hutton, a former bankruptcy attorney, was retained to represent a debtor who was planning to file for bankruptcy. In anticipation of filing a bankruptcy petition, Hutton received a $93,255.27 settlement check, which was property of the debtor’s bankruptcy estate, and deposited it into his attorney escrow account. Hutton later prepared and certified the debtor’s bankruptcy petition, yet he failed to list the settlement check as an asset, thereby concealing the asset from creditors and the bankruptcy court.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. The Office of United States Trustee, Tampa Division provided substantial investigative assistance. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Financial Planner Guilty of Mail FraudRead the Press Release
BEAUMONT, Texas – A 67-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Lawrence Allen DeShetler pleaded guilty to mail fraud today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, DeShetler has been a certified financial planner (CFP) and investment advisor since 1994, and has been president of DeShetler & Company, Inc. since 1988. In his capacity as a CFP and investment advisor, DeShetler would advise clients on investment strategies and act as a broker for financial products, such as annuities and insurance policies. However, beginning in 2014, DeShetler began soliciting funds from clients by convincing them they could see higher returns on their money if they allowed him to invest it. Based on DeShetler’s advice, the clients then withdrew money from their existing investment accounts and gave him the proceeds. DeShetler then deposited the funds in bank accounts in his name and under his exclusive control, and then used the money for his personal benefit. In total, DeShetler fraudulently obtained $1,907,003.71 from five clients, including two from the Jefferson/Orange county area of the Eastern District of Texas.
Under federal statutes, DeShetler faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Bureau of Investigation; Orange County Sheriff’s Office, Texas Department of Public Safety, Texas State Securities Board, Jefferson County District Attorney’s Office, and Montgomery County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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Filipino National Sentenced to 63 Months in Prison for Running $9 Million Stolen Credit and Debit Card Cybercrime RingRead the Press Release
NEWARK, N.J. – A Filipino national was sentenced today to 63 months in prison for running an international cashing operation that monetized stolen credit and debit card information obtained through computer hacking and ATM skimming operations, Acting U.S. Attorney William E. Fitzpatrick announced.
Angelo Virtucio, a/k/a “ZaiR,” a/k/a “ZaiRe,” a/k/a “Omega,” a/k/a “Omega10,” 31, of Quezon City, Philippines, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Virtucio was arrested in the Southern District of Florida on Jan. 29, 2015 and was extradited to the District of New Jersey on Feb. 11, 2015. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Virtucio monetized millions of dollars from stolen credit and debit card data using a global network of “cashers” to enter into unauthorized financial transactions using the accounts related to the stolen information. The stolen credit card data was primarily obtained through computer hacking; the stolen debit card data was mostly obtained through ATM skimming operations. After purchasing the stolen data from other cybercriminals, Virtucio and his conspirators encoded it onto counterfeit credit and debit cards. The cashers used the counterfeit cards to make unauthorized ATM withdrawals and purchases at physical retail locations.
In addition to the prison term, Judge Wigenton sentenced Virtucio to two years of supervised release.
Acting U.S. Attorney Fitzpatrick credited the special agents of the U.S. Secret Service, Newark Division, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney L. Judson Welle, coordinator of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit.
Defense counsel: Kathleen Theurer Esq. and A. Paul Condon Esq., Jersey City, New Jersey
Felon on Federal Supervised Release Admits Having Illegal Gun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to a charge of felon in possession of a firearm, Acting United States Attorney Soo C. Song announced today.
Marcus Thompkins, 27, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Thompkins, after having been convicted of a felony, did knowingly possess a firearm, namely a .40 caliber Smith and Wesson pistol, Model 40 VE and approximately fifty rounds of .40 caliber Winchester ammunition. Thompkins, at the time of the offense, was on federal supervised release. An Officer with the United States Probation Office observed him with the firearm, and, based on that observation, the Probation Office and the United States Marshal Service conducted a search of Thompkins’ home, which led to the seizure of the firearm and ammunition.
Judge Schwab scheduled sentencing for October 19, 2017. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court remanded Thompkins to federal custody.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Marshals Service and United States Probation Office conducted the investigation that led to the prosecution of Thompkins.
Federal and State Authorities in Las Cruces Arrest Members and Associates of the “Cruces Boys” on Drug Trafficking ChargesRead the Press Release
Federal and state authorities arrested six members and associates of the “Cruces Boys” gang this morning on federal drug trafficking charges and seized 25 firearms announced United States Attorney Richard L. Durbin, Jr.; Special Agent in Charge Terry Wade, Federal Bureau of Investigation, Albuquerque Division; Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration, El Paso Division; and, Las Cruces Police Chief Jaime Montoya.
Arrested today include: 29-year-old Joshua Randall Garcia (aka ”Flu,” “Flu Diggs”); 35-year-old Rahiem Harris; 23-year-old Estevan Carreon; 29-year-old Olajuwan Calhoun; 29-year-old Nate Nordorf; and, 21-year-old Jalen Bishop. Authorities arrested Carreon in Farmington, NM, and the others in Las Cruces, NM. All of the defendants remain in custody pending initial appearances expected to occur in federal court tomorrow.
Federal criminal complaints—unsealed today—charge the defendants with conspiracy to possess with intent to distribute cocaine. According to court records, the defendants, led by Joshua Garcia, allegedly distributed cocaine and “crack” cocaine throughout the Las Cruces area from July 2016 until last month.
Garcia, whose charge involves more than 500 grams of cocaine, faces between five and 40 years in federal prison upon conviction. The other defendants, each charged for less than 500 grams of cocaine, face up to 20 years in federal prison upon conviction.
“An operation this large and complex required the coordination of many agencies. I am proud of how well this team of federal, state and local law enforcement professionals worked together to make our community safer,” stated Terry Wade, Special Agent in Charge of the Albuquerque Division of the FBI.
“Our communities deserve to exist without fear and intimidation inflicted by drug gangs,” said Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division. “Today’s enforcement operation represents our continued commitment to the citizens of Las Cruces for law enforcement at the federal, state and local levels to work together to keep our neighborhoods safe.”
These federal and state charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Las Cruces Police Department’s Gang Unit, New Mexico State Police, U.S. Border Patrol, U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The Metro Narcotics Unit, Doña Ana County Sheriff’s Office, Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) Air and Marine Unit, and the New Mexico Army National Guard assisted in this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Court of Appeals Denies Rehearing of Decision Upholding Convictions of William B. Aossey, Jr.,Read the Press Release
The United States Court of Appeals for the Eighth Circuit today denied a request to rehear its April 14, 2017, decision affirming the criminal fraud and related convictions of William B. Aossey, Jr.; Jalel Aossey; and Midamar Corporation, all of Cedar Rapids, Iowa.
On July 3, 2015, the founder of Midamar Corporation (Midamar) and Islamic Services of America, William B. Aossey, Jr., age 75, of Cedar Rapids, Iowa, was convicted by a federal jury on 15 counts of conspiracy, making false statements on export certificates, and wire fraud. On February 26, 2016, Aossey was sentenced to 24 months’ imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1500.
