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Monday 24 April 2017
Former Boilermakers Business Manager Charged with Embezzling $1.5 Million, Income Tax EvasionRead the Press Release
PITTSBURGH - An Information has been filed in federal court charging an Allegheny County resident with one count of embezzlement and theft of Labor Union assets and five counts of income tax evasion, Acting United States Attorney Soo C. Song announced today.
Raymond C. Ventrone, 59, of Pittsburgh, Pa. was the Business Manager of Local 154 of the International Association of Boilermakers from January 2010 to June 2015. According to the Information filed, during that time, Ventrone embezzled approximately $1,499,000 of union funds for his own use. In addition, Ventrone evaded payment of his income taxes on the embezzled monies.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, the Department of Labor-OIG and the Office of Labor Management Standards conducted the investigation leading to the information in this case.
A criminal Information is an accusation. A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Former BB&T Senior Vice-President and Regional Branch Operations Manager Pleads Guilty to EmbezzlementRead the Press Release
Abingdon, VIRGINIA – A former senior vice-president with BB&T, who stole cash from bank vaults to which she had access through her employment with the bank, pled guilty to federal embezzlement charges this morning in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Melissa D. Huffman, 46, of Roanoke, Virginia, waived her right to be indicted and pled guilty this morning to a one count Information charging embezzlement from a FDIC-insured bank.
United States District Judge James P. Jones scheduled a sentencing hearing for August 1, 2017, at 2:30 p.m. At sentencing, Huffman faces a maximum possible penalty of up to 30 years in prison and a fine of up to $1,000,000. Huffman agreed to make full restitution and to pay more than $30,000 toward restitution by May 24, 2017.
Between 2014 and December 2016, Huffman worked as a senior vice-president and regional branch operations manager for BB&T. As part of her official duties, Huffman had access to the vaults of BB&T’s banks throughout the Western District of Virginia. On several occasions, Huffman stole case from the vaults she visited and caused the shortages to be attributed to subordinate employees at the banks. The branches from which she stole cash included Boonsboro, Fort Hill, Martinsville, Tanglewood, Tazewell, and Warrenton.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Fontana Company, Owner and 3 Employees Charged with Violating Clean Water Act by Illegally Discharging Industrial Waste into SewersRead the Press Release
LOS ANGELES – A federal grand jury has issued a 12-count superseding indictment that accuses a Fontana company, its owner and three employees with violating the Clean Water Act by regularly engaging in illegal discharges of acidic industrial wastewater into a sewer system, as well as tampering with monitoring devices designed to prevent those violations.
The indictment, which was returned by the grand jury last Wednesday afternoon, charges:
Starlite Reclamation Environmental Services, Inc.;
Christopher Jaramillo, 47, of Victorville, the owner and president of Starlite;
Robert Conn, 74, of Torrance, a former Starlite Vice President who was responsible for overseeing wastewater treatment;
Andrew Hucks, 29, formerly of Riverside and now residing in another state, a former Starlite employee who acted as a plant operator; and
Fernando Torres, 40, formerly of San Bernardino and now believed to be residing in the Central Valley, another former plant operator at Starlite.
The indictment charges the five defendants with conspiring to violate the Clean Water Act, nine counts of violating the Clean Water Act by knowingly discharging a low-pH wastewater pollutant, and two counts of tampering with a monitoring device.
The substantive Clean Water Act counts allege that Starlite discharged wastewater with an average pH of 3 – well below the national standard pH level of 5 mandated by the Clean Water Act. There are strict controls on the discharge of acidic wastewater into sewer systems because low pH wastewater can cause damage to sewage treatment systems.
Starlite treated and disposed of industrial wastewater. But, according to the indictment, the company and the individual defendants repeatedly and regularly discharged acidic wastewater into a sewer system operated by the Inland Empire Utilities Agency, and, ultimately, by the Sanitation Districts of Los Angeles County, from November 2014 through June 2015.
While Starlite was required to monitor the wastewater it discharged into the sewer, the indictment alleges that the defendants attempted to avoid detection of the illegal discharges by placing monitoring devices in buckets of clean water. As a result of this tampering, the monitors created records that showed the discharges were within legal limits, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The indictment filed last week supersedes an indictment returned by another federal grand jury in June 2015. The initial indictment charged only Conn with 12 counts of violating the Clean Water Act. Conn previously pleaded not guilty to the charges in that indictment.
In relation to the superseding indictment, the five defendants will be summoned to appear in United States District Court for arraignments in May.
If they are convicted of the 12 counts in the indictment, each of the four individual defendants would face a statutory maximum of 54 years in prison. If Starlite is convicted, the company would face fines of up to $6 million.
The investigation in this case was conducted by the Environmental Protection Agency, the Inland Empire Utilities Agency, and the Sanitation Districts of Los Angeles County.
The prosecution of Starlite and the other defendants is being handled by Assistant United States Attorneys Dennis Mitchell and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Federal Jury Convicts Silver City Man on Federal Firearms and Narcotics Trafficking OffensesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict on Friday afternoon (April 21, 2017) finding Trevor Lee Thayer, 46, of Silver City, N.M., guilty of violating the federal firearms and narcotics trafficking laws after a five-day trial. The jury found Thayer guilty on two firearms charges and one narcotics trafficking charge, and acquitted Thayer on three firearms charges and a narcotics trafficking charge.
The jury’s verdict was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Thayer was charged with firearms and narcotics trafficking offenses in a five-count indictment that was filed on Feb. 13, 2013. The indictment charged Thayer with illegally possessing a short-barreled rifle and a silencer, manufacturing a silencer, manufacturing marijuana, and possessing a firearm in furtherance of a drug trafficking crime. On Aug. 14, 2013, Thayer was charged with the additional charge of maintaining premises for the purpose of manufacturing marijuana in a superseding indictment. The indictment was superseded a second time on Sept. 13, 2016, to include two additional charges for manufacturing silencers. Thayer was charged with committing these offenses in Grant County, N.M., in Aug. 2012.
Thayer’s trial began on April 17, 2017, and concluded on April 21, 2017, when the jury returned a guilty verdict on Counts 2, 4 and 5 of the second superseding indictment, which charged him with unlawful possession of a silencer, unlawful possession of a silencer manufacturing kit, and manufacturing and possessing approximately 30 marijuana plants. The jury acquitted Thayer on Counts 1, 3, 6 and 7.
The jury’s guilty verdict was based on evidence establishing that in Aug. 2012, law enforcement officers executed a search warrant at Thayer’s residence and seized eight firearms, hundreds of rounds of ammunition, two silencers, a silencer manufacturing toolkit, marijuana plants and marijuana plant manufacturing materials. Investigation revealed that Thayer modified a firearm and manufactured the two silencers, one metal and one plastic, and that he did not have any firearms registered to him in the national Firearms Registration and Transfer Record.
The evidence at trial also established that in Aug. 2012, Thayer was manufacturing and growing marijuana plants at his residence with an expired grow license from the State of New Mexico.
At sentencing, Thayer faces a statutory maximum penalty of ten years in prison on each of the two firearms charges and five years in prison on the marijuana offense.
This case was investigated by the Las Cruces offices of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the New Mexico Motor Transportation Police and the New Mexico State Police. Assistant U.S. Attorneys Maria Y. Armijo and Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Federal Jury Convicts Lamont Fortune in Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on April 20, 2017, Lamont Darnell Fortune, 36, of Johnson City, Tennessee, was convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine.
Sentencing is set for 10:00 a.m., August 8, 2017, before the Honorable Judge Leon Jordan, Senior U.S. District Court Judge. Fortune faces a mandatory minimum of 20 years in prison up to life.
From January 2011 to November 2015, Fortune conspired with others to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. During this period, he made regular trips from Johnson City to Winston-Salem, North Carolina, to obtain multi-ounce quantities of crack cocaine to supply his coconspirators, who then sold those drugs in Johnson City and Bristol, Tennessee. Fortune supplied crack cocaine to an individual working on behalf of law enforcement on two occasions. In May 2015, he led Virginia law enforcement on a high-speed chase on I-77, at speeds of over 120 mph, as he returned from one of those drug supply trips. Three of Fortune’s coconspirators pleaded guilty prior to his trial and have not yet been sentenced.
This long-term investigation was the product of a partnership between the Johnson City Police Department and Federal Bureau of Investigation. Former Assistant U.S. Attorney Nick Regalia participated in the prosecution and Assistant U.S. Attorneys David Gunn and Christian Lampe represented the United States at trial.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Federal Indictment Charges A Charlotte Man, His Wife, and His Mother with Conspiracy to Sex Traffic Three Minors and Related ChargesRead the Press Release
CHARLOTTE, N.C. – A Charlotte man, his wife, and his mother are facing federal charges for engaging in a conspiracy to sex traffic three minor victims and related charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned the eight count indictment on April 20, 2017, charging Zerrell Ross Fuentes, 22, Brianna Leshay Wright, a.k.a. Brianna Fuentes, 24, and Tanya Marie Fuentes, 53, all of Charlotte, with one count of sex trafficking conspiracy, two counts of sex trafficking of a minor, and three counts of transportation of a minor to engage in prostitution. Brianna Wright and Tanya Fuentes are also charged with one additional count of sex trafficking of a minor.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.
The federal indictment alleges that between April 28, 2016 and May 8, 2016, the three defendants conspired with each other to recruit, entice, harbor, transport, provide and obtain by any means three minors, for the purpose of engaging in commercial sex act. The indictment also alleges that the minors were transported across state lines for the purposes of prostitution.
Specifically, the indictment alleges that Zerrell Fuentes, while in jail, used a telephone to recruit three minor victims living in Charlotte to engage in commercial sex acts for his benefit, knowing the minor victims were not yet 18 years of age. The indictment further alleges that Zerrell Fuentes used the telephone to arrange for the minor victims’ transportation from Charlotte to Myrtle Beach to engage in commercial sex acts for his benefit. Specifically, according to allegations contained in the indictment, the proceeds from the conspiracy would be used to pay Zerrell Fuentes’ bond so he could get out of jail.
According to the indictment, Brianna Wright, accompanied by Tanya Fuentes, transported the minor victims from Charotte to Myrtle Beach by car, so the minor victims could engage in commercial sex acts. While in Myrtle Beach, Tanya Fuentes paid for lodging for the two adult women and the minor victims. The indictment also alleges that Brianna Wright facilitated the placement of advertisements on the Internet, advertising the minor victims for commercial sex acts. She also provided her own telephone number on the ads, as a means of communication to arrange “dates” between the minor victims and customers, where the minor victims would be caused to engage in commercial sex acts. Brianna Wright also transported the minor victims to and from the arranged prostitution “dates.”
Zerrell Fuentes is currently in custody on a federal firearms violation and will appear in court on the sex trafficking charges. Brianna Wright and Tanya Fuentes will have their court appearances this morning before U.S. Magistrate Judge David Cayer.
The penalty for each of the eight sex trafficking related offenses is a mandatory minimum of 10 years and a maximum of life in prison and a $250,000 fine. Zerrell Fuentes is also facing a maximum penalty of up to 10 years in prison and a $250,000 fine for the unrelated firearms offense.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was handled by the FBI, HSI and CMPD. Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s office in Charlotte, is prosecuting the case.
