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30 May 2017
Former Managing Director at New York Broker-Dealer Pleads Guilty in “Pay-To-Play” Bribery Scheme Involving Public Pension FundRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that DEBORAH KELLEY, a former managing director of institutional fixed income sales at a New York-based broker-dealer (the “Broker-Dealer”), pled guilty today before U.S. District Judge J. Paul Oetken for participating in a “pay-to-play” bribery scheme involving the New York State Common Retirement Fund (“NYSCRF”), the nation’s third largest public pension fund.
Acting U.S. Attorney Joon H. Kim said: “As she admitted today, Deborah Kelley bribed Navnoor Kang to steer state pension business to her brokerage firm, reaping hundreds of thousands of dollars in additional commissions for the firm. In the process, she was complicit in defrauding New York pensioners and depriving them of Kang’s honest services. The hard-earned retirement savings of New Yorkers should not be a vehicle for corrupt pension administrators and securities brokers to profit.”
According to allegations contained in the Indictment charging KELLEY and statements made during her plea proceeding:
The NYSCRF
The NYSCRF is a pension fund administered for the benefit of public employees of the State of New York. From January 2014 through February 2016, Navnoor Kang served as Director of Fixed Income and Head of Portfolio Strategy for the NYSCRF. In that capacity, Kang was responsible for investing more than $53 billion in fixed-income securities on behalf of the NYSCRF. Kang owed a fiduciary duty to the NYSCRF and its members and beneficiaries, and was required to make investment decisions in their best interests and free of any conflict of interest. New York State law and NYSCRF policies prohibited Kang and other NYSCRF employees from receiving any bribes, gifts, benefits, or consideration of any kind, as KELLEY well knew.
The Scheme to Steer NYSCRF Fixed-Income Business in Exchange for Secret Bribes
From 2014 through 2016, Kang, KELLEY, and others participated in a scheme to defraud the NYSCRF and its members and beneficiaries, and to deprive the NYSCRF of its intangible right to Kang’s honest services. The scheme involved, among other things, an agreement among Kang, KELLEY, and others to pay Kang bribes – in the form of entertainment, travel, and lavish meals, among other things – in exchange for fixed-income business from the NYSCRF. Such bribes were strictly forbidden by the NYSCRF, and were paid secretly and without any disclosure to the NYSCRF and its members and beneficiaries concerning the conflicts of interests inherent therein.
In exchange for the bribes paid by KELLEY, Kang used his position as Director of Fixed Income and Head of Portfolio Strategy at the NYSCRF to promote the interests of KELLEY and her brokerage firm. Kang, in exchange for the bribes he received, agreed to steer fixed-income business to the Broker-Dealer. In so doing, Kang, with KELLEY’s knowledge and approval, breached his fiduciary duty to make investment decisions in the best interest of the NYSCRF and its members and beneficiaries, and free of conflict, and deprived the NYSCRF of its intangible right to Kang’s honest services.
As KELLEY paid bribes to KANG, the Broker-Dealer’s fixed-income business with the NYSCRF skyrocketed. The value of NYSCRF’s domestic bond transactions with the Broker-Dealer increased from zero in the fiscal year ending March 1, 2014, to approximately $156 million in the fiscal year ending March 1, 2015, and to approximately $179 million in the fiscal year ending March 1, 2016. Kang’s trades resulted in the payment of hundreds of thousands of dollars in commissions to the Broker-Dealer, of which KELLEY personally earned approximately 35 to 40 percent.
Obstruction of Justice
In late 2015, the Securities and Exchange Commission (“SEC”) opened an investigation into the entertainment and benefits that KELLEY had provided Kang, and the SEC subpoenaed both KELLEY and Kang for their testimony. In advance of their testimony, KELLEY and Kang agreed to align their stories and testify falsely before the SEC in order to conceal their scheme. In late 2015 and early 2016, KELLEY and Kang each falsely testified under oath before the SEC about expenses KELLEY had paid for Kang.
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KELLEY, 58, of Piedmont, California, pled guilty to one count of conspiracy to commit securities fraud and honest services wire fraud, which carries a maximum sentence of five years in prison and three years of supervised release.