On September 9, 2015, Midamar pleaded guilty to one count of conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud. Midamar’s guilty plea was entered by its Treasurer and a corporate director, Yahya Nasser Aossey. On February 26, 2016, Midamar was sentenced to pay a $20,000 fine and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar was ordered to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree required Midamar to take a variety of corrective actions and to remove certain corporate officials including Jalel Aossey and William B. Aossey from the business. Midamar was also ordered to pay a special assessment of $400.
On September 11, 2015, Jalel Aossey, age 42, then President of Midamar, pleaded guilty to one count of conspiracy to commit the following federal offenses: mail and wire fraud; covering up material facts by a scheme; making and using false statements and documents in a matter within the jurisdiction of the Department of Agriculture; making false statements on export certificates with the intent to defraud; and selling misbranded meat in interstate commerce with the intent to defraud. On March 11, 2016, Jalel Aossey was sentenced to serve 12 months’ and one day imprisonment and fined $30,000. In addition, he was ordered to pay a special assessment of $100. Aossey was ordered to serve a three-year term of supervised release after the prison term and to comply with the terms of a separate consent decree entered into with the USDA Food Safety Inspection Service. As part of that agreement and his plea agreement, Aossey was required to divest his interest in Midamar and to no longer be associated with the management or operations of Midamar.
William B. Aossey, Jr., Midamar, and Jalel Aossey each appealed their convictions. The defendants each claimed the district court, The Honorable Linda R. Reade, United States District Judge for the Northern District of Iowa, had erred by denying their motions to dismiss the cases. In their motions to dismiss, the defendants contended the district court lacked jurisdiction over their cases because Congress had reserved exclusive enforcement authority over the alleged statutory violations to the Secretary of Agriculture, and that the United States Attorney could not proceed against the defendants in a criminal prosecution. The cases were consolidated for resolution on appeal.
In a written opinion filed April 14, 2017, the United States Court of Appeals for the Eighth Circuit denied the appeals. The Court held that Congress did not express a “clear and unambiguous” intent that the district courts would not have jurisdiction over criminal violations of the Federal Meat Inspection Act. Rather, the “better reading” of the applicable statute is that it “provides an administrative enforcement mechanism for the Secretary of Agriculture that supplements the authority of the United States Attorneys to pursue criminal prosecutions in the district courts.” Further, here, “the United States Attorney properly proceeded in the district court.”
Midamar and the Aosseys then asked the Court to rehear the appeal before the same appeals panel or before a panel of all judges on the entire Eighth Circuit Court. In a one-line decision filed today, the Court of Appeals denied the rehearing request.
The cases were prosecuted by Assistant United States Attorneys Richard L. Murphy and Timothy L. Vavricek and were investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl
The case file numbers: 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
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Everett Man Sentenced for Dealing Firearms Without a LicenseRead the Press Release
BOSTON - An Everett man was sentenced today in federal court in Boston for dealing firearms without a license.
Samuel Jean, 23, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to two years in prison and three years of supervised release after pleading guilty on March 2, 2017.
On four occasions between Aug. 29, 2016, and Oct. 3, 2016, Jean delivered firearms and ammunition to an accomplice, Jeffrey Joseph, who in turn sold the weapons to an individual cooperating with the government. All of the transactions took place in and around the Bunker Hill Housing Development in Charlestown. During the course of the transactions, Jean supplied a total of seven firearms for sale to the cooperating witness, including two firearms previously reported as stolen.
Jeffrey Joseph pleaded not guilty to federal firearms charges and is awaiting trial.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Lori J. Holik, Chief of Weinreb’s Major Crimes Unit, prosecuted the case.
East Hartford Resident Charged with Obstructing Tax LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, William Kalb, Special Agent in Charge for the Treasury Inspector General for Tax Administration (TIGTA), and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that a federal grand jury in New Haven returned an indictment today charging RAYMOND McLAUGHLIN, also known as “Shakir Ra Ade Bey” and “Shakir Ade Bey,” 34, of East Hartford, with one count of obstructing the administration of federal tax laws, and one count of making a false statement.
McLAUGHLIN was arrested yesterday on a federal criminal complaint and is detained. An arraignment and bond hearing is scheduled for June 12 at 3:30 p.m. before U.S. Magistrate Judge Joan G. Margolis in New Haven.
As alleged in court documents, in March 2009, McLAUGHLIN and his wife refinanced the mortgage for their East Hartford residence, taking out a $233,371 refinancing loan. McLAUGHLIN and his wife failed to make a single mortgage payment for approximately six years thereafter while they resided in the home. In April 2011, the mortgage holder filed a foreclosure lawsuit in state court and, in December 2012, Judge Robert F. Vacchelli granted an Order of Foreclosure against McLAUGHLIN. On April 23, 2014, Judge Vacchelli denied the eleventh of McLAUGHLIN’s motions to vacate, reopen or otherwise set aside the foreclosure judgment. The next day, McLAUGHLIN mailed packages containing documents related to his foreclosure proceedings to both the U.S. Treasury Department in Washington, D.C., and the Internal Revenue Service in Austin, Texas. The packages included IRS Forms 1099-OID and 1099-A for the 2014 tax year that falsely claimed that McLAUGHLIN had paid $332,204.25 to Judge Vacchelli and the Connecticut state courts. The packages also contained an IRS Form 1096 on which McLAUGHLIN stated and declared under the penalties of perjury that he had examined the submissions and that they were true, correct and complete, when, in fact, he knew that he had not made a payment of any kind to either Judge Vacchelli or the courts.
If convicted of the charges, MCLAUGHLIN faces a maximum term of imprisonment of eight years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Treasury Inspector General for Tax Administration and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
East Chicago Man Sentenced for Gang-Related ShootingRead the Press Release
An East Chicago, Indiana man was sentenced today to 10 years in prison on a firearms charge related to the activity of a street gang known as the Two Six Nation. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Clifford D. Johnson of the Northern District of Indiana made the announcement.
Julio Ivan Cartagena Jr, 22, pleaded guilty on March 22, to Use of a Firearm During and in Relation to a Crime of Violence for his role in a car chase and shooting on Aug. 31, 2013. The uncontested facts proffered at Cartagena’s guilty plea hearing showed that on that evening, Cartagena’s stepbrother had been denied admission to a party in Hammond by members of a rival street gang. Responding to a call for assistance from his stepbrother, Cartagena and another individual joined the stepbrother and a fourth individual in a car. Possessing two handguns, Cartagena and the other occupants drove back to the location of the party, where they saw individuals believed to be members of the rival gang getting into a car. Cartagena and the other occupants of the first vehicle followed that car, shooting at the rival gang members as they went. Shots fired from the car in which Cartagena was riding hit the rival gang members’ vehicle, striking one occupant in a finger. Several shots also went wide, penetrating the house of a Hammond Police Department officer who lived in the neighborhood.
Cartagena was sentenced by U.S. District Judge Joseph Van Bokkelen to 10 years in prison and to a two year term of supervised release.
The FBI Gang Response Investigative Team; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Hammond Police Department; and the Lake County Police Department investigated the case. They were assisted by the East Chicago Police Department and the Lake County High Intensity Drug Trafficking Area. The prosecution is being handled by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorneys Andrew L. Creighton and Robert Tully of the Criminal Division’s Organized Crime and Gang Section.