Federal Grand Jury Indicts McKinney Man Charged with Fraudulently Obtaining and Cashing $16 Million in U.S. Treasury ChecksRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas last week, and unsealed today, charges Moiz Mumtaz Ali, 36, of McKinney, Texas, with offenses related to his role in fraudulently obtaining and cashing 3,423 U.S. Treasury checks totaling approximately $16 million, announced John Parker, U.S. Attorney for the Northern District of Texas.
Specifically, Ali is charged with one count of conspiracy to commit bank fraud, twenty-six counts of bank fraud, one count of theft of public money and property, two counts of aggravated identity theft, and one count of failure to develop, implement, and maintain anti-money laundering program. Ali will remain on bond pending trial.
The indictment alleges that from December 2010 through June 2012, Ali operated, and managed Gateway Newsstands (“Gateway”), located at 700 North Pearl Street, Dallas Texas. The business included a convenience and check-cashing store and was registered as a money service business, with the ability to cash checks for customers and members of the general public. Ali was responsible for Gateway’s check cashing operations and oversaw the day-to-day operations of the store, approved transactions, and maintained control of the business’ bank accounts.
Ali and others devised a scheme to defraud Neighborhood Credit Union by negotiating fraudulently obtained United States Treasury checks. False and fraudulent tax returns were filed using the personal identifying information of legitimate tax payers without the tax payers’ authorization. Once these fraudulent returns were submitted and approved by the Internal Revenue Service, co-conspirators received United States Treasury checks that represented the fraudulently obtained tax refunds. Co-conspirators brought these United States Treasury checks to Ali at Gateway. The United States Treasury checks were exchanged with Ali for cash that represented a percentage of the stated amount of each check.
Between December 2010 through June 2012, Ali negotiated and cashed approximately 3,423 United States Treasury checks totaling approximately $16,600,000.00. The vast majority of the checks were addressed to individuals with out-of-state addresses. Most of the checks had been obtained through fraud, either because the checks were based on fraudulent federal tax returns or because the checks had been stolen.
The indictment also alleges Ali failed to require and/or retain copies of any identification documents applicable to the party cashing the Treasury checks or to the payees whose names were on the Treasury checks he accepted and cashed. In those very limited instances in which Ali purportedly required identification and retained a copy of such identification, Ali failed to take any steps to verify whether the identification document was false, fictitious, or counterfeit.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, the bank fraud counts carry a maximum statutory penalty of 30 years in federal prison and a $1,000,000 fine. The theft of public money and property carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each count of aggravated identity theft carries a maximum statutory penalty of 2 years in federal prison and a $250,000 fine. The failure to develop, implement, and maintain anti-money laundering program carries a maximum statutory penalty of 10 years in federal prison and a $500,000 fine.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense.
The case is being investigated by the Internal Revenue Service and the U.S. Secret Service.
Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
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Federal Correctional Officer Charged with Accepting Bribes for Prison ContrabandRead the Press Release
BIRMINGHAM – Federal prosecutors last week charged a former employee at the Federal Correctional Institution at Aliceville with accepting $5,695 in bribes to smuggle contraband into the prison and lying about it to investigators, announced Acting U.S. Attorney Robert O. Posey, FBI Special Agent in Charge Roger C. Stanton and Department of Justice, Office of the Inspector General, Special Agent in Charge Robert A. Bourbon.
The U.S. Attorney’s Office filed a two-count information in U.S. District Court charging ERIC C. PENDLETON, 54, of Montgomery, with accepting a bribe in return for violating his official duty as a federal correctional officer, and with making false statements to agents of the FBI and the DOJ-OIG. In conjunction with the charges, prosecutors also filed a plea agreement with Pendleton.
As a federal correctional officer, Pendleton was a public official. He worked at the women’s prison from about January 2014 to August 2015. Beginning about September 2014, Pendleton worked as a federal materials handler supervisor in the prison commissary and laundry, overseeing inmates assigned to work in those facilities, according to his plea agreement.
During that time, Pendleton reached an agreement with an inmate to bring requested items, including prohibited items such as cigarettes, into the prison in return for payment, according to his plea agreement. Pendleton arranged for payment by providing inmates with prepaid credit card numbers and instructing them to have friends or family members load money onto the cards. He also told inmates they could pay him by having friends or family send money orders to a Tuscaloosa County address, according to the plea agreement. Pendleton owned the home at that address, but relatives lived there.
Pendleton deposited many of the money orders into his bank account, some bearing the name of the inmate on whose behalf the payment was made in the “memo” line, according to the plea agreement.
When agents interviewed Pendleton in September 2015, he falsely denied smuggling contraband into the prison or providing credit card numbers or an address to inmates so they could have payments sent to him, his plea agreement states.
The FBI and DOJ-OIG investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
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Fairfield County Drug Trafficker Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BOBBY GUTIERREZ, also known as “B.O,” 37, formerly of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 160 months of imprisonment, followed by five years of supervised release, for trafficking heroin and cocaine.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, arose from several overdoses that involved heroin/fentanyl marked with the same brand stamp on the packaging.
According to court documents and statements made in court, between approximately September 2015 and May 2016, BOBBY GUTIERREZ and others, including his brother Wilfredo Gutierrez, also known as “Bean” and “Big Pun,” conspired to distribute at least 10 kilograms of heroin in Fairfield County. BOBBY GUTIERREZ and others also acquired kilogram quantities of cocaine from sources located in Florida and New York and sold the drug locally.
As part of this investigation, law enforcement officers executed several federal search warrants on May 26 and May 27, 2016. A search of BOBBY GUTIERREZ’s Bridgeport residence revealed a quantity of cocaine, $25,916 in cash and other items used in the trafficking of narcotics; a search of his girlfriend’s residence revealed $47,316 in cash, more than three kilograms of cocaine, and two firearms, and a search of B & B Deli in Bridgeport, which was owned by the Gutierrez family and served as a hub for drug dealing, revealed two digital scales, two large ziplock bags containing what appeared to be cutting agents, and five cellphones.
Nine individuals were charged as a result of the investigation. All pleaded guilty.
BOBBY GUTIERREZ has been detained since his arrest on May 26, 2016. On November 21, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine and one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
As part of this sentence, BOBBY GUTIERREZ was ordered to forfeit $171,462, which includes cash that was seized from a co-defendant in Florida in April 2016, and cash seized during the searches in May 2016.
On March 16. 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Energy & Process Corp. agrees to pay $4.6 Million for alleged False Claims Regarding Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
ATLANTA – Energy & Process Corporation (“E&P”), of Tucker, Georgia, has agreed to pay the United States $4.6 million to resolve allegations that it violated the False Claims Act by knowingly failing to perform mandatory quality assurance procedures and, as a result, supplying the Government with defective steel reinforcing bars (“rebar”) for use in constructing a U.S. Department of Energy (“DOE”) nuclear processing facility – i.e., the Mixed Oxide Fuel Fabrication Facility (“MOXX Facility”) – at the Savannah River Site, which is near Aiken, South Carolina. The MOXX Facility has never been operational or processed nuclear materials, and currently remains under construction.
“Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the Government that it had performed the quality assurance work.” said U.S. Attorney John Horn. “This settlement recovers substantial losses caused by E&P’s decision to cavalierly place its own profits above its commitment to adhere to important nuclear safety and quality control requirements.”
“Compliance with contract requirements is expected by all who contract with the U.S. government, but is especially critical in connection with the construction of a nuclear facility,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The Government alleges that, although the DOE – in connection with construction of the MOXX Facility – paid E&P to supply rebar meeting the stringent quality assurance standards of the U.S. Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed its failing by falsely certifying that it had completed the work. As result of E&P’s failure to perform the requisite quality assurance work, one-third of the rebar supplied by E&P for use in the MOXX Facility was incorrectly bent, and therefore outside of safety specifications. After discovering the deficiency, the DOE undertook costly and time-consuming measures and successfully remediated the potential hazards associated with E&P’s rebar to ensure the safe operation of the MOXX Facility.
The settlement resolves allegations filed by Deborah Cook, a former employee of the prime contractor building the facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case. The lawsuit was filed in the Northern District of Georgia and is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.). Ms. Cook will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina, and the Department of Energy’s Office of Inspector General.
Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel handled this matter for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Energy & Process Corp. Agrees to Pay $4.6 Million for Alleged False Claims Regarding Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
The Justice Department announced today that Energy & Process Corporation (E&P) of Tucker, Georgia, has agreed to pay $4.6 million to resolve the government’s lawsuit filed under the False Claims Act alleging that it knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy (DOE) nuclear waste treatment facility.
“Compliance with contract requirements is expected by all who contract with the U.S. government, but is especially critical in connection with the construction of a nuclear facility,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The lawsuit alleged that the DOE paid E&P a premium to supply rebar that met stringent regulatory standards for the Mixed Oxide Fuel Fabrication and Reactor Irradiation Services facility in the DOE’s Savannah River site near Aiken, South Carolina, but that E&P failed to perform most of the necessary quality assurance measures, while falsely certifying that those requirements had been met. The lawsuit further alleged that one-third of the rebar supplied by E&P and used in the construction was found to be defective. E&P subsequently replaced some of the defective rebar. The $4.6 million to be paid by E&P to resolve the government’s False Claims Act lawsuit is in addition to the replacement costs incurred by E&P.
“Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the Government that it had performed the quality assurance work,” said U.S. Attorney John A. Horn for the Northern District of Georgia. “This settlement recovers substantial losses caused by E&P’s decision to cavalierly place its own profits above its commitment to adhere to important nuclear safety and quality control requirements.”
The allegations resolved by this settlement arose in part from a whistleblower lawsuit filed under the False Claims Act by Deborah Cook, a former employee of the prime contractor that subcontracted with E&P in the course of building the DOE facility. Under the False Claims Act, private citizens can sue for false claims on behalf of the government and share in any recovery. The act permits the government to intervene and file its own complaint in such lawsuits, as it did in this case. Cook’s share of the settlement has not been determined.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Northern District of Georgia and the District of South Carolina and the Department of Energy’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only, and there has been no determination of liability.
Drug Dealing Pimp Sentenced to 18 Years in PrisonRead the Press Release
NORFOLK, Va. – A drug dealer who used his drug supply to coerce women into prostitution was sentenced today to 18 years in prison, followed by 10 years of supervised release. He will also be required to register as a sex offender.