In December 2016, Gregg Schonhorn, a former a vice president of fixed income sales at another New York-based broker-dealer, pled guilty for his participation in the scheme. Kang, against whom charges for conspiracy, securities fraud, honest services wire fraud, and obstruction of justice are currently pending, is presumed innocent unless and until proven guilty.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and noted that the investigation is continuing. He also thanked the SEC, which filed civil charges against Kang, KELLEY, and Schonhorn in a separate civil action, and the Office of Inspector General for the Office of the New York State Comptroller.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Joshua A. Naftalis are in charge of the prosecution.
Former Dallas County Supervision Officer Pleads Guilty to Bribery ChargesRead the Press Release
DALLAS — David Delgado, 35, of Dallas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Irma Carrillo Ramirez, to one count of use of interstate facility to commit travel act. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Delgado faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for September 14, 2017.
According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.
During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.
In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.
The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office are in charge of the investigation. Assistant U.S. Attorneys John Kull and Kate Rumsey are in charge of the prosecution.
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Felon Sentenced to 15 Months for Attempting Illegal Re-EntryRead the Press Release
SYRACUSE, NEW YORK – Maria Martinez, a/k/a Maria Josefa Munagorri Diaz, age 49, of Madrid, Spain, was sentenced today to 15 months in prison for attempting to illegally re-enter the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
In 2002, Martinez was convicted of conspiracy to distribute cocaine in the Northern District of Ohio. After serving 32 months in prison, she was removed from the country. As a result of her conviction, Martinez was not allowed to re-enter the United States.
On August 8, 2016, Martinez presented herself at the Champlain Port of Entry for admission to the United States and presented a passport in the name “Maria Josefa Munagorri Diaz.” A fingerprint scan of Martinez, conducted by United States Customs and Border Protection Officers, resulted in the discovery of her criminal history and prior deportation.
Following her term of imprisonment, Martinez will be transferred to the custody of the Department of Homeland Security, which will place her into removal proceedings.
This case was investigated by United States Customs and Border Protection, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Engineering Contractor Charged with Conspiracy to Commit BriberyRead the Press Release
An engineering contractor, Paulin Modi, 48, of Troy, was charged today in an information with one count of conspiracy to bribe a public official of Washington Township in connection with public contracts, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
The information alleges that, in May of 2014, Modi paid a $1,000 cash bribe to an official with Washington Township with respect to Modi’s contract. It also alleges that between June and October of 2014, Modi helped facilitate a $2,000 cash bribe by another contractor.
The United States Attorney’s Office and the FBI wish to acknowledge the extraordinary assistance of Washington Township Supervisor Daniel O’Leary, who brought the criminal conduct to the attention of federal law enforcement and has been a valuable asset to the investigation since its inception.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
The charge carries a maximum sentence of 5 years’ imprisonment and a fine of $250,000
An information is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt
East Hartford Man Charged with Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging ALEXANDER PEDRAZA, 26, of East Hartford, with one count of sex trafficking of a minor.
The indictment was returned on May 24, 2017, and was unsealed on May 26 when PEDRAZA was arrested. Following his arrest, PEDRAZA appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges. PEDRAZA was ordered detained pending a bond hearing that will be scheduled for later this week.
According to the indictment, PEDRAZA recruited, harbored and transported a minor victim, who was under the age of 18, to engage in commercial sex acts between approximately March 5 and March 12, 2017.
If convicted of the offense, PEDRAZA faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Windsor Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sarala V. Nagala.
Duncan Woman Sentenced for Defrauding Columbia Health Care ProvidersRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Danielle Nicole Burroughs, age 35, of Duncan, was sentenced today in federal court in Columbia for Conspiracy to Commit Mail Fraud, a violation of 18 U.S.C. § 1349. She received 14 months incarceration and was ordered to pay $2.8 million in restitution. United States District Judge Mary J. Lewis of Columbia determined the sentence. Co-conspirators Gary Lee Joiner, age 56, and Timothy Weldon Arthur, age 39, both of Columbia, were sentenced on May 15th. Joiner was sentenced to two years’ incarceration and ordered to pay over $2.8 million in restitution. Arthur was sentenced to five years’ probation and ordered to pay $685,000 in restitution.