East Chicago Man Sentenced for Gang-Related ShootingRead the Press Release
WASHINGTON – An East Chicago, Indiana man was sentenced today to 10 years in prison on a firearms charge related to the activity of a street gang known as the Two Six Nation. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Clifford D. Johnson of the Northern District of Indiana made the announcement.
Julio Ivan Cartagena Jr, 22, pleaded guilty on March 22, to Use of a Firearm During and in Relation to a Crime of Violence for his role in a car chase and shooting on Aug. 31, 2013. The uncontested facts proffered at Cartagena’s guilty plea hearing showed that on that evening, Cartagena’s stepbrother had been denied admission to a party in Hammond by members of a rival street gang. Responding to a call for assistance from his stepbrother, Cartagena and another individual joined the stepbrother and a fourth individual in a car. Possessing two handguns, Cartagena and the other occupants drove back to the location of the party, where they saw individuals believed to be members of the rival gang getting into a car. Cartagena and the other occupants of the first vehicle followed that car, shooting at the rival gang members as they went. Shots fired from the car in which Cartagena was riding hit the rival gang members’ vehicle, striking one occupant in a finger. Several shots also went wide, penetrating the house of a Hammond Police Department officer who lived in the neighborhood.
Cartagena was sentenced by U.S. District Judge Joseph Van Bokkelen to 10 years in prison and to a 2 year term of supervised release.
The FBI Gang Response Investigative Team; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Hammond Police Department; and the Lake County Police Department investigated the case. They were assisted by the East Chicago Police Department and the Lake County High Intensity Drug Trafficking Area. The prosecution is being handled by Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana and Trial Attorneys Andrew L. Creighton and Robert Tully of the Criminal Division’s Organized Crime and Gang Section.
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Dorchester Man Sentenced for Illegally Selling Three FirearmsRead the Press Release
BOSTON – A Dorchester man was sentenced today in federal court in Boston in connection with illegal, street-level gun trafficking.
Victor Florentino, 22, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years in prison and three years of supervised release. In March 2017, Florentino pleaded guilty to one count of engaging in the business of dealing with firearms without a license.
In 2015 and 2016, a federal investigation identified a network of street gangs, which had created alliances to traffick weapons and drugs throughout Massachusetts and generate violence against rival gang members. Based on the investigation, 53 defendants were indicted in June 2016 on federal firearm and drug charges, including defendants who are allegedly leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Street Gang. These gangs operated primarily in the East Boston, Boston, Chelsea, Brockton, Malden, Revere and Everett areas. During the course of the investigation, over 70 firearms, cocaine, cocaine base (crack), heroin and fentanyl were seized.
During the investigation, Florentino was identified as having been actively involved in illegal, street-level, firearms trafficking in the Boston area. He brokered the sale of three handguns to a cooperating witness: an AMT, Backup, 9mm semi-automatic pistol with an obliterated serial number; a Beretta, Model 84B, .380 caliber semi-automatic pistol; and a JP Sauer & Sohn, .44 Magnum revolver.
Florentino is the 10th defendant to plead guilty.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley, made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Sentenced for Distributing Kilo of HeroinRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for his role in two separate heroin trafficking rings operating in southeastern Massachusetts.
Francis Gonsalez-Romero, a/k/a Sam, 41, a Dominican national residing in Providence, R.I., was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 84 months in prison and three years of supervised release. Gonsalez-Romero will be subject to deportation upon completion of his sentence. On Feb. 28, 2017, Gonsalez-Romero pleaded guilty in two separate cases, a 2012 charge for conspiracy to possess with intent to distribute heroin, and a 2015 charge for conspiracy to possess with intent to distribute heroin and fentanyl.
The first indictment was returned on July 9, 2012, and was the product of a federal wiretap investigation. The investigation included the interception of a cellular telephone used by Gonsalez-Romero. Based on the investigation, Gonsalez-Romero supplied significant quantities of heroin to co-defendant Jose Rosa, who arranged for the heroin to be distributed to customers in the Taunton, Mass., area. Gonsalez-Romero’s four co-defendants were arrested in July 2012, but federal investigators were unable to locate Gonsalez-Romero, who remained a fugitive. All four co-defendants pleaded guilty and were sentenced to prison terms ranging from three years to 87 months.
The 2015 indictment was the product of a long-term federal investigation that established that Gonsalez-Romero was part of a drug trafficking organization led by his brother, Dedwin Cruz-Rivera. Cruz-Rivera allegedly obtained large quantities of heroin and fentanyl from local drug suppliers, including Gonsalez-Romero and his brother Manuel Romero-Gonsalez, which was distributed in and around Fall River and Providence, R.I.
The investigation culminated with the arrests and charges of Gonsalez-Romero and 24 others in connection with Cruz-Rivera’s heroin trafficking operation; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. More than half of the defendants charged in the Cruz-Rivera operation have pleaded guilty, and nine of the defendants have already been sentenced. Cruz-Rivera pleaded not guilty and is awaiting trial.
Investigators used DNA evidence to confirm Gonsalez-Romero was the same individual charged in the 2012 indictment. Overall, Gonsalez-Romero was responsible for the distribution of more than a kilogram of heroin.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorneys Katherine Ferguson, Thomas E. Kanwit, Karen Beausey, Ann Taylor, and Linda M. Ricci of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Dominican National Charged with Passport FraudRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with passport fraud.
Adolfo Santana Gonzalez, 31, was charged with misuse of a social security number and making a false statement in an application for a United States Passport.
According to the indictment, in November 2016, Santana Gonzalez, using the identification and social security number assigned to another individual, submitted an application for a U.S. passport at a U.S. Post Office in Worcester in that individual’s name.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Santana Gonzalez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. U.S. Customs and Border Protection assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged today in federal court in Boston with a federal immigration crime.
Orlando Genao-Maldonado, 55, was charged with illegally reentering the United States after being deported.
According to the indictment, Genao-Maldonado was deported in March 2004. In May 2016, federal agents in Boston discovered Genao-Maldonado and found him to be illegally present in the United States.
Genao-Maldonado faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Arrested for Trafficking HeroinRead the Press Release
BOSTON – A Dominican national was arrested today for distributing heroin.
Elin Robinson Mejia Romero, 51, a Dominican national residing in Hyde Park, was arrested today and charged by a federal criminal complaint with distribution of heroin.
According to court documents, a cooperating witness worked with investigators to identify Romero. On five occasions between January 2017 and June 2017, Romero sold a total of over 100 grams of heroin and/or fentanyl to the cooperating witness. Federal agents recorded each transaction and laboratory results confirmed that the drugs were heroin and fentanyl. Additional suspected fentanyl and cash were recovered during searches at two residences in Hyde Park.
Romero, was previously convicted in federal court in Boston in 2008 for conspiracy to distribute one kilogram or more of heroin and five kilograms or more of cocaine. He was sentenced to 46 months in federal prison and was deported to the Dominican Republic after completing his sentence.