Devon Jay Caldwell, 26, of Norfolk, pleaded guilty on January 17 to his involvement in a conspiracy to engage in sex trafficking by force, fraud, and coercion. According to a statement of facts filed with his plea agreement, Caldwell convinced several women with serious drug problems to work for him as prostitutes by promising them an unlimited supply of drugs in exchange for the money they earned from commercial sex acts. Caldwell arranged their prostitution appointments and set quotas for how much money certain of his prostitutes were required to earn. Caldwell provided the women with drugs in advance of their appointments, and at the conclusion of each act as a reward. If a woman did not want to perform commercial sex acts, Caldwell would withhold drugs from her causing, in some cases, significant physical withdrawal symptoms. Caldwell recruited three co-conspirators – including a 16-year-old boy – to help him run his business, set up appointments, and dole out or withhold drugs at his direction. Caldwell ran this business for a full year before Virginia Beach Police arrested him in August 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
This case was investigated by the Hampton Roads Human Trafficking Task Force, which includes the U.S. Attorney’s Office for the Eastern District of Virginia, the Virginia Attorney General’s Office, Homeland Security Investigations and the police departments and commonwealth’s attorneys of Virginia Beach, Chesapeake, Norfolk, Hampton and Newport News. Samaritan House, a Virginia Beach-based nonprofit, is helping the victims.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-2.
Davon Lymon Sentenced to Eighteen Years for Conviction on Federal Heroin Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – This morning, Chief U.S. District Judge M. Christina Armijo sentenced Davon Lymon, 36, of Albuquerque, N.M., for his conviction on federal heroin trafficking and firearms charges. Lymon was sentenced to 216 months (18 years) of imprisonment to be followed by three years of supervised release. The Chief Judge ordered that Lymon serve the 18-year prison sentence consecutive to the 20-year prison sentence previously imposed on April 5, 2017, on Lymon’s conviction on two felon in possession of firearms charges, for a total sentence of 38 years of imprisonment.
Lymon’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA, and Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD).
In announcing the sentence, Acting U.S. Attorney James D. Tierney said, “The U.S. Attorney’s Office prosecuted Davon Lymon on federal charges because as a community, we cannot and will not tolerate violence against law enforcement officers. The entire law enforcement community – federal, state, county, local and tribal – is committed to working collaboratively to thoroughly and completely investigate and prosecute those who seek to harm the courageous officers who put their lives on the line to protect us and safeguard our communities.”
“I wish to commend the investigative efforts of all our law enforcement partners involved in the federal prosecutions of Davon Lymon,” said Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “I also wish to recognize the determination of the federal prosecutors assigned to this case and the leadership of the U.S. Attorney’s Office.”
“Today’s sentencing closes the door on the federal prosecutions of Davon Lymon,” said Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA. “DEA and its law enforcement partners are committed to working together to ensure that drug traffickers who use firearms to facilitate their drug trafficking activities and to commit other crimes face the consequences of their criminal activities.”
"We are very grateful for the hard work of Assistant U.S. Attorneys Kimberly Brawley and Jacob Wishard of the U.S. Attorney’s office in the successful prosecution of Davon Lymon on federal charges,” said Chief Gorden E. Eden Jr., of the APD. “The federal convictions will ensure that Lymon remains behind bars until he can be prosecuted on his pending state charges.”
Lymon now stands convicted in two federal cases. The first indictment in the first case, filed on Nov. 27, 2015, charged Lymon with four counts of being a felon in possession of firearms and one count of possessing a stolen firearm (the firearms case). The indictment in the second case, filed on Dec. 2, 2015, charged Lymon with two heroin trafficking charges and a felon in possession of a firearm charge (the heroin trafficking case). At the time Lymon committed the crimes, he was prohibited from possessing firearms because of his prior felony convictions for voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud, and forgery.
Lymon was convicted on two of the four charges in the firearms case. Chief U.S. District Judge Armijo found Lymon guilty on Count 4 of the four-count indictment on Oct. 28, 2016, following a bench trial on that charge alone. Count 4 charged Lymon with being a felon in possession of a firearm and ammunition on Oct. 21, 2015, the day on which he allegedly shot Albuquerque Police Officer Daniel Webster. Officer Webster died on Oct. 29, 2015, due to injuries he allegedly sustained during the shooting, and Lymon has been charged with murdering Officer Webster in a separate state case. Lymon has entered a not guilty plea to the charges in the state case and is presumed innocent unless found guilty.
On Dec. 13, 2016, Lymon pled guilty to Count 2 of the indictment in the firearms case under a plea agreement with the U.S. Attorney’s Office, and admitted unlawfully possessing a firearm on May 27, 2016. As part of the plea agreement, the U.S. Attorney’s Office agreed to dismiss Count 1, charging Lymon with being a felon in possession of a firearm on May 27, 2015, and Count 3, of the indictment, charging Lymon with possessing a stolen firearm in May 2015.
The indictment in the second federal case charged Lymon with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm on Oct. 2, 2015. Lymon pled guilty to the three charges in the heroin trafficking case on May 9, 2016, without the benefit of a plea agreement.
The Albuquerque office of ATF and APD investigated the firearms case, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division. The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA.
Assistant U.S. Attorneys Jacob A. Wishard and Kimberly A. Brawley prosecuted the two federal cases against Lymon as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Convicted Felon Pleads Guilty to Illegal ReentryRead the Press Release
RICHMOND, Va. – An El Salvadorian citizen who has illegally entered the United States on multiple occasions pleaded guilty today to illegal reentry following deportation and conviction for an aggravated felony.
According to the statement of facts filed with the plea agreement, Mario A. Macias-Maldonado, 29, is a convicted felon who has previously been removed from the United States. In August 2009, Macias-Maldonado was convicted of felony forgery, driving while intoxicated, grand larceny, obstructing justice, unauthorized use of a motor vehicle, and operating a motor vehicle without a license. Macias-Maldonado was removed from the United States in January 2010, only to illegally return again sometime later. In July 2016, Chesterfield County police issued a felony warrant for Macias-Maldonado on charges of rape by force, threat or intimidation. Macias-Maldonado was arrested in August 2016, and in February 2017 was convicted in Chesterfield County Circuit Court of sexual battery and sentenced to one year in prison.
Macias-Maldonado faces a maximum penalty of 20 years in prison when sentenced on July 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. Magistrate Judge David J. Novak accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case. This case was investigated by U.S. Immigration and Customs Enforcement.
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. 3:16-cr-300.
Claimed Naturopathic Doctor Indicted for Defrauding Cancer Patients at Hoover ClinicRead the Press Release
BIRMINGHAM – A federal magistrate judge today ordered a woman who claimed to be a naturopathic doctor to be held pending trial on charges she defrauded patients of the Euro Med Klinic in Hoover in 2015 by lying about her name, her credentials, her experience and her license to practice medicine, announced Acting U.S. Attorney Robert Posey and U.S. Postal Inspector Frank Dyer.
A federal grand jury in February indicted ISABEL KESARI GERVAIS, 60. The indictment was unsealed following her March arrest in Arkansas. The nine-count indictment filed in U.S. District Court charges Gervais, who is known in Birmingham as “Dr. Rose Starr,” and in other locales as “Debrah Goodman,” with six counts of wire fraud affecting a financial institution, one count of false statements, and two counts of aggravated identity theft.
The indictment charges that in 2015, Gervais opened the Euro Med Klinic in Hoover using the alias, Dr. Rose Starr, and claiming to have years of experience and various credentials, including a license to practice medicine in Alabama and throughout the world. Acting as Dr. Starr, Gervais promised patients, including cancer sufferers, that she could provide various medical services, including DNA tests, according to the charges. She ran various tests and prescribed various substances to these patients. Through her misrepresentations about her name, licensure and qualifications, she fraudulently induced patients to pay her thousands of dollars, according to the indictment.
Gervais also is charged with misappropriating the identity of one patient to fraudulently charge the patient’s credit card without consent, and with misappropriating the identity of another individual and fraudulently using it to set up a post office box.
The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine. Aggravated identity fraud carries a two-year mandatory minimum prison sentence to run consecutive to any other sentence imposed.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Buffalo Man Sentenced for Food Stamp FraudRead 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 Ali Mohamed, 44, of Buffalo NY, who was convicted of unauthorized use of food stamp benefits, was sentenced to time served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the defendant worked at Bailey Food Mart located at 3209 Bailey Avenue in Buffalo. Between July 2010 and August 2011, Alawdi and others knowingly purchased food stamp benefits for less than their full value for cash from eligible beneficiaries. Retailers are prohibited from exchanging cash for food stamps. During this time, the defendant and others exchanged approximately $124,406 of food stamp benefits for cash.
The sentencing is the culmination of an investigation by the United States Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in-Charge William G. Squires Jr.; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Buffalo Man Charged with ObstructionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a two-count indictment charging Jeffrey Mills, 48, of Buffalo, NY, with obstructing justice. The charge carries a maximum of life in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on February 14, 2016, the defendant was called as a witness for the Government in the trial of United States v. Eldridge, et al. Prior to his testimony, Mills provided federal agents with detailed information regarding two unsolved murders. The defendants in United States v. Eldridge, et al. were charged with those murders. When called by the prosecution at trial, Mills at first refused to be sworn. After being advised by the Honorable Judge Richard Arcara, Senior U.S. District Judge, that he could face contempt proceedings if he refused to testify, Mills took the stand only to testify that he could not remember any details of the murders about which he previously provided detailed information. While convicting the defendants who were on trial of certain crimes, the jury was unable to reach a verdict on those counts pertaining to the murders.
Mills was arraigned before U.S. Magistrate Judge Michael J. Roemer, and is being held pending a detention hearing on April 25, 2017.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Adam S. Cohen; and the New York State Department of Parole, under the direction of Acting Commissioner Anthony J. Annucci.
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.
Ambulance Company Owner and Brother Sentenced in $6 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two brothers have been sentenced to more than four years in federal prison for their convictions of conspiracy to commit health care fraud, health care fraud and money laundering, announced Acting U.S. Attorney Abe Martinez. Kevin Olufemi Davies, 29, and his brother Melvin Olusola Davies, 28, pleaded guilty Dec. 9, 2016.
Today, U.S. District Judge Lynn Hughes ordered Kevin Davies to serve a 57-month sentence, while his brother received 63 months in federal prison. Both will also be required to serve three years of supervised release following completion of the prison term. They were further ordered to pay a more than $2.3 million in restitution. In handing down the sentence, Judge Hughes said that stealing from tax-payers - including blue collar workers who work under difficult conditions such as out in the cold and snow to pay taxes intended to be used to provide health care services to the elderly and sick - was not acceptable. He further noted that probation was not an option for this conduct.
The brothers owned and operated KMD Healthcare Services Inc. (KMD) from their home in a gated townhouse community in Houston. As part of their guilty pleas, the pair admitted they submitted approximately $6 million in false and fraudulent claims to Medicare, Medicaid and Tricare (another government health program) for ambulance services that were not provided. The brothers admitted they transported Medicare beneficiaries with only one of the two required EMTs and in vans instead of ambulances. They also admitted they paid a Houston physician $500 for certificates of medical necessity and paid some of the Medicare beneficiaries to ride in the vans.
Medicare, Medicaid and Tricare only pay for medically necessary ambulance services in vehicles designed and equipped to respond to medical emergencies and for patients who cannot be safely transported by any other means of transportation. Medicare also requires two individuals to staff ambulance transports, including at least one licensed EMT.
According to the plea agreements, the EMTs working for the defendants wrote up ambulance “run sheets” even though the Medicare beneficiaries did not travel by ambulance and did not need ambulance services. The individuals transported were not bed bound, could walk and routinely used non-ambulance transport in their daily activities. One patient even walked to her own therapy session, but KMD billed Medicare $51,952 for her ambulance transportation.