Evidence presented at the change of plea hearing established that Joiner was the Director of Orthopedic Services for Moore Orthopedic Clinic between 2006 and 2015. In 2010, when Moore Orthopedic merged with Providence Hospital, Joiner established a fake durable medical equipment (DME) company, Creative Casting Concepts (CCC). He then proceeded to submit false invoices to Moore and Providence, representing that CCC was providing orthopedic boots, when they were not.
Burroughs was recruited by Joiner to put her name on CCC in order to keep Moore Orthopedic from learning of Joiner’s connection. She helped manage a bank account and post office box and received approximately $191,000 in compensation over five years. Arthur took Joiner’s position at Moore Orthopedic in January 2015, when Joiner retired. Arthur agreed to continue to submit fake invoices. He received approximately $24,000 in compensation before the scheme was discovered in June 2015. Overall, Joiner submitted $2.8 million in bogus invoices between 2011 and 2015.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office prosecuted the case.
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Crowley man sentenced to 15 years in prison for taking videos of sex with minorRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Crowley man was sentenced Friday to 180 months in prison for using his cell phone to produce videos of sex acts with a minor.
Blake Damian Rodgers, 35, of Crowley, La., was sentenced by U.S. District Judge Donald E. Walter on one count of production of child pornography. He was also sentenced to 15 years of supervised release and ordered pay a $5,000 fine under the Justice for Victims of Trafficking Act. He is also required to register as a sex offender. According to the January 31, 2017 guilty plea, Rodgers was arrested and booked into the Acadia Parish jail February 24, 2016 on theft charges. While incarcerated, officers were notified that Rodgers was having sexually explicit conversations on the phone with a 14-year-old minor. Further investigation revealed that Rodgers had been involved in a sexual relationship with the minor and had taken videos of the acts on his cell phone. After recovering the cell phone, law enforcement agents located several sexually explicit videos of the minor.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Chicago New Birth Christian Center Pastor and Others Plead Guilty to Summer Food Program FraudRead the Press Release
SPRINGFIELD, Ill. – The founding pastor of New Birth Christian Center, a non-denominational church in Chicago, his wife, and three associates have pled guilty to defrauding a summer food program for low-income children. Robbie Wilkerson, 49, and his wife Tasha, 44, both of Oak Park, Ill., entered their guilty pleas today before U.S. Magistrate Judge Tom Schanzle-Haskins. Robbie Wilkerson pled guilty to wire fraud and money laundering; Tasha Wilkerson pled guilty to theft of government funds.
The business administrator for the 2010 summer food program, Anthony Hall, 54, a NBCC pastor, of Downers Grove, Ill.; Richard Shumate, 51, program operations manager for the 2010 program; and his wife Evelyn Shumate, 48, who worked as an assistant for the program, of Romeoville, Ill., each entered pleas of guilty last week to one count of theft of government funds.
The Summer Food Service Program provides nutritious meals to low-income children during the summer months when schools are not in session. In Illinois, the State Board of Education (ISBE) administers the program funding which is provided by the Food and Nutrition Service, an agency of the U.S. Department of Agriculture.
The New Birth Christian Center operated the food program in 2008, 2009 and 2010, and was one of the largest recipients of Summer Program funds in Illinois,. For the 2010 program year, Robbie Wilkerson, on behalf of NBCC, submitted a total operational budget to the ISBE of $446,440, including $250,000 for food and $26,400 for administrative costs. The budget represented that NBCC would administer the summer program at 34 sites in the Chicago area.
Instead, Robbie Wilkerson admitted that he submitted or caused to be submitted, approximately $714,000 in false and fraudulent claims to ISBE, more than $250,000 above the budgeted amount. The submitted claims represented that approximately 267,000 meals were served to low-income children, when in fact, fewer than 100,000 meals were actually served, and as much as $450,000 was used for the defendants’ personal use.
Robbie and Tasha Wilkerson admitted that they embezzled more than $100,000 from the program, including more than $60,000 in direct payments to themselves, at the same time Tasha was paid as an employee of Youth Outreach Services, Chicago, as a prevention coordinator. In addition, more than $10,000 was given directly to relatives; $20,000 in cash and other withdrawals from NBCC’s bank account; $46,000 to purchase real estate in Chicago; and, $37,109 to purchase a residence in Memphis Tenn., for Robbie Wilkerson’s parents.