The charging statute for possession with intent to distribute heroin provides for a sentence of no greater than 20 years, up to a lifetime of supervised release, and a fine of $1 million. Romero will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case was investigated by the Boston OCDETF Strike Force. Assistance was also provided by Customs and Border Protection and the Attleboro Police Department. Assistant U.S. Attorney Leah B. Foley of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Issues Statement on Testimony of Former FBI Director James ComeyRead the Press Release
In response to testimony given today by former FBI Director James Comey, Department of Justice Spokesman Ian Prior issued the following statement:
- Shortly after being sworn in, Attorney General Sessions began consulting with career Department of Justice ethics officials to determine whether he should recuse himself from any existing or future investigations of any matters related in any way to the campaigns for President of the United States.
Those discussions were centered upon 28 CFR 45.2, which provides that a Department of Justice attorney should not participate in investigations that may involve entities or individuals with whom the attorney has a political or personal relationship. That regulation goes on to define “political relationship” as:
“[A] close identification with an elected official, a candidate (whether or not successful) for elective, public office, a political party, or a campaign organization, arising from service as a principal adviser thereto or a principal official thereof ***”
Given Attorney General Sessions’ participation in President Trump’s campaign, it was for that reason, and that reason alone, the Attorney General made the decision on March 2, 2017 to recuse himself from any existing or future investigations of any matters related in any way to the campaigns for President of the United States.
- In his testimony, Mr. Comey stated that he was “not *** aware of” “any kind of memorandum issued from the Attorney General or the Department of Justice to the FBI outlining the parameters of [the Attorney General’s] recusal.” However, on March 2, 2017, the Attorney General’s Chief of Staff sent the attached email specifically informing Mr. Comey and other relevant Department officials of the recusal and its parameters, and advising that each of them instruct their staff “not to brief the Attorney General *** about, or otherwise involve the Attorney General *** in, any such matters described.”
- During his testimony, Mr. Comey confirmed that he did not inform the Attorney General of his concerns about the substance of any one-on-one conversation he had with the President. Mr. Comey said, following a morning threat briefing, that he wanted to ensure he and his FBI staff were following proper communications protocol with the White House. The Attorney General was not silent; he responded to this comment by saying that the FBI and Department of Justice needed to be careful about following appropriate policies regarding contacts with the White House.
- Despite previous inaccurate media reports, Mr. Comey did not say that he ever asked anyone at the Department of Justice for more resources related to this investigation.
- In conclusion, it is important to note that after his initial meeting with career ethics officials regarding recusal (and including the period prior to his formal recusal on March 2, 2017), the Attorney General has not been briefed on or participated in any investigation within the scope of his recusal.
Convicted Felon Pleads Guilty to Illegally Possessing Handgun at Suburban Shooting Range and Obstructing Law Enforcement Investigation into the MatterRead the Press Release
CHICAGO — A convicted felon admitted in federal court today that he illegally possessed a handgun at a suburban shooting range and then obstructed a law enforcement investigation into the matter.
LABAR SPANN, 38, also known as “Bro Man,” possessed and discharged the handgun in a firing range at Midwest Sporting Goods in Lyons on Sept. 14, 2014, according to a written plea agreement. Spann went to the range with two other individuals, and he posted numerous videos and photographs of the visit on his Instagram profile, the plea agreement states. One photograph depicted the silhouette of a person as the shooting target, with holes in the head and chest. According to the plea agreement, Spann posted a caption for the photograph that read: “y’all know I had to go first just to show my [expletive] how this [expletive] work lmao I do this [expletive].”
Spann had previously been convicted of a felony and was not lawfully allowed to possess a firearm.
Spann, of Chicago, pleaded guilty to one count of illegal possession of a firearm by a felon, three counts of obstruction of justice, and one count of possession of a controlled substance with intent to distribute. The conviction carries a maximum sentence of 70 years in prison. U.S. District Judge John J. Tharp Jr. scheduled sentencing for Sept. 5, 2017.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The investigation was conducted in conjunction with the High Intensity Drug Trafficking Area Task Force (HIDTA).
The obstruction charges stemmed from Spann’s efforts to influence and impede a witness’s testimony before the federal grand jury that was investigating the incident at the firing range. The witness had initially stated truthfully to law enforcement that she accompanied Spann to the firing range and saw Spann load the gun and fire it, the plea agreement states. Soon thereafter, Spann communicated with the witness and others, intending to cause the witness to withhold truthful testimony from the grand jury.
When the witness was called before the grand jury on Jan. 29, 2015, she falsely testified that Spann did not shoot the gun at the range, the plea agreement states. In subsequent text messages between Spann and the witness, Spann asked if she could obtain the grand jury transcript of her testimony to give to him, the plea agreement states.
The government is represented by Assistant U.S. Attorneys Peter Salib, Timothy Storino, Tobara Richardson and William Dunne.
Columbia, Jefferson City Residents Among Five Defendants Indicted in Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that four Columbia, Mo., and Jefferson City, Mo., residents and a Compton, Calif., man have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Cole County, Mo.
Shadeed Seifullah Muhammad, 41, of Compton; Javier Rashad Rosser, 30, Robert Istill McNair, 30, and Bria Lanier-Richie, 37, all of Jefferson City, Mo.; and James Alexander Larkins, 37, of Columbia, Mo.; were charged in an 11-count indictment returned under seal by a federal grand jury in Jefferson City on May 31, 2017. That indictment was unsealed and made public today following the arrests of all five defendants.
The government is seeking detention without bond for all of the defendants, who remain in federal custody pending detention hearings. Muhammad, who was arrested in Atlanta, Ga., had his initial court appearance in the U.S. District Court for the Northern District of Georgia and is being transported to the Western District of Missouri. The other defendants had their initial court appearance this afternoon in Jefferson City.
The federal indictment alleges that each of the five defendants participated in a conspiracy to distribute methamphetamine in Cole County from Jan. 15, 2016, to Feb. 18, 2017.
In addition to the conspiracy, Muhammad is charged with two counts of distributing 500 grams or more of methamphetamine in March and April 2016. Rosser is also charged with attempting to possess 500 grams or more of methamphetamine with the intent to distribute on March 9, 2016.
Rosser, McNair, Lakins and Lanier-Richie are charged together in one count of attempting to possess 500 grams or more of methamphetamine with the intent to distribute in April 2016.
Rosser, McNair, Larkins and Lanier-Richie are also charged in various counts of using a cell phone to facilitate the commission of the drug-trafficking conspiracy.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Postal Inspection Service, the FBI and the Drug Enforcement Administration.
Columbia Man Pleads to Felon in Possession of Firearm and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Brandon LaChristopher Golson, age 35, of Columbia, plead guilty in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge Mary Geiger Lewis, 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 in court during the guilty plea hearing established that at approximately 2:30am on March 26, 2017, troopers with the South Carolina Highway Patrol were conducting a traffic safety checkpoint near Ramblin Road and Lake Francis Road in Lexington County when they encountered Golson, the driver and sole occupant of a vehicle that came through the checkpoint. Troopers discovered that Golson’s license was suspended and when they had Golson exit the vehicle, they saw a loaded Smith and Wesson .40 caliber handgun in his rear waistband. Golson was arrested on state charges and a search incident to that arrest revealed a small amount of marijuana in his pants pocket.