In total, KMD billed Medicare, Medicaid and Tricare approximately $6,293,108 in false and fraudulent claims for ambulance services that were not provided and not medically necessary. They received at least $2,201,137 from Medicare, $219,924 from Medicaid and $16,735.29 from Tricare as payment for those claims.
The brothers have been in federal custody since their arrest on May 25, 2016. They have both forfeitted vehicles they purchased with the fraudulent health care proceeds, including a 2010 Porsche Panamera and a 2012 Mercedes Benz CLS.
The FBI, IRS – Criminal Investigation and Texas Office of the Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Miguel Ordonez, 24, of Albuquerque, N.M., pled guilty today in federal court to heroin trafficking charges.
Miguel Ordonez and his four co-defendants, Gonzalo Montenegro-Coronel, 31, a Mexican national, Esther Ordonez, 48, and Reydecel Lopez-Ordonez, 24, both of Albuquerque, and Fernando Gomez-Campos, 21, of El Paso, Tex., were charged in a 13-count indictment that was filed on Dec. 2, 2015. The indictment charged the defendants with participating in a heroin trafficking conspiracy between Nov. 2014 and Sept. 2015, distributing heroin on eight occasions between Nov. 2014 and Sept. 2015, and with using telephones to facilitate drug trafficking crimes. It also charged Esther Ordonez, Miguel Ordonez and Montenegro-Coronel with maintaining a residence for the purpose of manufacturing and distributing heroin between Nov. 2014 and Sept. 2015. According to the indictment, the defendants committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Miguel Ordonez pled guilty to two counts of distributing heroin, using a communication facility in furtherance of a drug trafficking crime, and maintaining a drug involved premises. In entering the guilty plea, Miguel Ordonez admitted participating in telephone communications on March 27, 2015, in order to arrange heroin sales with individuals who unbeknownst to him were undercover agents. Miguel Ordonez admitted selling 148 grams of heroin for $4,200 on March 27, 2015, and 98 grams of heroin for $3,200 on May 7, 2015, to the undercover agent. He also admitted that from Nov. 10, 2014 and until his arrest in July 2015, he helped others store heroin for distribution at 2620 Katrina Dr. SW in Albuquerque.
At sentencing, Miguel Ordonez faces a statutory penalty of not less than five years nor more than 40 years of imprisonment. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
To date, four of the five defendants have entered guilty pleas and one has been sentenced. Lopez-Ordonez pled guilty on Oct. 19, 2016, and was sentenced to 60 months of imprisonment followed by four years of supervised release on March 30, 2017. Gomez-Campos pled guilty on March 10, 2017, and Esther Ordonez pled guilty on April 12, 2017. Gomez-Campos and Esther Ordonez have yet to be sentenced.
Montenegro-Coronel has entered a not guilty plea to the indictment and is pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Drug Task Force as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The HIDTA Region I Drug Task Force is comprised of officers from the Albuquerque Police Department, Rio Rancho Police Department, Valencia County Sheriff’s Office, Pueblo of Pojoaque Tribal Police Department and DEA. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys Shaheen P. Torgoley and Stephen R. Kotz are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Investment Bank Vice PresidentRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that AVANEESH KRISHNAMOORTHY, who works as a vice president and risk management specialist for a Manhattan-based investment bank (the “Investment Bank”), was arrested this morning and charged with insider trading. KRISHNAMOORTHY made approximately $48,000 in connection with stock and options trading based on material nonpublic information he misappropriated from the Investment Bank and its parent company (the “Company”), about a private equity fund’s potential acquisition of a publicly traded company.
KRISHNAMOORTHY was presented today in Manhattan federal court before United States Magistrate Judge Kevin Nathaniel Fox.
Acting U.S. Attorney Joon H. Kim said: “Avaneesh Krishnamoorthy is charged with violating his duty to his company and trading on insider information. He allegedly exploited his access to information about a pending acquisition to purchase stock and options, making tens of thousands of dollars in illegal profit for himself. This Office remains committed to enforcing the nation’s securities laws to protect the fairness and integrity of the markets.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “When one has access to material nonpublic information, they are afforded significant knowledge that could give them a competitive edge in stock and options trading. But, as we all know, it’s illegal to use this information in furtherance of personal gain. As alleged today, Krishnamoorthy ignored these rules, using the information at his fingertips to his advantage, and made personal profits in the tens of thousands. The FBI and our partners will continue to investigate and prosecute those who cheat the system in this way.”
According to the Complaint filed today Manhattan federal court[1]:
As a vice president and risk management specialist, KRISHNAMOORTHY had access to material nonpublic information concerning mergers and acquisitions for which the Investment Bank might potentially provide financing. In November 2016, a private equity fund (the “Fund”) contacted the Investment Bank concerning financing for the Fund’s acquisition of Neustar, Inc. (“Neustar”), a publicly traded company whose shares trade on the New York Stock Exchange. Around that time, KRISHNAMOORTHY received multiple emails regarding the Investment Bank’s potential involvement in the transaction, including emails that summarized the details of the deal. In violation of the Company’s policies and in breach of his duties to the Company, KRISHNAMOORTHY used this material nonpublic information to acquire Neustar stock and options. In the days and weeks after receiving the emails, and prior to the public announcement of the Fund’s acquisition of Neustar, KRISHNAMOORTHY purchased numerous Neustar call options and shares of Neustar stock. Purchases of Neustar securities took place in brokerage accounts held in the names of both KRISHNAMOORTHY and his spouse. Contrary to the policies of the Company, KRISHANMOORTHY did not reveal these trades or the existence of these brokerage accounts to the Company.
The public announcement of the Fund’s acquisition of Neustar on December 14, 2016, resulted in an approximately 20 percent increase in the value of Neustar stock in the hours following the announcement, resulting in a corresponding increase in the value of the call options and equity stock held by KRISHNAMOORTHY and his spouse. As a result of the insider trading alleged in the Complaint, KRISHNAMOORTHY generated at least $48,000 in profits.
* * *
KRISHNAMOORTHY is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Saturday 22 April 2017
Individual Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, after a two day trial, a jury found Luciano Mendoza-Garcia guilty of drug trafficking charges, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Chief Judge Aida Delgado presided over the trial.
On October 13, 2016, the defendant Luciano Mendoza-Garcia and Jorge Balbuena-Peguero were arrested in the high seas during a high speed maritime interdiction were 56 kilograms of cocaine were recovered. On October 19, 2016 a federal grand jury indicted Mendoza-Garcia and Balbuena-Peguero charging them with conspiracy to import controlled substances, conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States and possession of a controlled substance on board a vessel subject to the jurisdiction of the United States, aiding and abetting each other.
Assistant U.S. Attorney Laura Montes and Special Assistant U.S. Attorney Nicholas Smith were in charge of the prosecution of the case. The defendant faces a minimum mandatory term of imprisonment of 10 years.
Friday 21 April 2017
Worcester Businessman Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in connection with a scheme to defraud the Commonwealth of Massachusetts of tobacco excise taxes and submitting false tax returns.
Mohamed Afeez, 32, pleaded guilty to subscribing a false tax return and conspiracy. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 13, 2017.
Between approximately late 2014 and July 2016, Afeez operated a wholesale business in Worcester that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), as well as other non-tobacco items, to convenience stores, gas stations and other retail businesses. Under state law, smokeless tobacco wholesalers must file an excise tax form monthly and pay a 210% excise tax on smokeless tobacco brought into Massachusetts. Cigar wholesalers must file an excise tax form quarterly and pay a 40% excise tax on cigars brought into Massachusetts.
In order to evade tobacco taxes, Afeez made regular purchases of loose smoking tobacco and smokeless tobacco from a distributor in Pennsylvania where these tobacco products are not taxed. Afeez and a co-conspirator repeatedly drove bundles containing more than $10,000 in cash to the distributor for payment. A co-conspirator then drove the tobacco products to Massachusetts where Afeez resold them wholesale without paying the Massachusetts state excise taxes he knew were due. The illegal tobacco business generated over $448,000 that Afeez failed to report on his business’ income tax return for 2015.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of subscribing to a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Washington State Man Pleads Guilty to Trafficking in Prohibited Ivory ProductsRead the Press Release
A resident of Ridgefield, Clark County, Washington, pleaded guilty today in U.S. District Court in Tacoma to violating the Lacey Act by trafficking in sperm whale ivory, announced U.S. Attorney Annette L. Hayes. TIM DAVIS, 55, admitted to participating in at least 74 transactions involving the purchase and sale of whale, elephant and walrus ivory between May 2006 and June 2015. The Endangered Species Act and the Marine Mammal Protection Act prohibit unlawful purchases and sales of these products. DAVIS will be sentenced by U.S. District Judge Robert J. Bryan on July 13, 2017.
“By buying and selling ivory products, this defendant was providing a marketplace for those who are hunting animals such as elephants and whales to extinction,” said U.S. Attorney Annette L. Hayes. “I commend the U.S. Fish and Wildlife Service for working diligently to stamp out this kind of trafficking. The laws we have enforced in this case are essential to preserving the kind of healthy planet we all want to leave to future generations.”
“We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said Edward Grace, Deputy Assistant Director for the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “The illegal wildlife trade is a $20 billion industry that is rapidly driving elephants and many other animals to extinction. The Service will continue to use every tool at its disposal to fight the trafficking scourge and the shameful individuals who are depriving our planet of these magnificent creatures for their own profit.”
According to the plea agreement, DAVIS advertised on internet sites such as Etsy, EBay and Craigslist, offering to purchase and sell various ivory products. DAVIS sold ivory to buyers outside the U.S., particularly in Asia. To conceal his international transactions, DAVIS fraudulently labeled the ivory packages, stating that they contained “oxbone” products, when in fact, they contained ivory.
Between 2012 and 2015, DAVIS participated in a series of ivory transactions with an undercover U.S. Fish and Wildlife Service agent. For example, DAVIS sold the agent a collection of sperm whale teeth for $2,000 in May 2015. In June 2015, DAVIS purchased four walrus tusks from the agent.
Under the terms of the plea agreement, prosecutors will recommend a probationary sentence with as much as six months of home detention. DAVIS will also forfeit his unlawfully acquired ivory products.
The case was investigated by the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Volkswagen AG Sentenced in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Volkswagen AG (VW) was sentenced in federal court in Detroit today after pleading guilty on March 10, 2017, to three felony counts of: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. During the sentencing hearing, the court accepted the parties’ plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office made the announcement.
U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the plea agreement, resulting in VW’s conviction on three felony charges. VW was convicted, first, of participating in a conspiracy to defraud the United States and its U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards. Moreover, the company used cheating software to circumvent the U.S. testing process, and concealed material facts about its cheating from U.S. regulators. Second, VW was convicted of obstruction of justice for destroying documents related to the scheme. And third, VW was convicted of importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.
