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Friday 21 April 2017
Myron Bernard, aka “Hood,” and Kevin “Kyle” Forman Indicted for Conspiracy to Distribute Heroin and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Myron Bernard, aka “Hood,” of Philadelphia, Pennsylvania, and Kevin “Kyle” Forman of Burlington, Vermont were indicted by the federal grand jury yesterday, and charged with conspiring to distribute and distributing heroin and cocaine base in Vermont.
According to Court documents, the United States alleges that both Bernard and Forman engaged in the sale of heroin near the corner of South Willard and Buell Streets in Burlington, Vermont. Forman also distributed heroin in various parking lots in Winooski and Burlington. After one of these distributions of heroin, law enforcement surveillance followed Forman back to his residence on Austin Drive in Burlington.
Both Forman and Bernard appeared earlier this week before United States Magistrate Judge John M. Conroy in Burlington. Forman was ordered detained pending trial. Bernard was ordered held pending a detention hearing, scheduled for Monday, April 24, 2017.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If either Bernard or Forman is convicted, each faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Jon Ophardt. Bernard is represented by the Federal Public Defender for the District of Vermont. Forman is represented by Richard R. Goldsborough, Esq. The investigation was conducted by the Vermont State Police, the Burlington Police Department, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Montegut Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TYLER DAVIS, age 22, of Montegut, Louisiana, pled guilty yesterday for crimes involving the sexual exploitation of children.
According to court documents, beginning at an unknown time to on or about July 13, 2015, DAVIS knowingly possessed images and videos depicting the sexual victimization of minors. DAVIS entered a plea of guilty to possessing a Samsung Galaxy cell phone that contained pre-pubescent images and videos of children less than twelve-years-old.
DAVIS faces a maximum sentence of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine. U.S. District Judge Mary Ann Vial Lemmon set sentencing on July 20, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations (HSI Houma), HSI Ottawa, and the York Regional Police Special Victim’s Unit, Ottawa, Canada in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Monroe County Physician Sentenced to One Year in Prison for Illegally Prescribing Pain MedicationsRead the Press Release
BOWLING GREEN, Ky. – A Monroe County, Kentucky physician was sentenced by Senior Judge Thomas B. Russell, in U.S. District Court, yesterday to serve one year and one day in prison for prescribing pain medications outside the course of professional medical practice to five patients during a more than six year period, announced United States Attorney John E. Kuhn, Jr.
Clella Louise Hayes, whose medical practice was located in Tompkinsville, Kentucky, pleaded guilty to five counts of a grand jury indictment on September 14, 2016. Hayes was charged with dispensing and distributing Schedule II controlled substances and Schedule III controlled substances outside the course of her professional medical practice.
Further, Hayes, age 41, of Glasgow, Kentucky, authorized prescriptions for fentanyl, morphine, Oxycodone, Demerol, hydrocodone and Klonopin. The illegal activities occurred between March 2008 through March 2014.
Specifically, between June 2009 and September 2011, Hayes intentionally dispensed Schedule II controlled substances to the same patient, outside the course of professional medical practice, by issuing and authorizing prescriptions for fentanyl, morphine, Oxycodone, and Demerol. During the same time period, Hayes failed to establish a legitimate diagnosis of A.R.’s (the patient) pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion. On September 19, 2011, Dr. Hayes prescribed fentanyl to A.R. On September 23, 2011, at age 55, A.R. died as a result of a fentanyl overdose, with post-mortem toxicology reports reflecting fentanyl at five times the therapeutic range in A.R.’s blood. a similar instance, Between November 2011 and November 2012, A.H. was Dr. Hayes’s patient.
During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II controlled substances to A.H. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and Demerol.
Dr. Hayes failed to establish a legitimate diagnosis of A.H.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On November 27, 2012, A.H. died at age 48 as a result of a poly-pharmacy overdose, with post-mortem toxicology reports reflecting high blood concentrations of medications Dr. Hayes prescribed to A.H., including Oxycodone and Klonopin. Between June 2010 and January 2014, K.S. was Dr. Hayes’s patient.
During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II and Schedule III controlled substances to K.S. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and hydrocodone.
Dr. Hayes failed to establish a legitimate diagnosis of K.S.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On January 1, 2014, K.S. died at age 53 as a result of a poly-pharmacy overdose, with post-mortem toxicology results reflecting oxycodone, and hydrocodone at ten (10) times the therapeutic dose, both of which Dr. Hayes prescribed to K.S in December 2013.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Kentucky State Police (KSP) Drug Enforcement/Special Investigations West, and the Federal Bureau of Investigation (FBI) with assistance from the Tompkinsville Police Department.
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Mississippi Tax Preparers Sentenced to Prison for Filing Fradulent ReturnsRead the Press Release
WASHINGTON – Two Gulfport, Mississippi men were sentenced to prison today for charges related to preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
Allen Brice was sentenced to serve 63 months in prison. He was convicted at trial of seven counts of aiding in the preparation of false tax returns. Jeremi Washington was sentenced to serve 46 months in prison. He previously pleaded guilty to conspiring to defraud the United States.
According to court documents and proceedings, Washington was a tax return preparer who owned and operated Flash Financial, and Brice was Washington’s sole employee. From 2009 through 2011, the two men filed fraudulent tax returns for multiple clients with the Internal Revenue Service (IRS) that included bogus education expenses and retirement contributions, which they never discussed with their clients. As a result, the clients received refunds they were not entitled to.
In addition to the terms of prison imposed, Brice and Washington were ordered to serve one and three years of supervised release. Brice was ordered to pay restitution to the IRS in the amount of $1,919,820.20 and Washington was ordered to pay $1,954,352.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Christopher Wansley and Jay Golden and Trial Attorney Nathan Brooks 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.
Miami-Dade Resident Sentenced to 22 Years in Prison for Being a Felon in Possession of a Firearm After Shooting a Man in Miami GardensRead the Press Release
A Miami-Dade resident was sentenced to 22 years in federal prison for being a felon in possession of a firearm, after he shot a man in front of a convenience store in Miami Gardens.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Cynthia Dawson Machanic, Acting Chief, Miami Gardens Police Department, made the announcement.
James Benjamin Bell, 52, previously pled guilty before U.S. District Judge Donald L. Graham for being a felon in possession of a firearm. Yesterday, U.S. District Judge Graham sentenced Bell to 264 months in prison, to be followed by 5 years of supervised release.
According to the court record, including evidence presented during the defendant’s trial, prior to his guilty plea, on May 31, 2016, Bell argued with another man outside of a Miami Gardens convenience store before shooting him in the face. A bystander called 911 and provided a description of the shooter and the getaway car. Police officers quickly found the car and Bell exited the passenger side of the vehicle wearing clothing that matched the description of the shooter. Bell’s girlfriend was the driver. Officers located a firearm in Bell’s girlfriend’s purse. A ballistics test linked the firearm found in Bell’s girlfriend’s purse to the casing left on scene. At the time of the shooting, Bell was a convicted felon who was prohibited from possessing a firearm.
Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for their assistance. Mr. Greenberg commended the investigative efforts of ATF and the Miami Gardens Police Department. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney?s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Men Sentenced to Federal Prison and Ordered to Pay over $6 Million Restitution for Tax Fraud at Hope HospitalRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that two men were sentenced this week on one count each of Failure to Collect or Pay Over Tax. James R. Cheek, age 68, of Waleska, Georgia and Herschel J. Breig, Sr., age 69, of Nixa, Missouri were each sentenced to 36 months in federal prison followed by three years of supervised release. Restitution of $6,000,000 is ordered jointly and severally between the two defendants. Judge Susan O. Hickey presided over the sentencing hearings in the United States District court in Texarkana.
According to court records, as principals of Hope Medical Park Hospital, both Cheek and Breig were responsible to collect, truthfully account for, and pay over the hospital’s payroll taxes to the Internal Revenue Service during the calendar years 2009, 2010, 2011, and 2012. They failed to pay approximately $6,000,000 in payroll taxes as was required.
Both men were indicted by a federal grand jury in July, 2015 and both pleaded guilty in September, 2016.
"Corporate executives have a responsibility to withhold federal income taxes for their employees and then remit those taxes to the IRS on their behalf. Employment tax evasion not only results in the loss of tax revenue to the United States government, employees also lose future social security or Medicare benefits” stated Tracey D. Montaño, Special Agent in Charge. "Failure to pay over withheld taxes is a serious offense, and continues to be an investigative priority for IRS Criminal Investigation."
This case was investigated by the Internal Revenue Service - Criminal Investigation Division and the Federal Bureau of Investigation. Assistant United States Attorneys Candace Taylor and Jonathan D. Ross 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
Media Advisory: Press Conference to Announce Federal Gun-Related Charges and ArrestsRead the Press Release
CEDAR RAPIDS, IA – There will be a press conference held on Monday, April 24, 2017, at 2:00 p.m. at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids. Acting U.S. Attorney Sean R. Berry and representatives from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Cedar Rapids, Waterloo, and Marion Police Departments will be present at the press conference. The purpose of the press conference is to announce recent federal gun-related charges and arrests in Eastern Iowa.
Event Details
When: April 24, 2017
Where: United States Attorney’s Office, 111 Seventh Ave SE
Time: 2:00 p.m.
A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Man Who Falsely Claimed to Receive the Purple Heart Award to Receive Financial Benefits is Sentenced to 21 Months in Federal PrisonRead the Press Release
DALLAS — A 35-year-old man, Brandon Ryan Blackstone, who admitted fraudulently representing the receipt of a military decoration for financial gain, has been sentenced by Chief U.S. District Judge Barbara M.G. Lynn to serve 21 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Blackstone pleaded guilty in September 2016 to a felony information charging one count of wire fraud and one count of fraudulent representation about the receipt of a military decoration for financial gain. Blackstone has been in custody since February 2017 for violations of his pretrial conditions.
“Falsely claiming military honors is disgraceful by itself,” said U.S. Attorney Parker. “But to do so for financial gain is particularly despicable.”
“Any fraudulent claim of military valor is disturbing and disrespectful to the brave men and women who earned their honors through courage and sacrifice. Brandon Blackstone’s fraudulent claims, made repeatedly with the purpose of defrauding the government and obtaining personal enrichment, are not only especially egregious, but criminal. The FBI will not stand by in these situations,” said FBI Dallas Special Agent in Charge Eric K. Jackson. “We will investigate these cases to ensure justice is reached. We will do our part to uphold the integrity of the U.S. government and military institutions and to honor those courageous individuals who truly deserve their military honors.”
“This conviction demonstrates the VA Office of Inspector General’s unwavering commitment to protect the programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge James Werner, VA Office of Inspector General.
According to plea documents, Blackstone served in the United States Marine Corps from 2004 until 2006. Between August 28, 2004, and September 30, 2004, Blackstone was deployed with the Marines to Iraq.
On July 28, 2006, Blackstone submitted an application for compensation and/or pension to the Department of Veterans Affairs (VA). In the application, the defendant falsely claimed to have sustained multiple physical blast injuries while deployed to Iraq, when his Humvee vehicle struck an anti-tank mine. When Blackstone was examined at the Dallas VA Medical Center in October 2006 he falsely claimed that he sustained multiple lacerations and physical injuries as a result of an explosion when his Humvee passed over an anti-tank mine which exploded. Also in October 2006, in support of his application for benefits, Blackstone submitted to the VA, two forged and falsified witness statements, purporting to be signed by Marines who witnessed the explosion.
In November 2006, the VA awarded Blackstone disability benefits in the form of monthly compensation payments.
In February 2012, the defendant submitted an online application to the Military Warrior Support Foundation (MWSF), to fraudulently obtain a residence. MWSF is a nonprofit organization dedicated to helping injured veterans. Included in the benefits provided to combat wounded veterans, MWSF provides mortgage free residences to eligible veterans who were wounded during combat. In the application, Blackstone falsely claimed to have sustained blast injuries, resulting from an explosion, when his vehicle struck an anti-tank mine while on patrol. In the application, Blackstone also falsely claimed that, as a result of his injury, he was awarded the Purple Heart Medal. Because he held himself out to have been awarded the Purple Heart Medal, Blackstone received from MWSF, a mortgage free residence in Fort Worth, Texas in November 2012, and was scheduled to receive the title of the residence in November 2015.
The Federal Bureau of Investigation and the Department of Veteran Affairs, Office of Inspector General investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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Louisville Brothers Charged in the Shooting of A United States Postal CarrierRead the Press Release
Charged with attempted murder of a federal employee
LOUISVILLE, Ky. – Two Louisville men have been charged in a Superseding Indictment with conspiracy to murder and attempted murder of a federal employee, that is a United States Postal Carrier (while engaged in the performance of his official duties), and with forcible assault of a federal employee. One defendant, Eric Bennett, faces additional charges, including discharge of a firearm during a crime of violence, possession of a firearm by a convicted felon, and use or possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney John E. Kuhn, Jr.
Marcus Bennett, 40, was arrested Wednesday, April 19, 2017, and appeared before Magistrate Judge Dave Whalin, facing four of seven charges in a Superseding Indictment. The Superseding Indictment was unsealed yesterday during his initial appearance in federal court. Marcus Bennett remains in federal custody with a detention hearing scheduled for Wednesday, April 26, 2017 at 3:00 pm.