Golson is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions, which include convictions for attempted burglary 2nd degree (2001), possession of a controlled substance (2005), possession with intent to distribute cocaine (2010), possession of cocaine (2011), and possession of controlled substance (2014). Additionally, Golson was previously convicted in Lexington County state court for unlawful carrying of a pistol in 2015 and in 2016.
Golson faces a maximum of ten years imprisonment, a fine of $250,000, and three years of supervised release on the felon in possession of a firearm and ammunition charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the South Carolina Highway Patrol and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Columbia Man Pleads to Felon in Possession of Firearm and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Steven Don Martin, age 23, of Columbia, plead guilty in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge Mary Geiger Lewis, 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. Yesterday, Martin’s co-defendant, Melvin Cain Silas, Jr., plead guilty to being a felon in possession of a firearm and ammunition stemming from the same incident.
Evidence presented in court during the guilty plea hearing established that at approximately 10:28am on November 10, 2016, a deputy with the Richland County Sheriff’s Department on patrol on Farrow Road encountered a Jeep bearing Colorado license plates and learned that it had previously been reported stolen from Georgia. Once the deputy activated his blue lights and siren, the Jeep failed to stop and ultimately crashed. The four occupants attempted to flee on foot, but deputies were able to apprehend Martin, a passenger, and the driver, Silas. The other two passengers were able to get away. A search of the Jeep revealed that Martin had been in possession of a stolen loaded Glock .40 caliber handgun and a 30 round magazine. A third handgun was also found in the Jeep. Martin admitted, after waiving his rights, that he traded marijuana for the Glock handgun. A search incident to Silas’ arrest revealed a loaded Taurus .380 handgun in his front pants pocket. After waiving his rights, Silas admitted to stealing the Jeep from the side of the road in Blythewood and using a screwdriver to start it, and to buying the Taurus handgun off the street.
Martin is prohibited under federal law from possessing firearms and ammunition based upon his prior state convictions for burglary 2nd (two separate counts). Like Silas, Martin was on state supervision when this incident occurred.
Martin and Silas each face a maximum of ten years imprisonment, a fine of $250,000, and three years of supervised release on the felon in possession of a firearm and ammunition charge.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s 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 Stacey D. Haynes of the Columbia office handled the case.
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California Woman Sentenced for Conspiracy to Launder MoneyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Thursday, June 8, 2017, Marisela Pescador., 39, of Moreno Valley, California, was sentenced to four years of probation for conspiracy to commit money laundering. As part of the sentence of probation, Pescador will be required to serve six months on home confinement and will be incarcerated for 16 weekends or 2-day time-periods.
Pescador pled guilty to the charge in February of 2016. Information obtained by law enforcement indicated that between April and September of 2011, Pescador was involved with other persons in laundering proceeds of methamphetamine sales, which occurred in Lincoln, Nebraska, through bank accounts in the names of Pescador, her children, her husband’s landscaping business, and bank accounts in the names of persons associated with a co-conspirator. Money from methamphetamine sales was deposited in Lincoln, Nebraska, and Pescador and other persons would withdraw the money from the bank accounts in California.
On Monday, June 5, 2017, Pescador’s husband and co-defendant, Sergio Valencia, Sr., was sentenced to 160 months in federal prison for conspiracy to distribute methamphetamine and conspiracy to money launder.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Buffalo Man Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Mikel Lowe, aka L-O, 23, of Buffalo, NY, with possession with intent to distribute crack cocaine and heroin, and possession of firearms in furtherance of drug trafficking crimes. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated on February 28, 2017, the defendant possessed crack cocaine, fentanyl, and heroin, which was intended for distribution in the Buffalo area. In addition, while in possession of the illegal narcotics, Lowe also possessed a firearm.
Lowe was arraigned this afternoon before U.S. Magistrate Judge Hugh B. Scott and is being held pending a detention hearing on June 9, 2017 at 10:00 a.m.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Erie County Sheriff’s Department, under the direction of Timothy Howard, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bronx Man and Michigan Man Arrested for Terrorist Activities on Behalf of Hizballah’s Islamic Jihad OrganizationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dana Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that ALI KOURANI and SAMER EL DEBEK, a/k/a “Samer Eldebek,” were arrested on Thursday, June 1, 2017, on charges related to their alleged activities on behalf of Hizballah, a designated foreign terrorist organization.
KOURANI was arrested in the Bronx for providing, attempting, and conspiring to provide material support to Hizballah; receiving and conspiring to receive military-type training from Hizballah; a related weapons offense that is alleged to have involved, among other weapons, a rocket-propelled grenade launcher and machine guns; violating and conspiring to violate the International Emergency Economic Powers Act (“IEEPA”); and naturalization fraud to facilitate an act of international terrorism. KOURANI was presented on Friday, June 2, 2017, before Magistrate Judge Barbara Moses in Manhattan federal court.
EL DEBEK was arrested in Livonia, Michigan, outside of Detroit, for providing, attempting, and conspiring to provide material support to Hizballah; receiving and conspiring to receive military-type training from Hizballah; use of weapons in connection with a crime of violence that is alleged to have involved, among other weapons, explosives, a rocket-propelled grenade launcher, and machine guns; and violating and conspiring to violate IEEPA. EL DEBEK was presented on Monday, June 5, 2017, before Magistrate Judge Henry Pitman in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Today, we announce serious terrorism charges against two men who allegedly trained with and supported the Islamic Jihad Organization, a component of the foreign terrorist organization Hizballah. Recruited as Hizballah operatives, Samer El Debek and Ali Kourani allegedly received military-style training, including in the use of weapons like rocket-propelled grenade launchers and machine guns for use in support of the group’s terrorist mission. At the direction of his Hizballah handlers, El Debek allegedly conducted missions in Panama to locate the U.S. and Israeli Embassies and to assess the vulnerabilities of the Panama Canal and ships in the Canal. Kourani allegedly conducted surveillance of potential targets in America, including military and law enforcement facilities in New York City. Thanks to the outstanding work of the FBI and NYPD, the allegedly destructive designs of these two Hizballah operatives have been thwarted, and they will now face justice in a Manhattan federal court.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The charges announced today reveal once again that the New York City region remains a focus of many adversaries, demonstrated as alleged in this instance by followers of a sophisticated and determined organization with a long history of coordinating violent activities on behalf of Hizballah. Our announcement today also reveals, however, that the dozens of agencies working together with our FBI JTTFs nationwide are just as determined to disrupt the plans of those working to harm our communities. I’d like to thank the hundreds of investigators who comprise the FBI’s New York JTTF and display constant vigilance on our behalf, and I encourage the public to remain engaged and to immediately report suspicious activity to law enforcement.”