As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the U.S. and fully cooperate in the government’s ongoing investigation and prosecution of individuals responsible for these crimes. The parties also announced that the government had selected Larry D. Thompson as an independent corporate compliance monitor who will oversee the company during its three-year term of probation. Thompson is a former Deputy U.S. Attorney General. His team includes experts in automotive regulatory compliance, as well as the corporate monitors for Deutsche Bank in the London Interbank Offered Rate (LIBOR) manipulation prosecution and Duke Energy in the coal ash environmental prosecution.
“The sentencing of Volkswagen marks a significant milestone in this historic case,” said Acting U.S. Attorney Lemisch. “Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message to Volkswagen and others that we take our environmental laws seriously and that federal prosecution awaits those who defraud the EPA.”
“The Criminal Division will continue to be vigilant in assuring that all companies – foreign and domestic – that choose to benefit from our valuable economy and consumers abide by our laws, said Acting Assistant Attorney General Blanco. “The sentencing of VW vindicates the rights of U.S. consumers who for over a decade were victims of the calculated corporate decisions of VW and its senior management to fraudulently employ a device intended to deceive U.S. consumers and to defeat our environmental laws.”
“With today's sentence, VW is being held fully accountable for its deception and fraud perpetrated against American consumers and the environment, as well as the deliberate obstruction of the criminal investigation into its wrongdoing,” said Deputy Assistant Attorney General Williams. “We also hope this sends a message around the world that those who violate American environmental laws will be vigorously investigated and prosecuted.”
“Today's strong sentence recognizes the egregious nature of VW’s violations, and VW’s attempt to gain an unfair competitive advantage over automakers that follow the law,” said Acting Assistant Administrator Starfield. “Vehicle emissions standards help protect clean air and ensure a level playing field for companies that play by the rules. When those standards are broken, violators can expect to be held accountable.”
“Americans expect corporations doing business in the United States to conduct their business honestly,” said Special Agent in Charge Gelios. “Today's sentencing sends a clear message that the FBI, along with its federal partners, will continue to hold corporations, like Volkswagen AG, accountable when they defraud consumers and violate federal laws.”
Along with the January 2017 plea agreement, the United States also announced separate civil resolutions of environmental, customs and financial claims, in which VW agreed to pay an additional $1.5 billion to settle EPA’s claim for civil penalties in connection with the importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, that agreement requires injunctive relief to prevent future violations. The agreements also resolved alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
The FBI and EPA investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Volkswagen AG Sentenced in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Volkswagen AG (VW) was sentenced in federal court in Detroit today after pleading guilty on March 10, 2017, to three felony counts of: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. During the sentencing hearing, the court accepted the parties’ plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office made the announcement.
U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the plea agreement, resulting in VW’s conviction on three felony charges. VW was convicted, first, of participating in a conspiracy to defraud the United States and its U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards. Moreover, the company used cheating software to circumvent the U.S. testing process, and concealed material facts about its cheating from U.S. regulators. Second, VW was convicted of obstruction of justice for destroying documents related to the scheme. And third, VW was convicted of importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.
As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the U.S. and fully cooperate in the government’s ongoing investigation and prosecution of individuals responsible for these crimes. The parties also announced that the government had selected Larry D. Thompson as an independent corporate compliance monitor who will oversee the company during its three-year term of probation. Thompson is a former Deputy U.S. Attorney General. His team includes experts in automotive regulatory compliance, as well as the corporate monitors for Deutsche Bank in the London Interbank Offered Rate (LIBOR) manipulation prosecution and Duke Energy in the coal ash environmental prosecution.
“The sentencing of Volkswagen marks a significant milestone in this historic case,” said Acting U.S. Attorney Lemisch. “Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message to Volkswagen and others that we take our environmental laws seriously and that federal prosecution awaits those who defraud the EPA.”
“The Criminal Division will continue to be vigilant in assuring that all companies – foreign and domestic – that choose to benefit from our valuable economy and consumers abide by our laws, said Acting Assistant Attorney General Blanco. “The sentencing of VW vindicates the rights of U.S. consumers who for over a decade were victims of the calculated corporate decisions of VW and its senior management to fraudulently employ a device intended to deceive U.S. consumers and to defeat our environmental laws.”
“With today's sentence, VW is being held fully accountable for its deception and fraud perpetrated against American consumers and the environment, as well as the deliberate obstruction of the criminal investigation into its wrongdoing,” said Deputy Assistant Attorney General Williams. “We also hope this sends a message around the world that those who violate American environmental laws will be vigorously investigated and prosecuted.”
“Today's strong sentence recognizes the egregious nature of VW’s violations, and VW’s attempt to gain an unfair competitive advantage over automakers that follow the law,” said Acting Assistant Administrator Starfield. “Vehicle emissions standards help protect clean air and ensure a level playing field for companies that play by the rules. When those standards are broken, violators can expect to be held accountable.”
“Americans expect corporations doing business in the United States to conduct their business honestly,” said Special Agent in Charge Gelios. “Today's sentencing sends a clear message that the FBI, along with its federal partners, will continue to hold corporations, like Volkswagen AG, accountable when they defraud consumers and violate federal laws.”
Along with the January 2017 plea agreement, the United States also announced separate civil resolutions of environmental, customs and financial claims, in which VW agreed to pay an additional $1.5 billion to settle EPA’s claim for civil penalties in connection with the importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, that agreement requires injunctive relief to prevent future violations. The agreements also resolved alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
The FBI and EPA investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Virginia Man Sentenced to 88 Months in Prison for Distribution of Heroin and CocaineRead the Press Release
WASHINGTON – Robert Apperson, 35, of Reva, Virginia, was sentenced today to 88 months of imprisonment on a federal drug trafficking charge relating to the distribution of heroin and cocaine in Culpeper County, Virginia. He is among 14 people charged with federal crimes following an investigation by a law enforcement task force of a narcotics trafficking ring that operated in places including New York, N.Y., Washington, D.C., and Virginia.
The sentence was announced by U.S. Attorney Channing D. Phillips; Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD), and Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
All told, the investigation led to the seizure of 2.8 kilograms of powder cocaine, 248 grams of crack cocaine, 700 grams of heroin, more than $100,000 in cash, and a firearm.
Apperson pled guilty in January 2017, in the U.S. District Court for the District of Columbia to a charge of conspiracy to distribute heroin and cocaine. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Apperson will be placed on four years of supervised release. Apperson also was ordered to pay $130,000 in a forfeiture money judgment.
According to plea documents, the investigation revealed that co-conspirators in the narcotics trafficking ring transported heroin and cocaine from New York to a supplier, based in Washington, D.C. In turn, the drugs were supplied to numerous other co-conspirators for distribution in Washington, Maryland, Delaware, and Virginia.
According to the plea documents, Apperson and/or one of the co-conspirators traveled to Washington, D.C., to obtain between 100 grams and one-kilogram quantities of cocaine and heroin from the supplier. Apperson and the co-conspirator then worked to distribute cocaine (as both powder and as crack cocaine) and heroin throughout the Culpeper County area.
Between September 2015, and January 7, 2016, according to the government’s evidence, Apperson and the co-conspirator purchased between 100 grams and one kilogram of cocaine and heroin approximately every seven to 10 days. In total, according to the government’s evidence, Apperson and the co-conspirator obtained approximately five kilograms of cocaine and four kilograms of heroin from the Washington, D.C. supplier, which they divided 50/50 between the two of them. Apperson then sold his half of the cocaine and heroin to customers throughout the Culpeper area. Apperson was arrested on August 25, 2016, and has been in custody ever since.
During the course of his arrest, law enforcement seized $3,750 from Apperson’s vehicle and $40,000 from a nightstand drawer at his newly leased residence in Fredericksburg, Va.
The drug sales took place at a time when the nation is experiencing a rise in opioid overdoses. In Culpeper County, Va. and the town of Culpeper, the Virginia State Police responded to more than 80 overdoses in 2016, including nine that resulted in deaths.
This prosecution was the result of an investigation initiated in the fall of 2014 by the FBI/MPD Cross Border Task Force, with assistance from the DEA and the Blue Ridge Narcotics and Gang Task Force. The Culpeper County Sheriff’s Office also assisted in the investigation. The Department of Justice’s Organized Crime Drug Enforcement Task Force sponsored and supported this complex investigation.
Those working on the case from the U.S. Attorney’s Office for the District of Columbia include Legal Assistant Peter Gaboton, former Legal Assistant Brendan Coyne, and Assistant U.S. Attorneys Kara Traster and Nihar Mohanty, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and CyberstalkingRead the Press Release
Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.
Further, according to a federal criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Jeff Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director James Comey of the Federal Bureau of Investigation. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“This Department will lend its full support to law enforcement officers and communities so we can fight violent crime, including threats like these,” said Acting Associate Attorney General Jesse Panuccio. “These threats terrorized our communities, and we will continue to enforce this nation’s laws.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Kenneth E. Blanco of the Justice Department’s Criminal Division. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and Using Electronic Communications to IntimidateRead the Press Release
WASHINGTON – Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal
criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.Further, according to a federal
criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director Comey. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Blanco. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Richard S. Hartunian Remembers Sol Greenberg, Former Albany County District AttorneyRead the Press Release
ALBANY, NEW YORK – Upon the passing of former Albany County District Attorney Sol Greenberg, United States Attorney Richard S. Hartunian today paid tribute to his former boss as one of the giants of the legal profession and someone who exemplifies public service:
“Sol Greenberg established the gold standard for district attorneys. He was a devoted husband and father and cared deeply about people, and especially his assistant district attorneys and support staff, the residents of the county he served, crime victims, and those involved in securing justice for them. Sol pioneered the use of DNA to identify perpetrators of crimes and was ahead of his time in embracing the idea of crime prevention through education, recognizing even then that we cannot merely prosecute and imprison our way to safe communities. As we remember his life well lived, we give thanks for Sol’s decades of distinguished public service to our nation, our profession, and our community; for a legacy of lawyers who learned to serve the law in his office, by his words and example; and for his unwavering dedication to the fair administration of justice.”
Hon. Richard S. Hartunian, United States Attorney for the Northern District of New York, with Former Albany County District Attorney Sol Greenberg at an Albany County Bar Association Tribute Luncheon, April 2, 2015 in Albany, NY.
Two men admit to synthetic marijuana distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA –Nicholas Graziano, 53, of Melville, New York, and Stephen Graziano, 25, of Morgantown, West Virginia, were convicted of distributing synthetic marijuana, Acting United States Attorney Betsy Steinfeld Jividen announced.
In July 2012 through April 2014, Nicholas and Stephen Graziano, owner and operators of X Hale Hookah Lounge in Morgantown, West Virginia, were allegedly distributing synthetic cannabinoids, commonly referred to as spice, K2, incense, or fake weed. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
The Grazianos each pled guilty on March 27, 2017 to one count of “Conspiracy to Distribute a Controlled Substance Analogue.”
They each face up to twenty years in prison and a fine up to $1,000,000. 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 Zelda E. Wesley is handling the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Two Sentenced for Roles in International Cocaine Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A Charlotte woman was sentenced today to 20 years in prison for her role in an international drug trafficking conspiracy.