Eric Bennett, 38, was arrested Monday, February 27, 2017, and was initially charged in a grand jury indictment with attempted murder of a federal employee, forcible assault of a federal employee, and discharge of a firearm during a crime of violence. The superseding indictment includes those charges and adds four new charges. Those charges are: conspiracy to murder and attempted murder of a federal employee; the two firearms charges (possession of a firearm by a convicted felon, and use or possession of a firearm in furtherance of a drug trafficking crime); and a drug trafficking charge. Eric Bennett remains in federal custody.
The charges are in connection with the shooting of United States Postal Carrier Da’Ron Lester on February 10, 2016.
A third defendant, Juliyah Young, of Louisville, is charged in the Superseding Indictment, along with Marcus and Eric Bennett, with conspiracy to distribute heroin and marijuana. According to the indictment, beginning in June of 2015, and continuing to April 19, 2017, in Jefferson County, the three defendants conspired with each other to possess with the intent to distribute one kilogram or more of heroin and marijuana.
If convicted of the charges, Eric Bennett and Marcus Bennett face a sentence of any number of years in prison including life for conspiracy to murder a federal employee, no more than 20 years for each count of attempted murder of a federal employee and forcible assault of a federal employee.
Eric Bennett faces an additional 10 years in prison for the charge of discharging of a firearm during a crime of violence, no more than 10 years in prison for possession of a firearm by a convicted felon, and no less than 25 years in prison for possession of a firearm in furtherance of a drug trafficking crime. Further, Eric and Marcus Bennett could be sentenced to a five-year term of supervised release and ordered to pay a fine.
If convicted of conspiracy to distribute heroin and marijuana, all three defendants could be sentenced to no less than 10 years in prison and no more than life, fined, and ordered to serve 5 years of supervised release.
This case is being prosecuted by Assistant United States Attorneys Scott Davis and Marisa Ford, and the United States Postal Inspection Service (USPIS) is conducting the investigation.
The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
bennett_et_al_indictment_4-19-17.pdfKevin Darnell Williams Convicted of Robbery, Drug, and Firearms OffensesRead the Press Release
Williams shot victim at drug deal in Ames, Iowa
DES MOINES, IA – On April 20, 2017, Kevin Darnell Williams, also known as “Splash,” 23, was convicted by a federal jury of conspiracy to possess with intent to distribute marijuana, robbery, discharge of a firearm during and in relation to a drug trafficking crime and a crime of violence, and felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Williams’ sentencing is scheduled for September 12, 2017, at 11:00 a.m., at the United States Courthouse in Des Moines before United States District Court Chief Judge John A. Jarvey.
According to evidence presented at trial, Williams set up a marijuana deal with the victim in Ames. Once the two met, on August 9, 2016, the drug deal turned into a robbery, and Williams shot the victim four times. Williams was apprehended by law enforcement in Chicago several days after the shooting.
This matter was investigated by the Federal Bureau of Investigation's Central Iowa Gang Task Force, the Ames Police Department, the Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Jamaican National Pleads Guilty to Making False StatementsRead 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 LaTanya Notice, 42, of Mt. Vernon, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to the crime of making a false statement to a federal officer. The charge carries a maximum penalty of 5 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on January 23, 2013, the defendant, a Jamaican citizen with legal permanent resident status in the United States, attempted to cross into the United States from Canada at the Peace Bridge with a man in possession of a valid United States Passport. The defendant claimed that her traveling companion was her brother and they were returning to their home in New York City. Standard database checks revealed that the man was in fact Horace Tajah, an aggravated felon from Jamaica. In 2010, Tajah was convicted in the Southern District of New York of multiple offenses including drug, gun, and conspiracy to commit murder charges. Tajah was sentenced to 72 months in prison, and after serving his sentence, he was deported to Jamaica in 2012 and banned from the United States for life.
Ms. Notice admitted to agents that Tajah was not her brother, but her husband, that he did not own the United States Passport he presented to officials, and that she was aware that he was deported to Jamaica in 2012 and barred from entering the United States for life.
The plea is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for July 27, 2017, at 9:30 am before Judge Vilardo.
Inmate Pleads Guilty to Escaping from Atlanta’s Federal PenitentiaryRead the Press Release
ATLANTA – Federal inmate Justin B. Stinson has pleaded guilty to escaping from the United States Penitentiary minimum security camp in Atlanta, Georgia.
“Stinson escaped from Atlanta’s federal prison solely to smuggle contraband back inside it,” said U. S. Attorney John A. Horn. “This case shines a light on a recurring problem with prisoners leaving the camp, which creates safety concerns in the surrounding neighborhoods as well as within the camp itself when inmates return with contraband to feed a thriving black market.”
“The safety of our communities is the department’s number one priority, and escaped inmates clearly have the ability to threaten the well-being of unsuspecting residents, including the numerous children who live in proximity to the prison. The department is extremely grateful to U.S. Attorney John Horn and his staff for making this case a priority, and sending a strong message to other inmates who may be inclined to attempt escape that additional sentencing will be forthcoming,” said Chief of Police Erika Shields, Atlanta Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: the United States Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. In March 2015, Stinson pleaded guilty to Possession of a Firearm by a Convicted Felon in a Florida federal court. From August 2016 to February 2017, Stinson was assigned to serve his time at USP Atlanta’s minimum security camp.
On February 3, 2017, law enforcement officers conducted surveillance along the USP Atlanta’s prison fence line near New Town Circle. Just after 9:00 p.m., Stinson escaped from USP Atlanta by climbing through a hole in one prison fence and then climbing over USP Atlanta’s outer prison fence. Thereafter, Stinson retrieved a large black duffel bag from the occupant of a stopped car on New Town Circle and began walking back toward USP Atlanta. The FBI then arrested Stinson from a location outside of USP Atlanta’s confines. The FBI also recovered from Stinson a cellular telephone, a pair of scissors, two 1.75 liters of Jose Cuervo tequila, two cartons of Newport cigarettes, four boxes of Black and Mild cigars, and various food items.
On February 14, 2017, Stinson, 37, was indicted by a federal grand jury on escape and contraband smuggling charges. Stinson pleaded guilty to one count of escape.
The sentencing hearing for Stinson has been scheduled for June 28, 2017, at 2:30 p.m., before U.S. District Judge Charles A. Pannell, Jr.
This case is being investigated by the Federal Bureau of Investigation and the Atlanta Police Department.
Assistant United States Attorneys Jeffrey W. Davis and Timothy Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Illegal Alien Enters Guilty Plea in Federal CourtRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Edgar Rolando Castro Soc, age 37, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Illegal Re-Entry into the United States, a violation of Title 18, United States Code, Section 1326(a). United States District Judge Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on September 1, 2016, ICE-ERO Officers discovered Castro Soc while he was in custody in the Myrtle Beach City jail on state charges. The officers determined that he was an alien who was unlawfully in the United States.Records checks revealed that Castro Soc, a native and citizen of Guatemala, had previously been deported from the United States on five (5) occasions. Castro Soc has never received permission to enter or remain in the U.S.
Ms. Drake stated the maximum penalty the defendant can receive is imprisonment for 2 years, a fine of $250,000 and a special assessment of $100.
The case was investigated by agents of the ICE-ERO Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Hope Initiative Partners, City of Albuquerque, Bernalillo County and HAC Collaborate with DEA to Promote 13th National Prescription Drug Take-Back DayRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office and UNM’s Health and Sciences Center are encouraging the public to participate in DEA’s 13th National Prescription Drug Take-Back Day on Saturday, April 29, 2017 from 10:00 a.m. to 2:00 pm as part of the prevention and education component of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
To raise public awareness about the nationwide event on April 29, 2017, the HOPE Initiative Partners and DEA are collaborating with the City of Albuquerque, Bernalillo County and Healing Addiction in our Community (HAC) in hosting a promotional Drug Take-Back event on Tuesday, April 25, 2017, from 11:00 a.m. to 1:30 p.m., during “Truckin’ Tuesday” in Civic Plaza. This promotional event will provide City and County employees and others who work in the downtown Albuquerque area with a safe, convenient and responsible way of disposing of unused, unwanted or expired medications.
During the last National Prescription Drug Take-Back Day in October 2016, Americans turned in 731, 269 pounds – almost 366 tons – of prescription drugs at almost 5,200 sites staffed by DEA and more than 4,000 of its state, local and tribal law enforcement partners. Here in New Mexico, DEA and 50 law enforcement partners collected almost 4,400 pounds of medication at 79 collection sites throughout the state. Overall, in its 12 previous Take Back events, DEA and its partners have taken in over 7.1 million pounds – more than 3,500 tons – of pills.
“Many individuals are lured into believing that taking a prescription pill is a safe way to get high. But many prescription drugs are highly addictive and just as dangerous as any street drug, and just as deadly,” said Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division. “The death toll from prescription painkillers has tripled in the last decade, and the problem is getting worst. More people die each year from prescription painkiller overdoses than from heroin, cocaine or any other illegal drug. Proper disposal of your unwanted prescription drugs is a simple way to help prevent overdose deaths.”
“Teens and young adults are especially vulnerable because they begin abusing prescription drugs and turn to heroin for a cheaper high,” said Acting U.S. Attorney James D. Tierney. “Every day, 2,500 teens take a prescription drug to get high for the first time, and 65% of teens get their drugs from a medicine cabinet at home or from a friend or relative. Too many kids are dying young. Protect our kids by properly disposing of your unused, unwanted and expired medicine.”
“The UNM Health Sciences Center enthusiastically supports National Prescription Drug Take-Back Day and thanks the Drug Enforcement Administration for its leadership in this important initiative,” said Dr. Paul B. Roth, Chancellor of UNM Health Sciences Center. “UNM Hospital and the UNM Police Department will do their part on April 29th by hosting a drive-thru take-back site in the shuttle lanes at UNMH, 2211 Lomas Blvd NW. We encourage community members to take this opportunity to dispose of unused prescription drugs to protect themselves, their families and our community.”
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused prescription drugs in 2015, including almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers. Almost 30,000 people – 78 a day – died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
“Unused, unsecured prescription drugs, particularly opiates and benzodiazepines, can be stolen and diverted for illegal sale. This is not good for law enforcement and not good for our communities as we work to stem the tide of addictions,” said Bernalillo County Commissioner Maggie Hart Stebbins. “Local governments are very grateful to DEA for their "take-back" initiative and other efforts to keep these illegal drugs off our streets.”
“Having unused medicines in your house is unsafe and dangerous as you never know who might get their hands on them,” said HAC Executive Director Jennifer Weiss-Burke. “There's no reason to hang on to leftover medicines, so take advantage of this opportunity to spring clean your medicine cabinet!”
Members of the public can find a nearby Prescription Drug Take-Back collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and entering their zip code into the search window, or they can call 800-882-9539. Only pills and other solids, like patches, will be accepted at DEA Drug Take Back collection sites – the public should not bring liquids, needles or other sharp items to take back sites. This service is free and anonymous, no questions asked.
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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Guo Hua Lu Sentenced for False Statement to Federal OfficerRead the Press Release
SHAWN ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant GUO HUA LU (age 54) was sentenced on Thursday, April 20, 2017, in the U.S. District Court by Chief Judge Ramona V. Manglona, to six months incarceration, a $5,500.00 fine, $750.00 restitution, one year of supervised release after incarceration, and a $100 special assessment fee, for False Statement to a Federal Officer.
LU was a document preparer who obtained a fraudulent notarial certificate on behalf of a Chinese national seeking a passport for her U.S. citizen infant. When interviewed by an agent from the U.S. Department of State’s Diplomatic Security Service, LU denied his involvement in obtaining the fraudulent document. On October 28, 2016, LU was indicted by a federal grand jury for one count of False Statement to a Federal Officer. LU pled guilty on December 22, 2016.
This investigation was conducted by the Department of State’s Diplomatic Security Service (DSS) and the case was prosecuted by Assistant U.S. Attorney James J. Benedetto.
Government Contractors Indicted in $11 Million Veteran Set-Aside Fraud SchemeRead the Press Release
Assistant U.S. Attorneys Rebecca S. Kanter (619-546-7304) and Aaron P. Arnzen (619-546-8384)
NEWS RELEASE SUMMARY – April 21, 2017
SAN DIEGO, CA – Owners of local construction and telecommunications companies were arraigned in federal court today on charges that they fraudulently obtained more than $11 million in federal contracts specifically set aside for service-disabled veteran-owned businesses.
Andrew Otero, Roger Ramsey, and their companies – A&D General Contracting, Inc. (“A&D”) and Action Telecom, Inc. (“Action”) – were named in a fourteen-count indictment returned April 7 by a federal grand jury in San Diego.
The indictment alleges that the defendants participated in a conspiracy to defraud the government by forming a joint venture – Action-A&D, A Joint Venture (“the JV”) – and falsely representing that Action and the JV qualified as service-disabled veteran-owned small businesses (“SDVOSB”). Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veteran Affairs (“VA”) and the Army Corps of Engineers (“ACE”).