Hall admitted that he embezzled as much as approximately $50,800 in USDA funds for his and his spouse’s use, an amount that exceeded the projected total administrative costs for the summer program by more than $20,000.
Richard and Evelyn Shumate admitted embezzling between $40,0001 and $$95,000 in USDA funds for their personal use, including as much as $28,695 to purchase a 2011 Hyundai Sonata.
Sentencing hearings for Robbie and Tasha Wilkerson are scheduled on Oct. 6, 2017. Hall’s sentencing date has been set for Sept. 22; Richard and Evelyn Shumate are scheduled for sentencing on Sept. 15, 2017.
According to court documents, at sentencing, the government has stated its intent to recommend that Robbie Wilkerson be sentenced to 37 months in prison and ordered to pay restitution of at least $400,000. For Tasha Wilkerson, Hall, and Richard and Evelyn Shumate, who each pled guilty to one count of theft of government funds, the government has agreed to recommend a split sentence of five months in prison followed by five months of home confinement and to pay restitution. These recommendations are advisory and are not binding on the court which determines sentencing based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are the result of investigation by the U.S. Department of Agriculture, Office of Inspector General. The Illinois State Board of Education also assisted in the investigation.
Cheyneyville man pleads guilty to stealing Social Security benefitsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Cheneyville man pleaded guilty to stealing Social Security benefits.
Gary Blake Williamson, 71, of Cheneyville, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of theft of government property. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Williamson began receiving Social Security disability benefits in 2002. His filing indicated total disability and that he could not work. He began working for a private company in December of 2007 earning $2,500 to $3,000 a month but continued to improperly receive disability benefits until May of 2012.
Williamson faces 10 years in prison, three years of supervised release and a $250,000 fine. The court did not set a sentencing date.
The Social Security Administration-Office of Inspector General investigated the case. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Cairo Man Sentenced to Life in Prison for Double Murder During an Attempted Robbery of Cairo BankRead the Press Release
James Nathaniel Watts, 32, of Cairo, Illinois, was sentenced today in United States District Court in Benton to life in prison without the possibility of release plus a 10 year consecutive term of imprisonment announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Watts pled guilty in March of this year to a two count indictment charging him with an attempted robbery of the First National Bank in Cairo in May 2014 during which two bank employees were murdered by Watts and a third employee was grievously injured. Watts also pled guilty to being a felon in passion of a firearm in relation to the .380 caliber handgun he carried with him during the attempted robbery.
Evidence introduced in support of the guilty pleas and sentence established that on May 15, 2014, at approximately 4:45 p.m., Watts approached bank employees Anita Grace, Nita Smith, and Kaeley Price as they left the bank after closing. Watts covered his face with a folded white pillowcase and armed himself with a handgun and a hunting knife. Watts forced the three employees back into the bank at gunpoint. Once inside, he bound each of the employees’ hands with zip ties as he attempted to gain entry to the vault. The employees were unable to open the vault because it was equipped with a time lock that could not be opened until the next morning. Watts then then forced the three employees into the bank’s break room where he killed Ms. Grace and Ms. Smith and attempted to kill Ms. Price. Ms. Smith died at the bank. Ms. Grace died from injuries inflicted by Watts shortly after being transported to the hospital. While Watts believed he had also killed Ms. Price, she survived and, despite being critically injured, was able to call 911 after Watts fled the bank. Police captured Watts following a high-speed chase and manhunt. Authorities found him hiding in the structure of a railroad trestle bridge in Cairo that spans the Ohio River between Illinois and Kentucky. He was taken into custody after a two-hour standoff with federal, state, and local law enforcement officers.
The surviving victim and family members of the deceased victims were given the opportunity to address the Court and Watts before sentence was pronounced. In addition to the term of imprisonment, Watts was ordered to pay to the United States fines and special assessments totaling $1200.