Tammie D. Diggs, 48, pleaded guilty on January 13. According to the statement of facts filed with the plea agreement, on March 12, 2016, Diggs traveled from Charlotte, North Carolina to Charleston, South Carolina, to receive 22 kilograms of cocaine from a Panamanian drug trafficking organization (DTO) for domestic distribution. On the same day, law enforcement intercepted 22 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the Panamanian DTO. The next day, Diggs obtained a bag containing 22 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement, and upon taking possession of the cocaine, Diggs traveled to Spartanburg, South Carolina. Later that day, law enforcement executed a traffic stop on the vehicle driven by Diggs and seized the bag containing the 22 kilograms of cocaine.
Diggs’s co-conspirator, Lamar Gayle, 34, of Brooklyn, was sentenced to 10 years in prison on Wednesday. According to the statement of facts filed with the plea agreement, on Feb. 12, 2016, Gayle traveled from Brooklyn to Charleston to receive 15 kilograms of cocaine from a Panamanian drug trafficking organization (DTO) for domestic distribution. On the same day, law enforcement intercepted 15 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the Panamanian DTO. The next day Gayle obtained a bag containing 15 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement, and upon taking possession of the cocaine, Gayle boarded a commercial bus and traveled to the Eastern District of Virginia. The next day law enforcement executed a drug interdiction operation in Sussex County on the commercial bus on which Gayle was traveling. During the stop of the bus, law enforcement surveillance observed Gayle hide the bag containing the cocaine under a seat inside the bus, and shortly thereafter seized the bag containing the 15 kilograms of cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Daniel Salter, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Atlanta Division; Nick Annan, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charleston; Colonel W. Steven Flaherty, Superintendent, Virginia State Police; and Humberto I. Cardounel, Jr., Chief of Henrico County Police, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik Siebert and Peter S. Duffey 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. 3:16-cr-108 (Gayle), and 3:16-cr-117 (Diggs).
Two Individuals Convicted at Trial in Marriage Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Cameroonian nationals were convicted today for their roles in a marriage fraud conspiracy dubbed “Operation Evasive Immigration,” by the organizers of the conspiracy.
According to court records and evidence presented at trial, Carine Kojia Aleah Epse Mbendeke, 27, of New Carrollton, Maryland, and Irene Marie Mbono, 35, of Washington, D.C., conspired with Landry Mbendeke, who is currently serving time in federal prison for leading this marriage fraud conspiracy. The evidence presented at trial showed that beginning in December 2013, and continuing through August 2015, the Mbendekes operated a marriage fraud ring that recruited United States citizens to marry Cameroonian nationals for the promise of $5,000. Carine Mbendeke traveled with United States citizen co-conspirators to Cameroon on two occasions. While in Cameroon, Carine Mbendeke orchestrated their fraudulent marriages, acted as a translator, and collected immigration-related documents. One conspirator, who was denied a United States passport and thus could not travel to Cameroon, entered into a sham marriage with Mbono in Washington, D.C.
The Mbendekes recruited, or attempted to recruit, approximately 18 United States citizens. Six of their co-conspirators previously pleaded guilty for their participation in the fraudulent scheme. Those defendants included Marcus Carlye Brooks, Benjamin Franklin Minkins, Jr., Kenneth Cornelius Lewis, Alecia Angelita Portillo, Keonna Lakata Lynch, and James Settles III.
Mbono faces a maximum penalty of 10 years in prison, and Carine Mbendeke faces a maximum penalty of five years in prison. Both defendants will be sentenced on July 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Richard Ingram, Special Agent in Charge of Diplomatic Security Service, U.S. Department of State’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict for Carine Mbendeke and delivered the verdict for Irene Mbono. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Michelle R. Pascucci are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-272.
Two District Men Found Guilty of Robbing and Assaulting Women in Separate Attacks Within 35-Minute PeriodRead the Press Release
WASHINGTON – Terrez Crocker, 20, and Andre Walker, 28, both of Washington, D.C., have been found guilty by a jury on charges of robbing and assaulting two women in separate attacks in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
The jury found Crocker guilty of one count each of conspiracy to commit a crime of violence, robbery, assault with intent to commit robbery, fleeing from law enforcement, reckless driving, destruction of property, and receipt of stolen property, as well as three counts of unauthorized use of a vehicle during a crime of violence. The jury found Walker guilty of one count each of conspiracy to commit a crime of violence, robbery, assault with intent to commit robbery, and fleeing from law enforcement.
The verdicts, on April 20, 2017, followed a one-week trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for June 23, 2017.
According to the government’s evidence at trial, at about 6:45 p.m. on Sunday, August 30, 2015, a young woman was walking by herself on 61st Street NE at the intersection of Eads Street NE. She was walking home after work when she noticed a white Volkswagen Jetta parked in the intersection. Unbeknownst to her, Crocker and Walker were waiting in that vehicle, which had been stolen in Maryland approximately three weeks earlier. GPS evidence placed Crocker at the scene of the car theft during the time-frame in which the vehicle was stolen.
As they sat in the stolen Jetta, Crocker and Walker directed their two female accomplices to jump out of the vehicle to steal the woman’s purse and cell phone. The two female accomplices followed Walker and Crocker’s directive, jumped out of the vehicle, and snatched the woman’s purse and cell phone, and then returned to the vehicle where Crocker and Walker were waiting. The four assailants then fled the scene.
Shortly thereafter, at approximately 7:20 p.m., Crocker, Walker, and their two female accomplices spotted their second victim, another young woman walking near the intersection of Southern Avenue and Bass Place SE on her way home from church. The woman also noticed the white Volkswagen Jetta. Unbeknownst to her, as she walked, Crocker and Walker again directed their two female accomplices to jump out of the car to rob her. At the direction of Crocker and Walker, the two female accomplices again jumped out of the vehicle and attempted to take the woman’s purse. However, the woman fought back, fending off her attackers and thwarting the robbery. The two female accomplices then ran back to the Volkswagen Jetta, where Crocker and Walker were waiting.
Both victims were able to provide information to the Metropolitan Police Department (MPD), including the make and model of the vehicle used during the commission of the robberies and a partial license plate tag number.
Members of MPD’s Fifth and Sixth Districts canvased the area in search of the suspects’ vehicle, which was spotted at East Capitol Street and Benning Road NE. Officers attempted to pull over the vehicle. However, Crocker and Walker ignored the directive of the police and sped away. Crocker, the driver, fled from the police, driving at a high rate of speed, driving erratically, and committing multiple traffic violations during the pursuit. Eventually, Crocker crashed the Volkswagen Jetta near the intersection of 57th Place and A Street SE. All four assailants then fled on foot and were apprehended within blocks of the crash site. The two female accomplices, an adult and a juvenile, pled guilty to charges in the case.
In announcing the guilty verdicts, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer Kerkhoff, Paralegal Specialists Richard Cheatham, Lashone Samuels, and Donville Drummond, and Intelligence Research Specialist Zachary McMenamin. Finally, he commended the work of Assistant U.S. Attorneys Alicia Long and Laura Crane, who investigated and prosecuted the case.
Three Men Charged with Alien SmugglingRead the Press Release
HOUSTON – Federal charges have been filed against three Mexican nationals who were allegedly holding five illegal aliens at a residence in Splendora, announced Acting U.S. Attorney Abe Martinez.
A federal criminal complaint was filed this morning against Luis Cesar Avalos-Hernandez, 32, Alvaro Cruz-Suarez, 27, and Giovanni Arrelola-Villalobos, 21, all of Mexico. They are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy on Tuesday, April 25, 2017, at 2:00 p.m. All are charged with conspiracy to transport and harbor illegal aliens within the United States.
On April 19, 2017, agents responded to the 2700 block of FM 2090 in Splendora and discovered eight individuals at the residence. Three claimed to reside there, while five others were found inside a back bedroom without access to their shoes, according to the charges.
Two of the aliens claimed to have been walking through the brush in Texas near the Mexican border for several days before being picked up in a white pickup truck, according the complaint. Cruz-Suarez allegedly drove that vehicle with Avalos-Hernandez as passenger. The charges further indicate that Cruz-Suarez, Avalos-Hernandez and Arrelola-Villalobos all guarded the aliens at the Splendora residence. Avalos-Hernandez allegedly took their shoes, while Arrelola-Villalobos confiscated a cell phone and threatened at least one alien with a rifle, according to the charges.
The criminal complaint alleges all eight were citizens and nationals of Mexico, Honduras and El Salvador, all of whom were illegally present in the United States. They were administratively arrested and transported to the Houston Immigration Service Processing Center for additional checks and further investigation.
At the time of the arrests, authorities seized three firearms, a stolen rifle, miscellaneous documents and a ledger of names, dollar amounts and locations. A white pickup truck was also found at the residence which authorities determined was reported stolen in October 2016.
Immigration and Customs Enforcement’s Homeland Security Investigations is conducting the investigation along with the Splendora Police Department and Montgomery County Sheriff’s Office. Assistant U.S. Attorney Doug Davis is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Three Arrested and Charged in Multi-Million Dollar Investment SchemeRead the Press Release
In Del Rio, three men face federal charges for their alleged roles in an advanced fee investment scheme through which they obtained in excess of $5 million from their victims announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
The two-count federal grand jury indictment, unsealed this afternoon, charges 56-year-old James Edward Cox of Waxhaw, NC; 49-year-old Kelly Ray Coronado of Del Rio; and, 53-year-old Gordon Richard Moskowitz of Sarasota, FL, with conspiracy to commit wire fraud and conspiracy to commit money laundering.
The indictment alleges that from January 2010 to January 2017, the defendants implemented a high-yield investment scheme to obtain money from multiple victims under false pretenses, promises and representations. The indictment further alleges that the defendants preyed on vulnerable parties – most of whom operated international non-profits – by promising them large-scale financing in exchange for upfront payments. Using a tapestry of deceit involving fake business entities, websites, and aliases, the defendants would induce such upfront payments and then work together to frustrate law enforcement detection and victim redress.
Upon conviction of each charge, the defendants face up to 20 years in federal prison. The indictment also seeks the criminal forfeiture of Cox and Coronado’s residences allegedly used to facilitate the defendants’ scheme.
Earlier today, FBI special agents arrested Cox and Moskowitz in Waxhaw, NC, and Sarasota, FL, respectively. Coronado was arrested in Del Rio on Monday.
Federal Bureau of Investigation special agents in Del Rio, Tampa and Charlotte conducted this investigation. Assistant United States Attorney Paul T. Harle and Daniel S. Lee are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Texas Man Sentenced to Eight Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David E. Haskell, age 28, of DeKalb, Texas, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, on March 11, 2016, investigators with the Miller County Sheriff’s Office, the Texarkana Police Department, and the Federal Bureau of Investigation utilized a confidential informant to arrange a purchase of methamphetamine from David Haskell. Officers conducted surveillance on the residence of Haskell as the transaction occurred. The confidential informant provided Haskell with $430.00 in exchange for one-half ounce of methamphetamine. The suspected substance was sent to the Arkansas State Crime Lab where it was determined to be a total of 12.8 grams of methamphetamine with a 90.4% purity level.