According to the indictment, the fraudulent conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D. To appear qualified, Otero (on behalf of A&D) and Ramsey (on behalf of Action) initially executed an agreement to create the JV (“the JV Agreement”), which stated that Ramsey’s company (Action) would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the JV’s profits.
However, six months later, Otero and Ramsey signed a secret side agreement that made clear the JV was ineligible under the SDVOSB program. For example, the side agreement said the parties created the JV so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement also stated that A&D – not Action – would run the construction jobs. They also agreed that “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”
In addition to the secret side agreement, the indictment describes a variety of ways in which the JV did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D. For example, although Ramsey (a service-disabled veteran) nominally served as president of Action and the JV, he actually worked full-time for another telecommunications company. Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the JV. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order. Consistent with their side agreement, Action received just a small fee for using Rasmey’s status as a disabled veteran.
The indictment also alleges several examples of the conspirators deceiving government agencies about the true nature of the JV. For example, on two separate occasions, A&D submitted the JV Agreement to (and withheld the side agreement from) the government in response to requests for information about the joint venture – despite the fact that the side agreement said on its face that it superseded the original JV Agreement.
Today’s indictment cites three contracts or task orders which the VA or ACE awarded to the JV, each worth over a million dollars, and one as high as $8.2 million. In addition to the conspiracy charge, all defendants were also charged with three counts of wire fraud relating to the payment of invoices on the three contracts or task orders, and with one or more counts of major government program fraud and false statements in connection with fraudulent certifications to the government. Today’s indictment also contains forfeiture allegations, which would require the defendants to forfeit to the government any property derived from the proceeds of the fraud scheme.
Acting United States Attorney Robinson said “One important way in which our country tries to repay the debt of gratitude we owe to our veterans is by setting aside some government contracts for those who have been disabled during their service. But unscrupulous contractors have abused this program through ‘rent-a-vet’ schemes, such as the one described in today’s indictment. The Department of Justice will work to ensure that criminals who abuse important contracting programs such as the SDVOSB are held to account.”
Rebeccalynn L. Staples, Resident Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, San Diego Resident Agency, stated, “This investigation demonstrates the OIG’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as Service-Disabled Veteran-Owned Small Businesses and deny legitimate disabled veterans the opportunity to be awarded VA set-aside contracts. The VA OIG will continue to work these cases in order to protect the integrity of the program. I urge anyone with knowledge of such an ongoing fraud to call the VA OIG’s Hotline at 1-800-488-8244.”
All four defendants are also facing civil charges in United States v. Otero, et al., Case No. 15CV0441-JAH, a case alleging violations of the false claims act based on the similar misconduct.
All defendants were ordered to appear before U.S. District Judge Roger T. Benitez for a motion hearing at 2 p.m. on June 5.
CORPORATE DEFENDANTS
A&D General Contracting, Inc., Santee, California
Action Telecom, Inc., Santee, California
INDIVIDUAL DEFENDANTS
Andrew Otero Age: 54 El Cajon, CA
Roger Ramsey Age: 57 Spring Valley, CA
Criminal Case No. 17CR0879-BEN
SUMMARY OF CHARGES
Count 1 (All): Conspiracy to defraud and commit offenses (18 U.S.C. § 371)
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10
Count 2 (Otero and A&D)
and Counts 3-4 (All): Major fraud against the United States (18 U.S.C. § 1031)
Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100
Counts 5-7 (All): Wire fraud (18 U.S.C. § 1343)
Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100
Counts 8-9 and 11-13
(Ramsey and Action),
10 (All), 14 (A&D): False statements (18 U.S.C. § 1001)
Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100
AGENCIES
Department of Veteran Affairs, Office of Inspector General
*The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Fraudsters Convicted of Operating Nationwide Home Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Three co-conspirators who operated a nationwide, multi-year “home mortgage modification” fraud that scammed hundreds of victims out of at least $10 million were convicted today by a federal jury.
“These defendants scammed hundreds of individuals and families who were trying desperately to save their homes,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Their crimes were rooted in dishonesty and greed, and they shamelessly enriched themselves at their victims’ expense. I am very pleased with the convictions and want to commend the efforts of the Assistant United States Attorneys and our investigative partners for their terrific work on this important and complex case.”
According to court records and evidence presented at trial, Sammy Araya, Michael Henderson, and Jen Seko, all from the greater Los Angeles area, operated a large-scale “home mortgage modification” scam that victimized vulnerable individuals and families across the country for several years. The conspirators sent targeted mass mailers to homeowners facing foreclosure through Seko’s company, Seko Direct Marketing. The mailers referenced real federal programs designed to help struggling homeowners, such as the Home Affordable Modification Program (HAMP), and were titled “Notice of HUD Relief,” “Notice of Mortgage Relief,” and “New HAMP Benefits,” among other misleading titles. The mailers listed various toll-free telephone numbers for the homeowners to call for assistance. When a victim homeowner who had been solicited via a mass mailing called the toll-free number listed on the mailer, a member of the conspiracy posing as a “customer service representative” would answer the phone and collect financial information from the victim, as well as inquire about the victim’s mortgage and how far behind the victim was on his or her mortgage payments. The victims were told the information would be reviewed to determine if they qualified for a mortgage modification. Instead, the information was used by the conspirators to determine how much money could be stolen from the victim. Henderson served as one of the purported “customer service representatives” and helped to distribute the money collected by the scam, while Araya was the mastermind and principal beneficiary of the entire fraudulent operation.
“Today justice was served to three scam artists who preyed upon hundreds of desperate homeowners taking money in exchange for empty promises of admission into the HAMP program,” said Christy Goldsmith Romero, Special Inspector for the Troubled Asset Relief Program (TARP). “This was a scheme of deception and thievery: the defendants pocketed the homeowner dollars but did nothing to help their victims. I thank U.S. Attorney Boente and his team for their hard work and commitment protecting homeowners getting help through HAMP.”
According to court records and evidence presented at trial, after being contacted by another member of the conspiracy and told that their mortgage modification had been approved, the victim homeowner would be told that their lender required a “reinstatement fee,” usually in the amount of thousands of dollars. Victims were also told that they were required to make several “trial” mortgage modification payments. After these so-called “trial payments” were completed, their modification would be complete and their new lower mortgage payment would become permanent for the life of the loan.
“These defendants preyed upon innocent homeowners when they were at their most vulnerable, and simply trying to save their homes,” said Leslie DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General. “These egregious schemes victimize homeowners and entire communities, and today a jury held them accountable for their actions. We are proud to work with our law enforcement partners on this case, and will continue to work with them to bring to justice all individuals who attempt to defraud unwitting victims.”
Throughout this process, the members of the conspiracy represented themselves to homeowners in mass mailings, phone calls, emails, and other communications using a laundry list of aliases and fictitious entity names. Some of those fictitious entities included “Equity Restoration Group,” “Neighborhood Counseling Services of America,” and “Home Retention Center,” among many others. The conspirators changed their aliases and entity names regularly, in an effort to evade detection by law enforcement. The conspirators also falsely represented themselves as a “non-profit” organization or as affiliated with the federal government or the victims’ lenders, and they directed the victims to make their checks and money orders payable to other fake entities, such as “Payment Processing Services,” “Default Servicing,” and “Trust Funding.” They then opened bank accounts using those false entity names, and used those bank accounts to briefly deposit victim payments before withdrawing the funds and distributing the proceeds among the members of the conspiracy.
The victims of this scheme dutifully sent their payments to the fraudulent entities as instructed by the conspirators, only to discover that they had not been granted a mortgage modification by their lenders. When victims confronted the members of the conspiracy about this fact, the conspirators would make lulling statements designed to reassure the victims, such as telling them that the mortgage modification process takes time, and that they were dealing with individuals at a higher level at the bank than the lender representatives with whom the victims had spoken. In reality, however, the members of the conspiracy were simply diverting the victims’ payments for their own personal benefit, without doing anything to assist in modifying the victims’ mortgages. Araya, the ringleader of the scheme, used the proceeds of the fraud to purchase expensive vehicles, a racehorse, and a variety of luxury goods, as well as to fund his personal travel and a reality television show he produced called “Make It Rain.TV.”
This scheme had devastating consequences for the victim homeowners, all of whom were already in a precarious financial position. Many victims suffered substantially greater financial hardship after falling victim to this conspiracy than they were already facing when they entered into the bogus agreements with the conspirators. In many cases, the lenders ultimately foreclosed on the victims’ homes, after the victims had been induced to make their “trial” mortgage payments to the members of the conspiracy rather than to their lenders.
Twelve defendants have been convicted in the Eastern District of Virginia in this case and a related case. They include the following individuals:
Name, Age
Hometown
Result
Sentencing
Sammy Araya, 41
Santa Ana, California
Convicted on Counts 1-11 of superseding indictment at trial today
Faces maximum penalty of 20 years in prison on each count of conviction
Michael Henderson, 49
Costa Mesa, California
Convicted on Counts 1-6 and 9-11 of superseding indictment at trial today
Faces maximum penalty of 20 years in prison on each count of conviction
Jen Seko, 36
Anaheim, California
Convicted on Counts 1-6 and 9-11 of superseding indictment at trial today
Faces maximum penalty of 20 years in prison on each count of conviction
Roscoe Umali, 38
Santa Ana, California
Pleaded guilty March 22, 2016
220 months in prison on Aug. 18, 2016
Joshua Sanchez, 37
Las Vegas, Nevada
Pleaded guilty July 8, 2015 in case 1:15cr147
151 months in prison on Oct. 29, 2015
Kristen Ayala, 32
Las Vegas, Nevada
Pleaded guilty August 4, 2015 in case 1:15cr147
135 months in prison on Oct. 29, 2015
Isaac Perez, 33
Los Angeles
Pleaded guilty March 30, 2016
130 months in prison on Sept. 1, 2016
Joshua Johnson, 36
Huntington Beach, California
Pleaded guilty March 30, 2016
121 months in prison on July 7, 2016
Jefferson Maniscan, 34
Los Angeles
Pleaded guilty March 29, 2016
120 months in prison on Aug. 18, 2016
Raymund Dacanay, 47
Newport Beach, California
Pleaded guilty March 29, 2016
60 months in prison on July 21, 2016
Nicholas Estilow, 34
Mission Viejo, California
Pleaded guilty January 18, 2017
Faces maximum penalty of 20 years in prison on June 1.
Sabrina Rafo, 24
Garden Grove, California
Pleaded guilty January 19, 2017
Faces maximum penalty of 20 years in prison on June 1.
Araya faces a maximum penalty of 220 years in prison, and Henderson and Seko each faces a maximum penalty of 180 years in prison when sentenced on July 19. 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; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); William Hedrick, Acting Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service; Leslie DeMarco, Special Agent in Charge for the Federal Housing Finance Agency (FHFA-OIG); and James Todak, Special Agent in Charge, U.S. Housing and Urban Development, Office of Inspector General, Los Angeles Field Office, made the announcement after Senior U.S. District Judge James C. Cacheris accepted the verdict. Assistant U.S. Attorneys Samantha P. Bateman and Ryan S. Faulconer are prosecuting the case. Assistant U.S. Attorneys Zach Terwilliger and James Gillis formerly 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. 1:15-cr-301.
Four Former Corrections Officers Indicted for Civil Rights ViolationsRead the Press Release
The Department of Justice announced today that four former corrections officers at the Jackson County Detention Center (“JCDC”) have been indicted by a federal grand jury for their roles in a conspiracy to physically assault an inmate in violation of his Constitutional protection against unreasonable force.
Travis Hewitt, 27, Dakota Pearce, 24, Terrance Dooley, Jr., 36, and Jen-I Pulos, 36, all of Kansas City, Missouri, were charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Missouri, on Wednesday, April 19, 2017. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hewitt and Pulos.
“The Civil Rights Division will continue to prosecute corrections officers who exploit their position and violently assault individuals in their custody,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “The Department will continue to hold accountable those who act under color of law for the purpose of harming individuals in their custody.”
“The Constitution provides every citizen the right of due process, and protects every citizen from the use of unreasonable force,” said Acting U.S. Attorney Tom Larson for the Western District of Missouri. “Correctional officers who physically assault a shackled inmate in violation of his civil rights will be held accountable for their actions.”
“The FBI is charged with investigating any violation of an individual's civil rights, no matter where that violation may occur,” said Special Agent in Charge Darrin E. Jones of the FBI Kansas City Division. “Correctional officers are entrusted with the power and needed authority to protect our community, but they do not have the right to abuse that authority. The FBI will continue to work aggressively to pursue any and all allegations of civil rights violations.”
According to the indictment, Hewitt and Pearce served as acting sergeants at the JCDC. Dooley and Pulos served as members of the Disturbance Control Team, which is responsible for intervening in inmate altercations and neutralizing threats posed by inmates.