Watts has been held without bond since his arrest in May 2014 and was again remanded to the custody of the United States Marshal after the sentencing hearing to await designation by the Federal Bureau of Prisons to one of its facilities.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Illinois State Police with the assistance of numerous other law enforcement agencies in Illinois and Missouri. The case was prosecuted by Assistant United States Attorneys George Norwood and James M. Cutchin, and Department of Justice Capital Case Section Trial Attorney Jeffrey Zick.
Buffalo Woman Sentenced on Drug ChargeRead 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 Rose Smith, 66, of Buffalo, NY, who was convicted of possession with intent to distribute fetanyl, oxymorphone, oxycodone, and hydrocodone, was sentenced to 48 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura Higgins, who handled the case, stated that on February 7, 2014, a search warrant was executed at the defendant’s residence on Littlefield Avenue in Buffalo. Officers recovered a large number of prescription pills, patches, marijuana, and two firearms. Subsequent analysis determined that the pills and patches contained oxycodone, fentanyl, oxymorphone, and hydrocodone. Smith admitted that she sold the majority of her own prescriptions of fentanyl and oxycodone to drug customers. The defendant also sold prescription narcotics she received from at least two other people.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Divison, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Brooklyn Bloods Gang Enforcer Sentenced to 30 Years in Prison for Narcotics TraffickingRead the Press Release
Earlier today at the federal courthouse in Brooklyn, New York, Shondell Walker, also known as “M-Dot,” a member of the Brooklyn-based Murderous Maddawg Bloods, was sentenced to 30 years in prison for narcotics trafficking and his role as an enforcer for Bloods gang leader Ronald Herron, also known as “Ra Diggs,” or “Ra Digga.” The sentence was imposed by United States District Judge Nicholas G. Garaufis.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“The defendant was an enforcer for a criminal gang that terrorized the Gowanus and Wyckoff Gardens communities for decades,” stated Acting United States Attorney Rohde. “He also testified falsely on behalf of the gang's leader. Together with our law enforcement partners, we are committed to bringing violent criminals to justice and will not be deterred by attempts to obstruct our efforts.”
“This case proves the lengths gang members will go to protect their own,” stated FBI Assistant Director-in-Charge Sweeney. “The subject will spend the bulk of his life in federal prison all because he felt allegiance to a deadly and criminal gang. The work of our FBI New York Metro Safe Streets Task Force and our law enforcement partners is vital to stopping the spread of criminal enterprises like these gangs, and we won’t back off until these gangs no longer exist.”
“The defendant in this case – the enforcer for a violent gang that plagued the Gowanus Houses and Wyckoff Gardens housing developments for decades – was sentenced to 30 years behind bars,” stated Commissioner O’Neill. “Today’s sentence should be a reminder to those who trade in drugs and violence: We will never stop in our relentless pursuit of justice.”
Walker pled guilty pursuant to a plea agreement on October 6, 2011, to conspiring to distribute narcotics. During Herron’s trial, Walker was called as a defense witness and testified falsely on Herron’s behalf. Specifically, Walker testified that Herron had served as a positive role model in the Gowanus and Wyckoff Gardens communities, that he had never seen Herron sell narcotics, and that he had never worked, sold drugs, or carried a firearm on Herron’s behalf. Walker’s claims were substantially undermined by the admission into evidence of a letter he had written from prison in which he stated that he intended to remain loyal to Herron because of their relationship in the Bloods.
Herron was convicted after trial and previously sentenced to multiple life terms consecutive to 105 years in prison.
Herron and Walker’s convictions followed dozens of successful prosecutions over the past decade conducted by the U.S. Attorney’s Office for the Eastern District of New York, along with the FBI and NYPD, of violent gang members and drug dealers from the Gowanus and Wyckoff Gardens housing developments.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Shreve Ariail, Samuel Nitze, and Rena Paul are in charge of the prosecution.
The Defendant:
SHONDELL WALKER
Age: 31
Brooklyn, New York
E.D.N.Y. Docket No. 10-CR-615 (NGG)
Bristol Woman Convicted of Defrauding Medicaid ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that on May 26, a jury in Bridgeport convicted RONNETTE BROWN, 44, of Bristol, on 23 counts of health care fraud and one count of conspiracy to commit health care fraud. The trial before U.S. District Judge Victor A. Bolden began on May 22 and the jury returned a verdict of guilty on all counts of the indictment on Friday afternoon.