NYPD Commissioner James P. O’Neill said: “As part of his work for Hezbollah, Kourani and others allegedly conducted covert surveillance of potential targets, including U.S. military bases and Israeli military personnel here in New York City. Pre-operational surveillance is one of the hallmarks of Hezbollah in planning for future attacks. As alleged, Kourani, on at least two occasions, received sophisticated military training overseas, including the use of a rocket propelled grenade. In addition, El Debek is charged in an unrelated complaint, for allegedly possessing extensive bomb making training received from Hezbollah. Today’s charges of two for their work on behalf of Hezbollah is a tribute to the collaborative work of the agents and detectives of the Joint Terrorism Task Force.”
As alleged in the criminal Complaints against KOURANI and EL DEBEK,[1] both of which were unsealed today in Manhattan federal court:
Background on Hizballah and the Islamic Jihad Organization
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components. Hizballah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including United States citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the U.S. Department of State designated Hizballah a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world, and a continued security threat to the United States.
The Islamic Jihad Organization (“IJO”), which is also known as the External Security Organization and “910,” is a component of Hizballah responsible for the planning and coordination of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, which killed six people and injured 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, including chemicals manufactured by a medical devices company based in Guangzhou, China (“Guangzhou Company-1”), and a similar seizure of chemicals manufactured by Guangzhou Company-1 in Cyprus in May 2015 in connection with the arrest of another IJO operative.
KOURANI’s Alleged Support of Hizballah
KOURANI, who was born in Lebanon, attended Hizballah-sponsored weapons training in Lebanon in 2000 when he was approximately 16 years old. After lawfully entering the United States in 2003, KOURANI obtained a Bachelor of Science in biomedical engineering in 2009, and a Masters of Business Administration in 2013.
KOURANI and certain of his relatives were present during the summer 2006 conflict between Israel and Hizballah in Lebanon, when a residence belonging to his family was destroyed. KOURANI was subsequently recruited to join the IJO by 2008. In August 2008, KOURANI submitted an application for naturalization in the United States in which he falsely claimed, among other things, that he was not affiliated with a terrorist organization. In April 2009, KOURANI became a naturalized citizen and was issued a United States passport. Despite claiming in his passport application that he had no travel plans, KOURANI traveled to Guangzhou, China – the location of Guangzhou Company-1 – on May 3, 2009. He later claimed to the FBI that the purpose of the trip was to meet with medical device manufacturers and other businessmen.
KOURANI was assigned an IJO handler, or mentor, responsible for providing him with taskings, debriefings, and arranging training. KOURANI sometimes communicated with his handler using coded email communications, including messages sent by the handler that informed KOURANI of the need to return to Lebanon. In order to establish contact with his handler when KOURANI returned to Lebanon, KOURANI called a telephone number associated with a pager (the “IJO Pager”) and provided a code that he understood was specific to him. After KOURANI called the IJO Pager, the handler would contact KOURANI to set up an in-person meeting by calling a phone belonging to one of KOURANI’s relatives. The IJO also provided KOURANI with additional training in tradecraft, weapons, and tactics. In 2011, for example, KOURANI attended an IJO military training camp located in the vicinity of Birkat Jabrur, Lebanon, where he was provided with military-tactics and weapons training, including training in the use of a rocket propelled grenade launcher, an AK-47 assault rifle, an MP5 submachine gun, a PKS machine gun (a Russian-made belt-fed weapon), and a Glock pistol.
Based on requests from IJO personnel, which were conveyed during periodic in-person meetings when KOURANI returned to Lebanon, KOURANI also conducted operations that included searching for weapons suppliers in the United States who could provide firearms to support IJO operations, identifying individuals affiliated with the Israeli Defense Force, gathering information regarding operations and security at airports in the United States and elsewhere, and surveilling U.S. military and law enforcement facilities in Manhattan and Brooklyn. KOURANI transmitted some of the products of his surveillance and intelligence-gathering efforts back to IJO personnel in Lebanon using digital storage media.
EL DEBEK’s Alleged Support of Hizballah
EL DEBEK, a naturalized U.S. citizen, was first recruited by Hizballah in late 2007 or early 2008, began to receive a salary from Hizballah shortly thereafter, and was paid by Hizballah through approximately 2015. In July 2006, shortly before he was recruited by Hizballah, EL DEBEK expressed by email his support for Hassan Nasrallah, the leader of Hizballah.
EL DEBEK received military training from Hizballah in Lebanon on several occasions, from approximately 2008 through approximately 2014. EL DEBEK received training in basic military tactics, the handling of various weapons, surveillance and counter-surveillance techniques, and the creation and handling of explosives and explosive devices. Based on information EL DEBEK provided to the FBI, FBI bomb technicians have assessed that EL DEBEK received extensive training as a bomb-maker, and has a high degree of technical sophistication in the area. EL DEBEK received by email in 2010 a list of raw materials that could be sent from Syria or Dubai, including items often used in explosives and improvised explosive devices.
EL DEBEK also conducted missions for Hizballah in Thailand and Panama. In May 2009, EL DEBEK traveled from Lebanon, through Malaysia, to Thailand, where his mission was to clean up explosive precursors in a house in Bangkok that others had left because they were under surveillance. EL DEBEK used his U.S. passport to enter and leave Thailand, consistent with his instructions from Hizballah to use his U.S. passport in that manner, so he could travel from Malaysia to Thailand without obtaining a visa.
EL DEBEK first traveled to Panama for Hizballah in 2011, where his operational tasks included locating the U.S. and Israeli Embassies, casing security procedures at the Panama Canal and the Israeli Embassy, and locating hardware stores where explosive precursors could be purchased. Shortly before traveling to Panama, EL DEBEK updated his status on Facebook with a post that read, in part, “Do not make peace or share food with those who killed your people.”
In early 2012, EL DEBEK again traveled to Panama for Hizballah, passing through New York and New Jersey, and was asked to identify areas of weakness and construction at the Panama Canal, as well as provide information about how close someone could get to a ship passing through the Canal. Upon his return from Panama, EL DEBEK’s IJO handlers asked him for photographs of the U.S. Embassy there and details about its security procedures.
EL DEBEK has told the FBI that he was detained by Hizballah from December 2015 to April 2016 and falsely accused of spying for the United States. Between November 2014 and February 2017, EL DEBEK, who received religious training from Hizballah, has conducted more than 250 Facebook searches using search terms such as “martyrs of the holy defense,” “martyrs of Islamic resistance,” “Hizballah martyrs,” and “martyrs of the Islamic resistance in Lebanon.”
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KOURANI, 32, of the Bronx, is charged with providing material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; receiving military-type training from a designated foreign terrorist organization, which carries a sentence of 10 years in prison or a fine; conspiracy to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; conspiracy to possess, carry, and use firearms and destructive devices during and in relation to crimes of violence, which carries a maximum sentence of life in prison; making and receiving a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; conspiracy to make and receive a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; and naturalization fraud in connection with an act of international terrorism, which carries a maximum sentence of 25 years in prison.
EL DEBEK, 37, of Dearborn, Michigan, is charged with providing material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; receiving military-type training from a designated foreign terrorist organization, which carries a sentence of 10 years in prison or a fine; conspiracy to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; possessing, carrying, and using firearms and destructive devices during and in relation to crimes of violence, which carries a maximum sentence of life in prison; making and receiving a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; and conspiracy to make and receive a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD. Mr. Kim also thanked the FBI’s Detroit Office and the Counterterrorism Section of the Department of Justice’s National Security Division.