The indictment charges in Counts One and Two that on July 4, 2015, Hewitt, Pearce, Dooley and Pulos conspired to and did assault “J.R.,” an inmate awaiting resolution of allegations that he violated probation, in retaliation for a prior altercation that J.R. had with another corrections officer. According to the indictment, the defendants, defying the orders of a superior officer, forcibly removed J.R. from his cell in the Medical Housing Unit and brought him to another holding cell down the hall in order to facilitate their assault on him. There, as the indictment charges, all four defendants struck, punched and otherwise assaulted J.R., who was handcuffed, shackled, confined to a cell, suffering from disorientation and confusion, and not posing a threat to anyone. The indictment further alleges that the defendants ensured their actions would go undetected by having one of them serve as a lookout, and by sending other nearby corrections officers to another part of the JCDC so those corrections officers would not witness the assault.
In addition to the conspiracy and the assault in the holding cell, Count Three charges Hewitt and Pearce with a separate assault on J.R., when they allegedly struck and punched J.R. while J.R. was restrained and not posing a physical threat to anyone. Related to that assault, Count Four charges Hewitt with falsifying his departmental report with the intent to impede or obstruct the federal investigation. The indictment alleges that Hewitt falsely wrote that J.R. bit his right hand, when in fact, Hewitt knew that he injured his hand by striking and punching J.R. about the head and face while J.R. was restrained and not posing a physical threat to anyone.
The charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney David Ketchmark of the U.S. Attorney’s Office of the Western District of Missouri, and Special Litigation Counsel Fara Gold of the Civil Rights Division, Criminal Section, U.S. Department of Justice. It was investigated by the Kansas City Division of the FBI.
Four Former Corrections Officers Indicted for Civil Rights ViolationsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, and Tom Wheeler, Acting Assistant Attorney for the Civil Rights Division of the Department of Justice, announced today that four former corrections officers at the Jackson County Detention Center (“JCDC”) have been indicted by a federal grand jury for their roles in a conspiracy to physically assault an inmate in violation of his Constitutional protection against unreasonable force.
Travis Hewitt, 27, Dakota Pearce, 24, Terrance Dooley, Jr., 36, and Jen-I Pulos, 36, all of Kansas City, Mo., were charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, April 19, 2017. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hewitt and Pulos.
“The Constitution provides every citizen the right of due process, and protects every citizen from the use of unreasonable force,” Larson said. “Correctional officers who physically assault a shackled inmate in violation of his civil rights will be held accountable for their actions.”
“The FBI is charged with investigating any violation of an individual's civil rights, no matter where that violation may occur,” said Special Agent in Charge Darrin E. Jones of the FBI Kansas City Division. “Correctional officers are entrusted with the power and needed authority to protect our community, but they do not have the right to abuse that authority. The FBI will continue to work aggressively to pursue any and all allegations of civil rights violations.”
According to the indictment, Hewitt and Pearce served as acting sergeants at the JCDC. Dooley and Pulos served as members of the Disturbance Control Team, also known as the Cell Extraction Response Team, which is responsible for intervening in inmate altercations and neutralizing threats posed by inmates.
The indictment charges in Counts One and Two that on July 4, 2015, Hewitt, Pearce, Dooley and Pulos conspired to and did assault “J.R.,” an inmate awaiting resolution of allegations that he violated probation, in retaliation for a prior altercation that J.R. had with another corrections officer. According to the indictment, the defendants, defying the orders of a superior officer, forcibly removed J.R. from his cell in the Medical Housing Unit and brought him to another holding cell down the hall in order to facilitate their assault on him. There, as the indictment charges, all four defendants struck, punched and otherwise assaulted J.R., who was handcuffed, shackled, confined to a cell, suffering from disorientation and confusion, and not posing a threat to anyone. The indictment further alleges that the defendants ensured their actions would go undetected by having one of them serve as a lookout, and by sending other nearby corrections officers to another part of the JCDC so those corrections officers would not witness the assault.
In addition to the conspiracy and the assault in the holding cell, Count Three charges Hewitt and Pearce with a separate assault on J.R., when they allegedly struck and punched J.R. while J.R. was restrained and not posing a physical threat to anyone. Related to that assault, Count Four charges Hewitt with falsifying his departmental report with the intent to impede or obstruct the federal investigation. The indictment alleges that Hewitt falsely wrote that J.R. bit his right hand, when in fact, Hewitt knew that he injured his hand by striking and punching J.R. about the head and face while J.R. was restrained and not posing a physical threat to anyone.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney David Ketchmark of the U.S. Attorney’s Office of the Western District of Missouri, and Special Litigation Counsel Fara Gold of the Civil Rights Division, Criminal Section, U.S. Department of Justice. It was investigated by the Kansas City Division of the FBI.
Former San Angelo Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Jeffrey Neal Cuddington, 38, formerly of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in December 2016 to one count of receipt and distribution of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Cuddington, who most recently resided in Maryland, Virginia, used his computers to search on the Internet for images and videos depicting minors engaged in sexually explicit conduct, and saved the images that he downloaded from the Internet. On October 11, 2012, Cuddington distributed three images and received one image, all of which depict prepubescent female children under the age of 18 years engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecutions.
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Former Payroll Specialist Sentenced to 21 Months in Prison for Embezzling from Global Consulting FirmRead the Press Release
WASHINGTON – KaShaun Perkins, 43, of Upper Marlboro, Md., was sentenced today to 21 months in prison on a federal charge of wire fraud for embezzling from his employer, causing a loss in excess of $275,000, announced U.S. Attorney Channing D. Phillips.
Perkins pled guilty to the charge in February 2017 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Christopher R. Cooper. Following his prison term, Perkins will be placed on three years of supervised release. He also is required to pay $249,096 in restitution, and a forfeiture money judgment in the same amount.
According to a statement of the offense, signed by the defendant as well as the government, Perkins worked as a payroll specialist from December 2014 to July 2015 at a global consulting firm. As a payroll specialist, he managed external payroll provider services in order to ensure salaries were accurately and timely processed for payments. Perkins also updated the payroll and human resources information systems with bank account numbers, Social Security numbers, addresses, and names of employees and maintained these employee records.
From January to July 2015, according to the statement of offense, Perkins caused his employer to pay out approximately $275,000 in bogus salary and tax withholding payments for “ghost” employees. Perkins altered a terminated employee’s payroll profile, repeatedly changing entries such as name, Social Security number, bank account number, address, and salary payments. In fact, none of the altered data corresponded to an actual employee. Through these changes to the payroll system, Perkins caused the unauthorized salary payments to be directly deposited into accounts in his name, accounts with his joint ownership, and accounts under his control. By directing the payroll provider service to make these payments, Perkins obtained “salary” payments of “ghost” employees totaling $249,096. The employer paid an additional $26,092 in tax withholdings, for a total loss of $275,188.
In announcing the sentence, U.S. Attorney Phillips expressed appreciation for the work performed by Forensic Accountant Jean Luc Guerrier of the Fraud and Public Corruption Section of the U.S. Attorney’s Office, as well as Paralegal Specialist Christopher Toms, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Former Ithaca College Student Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Nicholas Feminella, age 21, of Ithaca, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of transportation of child pornography, and one count of possession of child pornography, announced United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. Feminella, who was detained pending his sentencing, faces at least five years of imprisonment and up to 20 years of imprisonment on the transportation count and up to 20 years of imprisonment on the possession count. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court will also impose a term of supervised release of between five (5) years and life, and Feminella will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his guilty plea, Feminella admitted that he transported videos of child pornography by uploading them from his computer to a Drop Box account. On November 3, 2015, investigators searched Feminella’s residence, and recovered thousands of images and hundreds of videos depicting child pornography. Sentencing is scheduled for September 11, 2017, in Albany, New York.
This case is being investigated by Federal Bureau of Investigation, the New York State Police-Computer Crime Unit and the New York State Police, Troop C, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Executive Director of Birmingham Volunteer Lawyer Program Charged with Misapplication of Federal Program FundsRead the Press Release
Kelli Hogue Mauro, 48, of Birmingham, Alabama, and former Executive Director of the Birmingham Volunteer Lawyer Program, has been charged with misapplication of property worth at least $5,000 from a federal program, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
The criminal information, filed on April 19, 2017, charged that between January 1, 2012 through August 31, 2012, Mauro misappropriated property owned by and under the control of the Birmingham Volunteer Lawyers Program, an organization that received benefits in excess of $10,000 from grants made by the federal Legal Services Corporation through Legal Services Alabama.
The criminal information was filed in the United States District Court for the Northern District of Alabama by the Office of the United States Attorney for the Middle District of Tennessee. The Office of the United States Attorney for the Northern District of Alabama was recused from the matter to avoid any appearance of impartiality.
This offense is punishable by not more than 10 years in prison, a fine of not more than $250,000, a period of supervised release of not more than 3 years, and payment of restitution in an amount to be determined by the court.
A criminal information is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Office of Inspector General for the Legal Service Corporation. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee is prosecuting the case.
Former Defense Contractor Sentenced for Mail Fraud, Making False Claims While Supplying Non-Conforming Parts to the MilitaryRead the Press Release
COLUMBUS, Ohio – Stephan D. Boggs, 64, of Columbus, was sentenced in U.S. District Court here today to 24 months in prison and ordered to pay nearly $280,000 in restitution for supplying non-conforming military parts to the Department of Defense.
A United States District Court jury convicted Boggs of four counts of mail fraud and 21 counts of false claims in July 2016.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Brian J. Reihms, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Central Field Office, announced the sentence handed down by U.S. District Judge James L. Graham.
According to court documents and testimony, Boggs served as the president of Boggs & Associates, Inc., a Department of Defense (DoD) contractor who sold and supplied a variety of parts used by the military.
From approximately April 2010 through January 2014, the DoD issued purchase orders to Boggs & Associates for a variety of military parts and components used on various military items including aircraft, vehicles and vessels. The parts were required to meet certain military specifications. The majority of these parts are considered critical application items. A critical application item is defined as an item essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.
Boggs was convicted for supplying non-conforming parts to the DoD through purchase orders issued by the Defense Logistics Agency in Columbus for parts used around the world.
The Agency’s testing center found that parts from 46 different purchase orders were non-conforming. Specifically, the parts were made from unauthorized substituted material, were dimensionally defective, used unauthorized inferior fittings, not heat treated properly, not plated properly and/or did not pass specified testing requirements.
During trial, the evidence showed that the inspection reports and certifications signed by Boggs and submitted to the government contained false and fraudulent representations.
“Defense contract fraud is extremely serious business,” U.S. Attorney Glassman said. “This kind of crime not only defrauds the government, but also jeopardizes our national security and puts at risk the lives of the men and women who serve in the military. I hope that Stephan Boggs serving time in federal prison will deter others who might be tempted to cheat on defense contracts.”
U.S. Attorney Glassman commended the investigation of this case by DCIS, and Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case.
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Florence Man and Myrtle Beach Woman Enter Guilty Pleas in Federal Court on Fraud ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Urban Oshea, II, age 48, of Florence, SC and Madgelyn Kirton, age 31, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Conspiracy to Manufacture and Pass Counterfeit Securities, a violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that during the period from August 2015 through January of 2016, Oshea, Kirton and others were involved in a conspiracy to manufacture and pass counterfeit securities (checks) of organizations.The co-conspirators would make counterfeit checks using genuine bank account and routing numbers they obtained from checks they stole out of mailboxes in Horry and Georgetown Counties.
The defendants would then use fraudulent driver's licenses bearing their photographs but in other persons' names which matched the names on the counterfeit checks, to pass these counterfeit checks at various businesses.
The defendants would use the checks to purchase merchandise at one store, then they would go to another store in the same chain and exchange the merchandise for cash.
Ms. Drake stated the maximum penalty the defendants can receive is imprisonment for 5 years and/or a fine of $250,000, plus a special assessment of $100.
The case was investigated by agents of the U.S. Postal Inspection Service. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Felon in Possession Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Steven Demote King, 50, of Mobile, was sentenced to 235 months imprisonment on his conviction for being a convicted felon in possession of a firearm. The indictment was returned in April of 2016. The single count indictment charged that King illegally possessed a Jimenez 9 mm handgun on May 19, 2015, after he had been previously convicted of seven prior robbery first degree convictions, one prior robbery second degree conviction, one prior theft first conviction, one prior receiving stolen property conviction, and two prior escape first degree convictions. King pled guilty to the charge in June of 2016. Court documents reflect that his appointed attorney requested that he undergo an examination to determine his competency. District Court Judge Kristi K. Dubose ordered that King undergo the examination, which was conducted within the United States Bureau of Prisons. In January of 2017, Judge Dubose conducted a competency hearing and found that King was legally competent. His sentencing hearing was set for April 17.
At that hearing, the prosecution offered testimony that King had kidnapped a Mobile woman and her three children using the handgun described in the indictment. Evidence from the hearing established that the children were eventually dropped off at a relative’s residence. King and the woman were located by Mobile police officers at an abandoned house in Prichard after they obtained an emergency court order to locate her cell phone. King was in physical possession of the gun when he was arrested. The woman was transported to a local hospital where she was treated and discharged. The prosecutor informed the judge that numerous felony charges were pending against King in Mobile County.
Judge Dubose imposed a sentence of 235 months, to be followed by a supervised release term of 5 years. She did not order that King pay a fine, but she imposed the special mandatory assessment of $100. She also entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.Felon Who Threatened to Kill a Woman Convicted of Illegally Possessing a FirearmRead the Press Release
A man who threatened to kill a Cedar Rapids woman was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Darrell Junior Sims, age 29, of Cedar Rapids, Iowa, was convicted of one count of being a felon in possession of a firearm. The verdict was returned this morning following about an hour and a half of jury deliberations.