According to the evidence at trial, Brown owned and operated WeMPACT, LLC, a social services business with offices in Bristol and Torrington. Between August 2010 and April 2014, Brown billed Medicaid for psychotherapy services that were not performed. In addition to that scheme, Brown separately conspired with Beverly Coker and another unnamed individual to bill Medicaid for psychotherapy services that represented Coker had performed the services when, in fact, the services were provided by unlicensed individuals, or were not provided at all.
According to court documents and statements made in earlier court proceedings, Coker, a licensed clinical social worker, owned and operated New Beginnings Family Center, LLC, in Hartford. On April 8, 2016, Coker, of Windsor, waived her right to indictment and pleaded guilty to one count of health care fraud, admitting that between October 2010 and November 2011, she engaged in a scheme to defraud Medicaid by permitting Brown and another individual to bill Medicaid for psychotherapy services using Coker’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Coker kept 30 percent of the proceeds, and paid the remaining 70 percent to Brown and the other individual. As part of her plea, Coker admitted to defrauding Medicaid of approximately $214,555 through the scheme.
Judge Bolden scheduled sentencing for August 18, 2017, at which time Brown faces a maximum term of imprisonment of 10 years on each count of health care fraud, and a maximum term of imprisonment of five years on the conspiracy count. She has been released on a $100,000 bond since her arrest on May 23, 2016.
Coker awaits sentencing. Three other individuals were charged and convicted of health care fraud offenses stemming from this investigation.
“This conviction is the latest example of the successful efforts of the Connecticut Medicaid Fraud Working Group,” said Attorney Daly. “Through that group, federal and state law enforcement and representatives of state agencies combine our efforts to detect, investigate, and prosecute Medicaid fraud through criminal and civil prosecutions. In this particular case, federal agents worked alongside our partners from the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and were supported by the State Attorney General’s Office and the Connecticut Departments of Health (DPH) and Social Services (DSS). This seamless coordination ensures that the Connecticut Medicaid program is protected from unscrupulous providers. We look forward to continuing the teamwork with our state and federal partners to ensure that every dollar spent by the Medicaid program goes to provide much-needed medical services to Medicaid clients.”
“Being a health care provider in the Medicaid program is a privilege, not a right,” said HHS-OIG Special Agent in Charge Coyne. “When Ronnette Brown conspired to enrich herself by billing the government for services never provided or provided by unqualified professionals, she violated the basic trust that taxpayers extend to healthcare professionals. Our agents continue to work with Medicaid Fraud Control Units to root out such fraud schemes, which undermine the financial health of government health care programs and the public’s trust in medical professionals.”
“This is yet another example of how much we can achieve when agencies at all levels of government work together in collaboration,” said Chief State’s Attorney Kane. “This conviction will hopefully put all health care providers on notice that we are committed at all levels of government to detecting, investigating and prosecuting fraud that steals scarce resources from the programs that serve people in need.”
This matter has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Daly also thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Bernards Township Settles Federal Civil Suit, Agrees to Allow Islamic Society to Build MosqueRead the Press Release
NEWARK, N.J. – Bernards Township, New Jersey, has agreed to settle a federal civil lawsuit to resolve allegations that the township violated federal law when it denied zoning approval to allow the Islamic Society of Basking Ridge (ISBR) to build a mosque on property where zoning permitted houses of worship, U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division announced today.
The settlement agreement also resolves allegations that at the time the ISBR’s application was pending, the township revised its zoning code to unreasonably limit any house of worship from building in the township. The settlement resolves a lawsuit the Justice Department filed in November 2016. A separate settlement resolving a similar lawsuit brought by the Islamic Society against the township has also been reached.
“Federal law requires towns to treat religious land use applications like any other land use application,” Acting U.S. Attorney Fitzpatrick said. “Bernards Township made decisions that treated the Islamic Society of Basking Ridge differently than other houses of worship. The settlement announced today corrects those decisions and ensures that members of this religious community have the same ability to practice their faith as all other religions.”