These prosecutions are handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle are in charge of the prosecution of KOURANI, and Assistant U.S. Attorneys Andrew D. Beaty and Stephen J. Ritchin are in charge of the prosecution of EL DEBEK. Trial Attorneys Lolita Lukose and Alexandra Hughes of the National Security Division’s Counterterrorism Section are assisting the prosecutions.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth below constitute only allegations, and every fact described should be treated as an allegation.
Billings Contractor and Companies Sentenced to Two Years in Prison and $4.58 Million in Fines and RestitutionRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that Kevin David McGovern was sentenced to 24 months of imprisonment, $880,000 in restitution (joint and several with his companies), $800,000 in fines, $500 in special assessments, and 2,000 hours of community service. CMG Construction, Inc., was ordered to pay $1.0 million in restitution, $1.6 million in fines, and $1,600 in special assessments. And MC Equipment Holdings, LLC, was sentenced to $380,000 in restitution, $800,000 in fines, and $800 in special assessments. All total, McGovern and his companies were required to pay $4.58 million in restitution and fines. The sentencing occurred on June 8, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.
In November 2016, a federal trial jury convicted Kevin McGovern and CMG Construction, Inc., of conspiracy, wire fraud, and bribery, all of which was associated with a pay-to-play scheme on the Rocky Boy’s Indian Reservation.
Tony James Belcourt was in care, custody, and control of over $85 million of federal and tribal funds for the construction of a rural water project and several disaster relief projects on the reservation. Of that amount, $52 million was associated with the Rocky Boy/North Central Montana Rural Water System, $11 million was provided by FEMA for the flash floods that occurred in June 2010, and $25 million was provided by the Tribe’s insurance carrier.
Between January 2010 and March 2013, Belcourt’s job duties included serving as a representative in the House of Representatives for the State of Montana, the CEO for the Chippewa Cree Construction Corporation, a member of the Tribe’s Insurance Recovery Team, and the Incident Commander for FEMA. Belcourt and other tribal officials required contractors to pay kickbacks and bribes in order to receive contracts and contract payments. Belcourt was previously convicted for accepting bribes and is currently serving a 90-month sentence in federal prison.
In June 2011, Kevin McGovern and his company, CMG Construction, Inc., received three unadvertised, sole-sourced contracts valued at $2.5 million without being required to submit bids to the Chippewa Cree Construction Corporation. In return, Belcourt received $324,333 through a company called MT Waterworks, LLC. Belcourt never provided any services to MT Waterworks, LLC, which was started with $100,000 of embezzled federal funds from the rural water system. MT Waterworks, LLC, was owned by Belcourt, McGovern, and a third businessman from Billings.
In July 2011, Belcourt drove from his home in Box Elder, Montana, to Billings, Montana, and gave Kevin McGovern a $200,000 progress payment of federal funds for work performed on FEMA-related disaster projects. The following day, McGovern gave a personal loan to Tony Belcourt in the amount of $50,000. Then, at Belcourt’s direction, McGovern sent $25,000 as a donation to the Chippewa Cree Events Committee, which was a known slush fund for a tribal councilman who was previously convicted for accepting bribes.
The jury convicted McGovern and CMG Construction, Inc., of conspiracy, wire fraud, and bribery of Tony Belcourt. The jury acquitted McGovern and CMG Construction, Inc., of one count that involved bribery of another tribal official.
In addition to bribing Belcourt for contracts, McGovern and MC Equipment Holdings, LLC, also pleaded guilty to wire fraud and theft in connection with the February 2012 sale of a “hot plant” to the Chippewa Cree Tribe. A “hot plant” is a portable industrial paving machine that consists of several interlocking components, including an asphalt tank and silo, drum mixer, conveyor system, and control house that, when properly assembled, produced hot asphalt that can be used on paving projects, such as roads and parking lots. McGovern inflated the purchase price of the hot plant by $380,000, of which $229,000 he paid to Belcourt. The “hot plant” was never assembled or used by the Tribe. It was subsequently sold at a loss by the Chippewa Cree Construction Corporation in June 2015.
CMG Construction, Inc., also pleaded guilty to a false claims act conspiracy in connection with a March 2013 claim in the amount of $3.8 million submitted by the Chippewa Cree Tribe to FEMA. This claim contained inflated invoices from CMG Construction, Inc., relating to the demolition of the health clinic.
In a sentencing memo filed in federal court, Ryan G. Weldon and Bryan T. Dake stated, “This case is purely about greed. McGovern had a multi-million dollar business in Billings, Montana. His personal bank account had almost $1,000,000. He had everything. CMG Construction, Inc., did not have to bribe to obtain business. It was a thriving and legitimate venture that employed hundreds of people. McGovern, though his companies, chose to engage in the corrupt practices at the Rocky Boy’s Indian Reservation.”
Acting United States Attorney Leif Johnson said the conviction and sentence reaffirms the line that exists between corrupt business and those that are merely aggressive: “Too often, in pursuit of a profit, a businessman seeks an advantage that is one step too far and begins a relationship involving taxpayer monies that seems too good to be true. It starts with great promise and ends with the loss of everything—reputation, fortune, and freedom.”
The Department of Interior, Office of Inspector General, Western Region, Special Agent In Charge David A. House stated, “This latest corruption conviction involving the Rocky Boy/North Central Montana Rural Water System, a water project designed to deliver safe drinking water to the Chippewa Cree Tribe and several rural Montana communities. This is another successful effort by the Montana Guardians Project wherein corruption was identified and vigorously prosecuted in an effort to stop unjust personal enrichment. Prosecutions such as these allow federal agencies, and tribal organizations, to rebuild from criminal impact. It also demonstrates our commitment to protecting taxpayer funds and our trust responsibilities to Tribes.”
“IRS Criminal Investigation provides financial investigative expertise while working with our law enforcement partners,” said Steven Osborne, Special Agent In Charge, IRS-Criminal Investigation for Montana. “Pooling skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today’s sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”
The convictions and sentencing of McGovern, CMG Construction, Inc., and MC Equipment Holdings, LLC, are the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts, and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The McGovern, CMG Construction, Inc., and MC Equipment Holdings, LLC, cases were investigated by the Department of Interior, Office of Inspector General, Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Division.
Berkeley County man admits to illegally possessing a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia man was convicted today of illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Anthony Jerome Addison, age 39, pled guilty to one count of “Unlawful Possession of a Firearm.”
Addison admitted to possession a rifle in Jefferson County in June 2016. Addison, having previously been convicted of distribution of cocaine base in United States District Court for the Northern District of West Virginia, is prohibited from possessing firearms.
Addison faces up to ten years incarceration and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Berkeley County man admits to his role in heroin trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hedgesville, West Virginia man was convicted today of heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wayne Kegley, age 44, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Kegley admitted to his role in a heroin distribution operation in Berkeley County and Baltimore, Maryland in June 2016.