Haskell was indicted by a federal grand jury in May, 2016 and pleaded guilty to the charge in October, 2016.
This case was investigated by the Federal Bureau of Investigation, Miller County Sheriff’s, and the Texarkana Police Department. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Taylor County man sentenced for unlawful possession of a stolen firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Andrew Christopher Shaver, 23, of Grafton, West Virginia, was sentenced today in federal court to 12 months incarceration for a federal firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
In November 2015, Shaver stole a 40 caliber firearm in Harrison County, West Virginia. He pled guilty in November 2016 to one count of “Possession of a Stolen Firearm.”
Shaver’s sentence is to run consecutively to his current state sentence.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Taylor County Sheriff’s Department, and the Veteran Affairs Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Starr County, Texas Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 45-year-old Roma, Texas man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Amador Saldana pleaded guilty on Oct. 5, 2016, to conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, Saldana, also known as Mustard, because he packaged kilograms of cocaine with mustard because he believed it would defeat drug dog detection, was a large-scale distributor of cocaine based in Roma, Texas. Saldana had status with members of the Gulf Cartel and was able to import hundreds of kilograms from Mexico into Texas for distribution to customers across the Eastern District of Texas and to the Eastern part of the United States.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John A. Craft.
Seven People Plead Guilty to Marriage Fraud in Federal CourtRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Sonia Santaella Vieira, age 55, Adalberto Viera, age 60, Claudia Santaella Ferreira, age 53, Sidnei Ferreira, age 58, all of Myrtle Beach, SC, and Amanda Santaella Ferreira, age 27, of Miami, Florida, and Colby Musser, age 31, of Murrells Inlet, SC, pled guilty in federal court in Florence to Conspiracy to Commit Marriage Fraud, a violation of Title 18, United States Code, Section 371. Nathalia Santaella Ferreira, age 32, also of Miami, Florida, pled guilty in federal court in Florence to Procuring Citizenship Unlawfully, a violation of Title 18, United States Code, Section 1425(b). United States District Judge Bryan Harwell of Florence accepted the pleas and will impose sentences after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that the defendants were involved in a marriage fraud conspiracy involving a number of Brazilian aliens who were paying United States citizens to enter into fraudulent marriages with them in order to gain United States citizenship.In total, there were five (5) fraudulent marriages among these defendants. The U.S. citizen defendants were paid a total of more than $20,000.00 to enter into sham marriages. The purpose of all of these marriages was to obtain immigration benefits in the form of permanent residency and ultimately United States citizenship. In furtherance of the scheme, both the citizen spouses and Brazilian spouses submitted fraudulent forms and false affidavits to Citizenship and Immigration Services (CIS) in which each couple claimed under oath that they were residing together as husband and wife in legitimate marriages.
During live interviews with CIS officials, the couples repeated these false representations again under oath. In all but one of the sham marriages, the fraud was detected before the Brazilian aliens could obtain citizenship. Only Nathalia Ferreira managed to obtain full citizenship before the fraud was detected. However, her conviction of Procuring Citizenship Unlawfully will result in mandatory revocation of her citizenship.
Ms. Drake stated the maximum penalty defendants can receive is imprisonment for 5 years, a fine of $250,000 and/or plus a special assessment of $100.
The case was investigated by agents of the ICE-Homeland Security Investigations and the FDNS (Fraud Detection and National Security) Division of Citizenship and Immigration Services. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Santa Fe Felon Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Joaquin Archuleta, 41, of Santa Fe, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm. The plea agreement includes a recommendation that Archuleta be sentenced to 63 months of imprisonment followed by a period of supervised release to be determined by the court.
Archuleta was arrested on Nov. 9, 2016, on a criminal complaint charging him with being a felon in possession of a firearm on April 7, 2016, in Santa Fe County, N.M. Archuleta was indicted on the same charge on Dec. 7, 2016. According to the indictment, Archuleta was prohibited from possessing firearms or ammunition because he previously had been convicted on two counts of aggravated battery with a deadly weapon, possession of a controlled substance, and attempt to traffic a controlled substance.
During today’s proceedings, Archuleta pled guilty to the indictment and admitted that on April 7, 2016, he threw a handgun into the backyard of a residence while attempting to flee from police. Archuleta also admitted knowing that he was prohibited from possessing firearms or ammunition because of his prior felony convictions. Archuleta remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Santa Fe Police Department. Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case.
San Antonio Man Sentenced to 20 Years in Federal Prison for Possession and Distribution of Child PornRead the Press Release
In San Antonio this morning, 33-year-old Michael Daniel Lee Kiper was sentenced to 20 years in federal prison followed by 20 years of supervised release for possession and transmission of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that a hearing be held in approximately 90 days in order to give victims enough time to request restitution in this case.
On November 8, 2016, Kiper pleaded guilty to one count of distribution of child porn and one count of possession of child porn.
On July 28, 2016, FBI agents executed a search warrant at the defendant’s residence and recovered a cell phone and a flash drive. A forensics examination of the seized items revealed the presence of images and videos depicting extremely young children being sexual assaulted. Kiper has remained in federal custody since his arrest on July 28, 2016.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Russian National Indicted with Multiple Offenses in Connection with Kelihos BotnetRead the Press Release
A federal grand jury in Bridgeport, Connecticut, returned an eight-count indictment yesterday charging a Russian National with multiple offenses stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Deirdre M. Daly of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 36, aka Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, was charged in an indictment returned in the District of Connecticut with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft. The case has been assigned to Judge Robert N. Chatigny in Hartford.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017. The arrest was based upon a criminal complaint and arrest warrant issued in the District of Connecticut on March 24, 2017. Levashov has been detained since his arrest, and the Justice Department is seeking his extradition.
As alleged in the indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorneys Anthony Teelucksingh, Ethan Arenson and Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs is handling the extradition in this matter.
Russian National Charged with Multiple Offenses in Connection with Kelihos BotnetRead the Press Release
A federal grand jury in Bridgeport, Connecticut, returned an eight-count indictment yesterday charging a Russian National with multiple offenses stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Deirdre M. Daly of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 36, aka Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, was charged in an indictment returned in the District of Connecticut with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft. The case has been assigned to Judge Robert N. Chatigny in Hartford.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017. The arrest was based upon a criminal complaint and arrest warrant issued in the District of Connecticut on March 24, 2017. Levashov has been detained since his arrest, and the Justice Department is seeking his extradition.
As alleged in the indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorneys Anthony Teelucksingh, Ethan Arenson and Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs is handling the extradition in this matter.
Russian Cyber-Criminal Sentenced to 27 Years in Prison for Hacking and Credit Card Fraud SchemeRead the Press Release
WASHINGTON – A 32-year-old Vladivostok, Russia, man was sentenced today to 27 years in prison for his computer hacking crimes that caused more than $169 million in damage to small businesses and financial institutions, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Roman Valeryevich Seleznev, aka Track2, was convicted in August 2016, of 38 counts related to his scheme to hack into point-of-sale computers to steal credit card numbers and sell them on dark market websites. U.S. District Judge Richard A. Jones of the Western District of Washington imposed the sentence.
“This investigation, conviction and sentence demonstrates that the United States will bring the full force of the American justice system upon cybercriminals like Seleznev who victimize U.S. citizens and companies from afar,” said Acting Assistant Attorney General Blanco. “And we will not tolerate the existence of safe havens for these crimes – we will identify cybercriminals from the dark corners of the Internet and bring them to justice.”
“Today is a bad day for hackers around the world,” said U.S. Attorney Annette L. Hayes. “The notion that the Internet is a Wild West where anything goes is a thing of the past. As Mr. Seleznev has now learned, and others should take note -- we are working closely with our law enforcement partners around the world to find, apprehend, and bring to justice those who use the internet to steal and destroy our peace of mind. Whether the victims are multi-national banks or small pizza joints, we are all victims when our day-to-day transactions result in millions of dollars ending up in the wrong hands.”
According to evidence presented at trial, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software (malware) that allowed him to steal millions of credit card numbers from more than 500 U.S. businesses and send the data to servers that he controlled in Russia, the Ukraine and McLean, Virginia. Seleznev then bundled the credit card information into groups called “bases” and sold the information on various criminal “carding” websites to buyers who used them for fraudulent purchases, according to evidence introduced during the trial of this case.
Many of the businesses targeted by Seleznev were small businesses, and included restaurants and pizza parlors in Western Washington, including Broadway Grill in Seattle, which was forced into bankruptcy following the cyber assault. Testimony at trial revealed that Seleznev’s scheme caused approximately 3,700 financial institutions more than $169 million in losses.
Seleznev was taken into custody in July 2014 in the Maldives, and the laptop in his custody at that time contained more than 1.7 million stolen credit card numbers, including some from businesses in Western Washington. The laptop also contained additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme. Evidence presented at trial showed that Seleznev earned tens of millions of dollars from his criminal activity.
Seleznev was convicted on August 25, 2016, of ten counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of fifteen or more unauthorized access devices and two counts of aggravated identity theft.
“Mr. Seleznev’s criminal enterprise was both sophisticated and expansive, with transnational implications. This investigation exemplifies the ability of the U.S. Secret Service and our law enforcement partners to hold accountable those who perpetrate such crimes,” said U.S. Secret Service Special Agent in Charge Robert L. Kierstead. “The ultimate success of this case is the result of an extraordinary collaborative effort by the Secret Service, the U.S. Attorney’s Office of the Western District of Washington, the Criminal Division’s Computer Crime and Intellectual Property Section and the Seattle Police Department.”
“Crime has no borders,” said Seattle Police Chief Kathleen O’Toole. “This individual is responsible for defrauding victims out of millions of dollars in Seattle alone, and we are proud to work with our federal partners to bring him to justice.”
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Additionally, Seleznev is charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud and four counts of wire fraud. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service Electronic Crimes Task Force investigated the case. Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorneys Harold Chun and Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. The CCIPS Cyber Crime Lab, and its Director, Ovie Carroll, provided substantial support for the prosecution. The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam also provided assistance in this case.
Russian Cyber-Criminal Sentenced to 27 Years in Prison for Hacking and Credit Card Fraud SchemeRead the Press Release
A 32-year-old Vladivostok, Russia, man was sentenced today to 27 years in prison for his computer hacking crimes that caused more than $169 million in damage to small businesses and financial institutions, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Roman Valeryevich Seleznev, aka Track2, was convicted in August 2016, of 38 counts related to his scheme to hack into point-of-sale computers to steal credit card numbers and sell them on dark market websites. U.S. District Judge Richard A. Jones of the Western District of Washington imposed the sentence.
“This investigation, conviction and sentence demonstrates that the United States will bring the full force of the American justice system upon cybercriminals like Seleznev who victimize U.S. citizens and companies from afar,” said Acting Assistant Attorney General Blanco. “And we will not tolerate the existence of safe havens for these crimes – we will identify cybercriminals from the dark corners of the Internet and bring them to justice.”