The evidence at trial showed that during a phone call on January 27, 2017, Sims threatened to kill a female companion. When the woman asked what he planned to kill her with, Sims told her to look under her mattress. The woman looked under the mattress and found a loaded revolver and a loaded pistol. The woman contacted the United States Marshals Service, and two Deputy Marshals arrived and collected the firearms. While the deputies were collecting the firearms, Sims called the woman again. A deputy recorded the conversations, during which Sims accused the woman of allowing his guns to be stolen.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Sims remains in custody of the United States Marshal pending sentencing. Sims faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case was investigated by the United States Marshals Service and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-5-LTS.
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Federal Correctional Officer Pleads Guilty to Federal Civil Rights Offense for Kicking Inmate in Head and Lying about IncidentRead the Press Release
RIVERSIDE, California – A correctional officer with the U.S. Bureau of Prisons at the Victorville Federal Correctional Complex pleaded guilty today to two counts relating to an incident in which she kicked a restrained female inmate in the head.
Cynthia Flores, 34, of Victorville, pleaded guilty to one count of deprivation of rights under color of law and one count of falsification of records.
Flores assaulted the victim at the women’s prison camp in Victorville on June 2, 2013. During the evening count, when correctional officers ensure that all inmates are present, Flores initiated a physical altercation with the victim. According to a plea agreement filed in this case, Flores “kicked [the victim]’s head after another BOP correctional officer had handcuffed [the victim] and was restraining [her] with [the victim]’s chest pressed to the hallway floor.”
Following the incident, Flores submitted a written incident report and a videotaped oral report in which she described an altercation with the inmate. Flores falsely stated that the inmate unilaterally had assaulted her and failed to disclose using force against the victim “with the intent to impede, obstruct, and influence the BOP’s investigation into the incident,” according to the plea agreement.
Flores pleaded guilty before United States District Judge Jesus G. Bernal, who scheduled a sentencing hearing for July 21, 2017. At sentencing, Flores will face a statutory maximum sentence of 30 years in custody for both offenses, but pursuant to the plea agreement the government will recommend a sentence of no more than 18 months in this case. Judge Bernal will make the final determination as to the appropriate sentence in this case.
This case was investigated by the Justice Department Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Sean D. Peterson and Julius J. Nam of the Riverside Branch Office.
Fairfax Man Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – Roger Wheaton Webb, 53, of Fairfax, was sentenced today to five years in prison for receipt of child pornography.
Webb pleaded guilty on January 18. According to court documents, between February and March 2015, the FBI identified an Internet Protocol address accessing child pornography from a Fairfax business. Law enforcement officers later executed a federal search warrant at that business where Webb worked. During the search, several electronic devices were located and reviewed, including a Dell computer and a flash drive. Forensic analysis revealed that these two devices contained approximately 5,500 image files and 362 video files of child pornography. The analysis of the computer further confirmed that it had been used to download child pornography using peer-to-peer software. When interviewed, Webb admitted that he had used the business’s computer to access, receive, and download child pornography and that he had transferred and stored child pornography to an external drive or flash drive he possessed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Department of Justice Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section 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. 1:16-cr-298.
Eight Members of Mexican Sex Trafficking Enterprise Plead Guilty to Racketeering, Sex Trafficking, and Related CrimesRead the Press Release
Eight members of an international criminal organization, known as the Rendon-Reyes Trafficking Organization, entered guilty pleas in federal district court in Brooklyn, New York, this month to Racketeering and other federal charges arising from their scheme to force young women and girls from Mexico and Latin America into prostitution. For over a decade, the defendants smuggled their victims into the United States, then used force, threats of force, fraud, deception, and coercion to compel them to engage in prostitution for the defendants’ profit, generating criminal proceeds which the defendants laundered back to Mexico.
The eight defendants were charged in July 2015 in a 27-count indictment in the Eastern District of New York with Racketeering and Racketeering Conspiracy involving predicate acts of sex trafficking by force, fraud, or coercion, sex trafficking of minors, money laundering, alien smuggling, and interstate transportation for prostitution, in addition to parallel substantive charges.
The defendants were arrested simultaneously in the United States and Mexico in November 2015 as part of bilateral enforcement action. Five of the defendants were apprehended in Mexico by Mexican authorities and later extradited, and three were arrested in the United States by the specialized Trafficking in Persons Unit of the New York Office of the Department of Homeland Security’s Homeland Security Investigations.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations made the announcement.
In a series of guilty pleas entered between April 5 and April 21, 2017, all eight of the defendants pleaded guilty to charges of Racketeering involving predicate acts of sex trafficking by force, fraud, or coercion and sex trafficking of minors. The defendants are Jovan Rendon-Reyes, aka Jovani, 33, of Mexico; Saul Rendon-Reyes, aka Satanico, 39, of Queens; Guillermina Rendon-Reyes, 46, of Mexico; Francisco Rendon-Reyes, aka Pancho, 28, of Queens; Jose Rendon-Garcia, aka Gusano, 34, of Mexico; Felix Rojas, 47, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 45, of Mexico; and Severiano Martinez-Rojas, 52, of Mexico.
In addition to the Racketeering charges, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas each pleaded guilty to substantive offenses of sex trafficking by force, fraud, or coercion; defendant Jose Rendon-Garcia also pleaded guilty to sex trafficking of a minor; and defendant Francisco Rendon-Reyes pleaded guilty to interstate transportation for the purpose of prostitution.
Defendants Odilon Martinez-Rojas and Severiano Martinez-Rojas were also charged in a separate bilateral sex trafficking prosecution in the Northern District of Georgia in 2013. Odilon Martinez-Rojas was convicted in October 2014 and sentenced to 262 months’ imprisonment in January 2015 in that case. Defendant Severiano Martinez-Rojas had remained a fugitive from that prosecution until apprehended during the November 2015 bilateral enforcement operation. On April 18, 2017, he pleaded guilty to one count of sex trafficking charged in the Northern District of Georgia case, in proceedings transferred to the Eastern District of New York for entry of the defendant’s guilty plea.
According to documents filed in court and the defendants’ admissions during the plea proceedings, the Rendon-Reyes Trafficking Organization operated as a family-based enterprise that profited by prostituting young women and girls. According to their admissions during plea proceedings, the defendants and their associates recruited young women and girls from Mexico on false promises, smuggled them into the United States, prostituted them in New York, Georgia, and other locations, and retained the prostitution proceeds for members of the family-based criminal organization. During their guilty plea hearings, the eight defendants collectively admitted to participating in the sex trafficking of nine women and two minor girls, as well as the prostitution of a twelfth woman.
“The Department of Justice is committed to bringing to justice anyone who engages in the abominable crime of human trafficking,” said Attorney General Sessions. “The defendants in this case preyed on vulnerable young women and girls, and brought them to the United States with the sole purpose of subjecting them to degradation that no person should have to endure. Now these criminals will face justice for their acts, which brazenly disregarded the humanity of the victims, the integrity of our borders, and the rule of law. I am grateful for the efforts of our investigators and prosecutors, and the strong collaboration between the Eastern District of New York, the Human Trafficking Prosecution Unit, and the federal agents from the New York Office of Homeland Security Investigations. I also thank our Mexican partners for working closely with us to dismantle trafficking networks and protect innocent lives.”
“These convictions bring a measure of justice on behalf of the victims the defendants held in sexual servitude. We will continue to work tirelessly to dismantle human trafficking networks and to condemn all forms of modern-day slavery” said Acting Assistant Attorney General Wheeler. “The U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has proven instrumental in countering transnational trafficking threats, and we look forward to building on the momentum of this highly effective engagement with Mexican authorities.”
“This case demonstrates our Office’s continuing commitment to seeking justice for the victims of modern day slavery,” said Acting U.S. Attorney Rohde. “As demonstrated by our efforts over the last decade to bring sex traffickers to justice, the Eastern District of New York remains steadfast in its resolve to eradicate organizations that enslave young women and girls, and to bring trafficking victims out of the shadows. I sincerely hope that these pleas bring some measure of closure for the victims of these heinous crimes.”
Acting U.S. Attorney Rohde also expressed thanks to the members of HSI-New York’s Trafficking in Persons Unit for their leadership on the multi-year investigation of this case, and their continued partnership with the Eastern District of New York in the effort to end human trafficking.
“U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) remains committed to disrupting and dismantling transnational criminal organizations willing to do anything, including victimizing women and girls, to make money,” said HSI Executive Associate Director Edge. “Human trafficking is modern-day slavery, and HSI will continue collaboration with our local, state, federal, and global partners, as well as the NGO community, to bring justice to those impacted by this terrible crime and to assist the victims in their recovery.”
When sentenced, each defendant faces a maximum sentence of life imprisonment. In addition, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas face mandatory minimum sentences of fifteen years of imprisonment pursuant to their convictions for sex trafficking by force, fraud, or coercion, and defendant Jose Rendon-Garcia faces a mandatory minimum sentence of ten years of imprisonment resulting from his conviction for sex trafficking of a minor. As part of the plea agreements, the defendants will also be ordered to pay restitution to the victims identified in the indictment, in an amount to be determined at the time of sentencing.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants, assisted more than 135 victims, including 39 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
In announcing the convictions, Attorney General Sessions, Acting Assistant Attorney Wheeler, and Acting U.S. Attorney Rohde commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Rendon-Reyes Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Eight Members of Mexican Sex Trafficking Enterprise Plead Guilty to Racketeering, Sex Trafficking, and Related CrimesRead the Press Release
WASHINGTON – Eight members of an international criminal organization, known as the Rendon-Reyes Trafficking Organization, entered guilty pleas in federal district court in Brooklyn, New York, this month to Racketeering and other federal charges arising from their scheme to force young women and girls from Mexico and Latin America into prostitution. For over a decade, the defendants smuggled their victims into the United States, then used force, threats of force, fraud, deception, and coercion to compel them to engage in prostitution for the defendants’ profit, generating criminal proceeds which the defendants laundered back to Mexico.
The eight defendants were charged in July 2015 in a 27-count indictment in the Eastern District of New York with Racketeering and Racketeering Conspiracy involving predicate acts of sex trafficking by force, fraud, or coercion, sex trafficking of minors, money laundering, alien smuggling, and interstate transportation for prostitution, in addition to parallel substantive charges.
The defendants were arrested simultaneously in the United States and Mexico in November 2015 as part of bilateral enforcement action. Five of the defendants were apprehended in Mexico by Mexican authorities and later extradited, and three were arrested in the United States by the specialized Trafficking in Persons Unit of the New York Office of the Department of Homeland Security’s Homeland Security Investigations.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations made the announcement.
In a series of guilty pleas entered between April 5 and April 21, 2017, all eight of the defendants pleaded guilty to charges of Racketeering involving predicate acts of sex trafficking by force, fraud, or coercion and sex trafficking of minors. The defendants are Jovan Rendon-Reyes, aka Jovani, 33, of Mexico; Saul Rendon-Reyes, aka Satanico, 39, of Queens; Guillermina Rendon-Reyes, 46, of Mexico; Francisco Rendon-Reyes, aka Pancho, 28, of Queens; Jose Rendon-Garcia, aka Gusano, 34, of Mexico; Felix Rojas, 47, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 45, of Mexico; and Severiano Martinez-Rojas, 52, of Mexico.
In addition to the Racketeering charges, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas each pleaded guilty to substantive offenses of sex trafficking by force, fraud, or coercion; defendant Jose Rendon-Garcia also pleaded guilty to sex trafficking of a minor; and defendant Francisco Rendon-Reyes pleaded guilty to interstate transportation for the purpose of prostitution.
Defendants Odilon Martinez-Rojas and Severiano Martinez-Rojas were also charged in a separate bilateral sex trafficking prosecution in the Northern District of Georgia in 2013. Odilon Martinez-Rojas was convicted in October 2014 and sentenced to 262 months’ imprisonment in January 2015 in that case. Defendant Severiano Martinez-Rojas had remained a fugitive from that prosecution until apprehended during the November 2015 bilateral enforcement operation. On April 18, 2017, he pleaded guilty to one count of sex trafficking charged in the Northern District of Georgia case, in proceedings transferred to the Eastern District of New York for entry of the defendant’s guilty plea.
According to documents filed in court and the defendants’ admissions during the plea proceedings, the Rendon-Reyes Trafficking Organization operated as a family-based enterprise that profited by prostituting young women and girls. According to their admissions during plea proceedings, the defendants and their associates recruited young women and girls from Mexico on false promises, smuggled them into the United States, prostituted them in New York, Georgia, and other locations, and retained the prostitution proceeds for members of the family-based criminal organization. During their guilty plea hearings, the eight defendants collectively admitted to participating in the sex trafficking of nine women and two minor girls, as well as the prostitution of a twelfth woman.