“Federal law protects people of all religious communities from discrimination and unlawful obstacles when they seek to build a place of worship,” Acting Assistant Attorney General Wheeler said. “Through this agreement, the Islamic Society of Basking Ridge and its members will be able to build a mosque and exercise the fundamental American right of freedom of worship.”
The United States’ complaint alleged that Bernards Township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it discriminated against the Islamic Society based on its religion and the religion of its members. The complaint alleged that the township denied the application to build a mosque, applying standards and procedures to the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; it imposed a substantial burden on the Islamic Society’s religious exercise; and it amended its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
As part of the settlement, Bernards Township has agreed to permit the Islamic Society to construct a mosque on its property. The township has also agreed that its leaders and other township employees will undergo training on the requirements of RLUIPA. It has also agreed to publicize its non-discrimination policies and periodically report to the Justice Department on its compliance with the settlement agreement. The township has also agreed to amend its zoning ordinance to limit the zoning restrictions placed on houses of worship. In a separate settlement agreement, the township agreed to pay the Islamic Society $3.25 million to resolve its claims for damages and attorney’s fees caused by the denial of the mosque application.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division; Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit, Civil Division; and Trial Attorney Beth Pepper, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
RLUIPA prohibits discrimination in land use and zoning decisions. People who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.
BPD Cell Block Attendant Pleads Guilty to Violating the Civil Rights of an Individual in CustodyRead 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 Matthew Jaskula, 27, of Buffalo, NY, pleaded guilty to a one-count indictment previously filed against him. Specifically, Jaskula pled guilty to the crime of willfully depriving another of their constitutional rights under color of law resulting in bodily injury before U.S. District Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
According to Assistant U.S. Attorney Joseph M. Guerra, who is handling the case, Jaskula worked as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was working as a Senior Cell Block Attendant.
On May 19, 2016, the victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the victim were met by Jaskula and another cell block attendant.
The victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the victim from behind and shoved the victim face-first into a door. The force of the defendant’s actions not only caused the victim to strike the door, it caused the door to fly open and the victim to fall to the ground. On the way to the ground, the victim’s face struck the ledge of a shelf, before striking the floor, face-first.
The defendant’s actions caused the victim to become limp and unresponsive. Jaskula thereafter grabbed the victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the victim was pulled into the room, the victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the victim in this chair, without seeking medical treatment for the facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on video.
Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the victim should go to the Erie County Medical Center, the defendant replied that the victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the victim complained of chest pains. The victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for October 12, 2017, at 9:30 a.m. before Judge Vilardo.
Attorney General Jeff Sessions Has Selected James McHenry as the Acting Director of the Executive Office for Immigration ReviewRead the Press Release
WASHINGTON – Attorney General Jeff Sessions has selected James McHenry as the acting Director of the Executive Office for Immigration Review (EOIR).
“I am pleased James McHenry has agreed to lead the Executive Office for Immigration Review, and the Justice Department is fortunate to have him act as the agency’s director,” said Attorney General Sessions. “His experience will serve the department well as EOIR works to reduce the immigration court backlog and to ensure that the law is applied in a fair and efficient manner in immigration proceedings.”
Acting Director McHenry has previously served in the Executive Office for Immigration Review; he first joined the agency in 2003 through the Attorney General’s Honors Program and returned to the agency in 2016, when he was appointed as an administrative law judge (ALJ) for EOIR’s Office of the Chief Administrative Hearing Officer (OCAHO).
Earlier this year, McHenry served as a Deputy Associate Attorney General working on a variety of immigration-related litigation matters and overseeing multiple components reporting to the Office of the Associate Attorney General. From 2014 to 2016, he served as an ALJ for the Office of Disability Adjudication and Review in the Social Security Administration. Prior to that, he worked for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS) as an Assistant Chief Counsel and, later, as a Senior Attorney where he served as a lead attorney for national security, denaturalization, and gang cases, anti-human trafficking operations, and worksite enforcement matters. He also served a detail as a Special Assistant United States Attorney for the Criminal Division, U.S. Attorney’s Office, Northern District of Georgia.
Acting Director McHenry earned a Bachelor of Science from the Georgetown University School of Foreign Service, a Master of Arts in political science from the Vanderbilt University Graduate School, and a Juris Doctor from the Vanderbilt University Law School.