“Today is a bad day for hackers around the world,” said U.S. Attorney Annette L. Hayes. “The notion that the Internet is a Wild West where anything goes is a thing of the past. As Mr. Seleznev has now learned, and others should take note – we are working closely with our law enforcement partners around the world to find, apprehend, and bring to justice those who use the internet to steal and destroy our peace of mind. Whether the victims are multi-national banks or small pizza joints, we are all victims when our day-to-day transactions result in millions of dollars ending up in the wrong hands.”
According to evidence presented at trial, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software (malware) that allowed him to steal millions of credit card numbers from more than 500 U.S. businesses and send the data to servers that he controlled in Russia, the Ukraine and McLean, Virginia. Seleznev then bundled the credit card information into groups called “bases” and sold the information on various criminal “carding” websites to buyers who used them for fraudulent purchases, according to evidence introduced during the trial of this case.
Many of the businesses targeted by Seleznev were small businesses, and included restaurants and pizza parlors in Western Washington, including Broadway Grill in Seattle, which was forced into bankruptcy following the cyber assault. Testimony at trial revealed that Seleznev’s scheme caused approximately 3,700 financial institutions more than $169 million in losses.Seleznev was taken into custody in July 2014 in the Maldives, and the laptop in his custody at that time contained more than 1.7 million stolen credit card numbers, including some from businesses in Western Washington. The laptop also contained additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme. Evidence presented at trial showed that Seleznev earned tens of millions of dollars from his criminal activity.
Seleznev was convicted on Aug. 25, 2016, of 10 counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft.
“Mr. Seleznev’s criminal enterprise was both sophisticated and expansive, with transnational implications. This investigation exemplifies the ability of the U.S. Secret Service and our law enforcement partners to hold accountable those who perpetrate such crimes,” said Special Agent in Charge Robert L. Kierstead of the U.S. Secret Service. “The ultimate success of this case is the result of an extraordinary collaborative effort by the Secret Service, the U.S. Attorney’s Office of the Western District of Washington, the Criminal Division’s Computer Crime and Intellectual Property Section and the Seattle Police Department.”
“Crime has no borders,” said Seattle Police Chief Kathleen O’Toole. “This individual is responsible for defrauding victims out of millions of dollars in Seattle alone, and we are proud to work with our federal partners to bring him to justice.”
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Additionally, Seleznev is charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud and four counts of wire fraud. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service Electronic Crimes Task Force investigated the case. Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorneys Harold Chun and Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. The CCIPS Cyber Crime Lab, and its Director, Ovie Carroll, provided substantial support for the prosecution. The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam also provided assistance in this case.
Oregon Promoter Convicted for Making, Passing and Sending Bogus Financial Instruments to U.S. Treasury and Financial Institution and Failing to File Tax ReturnsRead the Press Release
A Hillsboro, Oregon promoter was convicted today following a jury trial of making, passing and submitting fake financial instruments to a financial institution and the U.S. Treasury and failing to file tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the superseding indictment and the evidence presented at trial, from approximately 2008 through 2015, Winston Shrout, 69, formerly of St. George, Utah, created and submitted more than 1000 bogus financial instruments with the intent of defrauding financial institutions and the U.S. Treasury. Shrout held seminars and private meetings to promote and market the use of these fake financial instruments to pay off debts, including federal taxes. Shrout sold recordings of his seminars, templates for fake financial instruments and other materials through his website.
The evidence presented at trial also proved that Shrout failed to file his 2009 through 2014 tax returns despite earning $562,224 from presenting at seminars, licensing fees associated with the sale of his products and annual pension payments.
Sentencing is scheduled for Aug. 1. Shrout faces a statutory maximum sentence of 25 years in prison for each count of making a fake financial instrument and one year in prison for each count of failing to file a tax return. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Omaha Man Sentenced for Falsely Applying for PassportRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Friday, April 21, 2017, United States District Court Judge John M. Gerrard sentenced Kayne Farquharson, 32, of Omaha, Nebraska, to 21 months in federal prison followed by 3 years of supervised release after he pled guilty to making a false statement on a passport application. Farquharson was also ordered to pay $18,809.00 in restitution in connection with some credit he had obtained in a fraudulent identity.
On or about May 28, 2014, the defendant, identifying himself as a person with the initials, T. L. M., submitted an Application for a U.S. Passport at the Passport Acceptance Office, in Grand Island, Nebraska. As proof of identity, Farquharson presented a Nebraska driver’s license in the name of T. L. M. and as proof of citizenship, a Florida birth certificate in the name of T. L. M. Farquharson also listed on the passport application his occupation as a “football player” and his employer as the Nebraska Danger, a professional indoor football team based in central Nebraska. A United States passport was issued on June 3, 2014 in the name of T. L. M. and mailed to the address listed on the passport application in Grand Island, Nebraska. Photos were compared and it was determined that the person who submitted the application for the passport was indeed Farquharson. Further investigation revealed that Farquharson and T.L.M. knew each other at the time Farquharson applied for the passport.
This case was investigated by the U.S. Department of State.
Nigerian National Convicted of Marriage Fraud to Evade Deportation, False Statements to a Federal Officer, Failure to Appear for TrialRead the Press Release
PROVIDENCE – Rasheed Abiodun Akanni, 42, a Nigerian national residing in Pawtucket, R.I., on Thursday was found guilty at trial by U.S. District Court Judge John J. McConnell, Jr., of entering into a marriage with a U.S. citizen for the purpose of evading deportation, false statements to a federal officer and failure to appear before the U.S. District Court as required by conditions of release. Akanni was found guilty as charged in indictments returned by federal grand juries on September 13, 2016, and April 6, 2017. He is scheduled to be sentenced on July 17, 2017.
Rasheed Abiodun Akanni’s conviction is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Denis Riordan, District Director of U.S. Citizenship and Immigration Services.
According to the government’s evidence presented during a three-day bench trial, Akanni entered the United States from Nigeria on June 3, 2003, on a six-month visitor for pleasure visa. He never left the United States and made several unsuccessful attempts to gain legal status.
On July 13, 2007, Akanni filed for lawful permanent resident status as the spouse of an American woman. The woman later withdrew her support for Akanni’s application. On November 23, 2010, Akanni filed a petition for asylum, which stayed removal proceedings.
According to the government’s evidence, in the fall of 2012 Akanni began a relationship with an American woman, whom he later married in a civil ceremony on February 14, 2013. Akanni and his wife continued to live in separate residences until jointly renting an apartment in June 2013. However, Akanni’s wife told investigators that he only stayed at their joint residence on average three or four nights a week. After two months, Akanni’s wife instructed Akanni to move out of their joint residence.
According to the government’s evidence, in October 2013 Akanni informed his wife that he would be filing an application for lawful permanent residence based on their marriage. His wife testified she was unaware that her husband was not a legal resident of the United States, but that she agreed to support his application for legal status. In September 2014, U.S. Citizenship and Immigration Services (USCIS) officers interviewed Akanni and his wife separately. On May 6, 2015, USCIS officers again interviewed both individuals separately. Further investigation determined that Akanni and his wife gave conflicting answers during the second interview as to the state of their marriage. While Akanni’s wife told USCIS investigators that her marriage to Akanni was not good and that she would be seeking a divorce, Akanni made false statements to the officers as to the state of his marriage and his residence. Akanni claimed that he resided with his wife and that the residence he was at on the day he was interviewed was his sisters. The investigation determined that Akanni actually shared the residence with a woman with whom he fathered a child. The child was born on February 13, 2016.
On September 13, 2016, a federal grand jury indicted Rasheed Abiodun Akanni on charges of entering into a marriage with a U.S. citizen for the purpose of evading deportation and making false statements to a federal officer. Akanni was arraigned on September 14, 2016, and released on unsecured bond. Among the conditions set by the court for his release, Akanni was ordered to appear for trial in U.S. District Court on a trial date to be set by the court. The court scheduled the trial to begin on January 30, 2017. Akanni failed to appear in court for his trial. An arrest warrant was issued by the court.
In the early morning hours of January 31, 2017, Akanni was stopped attempting to enter Canada by officers from the Canada Border Service Agency. At the border, Akanni provided an American passport in another person’s name. Canadian officers returned him to the U.S. Customs and Border Patrol checkpoint in Lewiston, N.Y. U.S. Marshals later returned Akanni to Rhode Island where he remained in federal custody. On April 6, 2017, a federal grand jury returned an indictment charging Rasheed Abiodun Akanni with failure to appear before the U.S. District Court for trial.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the U.S. Customs & Border Protection Service in Buffalo, N.Y. for their assistance in this matter.
Assistant U.S. Attorney Zechariah Chafee prosecuted the case. On April 11, 2017, pursuant to a memo from Attorney General Jeff Sessions, Assistant U.S. Attorney Zechariah Chafee was appointed Border Security Coordinator for the United States Attorney’s Office for the District of Rhode Island. Attorney General Sessions instructed each United States Attorney’s Office to designate a Border Security Coordinator to coordinate the District’s commitment to criminal immigration enforcement.
Nampa Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BOISE – Joe Angel Trujillo, 24, of Nampa, Idaho, pleaded guilty yesterday to possession of methamphetamine with intent to distribute, Acting U.S. Attorney Rafael Gonzalez announced. A federal grand jury indicted Trujillo on September 14, 2016. The superseding information alleges that Trujillo possessed with the intent to distribute over fifty grams of actual methamphetamine.
According to statements made at the hearing, officers arrested Trujillo on July 19, 2016, on outstanding felony warrants at a residence in Nampa, Idaho. Officers had surveilled the residence prior to arresting Trujillo and observed him entering the residence wearing a grey coat and carrying a black backpack. At the time of his arrest, officers observed Trujillo standing near the grey coat he had been wearing and the backpack he had been seen carrying. Officers searched the backpack and found over 1,000 grams of pure methamphetamine, a Smith & Wesson .380 caliber pistol, ammunition, and digital scales. Officers also searched and found over $4,000 in the pocket of the grey coat and over $500 on Trujillo’s person. Sentencing is set for June 29, 2017, before Chief U.S. District Judge B. Lynn Winmill.
Possession with intent to distribute methamphetamine is punishable by at least ten years and up to life imprisonment, at least five years of supervised release, a $10,000,000 fine, and a $100 special assessment.
The case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Nampa Police Department.
Myrtle Beach Man Sentenced on Child Pornography ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Daniel James Crutchfield, age 27, from Myrtle Beach, SC, was sentenced in federal court in Florence, South Carolina, for possession of child pornography, in violation of 18 U.S.C. § 2252A(a)(5)(B)1326(a)(2). United States District Judge R. Bryan Harwell of Florence sentenced Crutchfield to 120 months imprisonment followed by supervised release for life and restitution payment of $6,000.00. During his term of supervised release, Crutchfield will be required to register as a sex offender, attend sex offender treatment, refrain from contact with children or use the internet without approval, and submit to polygraph examinations.
Evidence presented at the change of plea on March 1, 2016 established that federal agents executed a search warrant at Crutchfield’s residence on July 1, 2015 based on information that he had been receiving child pornography on the Internet. During the search, agents found numerous videos of child pornography on Crutchfield’s Play Station 3 and on a flash storage device.
The case was investigated by agents with ICE-Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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