“The Department of Justice is committed to bringing to justice anyone who engages in the abominable crime of human trafficking,” said Attorney General Sessions. “The defendants in this case preyed on vulnerable young women and girls, and brought them to the United States with the sole purpose of subjecting them to degradation that no person should have to endure. Now these criminals will face justice for their acts, which brazenly disregarded the humanity of the victims, the integrity of our borders, and the rule of law. I am grateful for the efforts of our investigators and prosecutors, and the strong collaboration between the Eastern District of New York, the Human Trafficking Prosecution Unit, and the federal agents from the New York Office of Homeland Security Investigations. I also thank our Mexican partners for working closely with us to dismantle trafficking networks and protect innocent lives.”
“These convictions bring a measure of justice on behalf of the victims the defendants held in sexual servitude. We will continue to work tirelessly to dismantle human trafficking networks and to condemn all forms of modern-day slavery” said Acting Assistant Attorney General Wheeler. “The U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has proven instrumental in countering transnational trafficking threats, and we look forward to building on the momentum of this highly effective engagement with Mexican authorities.”“This case demonstrates our Office’s continuing commitment to seeking justice for the victims of modern day slavery,” said Acting U.S. Attorney Rohde. “As demonstrated by our efforts over the last decade to bring sex traffickers to justice, the Eastern District of New York remains steadfast in its resolve to eradicate organizations that enslave young women and girls, and to bring trafficking victims out of the shadows. I sincerely hope that these pleas bring some measure of closure for the victims of these heinous crimes.”
Acting U.S. Attorney Rohde also expressed thanks to the members of HSI-New York’s Trafficking in Persons Unit for their leadership on the multi-year investigation of this case, and their continued partnership with the Eastern District of New York in the effort to end human trafficking.
“U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) remains committed to disrupting and dismantling transnational criminal organizations willing to do anything, including victimizing women and girls, to make money,” said HSI Executive Associate Director Edge. “Human trafficking is modern-day slavery, and HSI will continue collaboration with our local, state, federal, and global partners, as well as the NGO community, to bring justice to those impacted by this terrible crime and to assist the victims in their recovery.”
When sentenced, each defendant faces a maximum sentence of life imprisonment. In addition, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas face mandatory minimum sentences of fifteen years of imprisonment pursuant to their convictions for sex trafficking by force, fraud, or coercion, and defendant Jose Rendon-Garcia faces a mandatory minimum sentence of ten years of imprisonment resulting from his conviction for sex trafficking of a minor. As part of the plea agreements, the defendants will also be ordered to pay restitution to the victims identified in the indictment, in an amount to be determined at the time of sentencing.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants, assisted more than 135 victims, including 39 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
In announcing the convictions, Attorney General Sessions, Acting Assistant Attorney Wheeler, and Acting U.S. Attorney Rohde commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Rendon-Reyes Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Download: Rendon-Reyes et al Indictment
Dubuque Man Convicted of Selling Heroin and Fentanyl Analogue that Killed One and Injured Two OthersRead the Press Release
A man who distributed drugs that caused an overdose death and two serious injuries was convicted by a judge on April 19 after a four-day trial in federal court in February in Cedar Rapids.
Antrell Desharron Lewis, age 23, of Chicago, Illinois, was convicted of one count of conspiracy to distribute heroin and furanylfentanyl resulting in death and serious bodily injury, and one count of distributing heroin and furanylfentanyl resulting in death and serious bodily. The verdict was returned on April 19.
The evidence at trial showed that Lewis sold heroin to multiple customers in the Dubuque, Iowa, area in 2015 and 2016. His customers knew him as “Lucky” or “Five Star.” In early March 2016, four men from Maquoketa, Iowa, drove to Dubuque to purchase heroin from Lewis. Lewis and another man met with one of the Maquoketa men, and Lewis sold him a substance Lewis represented to be heroin. The Maquoketa men then drove to an apartment in Dubuque, where two of them met with another man and distributed some of the purported heroin to him. The two men who did not enter the apartment simultaneously used and overdosed on the purported heroin while sitting in the car. Emergency responders arrived at the scene and saved their lives using Narcan, an opiate reversal agent. The man inside the apartment used the purported heroin after emergency responders left the area. He was found deceased of a drug overdose approximately 18 hours later.
Drugs seized from the car and from the apartment tested positive for heroin and a substance called furanylfentanyl. Furanylfentanyl is a powerful synthetic opioid, and is an analogue of fentanyl. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is illegal to distribute them just as it is to distribute substances such as cocaine, heroin, and marijuana.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Lewis remains in custody of the United States Marshal pending sentencing. Lewis faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $200 in special assessments, and up to a lifetime term supervised release following any imprisonment.
The case is being investigated by the Dubuque Drug Task Force and Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being prosecuted by Assistant United States Attorney Dan Chatham and Special Assistant United States Attorney Drew Inman.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-5-LTS.
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Detroit Doctor and Wife Arrested and Charged with Conspiring to Perform Female Genital MutilationRead the Press Release
A Detroit physician and his wife were arrested this morning and charged by criminal complaint unsealed today for their alleged participation in a conspiracy that involved performing female genital mutilations (FGM) on minors.
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, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Fakhruddin Attar, M.D., 53, and his wife, Farida Attar, 50, both of Livonia, Michigan, are charged with conspiring to perform female genital mutilations on minor girls out of Fakhruddin Attar’s medical clinic in Livonia. According to the complaint, some of the minor victims traveled interstate to have the procedure performed. The complaint alleges that the FGM procedure was performed on girls who were approximately six to eight years old.
Both defendants were arrested this morning and are scheduled to appear in federal court in Detroit this afternoon.
The defendants are alleged to have conspired with Jumana Nagarwala, M.D., who was arrested in Detroit on April 12, 2017, and ordered detained on April 17, 2017, pending trial. Nagarwala, Fakhruddin Attar and Farida Attar are believed to be the first people charged under 18 U.S.C. 116, which criminalizes FGM.
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.
The FBI’s Detroit Division and HSI investigated the case with the assistance of the Livonia Police Department and with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit of the Eastern District of Michigan, Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.
The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala, Fakhruddin Attar or Farida Attar at 1-800-CALL-FBI (225-5324). To submit an e-tip, please visit FBI.GOV/FGM.
Attar et al. ComplaintDetroit Doctor and Wife Arrested and Charged with Conspiring to Perform Female Genital MutilationRead the Press Release
A Detroit physician and his wife were arrested this morning and charged by criminal complaint unsealed today for their alleged participation in a conspiracy that involved performing female genital mutilations (FGM) on minors.
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, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Fakhruddin Attar, M.D., 53, and his wife, Farida Attar 50, both of Livonia, Michigan, are charged with conspiring to perform female genital mutilations on minor girls out of Fakhruddin Attar’s medical clinic in Livonia. According to the complaint, some of the minor victims traveled interstate to have the procedure performed. The complaint alleges that the FGM procedure was performed on girls who were approximately six to eight years old.
Both defendants were arrested this morning and are scheduled to appear in federal court in Detroit this afternoon.
The defendants are alleged to have conspired with Jumana Nagarwala, M.D., who was arrested in Detroit on April 12, 2017, and ordered detained on April 17, 2017, pending trial. . Nagarwala, Fakhruddin Attar and Farida Attar are believed to be the first people charged under 18 U.S.C. 116, which criminalizes FGM.
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.
The FBI’s Detroit Division and HSI investigated the case with the assistance of the Livonia Police Department and with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit of the Eastern District of Michigan, Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.
The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala, Fakhruddin Attar or Farida Attar at 1-800-CALL-FBI (225-5984). To submit an e-tip, please visit FBI.GOV/FGM.
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Department of Justice Sends Letter to Nine Jurisdictions Requiring Proof of Compliance with 8 U.S.C. § 1373Read the Press Release
Today, the Department of Justice sent the attached letters to nine jurisdictions which were identified in a May 2016 report by the Department of Justice’s Inspector General as having laws that potentially violate 8 U.S.C. § 1373.
Additionally, many of these jurisdictions are also crumbling under the weight of illegal immigration and violent crime. The number of murders in Chicago has skyrocketed, rising more than 50 percent from the 2015 levels. New York City continues to see gang murder after gang murder, the predictable consequence of the city's “soft on crime” stance. And just several weeks ago in California’s Bay Area, after a raid captured 11 MS-13 members on charges including murder, extortion and drug trafficking, city officials seemed more concerned with reassuring illegal immigrants that the raid was unrelated to immigration than with warning other MS-13 members that they were next.
The letters remind the recipient jurisdictions that, as a condition for receiving certain financial year 2016 funding from the Department of Justice, each of these jurisdictions agreed to provide documentation and an opinion from legal counsel validating that they are in compliance with Section 1373. The Department of Justice expects each of these jurisdictions to comply with this grant condition and to submit all documentation to the Office of Justice Programs by June 30, 2017, the deadline imposed by the grant agreement.
Proof of Compliance with 8 U.S.C. § 1373 LettersCybercriminal Who Created Global Botnet Infected with Malicious Software Extradited to Face Click Fraud ChargesRead the Press Release
Earlier today, an indictment was unsealed in Brooklyn federal court charging Fabio Gasperini, an Italian citizen, with crimes related to his hacking of computers, creation of a global botnet, and perpetration of a fraud in which he used bots to mimic “clicks” on website advertisements and obtain advertising revenue. The charges include computer intrusion, wire fraud conspiracy, wire fraud, and money laundering conspiracy. The defendant was arrested in Amsterdam, the Netherlands, on June 18, 2016, and was extradited to the United States yesterday. He is scheduled to be arraigned at 2:00 p.m. today, April 21, 2017, before United States Magistrate Judge Peggy Kuo at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The indictment and extradition were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in court papers, Gasperini covertly hacked into computer servers owned by companies and individuals in the United States and elsewhere and created an exclusive backdoor that enabled him to access the data and computing power of those servers. Gasperini’s scheme specifically targeted a type of server that companies and individuals typically use for large-scale data storage and transfer. Gasperini compromised servers that contained sensitive data and files.
Through his backdoor, Gasperini allegedly implanted malicious software onto the compromised servers. The malicious software served to further propagate Gasperini’s scheme by scanning the internet and identifying additional vulnerable servers for infection, enabling Gasperini to create a botnet, a network of computers (such as servers) infected with malicious software without users’ knowledge that a malicious actor can remotely control and use for malicious purposes.
Gasperini’s botnet was spread over multiple computer servers around the world. Gasperini used computer servers in the United States to manage the botnet and to provide instructions and resources to the compromised servers in the botnet. Gasperini used the botnet to perpetrate a click fraud. A click fraud is a type of cybercrime in which a malicious actor fraudulently obtains money from advertising companies and businesses.
Businesses commonly hire online advertising companies to send traffic to their websites. These advertising companies in turn contract with individuals, typically someone who operates a website, to place on the website certain links advertising the businesses’ products or services, and are then compensated based upon the number of visitors to the website that click on the link. The advertising companies typically pay the individuals on a per-click basis. To conduct a click fraud scheme, a malicious actor can, for example, remotely command a botnet to flood a particular website advertisement with electronic communications that register with the advertising company as clicks by a human user on the advertisement. This type of command falsely and fraudulent inflates the number of clicks reported to the advertising companies, causing them to pay for clicks perpetrated by automated bots rather than clicks completed by potential customers who, in fact, viewed and clicked on the advertisements.
Some of the malicious software that Gasperini installed onto the servers he had compromised was designed to disguise a compromised server as a web browser and cause it to simulate human clicks on website advertisements through automated electronic commands. Gasperini’s software was configured to send automated clicks to advertisements hosted on websites that he owned, enabling Gasperini to generate revenue from advertising companies and businesses through fake internet traffic.
“Cybersecurity is a priority and we will pursue those who hack into computers, spread malicious software, and victimize U.S. companies and computers until they are brought to justice,” stated Acting United States Attorney Bridget M. Rohde. Ms. Rohde expressed her grateful appreciation to the Netherlands Ministry of Security and Justice, for their assistance in effecting the defendant’s arrest and extradition; the Italian National Police, Postal and Telecommunications Service, for their assistance in the investigation; the United States Marshals Service, for their assistance in transporting the defendant to the United States; and the U.S. Department of State Regional Security Officer in the Netherlands, for their assistance in facilitating the defendant’s extradition.
“As alleged, Gasperini hacked into servers to create a global botnet that was used to generate profits from click fraud,” stated, Assistant Director-in-Charge Sweeney. “This is yet another case that demonstrates the commitment of the FBI’s Cyber Task Force to investigate and bring to justice those who commit cybercrime, regardless of where they may reside.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Saritha Komatireddy is in charge of the prosecution.
The Defendant:
FABIO GASPERINI
Age: 34
Residence: Rome, Italy
E.D.N.Y. Docket No. 16-CR-441
Conway Man Sentenced for Illegal Re-entry ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Rodolfo Sanchez-Marcia, age 47, from Conway, was sentenced in federal court in Florence, South Carolina, for Illegal re-entry into the United States, in violation of 8 U.S.C. § 1326(a)(2). United States District Judge R. Bryan Harwell of Florence sentenced Sanchez-Marcia to 15 months imprisonment.