Kegley faces up to twenty years and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bellevue Felon Stole then Sold 3 FirearmsRead the Press Release
PITTSBURGH – A resident of Bellevue, Pennsylvania, pleaded guilty in federal court to three counts of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
Patrick Snyder, age 33, pleaded guilty to three counts of possession of firearms by a prohibited person before United States District Judge Nora Barry Fischer. Snyder was previously convicted of a felony offense and is prohibited from possessing firearms.
In connection with the guilty plea, the court was advised that from December 2016 to January 2017, Snyder illegally possessed three firearms when he stole them from the lawful owner and sold them to third parties.
Judge Fischer scheduled sentencing for November 1, 2017. The law provides for a maximum total sentence of up to 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bellevue Police Department conducted the investigation leading to the indictment in this case. Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
Battle Creek Man Pleads Guilty to Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Matthew John Andaluz, 44, of Battle Creek, Michigan pleaded guilty before the Hon. Robert J. Jonker, Chief U.S. District Judge, to producing child pornography, Acting U.S. Attorney Andrew Birge announced today. Andaluz faces a minimum of 15 years and a maximum of 30 years of imprisonment, and he will be required to serve a term of supervised release after his prison term has been completed. Andaluz will also be required to register as a sexual offender.
Andaluz admitted at the plea hearing that he had taken pornographic photographs of a ten-year-old child at his home in Calhoun County. The conduct occurred in late 2010 and early 2011. Andaluz came to the attention of law enforcement in November 2016, when agents and investigators traced images Andaluz had distributed over the Internet back to his home in Calhoun County. Agents executed a search warrant at Andaluz’s home on December 16, 2016, and arrested him. Andaluz remains in custody pending sentencing, which is scheduled for September 25, 2017.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: http://www.projectsafechildhood.gov/. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Army Colonel and Others Indicted in $20 Million Bribery and Fraud Scheme Arising Out of Fort Gordon, GeorgiaRead the Press Release
SAVANNAH, GA – Anthony Tyrone Roper, 55, an active duty Colonel with the U. S. Army stationed at Fort Gordon; Audra Roper, 49, the wife of Colonel Roper; and Dwayne Oswald Fulton, 58, a former employee of a defense contracting firm, were indicted this week by a federal grand jury sitting in Savannah, Georgia for their alleged roles in a bribery and kickback scheme. Each of the Defendants reside in Augusta, Georgia. According to the allegations contained in the Indictment, beginning in 2008 and lasting almost a decade, Colonel Anthony Roper conspired with his wife, Fulton and others to solicit and accept cash bribes in exchange for rigging the award of over $20 million in U. S. Army contracts to selected individuals and companies. The indictment further alleges that in an attempt to hide their bribery and fraud schemes, the Defendants attempted to obstruct an official investigation into their criminal conduct.
Colonel Roper was charged with one count of conspiracy, three counts of bribery, four counts of false statements and one count of obstruction, with a maximum sentence of 85 years in prison and a $1.75 million fine. Audra Roper was charged with one count of conspiracy, one count of false statements and one count of obstruction, with a maximum sentence of 25 years in prison and a $750,000 fine. Fulton was charged with one count of conspiracy and one count of obstruction, with a maximum sentence of 20 years in prison and a $500,000 fine. An indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case has been investigated by Special Agent Preston T. Johnson of the U. S. Army, Criminal Investigations Division; Special Agent Randall J. Temples of the U. S. Department of Defense, Criminal Investigative Service; and, Special Agent Bryan M. Cofer of the U.S. Small Business Administration, Office of Inspector General. The investigation of this case remains ongoing. Assistant U. S. Attorney C. Troy Clark and Acting U.S. Attorney James D. Durham are prosecuting the case on behalf of the United States. Any questions should be directed to the U.S. Attorney’s Office at (912) 201-2522.
Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Lamonday Britt (45, Tampa) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition seized as part of the offense.
Britt pleaded guilty on April 6, 2017.
According to court documents, law enforcement officers executed a search warrant at Britt’s residence after he engaged in multiple sales of crack cocaine. During the execution of that search warrant, officers recovered a loaded firearm, loose rounds of ammunition, crack cocaine, marijuana, and cash. At the time of the offense, Britt was a convicted felon and therefore is prohibited from possessing a firearm or ammunition under federal law. Due to his prior convictions for robbery and narcotics offenses, he qualified for an increased penalty as an Armed Career Criminal.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Alton Couple Sentenced for Marijuana Conspiracy Based Out of their Family HomeRead the Press Release
CORPUS CHRISTI, Texas – A local couple will serve 10 years in federal prison for their roles in a drug conspiracy they ran out of their home in Alton, announced Acting U.S. Attorney Abe Martinez. Rodolfo Chavez Gonzalez, 53, pleaded guilty Nov. 29, 2016, as did his wife - Maria Elizabeth Gonzalez, 48.
Today, U.S. District Judge Nelva Gonzales Ramos handed Chavez Gonzalez the 120-month sentence for possession with intent to distribute more than 150 kilograms of marijuana.
His wife was sentenced March 30, 2017, to also serve 120 months in federal prison. Their sentences will be immediately followed by eight-year-terms of supervised release.
The long-term investigation led to the identification of Rodolfo and Maria Gonzalez as the facilitators of multiple marijuana smuggling events, which had been thwarted by agents at the Falfurrias Border Patrol (BP) checkpoint.
Both Rodolfo and Maria Gonzalez admitted they had knowingly hired co-conspirators to transport marijuana, concealed inside of tires, from their family home in Alton to buyers in the Houston area. At the time of their pleas, they also acknowledged they faced enhanced punishment in this case as they each had been previously convicted of the same offense in the Southern District of Texas in 2001.
The couple has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining defendants have all entered pleas of guilty and await sentencing for their respective roles in the conspiracy.
The Drug Enforcement Administration conducted the investigation with the assistance of U.S. Border Patrol. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Allen County Accountant Charged with Wire Fraud and Filing Fraudulent Individual Federal Tax ReturnsRead the Press Release
Failed to include over $600,000 in reportable income on federal tax returns
LOUISVILLE, Ky. – An Allen County Kentucky accountant was charged this week by a federal criminal information with devising a scheme to defraud his employer, and with filing fraudulent individual income tax returns, over a five-year period, that failed to include over $600,000 in reportable income, announced United States Attorney John E. Kuhn, Jr.
According to the Information, Stephen C. Jones, 50, of Scottsville, Kentucky, committed wire fraud between January of 2010 and August of 2015, when he devised and executed a scheme to defraud his employer, by diverting money from the company’s bank account to his personal bank account.
Further, Jones is charged with preparing and presenting jointly-filed, U.S. Individual Income Tax Returns, to the Internal Revenue Service, for calendar years from 2011 to 2015, that were false and fraudulent, as they did not include approximately $631,691 in reportable income, which Jones knew was income and that should have been reported.
Charges in Kentucky Circuit Court have been dismissed in order for the federal prosecution of defendant Jones to proceed.
If convicted at trial, Jones could be sentenced to no more than 20 years for Count One and no more than three years for each of Counts Two through Six.
Assistant United States Attorney Amanda Gregory is prosecuting the case. The Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), and the Allen County Sheriff’s Office investigated the case.
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