Evidence presented at the change of plea on January 9, 2017 established that in September 2016, ICE-ERO Officers in Charleston, SC, discovered that Rodolfo Sanchez-Marcia had been arrested on November 1, 2015, by the Surfside Police Department for driving without a license, and was released. Records checks revealed that Sanchez-Marcia was a native and citizen of Mexico who had previously been deported from the United States on multiple occasions. Sanchez-Marcia has never received permission to enter or remain in the US.
The case was investigated by agents of the ICE-ERO. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Columbus Man Charged with Assaulting Federal OfficersRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Larry Todd Hoffmeister, 51, of Columbus, N.M., with assaulting federal officers. Hoffmeister was released pending trial under pretrial supervision and other conditions of release.
Hoffmeister was arrested on April 12, 2017, and was charged by a criminal complaint with resisting and assaulting federal officers that same day in Luna County, N.M. The complaint alleges that Hoffmeister discharged his weapon twice while U.S. Border Patrol Agents were observing him near the west side of the Columbus Port of Entry.
If convicted of the charge in the complaint, Hoffmeister faces a maximum penalty of 20 years in federal prison. Charges in complaint are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the FBI and the U.S Border Patrol and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Colorado Springs Man Sentenced to Lengthy Prison Term for Producing Child PornographyRead the Press Release
DENVER – Richard Hennis, age 41, of Colorado Springs, Colorado, was sentenced earlier this week by U.S. District Court Judge Philip A. Brimmer to serve 324 months (27 years) in federal prison for the production and transportation of child pornography, Acting U.S. Attorney Bob Troyer, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced. Following his prison sentence, Hennis was ordered to serve 10 years of supervised release. The defendant, who appeared at the hearing in custody, was remanded at its conclusion.
Hennis and a co-defendant, Brandi Leonard, were first charged by criminal complaints on March 11, 2016. They were then indicted by a federal grand jury in Denver on April 5, 2016. Hennis pled guilty before Judge Brimmer on November 21, 2016, and was sentenced on April 19, 2017.
Leonard pled guilty to one count of production of child pornography before Judge Brimmer on April 13, 2017. Production of child pornography carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. Her sentencing is scheduled for July 21, 2017.
According to evidence presented in open court, as well as information contained in public filings, in the course of online chats that occurred between Hennis and Leonard spanning approximately one month, Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures or video of the abuse, and to send them to him. Leonard did exactly what Hennis had asked. Law enforcement recovered the pictures that were produced of the infant from Hennis’s phone. Hennis then sent the sexual abuse images of the infant to another individual he was communicating with online.
During their chats, the two defendants discussed in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years old. Leonard twice during the chat indicated that she didn’t intend to go through with it.
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit, with support provided by the Limon Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Alecia L. Riewerts, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Coffey County Man Used PlayStation to Collect Child PornRead the Press Release
WICHITA, KAN. - A Coffey County man pleaded guilty Friday to using a PlayStation video game console to obtain child pornography, U.S. Attorney Tom Beall said.
Michael L. Stratton, 30, Burlington, Kan., pleaded guilty to one count of receiving child pornography. In his plea, he admitted using a PlayStation 3 to chat about child pornography and trade child pornography.
According to court documents, Sony monitors user activities on the PlayStation Network. The network allows account holders to communicate in a way similar to text and emails. A user complained to Sony about Stratton, who was sending messages using the name Susan_14. Sony sent reports to the National Center for Missing and Exploited Children, which identified child pornography that Stratton had downloaded. Sony also determined that Stratton had sent messages to other users including: “u want to see naked kids tonight,” and “Friend Request. Do you have child porn?”
Sentencing is set for Aug. 7. The parties have agreed to recommend a sentence of five years in federal prison. Beall commended the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Cincinnati Man Charged with Dealing Fentanyl that Caused DeathRead the Press Release
CINCINNATI – A federal grand jury has charged Deonte R. Dickey, 19, of Cincinnati with charges related to the distribution of fentanyl in an indictment returned here today. Specifically, Dickey is charged with six counts of distributing heroin and fentanyl – one count including an overdose death – and one count of distributing cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Superintendent Col. Paul A. Pride, Hamilton County Sheriff Jim Neil, Cincinnati Police Chief Eliot K. Isaac, Norwood Police Chief William Kramer, Blue Ash Police Chief Paul Hartinger and members of the Northern Kentucky Drug Strike Force announced the indictment returned Wednesday.
The indictment alleges that from January 2016 through March 2017, Dickey, also known as “Lil Tay,” “Ching Ching” and “Richie,” distributed heroin, fentanyl and cocaine. Dickey allegedly supplied the heroin and fentanyl that resulted in the death of a person on December 31, 2016.
Each distribution charge carries a potential maximum sentence of 20 years in prison. Distribution resulting in death is punishable by 20 years up to life in prison.
Dickey was arrested today and his initial appearance was held in U.S. District Court at 1:30pm.
U.S. Attorney Glassman commended the investigation of this case by the federal, state and local law enforcement as well as Assistant United States Attorney Karl P. Kadon.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Chinese National Pleads Guilty to Attempting to Illegally Export High-Grade Carbon Fiber to ChinaRead the Press Release
Fuyi Sun, aka “Frank,” 53, a citizen of the People’s Republic of China (“China”), pleaded guilty today to violating the International Emergency Economic Powers Act (IEEPA) in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber, which is used primarily in aerospace and military applications.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord and Acting U.S. Attorney Joon H. Kim for the Southern District of New York. The plea was entered before U.S. District Judge Alvin K. Hellerstein.
“Today, Sun admitted to attempting to procure high-grade carbon fiber – which has sophisticated aerospace and defense applications – for the Chinese military. The defendant was willing to pay a premium to evade U.S. export laws and illegally transfer this highly protected material,” said Acting Assistant Attorney General McCord. “The National Security Division will continue to identify those who violate IEEPA and other laws that protect our national assets from reaching the hands of potential adversaries.”
“As Fuyi Sun admitted today in court, he tried to skirt U.S. export laws by hiding his purchase of high-grade carbon fiber for the Chinese military. Sun used fraudulent documents and code words in his efforts to obtain this highly protected material, which is used in aerospace and defense programs, and to avoid detection,” said Acting U.S. Attorney Kim. “Together with our law enforcement partners, we will continue to enforce the laws that protect our national security.”
According to the allegations contained in the Complaint and the Indictment filed against Sun and statements made in court filings and proceedings, including today’s guilty plea:
Since approximately 2011, Sun has attempted to acquire extremely high-grade carbon fiber, including Toray type M60JB-3000-50B carbon fiber (“M60 Carbon Fiber”). M60 Carbon Fiber has applications in aerospace technologies, unmanned aerial vehicles (commonly known as drones) and other government defense applications. Accordingly, M60 Carbon Fiber is strictly controlled – including that it requires a license for export to China – for nuclear non-proliferation and anti-terrorism reasons.
In furtherance of his attempts to illegally export M60 Carbon Fiber from the U.S. to China without a license, Sun contacted what he believed was a distributor of carbon fiber – but which was, in fact, an undercover entity created by HSI and “staffed” by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) undercover special agents (the “UC Company”). Sun inquired about purchasing the M60 Carbon Fiber without the required license. In the course of his years’ long communications with the undercover agents and UC Company, Sun repeatedly suggested various security measures that he believed would protect them from “U.S. intelligence.”
Among other such measures, at one point, Sun instructed the undercover agents to use the term “banana” instead of “carbon fiber” in their communications. Consequently, soon thereafter he inquired about purchasing 450 kilograms of “banana” for more than $62,000. In order to avoid detection, Sun also suggested removing the identifying barcodes for the M60 Carbon Fiber, prior to transshipment, and further suggested that they identify the M60 Carbon Fiber as “acrylic fiber” in customs documents.
On April 11, 2016, Sun traveled from China to New York for the purpose of purchasing M60 Carbon Fiber from the UC Company. During meetings with the undercover agents, on or about April 11 and 12, among other things, Sun repeatedly suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire from the UC Company, and claimed to have personally worked in the Chinese missile program. Sun further asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber, and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
On April 12, 2016, Sun agreed to purchase two cases of M60 Carbon Fiber from the UC Company. On that date, Sun paid the undercover agents purporting to represent the UC Company $23,000 in cash for the carbon fiber, as well as an additional $2,000 as compensation for the risk he believed the UC Company was taking to illegally export the carbon fiber to China without a license. Sun was arrested the next day on April 13, 2016.
Attempting to violate IEEPA carries a maximum sentence of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Sun is scheduled to be sentenced by Judge Hellerstein on July 26 at 11:00 a.m.
Mr. Kim praised the extraordinary investigative work of the New York Field Office of ICE-HSI; the New York Field Office of the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Northeast Field Office of the Department of Defense, Defense Criminal Investigative Service. Mr. Kim also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
This prosecution is being handled the Office’s Terrorism and International Narcotics
and Complex Fraud and Cybercrime Units. Assistant U.S. Attorneys Matthew Podolsky, Patrick Egan and Nick Lewin of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Chinese National Pleads Guilty to Attempting to Illegally Export High-Grade Carbon Fiber to ChinaRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Mary B. McCord, the Acting Assistant Attorney General for the National Security Division of the Department of Justice (“NSD”), announced that FUYI SUN, a/k/a “Frank,” a citizen of the People’s Republic of China (“China”), pled guilty today before U.S. District Judge Alvin K. Hellerstein to violating the International Emergency Economic Powers Act (“IEEPA”) in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber, which is used primarily in aerospace and military applications.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As Fuyi Sun admitted today in court, he tried to skirt U.S. export laws by hiding his purchase of high-grade carbon fiber for the Chinese military. Sun used fraudulent documents and codewords in his efforts to obtain this highly protected material, which is used in aerospace and defense programs, and to avoid detection. Together with our law enforcement partners, we will continue to enforce the laws that protect our national security.”
NSD Acting Assistant Attorney General Mary McCord said: “Today, Fuyi Sun admitted to attempting to procure high-grade carbon fiber – which has sophisticated aerospace and defense applications – for the Chinese military. The defendant was willing to pay a premium to evade U.S. export laws and illegally transfer this highly protected material. The National Security Division will continue to identify those who violate IEEPA and other laws that protect our national assets from reaching the hands of potential adversaries.”
According to the allegations contained in the Complaint and the Indictment filed against SUN and statements made in court filings and proceedings, including today’s guilty plea:
Since approximately 2011, SUN has attempted to acquire extremely high-grade carbon fiber, including Toray type M60JB-3000-50B carbon fiber (“M60 Carbon Fiber”). M60 Carbon Fiber has applications in aerospace technologies, unmanned aerial vehicles (commonly known as “drones”) and other government defense applications. Accordingly, M60 Carbon Fiber is strictly controlled – and requires a license for export to China – for nuclear non-proliferation and anti-terrorism reasons.
In furtherance of his attempts to illegally export M60 Carbon Fiber from the United States to China without a license, SUN contacted what he believed was a distributor of carbon fiber – but was, in fact, an undercover entity created by HSI and “staffed” by HSI undercover special agents (the “UC Company”). SUN inquired about purchasing the M60 Carbon Fiber without the required license. In the course of his years’ long communications with the undercover agents and UC Company, SUN repeatedly suggested various security measures that he believed would protect them from “U.S. intelligence.” Among other such measures, at one point, SUN instructed the undercover agents to use the term “banana” instead of “carbon fiber” in their communications. Consequently, soon thereafter he inquired about purchasing 450 kilograms of “banana” for more than $62,000. In order to avoid detection, SUN also suggested removing the identifying barcodes for the M60 Carbon Fiber, prior to transshipment, and further suggested that they identify the M60 Carbon Fiber as “acrylic fiber” in customs documents.
On April 11, 2016, SUN traveled from China to New York for the purpose of purchasing M60 Carbon Fiber from the UC Company. During meetings with the undercover agents, on or about April 11 and 12, among other things, SUN repeatedly suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire from the UC Company, and claimed to have personally worked in the Chinese missile program. SUN further asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber, and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
On April 12, 2016, SUN agreed to purchase two cases of M60 Carbon Fiber from the UC Company. On that date, SUN paid the undercover agents purporting to represent the UC Company $23,000 in cash for the carbon fiber, as well as an additional $2,000 as compensation for the risk he believed the UC Company was taking to illegally export the carbon fiber to China without a license. SUN was arrested the next day, April 13, 2016.
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SUN, 53, pled guilty today to attempting to violate IEEPA, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SUN is scheduled to be sentenced by Judge Hellerstein on July 26, 2017 at 11:00 a.m.
Mr. Kim praised the extraordinary investigative work of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations; the New York Field Office of the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Northeast Field Office of the Department of Defense, Defense Criminal Investigative Service. Mr. Kim also thanked the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics and Complex Frauds and Cybercrime Units. Assistant United States Attorneys Matthew Podolsky, Patrick Egan, and Nick Lewin are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Counterintelligence and Export Control Section.
Childcare Worker Sentenced to 6+ Years in Prison for Possession of Images of Child RapeRead the Press Release
A childcare worker was sentenced today in U.S. District Court in Seattle to 78 months in prison and 15 years of supervised release for possession of child pornography, announced U.S. Attorney Annette L. Hayes. KYLE J. TATE, 34, of Seattle was arrested in May 2016 and pleaded guilty in November 2016. At the sentencing hearing, U.S. District Judge Richard A. Jones noted that TATE had sought “nearness to children…. This is not a silent crime,” the Judge said, “because of the damage to victims and their families.”
“This defendant made a point of working with children and lulling parents and employers into trusting him – and then betrayed that trust,” said U.S. Attorney Annette L. Hayes. “This conviction and sentence will provide protection for our communities. Not only will Mr. Tate spend time in prison, when he gets out he will be subject to federal monitoring for 15 years, and will be required to register as a sex offender.”
According to records filed in the case, TATE came to the attention of law enforcement when another individual implicated him in the collection and sharing of child pornography. Due to TATE’s employment in childcare, investigators moved quickly to get a warrant to search his home and digital devices. Those devices contained more than 5600 images and 627 videos showing children, including infants, being sexually molested and abused. At the time of his arrest TATE worked at the Hutch Kids Childcare Center – and had been responsible for the infant care room for nearly five years. Previously he worked as a Sunday school teacher, as a teacher at KinderCare and as a care provider at the YMCA.
The case was investigated by U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations (HSI) and the Seattle Police Department’s Internet Crimes Against Children Task Force (ICAC).
The case is being prosecuted by Special Assistant U. S. Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
Cedar Rapids Felon Sentenced to over 24 Years in Federal Prison for Methamphetamine and Firearm ChargesRead the Press Release
A man who led police on a high speed chase before attempting to dispose of a firearm in a cornfield was sentenced on April 11, 2017, to more than 24 years in federal prison.
Clayton Don Gregory, age 36, from Cedar Rapids, received the prison term after a November 14, 2016, guilty plea to distributing 50 grams or more of methamphetamine and being a felon in possession of a firearm and ammunition.
In a plea agreement, Gregory admitted he sold methamphetamine to a confidential informant on multiple occasions in July 2016. During a search at Gregory’s residence in August 2016, officers seized methamphetamine, marijuana, several rounds of ammunition, and a partially dismantled revolver. One week after the search, officers attempted to stop a vehicle in which Gregory was a passenger. During the pursuit, the original driver exited the car and Gregory took over driving, reaching speeds of 80 to 85 miles per hour in 25 and 30-mile‑per‑hour zones. Gregory drove to a cornfield, got out of the car, and hid in the cornfield. He was eventually apprehended by a K-9 unit. Officers discovered a 9 mm Ruger pistol partially buried in the cornfield, and a separate magazine containing 9 mm ammunition.
Gregory was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Gregory was sentenced to 293 months’ imprisonment on the drug count, and 120 months' imprisonment, concurrent, on the gun charge. A special assessment of $200 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Gregory is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department, Iowa Division of Narcotics Enforcement, and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-00072-1-LRR.
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California Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A San Diego, California tax return preparer was sentenced to 37 months in prison today for preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Marla Lynn Cunningham owned and operated Cunningham’s Tax Service, a tax preparation business located in El Cajon, California. From 2010 through 2012, Cunningham prepared fraudulent returns for her clients that reported fake business losses, charitable contributions, and medical, dental, education and unreimbursed employee expenses. Cunningham caused a tax loss of approximately $1,237,943.
In addition to the term of prison imposed, Cunningham was ordered to serve one year of supervised release and will be ordered to pay $91,867 in restitution to the ternal Revenue Service (IRS). Cunningham pleaded guilty in December 2016 to three counts of preparing false tax returns.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Matthew R. Hoffman and Benjamin J. Weir of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Southern District of California for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Brazilian National Arrested for Possessing FirearmsRead the Press Release
BOSTON – A Brazilian national, who entered the United States illegally in 2002, will appear in federal court today for possessing firearms and ammunition.
Acemar Damaceno, 37, who was residing in Weymouth, was taken into federal custody yesterday and charged in a criminal complaint with one count of being an alien in possession of a firearm and ammunition. U.S. District Court Magistrate Judge Marianne B. Bowler scheduled a probable cause and detention hearing for 2:30 p.m. today.
According to court documents, federal law enforcement authorities received information that a man known as “Marcus” was offering to sell firearms to a cooperating witness (CW). On March 11, 2017, the CW visited Marcus’ home in Weymouth where Marcus allegedly stated that he would kill anybody for a fee. Marcus proceeded to show the CW a .45 caliber handgun, a shotgun and a bag containing various amounts of ammunition that Marcus hid in the basement of his residence. Marcus also allegedly offered to sell the .45 caliber handgun to the CW for $1500. The CW cooperated with law enforcement officers and identified Marcus as Acemar Damaceno.
According to the criminal complaint, on April 7, 2017, law enforcement officers stopped Damaceno in his vehicle as he left his home, at which time Damaceno admitted that he was not a citizen and that he was illegally present in the United States. Damaceno was administratively arrested. During a search of his residence, a .45 caliber Kimber Ultra Ten II pistol loaded with ten .45 caliber rounds of ammunition and an Iver Johnson Champion shotgun without a serial number were recovered. A trace of the Kimber pistol determined that it was reported stolen in Connecticut in October 2011.
The charge of being an alien in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 and deportation upon the completion of the imposed sentence. 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 Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Bolingbrook Man Arrested on Child Pornography Charge for Allegedly Enticing Underage Boy to Engage in Sexually Explicit ConductRead the Press Release
CHICAGO — Federal authorities have arrested a Bolingbrook man for allegedly using social media to entice an underage boy to produce sexually explicit images and engage in sex acts with him.
RONALD GOBENCIONG, 44, posed online as three separate individuals – an escort, an escort’s manager, and a client – in order to recruit and entice the underage boy to produce pornographic images and engage in sexual relations with him, according to a criminal complaint and affidavit filed in federal court in Chicago. As part of online and text communications with the boy, Gobenciong requested and received pornographic photos and at least one video of the boy, whom Gobenciong knew was only 17 years old at the time, the complaint states. In February, Gobenciong engaged in sexual acts with the boy at a hotel in Burr Ridge, for which he gave the boy money, the complaint states. Gobenciong later threatened to distribute the pornographic images unless the boy continued to have sex with him, according to the complaint.
Gobenciong, also known as “David Marco,” “Steve John,” and “Joe,” was arrested on Thursday. The complaint charges him with one count of producing child pornography. A detention hearing is scheduled for April 24, 2017, at 3:00 p.m., before U.S. Magistrate Judge Maria Valdez in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation; and Cook County Sheriff Thomas J. Dart. Valuable assistance was provided by the Child Exploitation Unit of the Cook County Sheriff’s Police and the Bolingbrook Police Department.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Production of child pornography is punishable by a minimum sentence of 15 years in prison and a maximum of 30 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Eric S. Pruitt.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
Alexandria Man Pleads Guilty to Scamming more than $500,000Read the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to a 15-year fraud scheme to obtain $366,716 in federal financial aid through U.S. Department of Education programs, stealing $136,000 in federal grant funds from the National Science Foundation, and making a false statement to receive a United States passport.
According to the criminal information and plea agreement filed in court, Adelaja Allen Arojuraye, 45, pleaded guilty to wire fraud, theft of government funds, and passport fraud, agreeing to $502,716 in forfeiture and restitution.
According to the statement of facts filed with the plea agreement, by February 2001, Arojuraye received more than $50,000 in federal financial aid under his first social security number. As part of a scheme to obtain more federal financial aid, and avoid repayment of the debt, Arojuraye fraudulently obtained three social security numbers in his own name. Over a 15-year period, Arojuraye used two of the fraudulently obtained social security numbers to accrue $311,418 in debt that he either defaulted on or caused to be placed in forbearance without making any payments. In 2015 and 2016, Arojuraye used his father and mother’s social security numbers without permission to fraudulently receive another $55,298 in federal financial aid. During the execution of his scheme, Arojuraye lied on a U.S. passport application by entering “000-00-0000” as his social security number, even though he knew he had been issued multiple social security numbers.
In November 2012, Arojuraye falsely certified in a grant application to the National Science Foundation that he was not delinquent on any federal debt. Arojuraye received more than $136,000 in federal grant benefits based on the fraudulent application.
Arojuraye faces a maximum penalty of 20 years in prison for wire fraud, 10 years for theft of government funds, and 15 years for passport fraud, when sentenced on August 11. 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; Steve A. Linick, Inspector General for the Department of State; Kathleen S. Tighe, Inspector General of the Department of Education; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Allison C. Lerner, Inspector General of the National Science Foundation, made the announcement after U.S. District Judge Claude M. Hilton accepted the plea.
The case was investigated by the Offices of Inspectors General for the U.S. Department of Education, Social Security Administration, National Science Foundation, and U.S. Department of State. The federal agencies partnered with and received substantial assistance from the Northern Virginia Community College Police Department. Special Assistant U.S. Attorney Brian D. Harrison is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-082.
19 Members and Associates of Violent Street Gang in the Bronx Charged in Federal Court with Racketeering, Narcotics, Robbery, Extortion, and Firearms OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced charges yesterday against 19 members and associates of the “Slut Gang,” a violent street gang operating in the Bronx, New York, primarily at the Boston Secor public housing development (“Secor”). The defendants are charged with racketeering conspiracy, narcotics conspiracy, robbery conspiracy, extortion, and firearms offenses.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Today’s indictment charges members and associates of a violent street gang with allegedly wreaking havoc on the streets of the Northern Bronx for years, committing countless acts of violence against rival gang members and innocents alike. Thanks to the terrific investigative work of the NYPD’s Bronx Gang Squad, HSI’s Violent Gang Unit, and the New York Field Division of the DEA, these alleged criminals will face justice in federal court.”
NYPD Commissioner James P. O’Neill said: “This gang allegedly acted with impunity in the Bronx. But this morning, detectives and agents carried out precise, targeted arrests against the defendants who, as alleged, committed robberies, shootings, and other violence to protect their drug trade. Tonight, the Bronx will be even safer because of the persistence of our detectives, DEA and HIS agents, and prosecutors in the Southern District who brought today’s charges.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Drugs, guns, and robbery are just the beginning of the charges faced by members of the Slut Gang. This is a violent street gang with alleged involvement in shootings, stabbings, and beatings over several years. The collaboration between federal and local law enforcement agencies is paramount to gang investigations in New York and forcing gang members to face charges for their actions.”
DEA Special Agent-in-Charge James J. Hunt said: “Gangs in New York that allegedly traffic drugs throughout our city streets fuel addiction and violent crime. Law enforcement’s focused efforts to reclaim our city from these gangs have led to numerous takedowns over the past three years and yesterday’s arrests.”
According to the Superseding Indictment[1] unsealed in Manhattan federal court and other publicly filed documents:
The Superseding Indictment arises from a joint investigation, beginning in 2014, by the NYPD, HSI, the DEA, and the Bureau of Alcohol, Tobacco, Firearms & Explosives into a number of warring street gangs in the Northern Bronx. On April 27, 2016, 120 members of two of these gangs – the Big Money Bosses (“BMB”) and the 2Fly YGz (“2Fly”) – were charged in two cases pending now before United States District Judges Alison J. Nathan and Lewis A. Kaplan – U.S. v. Nico Burrell et al., and U.S. v. Laquan Parrish et al. Forty-seven of 63 defendants in Burrell have already pled guilty, and 49 of 57 defendants in Parrish have already pled guilty.
One of the primary rivals of BMB and 2Fly was the Slut Gang. The Superseding Indictment charges members and associates of the Slut Gang with numerous acts of fatal and non-fatal violence during last several years, including shootings, stabbings, slashings, beatings, extortion, and robberies, as well as drug dealing.
To date, agents and officers have seized, among other evidence, quantities of crack, heroin, MDMA, and marijuana, as well as firearms and ammunition. During the investigation, pursuant to court-authorized electronic surveillance, agents and officers also intercepted hundreds of phone calls, during many of which various members and associates of the
Slut Gang discussed their racketeering and narcotics activities.
* * *
In a coordinated operation, 12 defendants were arrested in New York Wednesday and yesterday. They were presented yesterday afternoon in Manhattan federal court. Defendant KERMIT IRIZARRY was in custody on state charges and was transferred to federal custody. Defendant MAURICE STEELE was arrested and was presented yesterday in the Middle District of Florida. Defendant STEVE BORIA was already in federal custody on a related charge. The following defendants are still being sought: NIORGE LOPEZ, JONATHAN FERRELL, DAYVON WILSON, and ISAIAH GRANT. Charts identifying each defendant, the charges, and the maximum penalties are attached to this release.
The case is assigned to U.S. District Judge Ronnie Abrams.
Mr. Kim praised the outstanding investigative work of the NYPD’s Bronx Gang Squad, HSI’s Violent Gang Unit, and the New York Field Division of the DEA, as well as the United States Marshals’ Service, New York State Office of Probation, and New York State Division of Parole for their assistance in yesterday’s arrests. He also thanked the Bronx County District Attorney’s Office and the Department of Investigation for their support in this ongoing investigation.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Rachel Maimin, Hagan Scotten, Jessica Feinstein, Drew Johnson-Skinner, and Alison Moe are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.