Acting U.S. Attorney Announces Agreement with the NY State Education Department to Change State Guidelines on Parental Involvement in Medication Adjustments at School for Children with DiabetesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has resolved its investigation into complaints alleging that the New York State Education Department (the “NYSED”) violated Title II of the Americans with Disabilities Act of 1990 (the “ADA”), 42 U.S.C. §§ 12131-12134, and related regulations by refusing to permit parent and guardian involvement in the adjustment of a child’s diabetes medication, with the approval of the child’s doctor, during school or at school-sponsored events.
Acting U.S. Attorney Joon H. Kim said: “Parents of children with diabetes have a right to play a role in the treatment of their children while at school. We are pleased to have reached an agreement with the New York State Education Department that will help students with diabetes receive during school the same adjustments to their medication that they receive outside of school, as their doctors direct.”
This Office’s investigation found that, in September 2015, the NYSED issued Guidelines for Medication Management in Schools that caused schools to reject certain types of orders issued by physicians treating children with diabetes authorizing parents and guardians to be involved in the adjustment of their child’s diabetes medication administered by the school healthcare team. The rejected orders included model orders developed by national diabetes organizations such as the National Diabetes Education Project and the American Diabetes Association by which a physician could authorize a parent or guardian to direct a school healthcare professional to adjust, within limits, the dosage and timing of correction doses of insulin, insulin-to-carbohydrate ratios, and fixed insulin doses. As these model orders reflect, it is common for parents and guardians of children with diabetes to have particularized knowledge with respect to their child’s recent activities, food intake, reaction to medication, and the like, and, through training and experience, to develop expertise regarding the adjustment of the dosage and timing of their child’s diabetes medication, information that is essential to the provision of necessary medical care for children with diabetes at all times, including at school. The investigation found that the Guidelines were hindering the communication of this vital information and in certain instances preventing necessary adjustments to diabetes medication from occurring at school. This Office detailed its conclusions in a Letter of Findings dated January 18, 2017.
In response to the investigation, the NYSED agreed to amend the Guidelines. The NYSED has also agreed to provide a model form for a physician to use to authorize the involvement of the parents/guardians in adjustment decisions where appropriate. The final decision with respect to the dosage and timing of diabetes medication shall remain with the school nurse as a matter of the nurse’s exercise of professional judgment, which will include consideration of the information communicated by the parent or guardian.
Specifically, under the resolution, NYSED has agreed to take the following actions: (i) amend the provisions of the Guidelines that were identified by the investigation as causing concerns; (ii) include additional language in the Guidelines explaining the respective roles of the school nurse and the parents/guardians who have been authorized to recommend adjustments of their child’s diabetes medication within specified limits; and (iii) provide a link to a model form through which physicians can provide such authorization to the parent/guardian (provided that the student’s Diabetes Medical Management Plan also includes authorization of the school nurse to make adjustments within the same range(s) as a matter of the nurse’s professional judgment). These changes, which resolve the issues addressed in the Letter of Findings, are explained in more detail in the attachments to the Office’s resolution letter. An amended version of the Guidelines reflecting these changes appears on the NYSED website at the following address: http://www.p12.nysed.gov/sss/schoolhealth/schoolhealthservices/.
Mr. Kim also thanked NYSED for its cooperation. The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Michael J. Byars is in charge of the matter.
29 May 2017
Department of Justice Observes National Moment of Remembrance on Memorial DayRead the Press Release
On Memorial Day, our nation unites in remembrance of the men and women of the U. S. Armed Forces who gave their lives to defend our freedoms. We share our prayers and sympathies with their families and loved ones, recognizing with gratitude that when our nation called, these brave heroes answered with their lives.
The Attorney General, and personnel throughout the Department of Justice, will observe the National Moment of Remembrance on Memorial Day, May 29, at 3 p.m. The National Moment of Remembrance, which was established by Congress in 2000, encourages all American citizens, including federal agency personnel, to pause for one minute to remember the men and women who lost their lives fighting for our nation and its values of freedom and peace. Every day, the Department of Justice pays tribute to the servicemembers who made the ultimate sacrifice. Memorial Day provides a special opportunity to reflect on the magnitude of that sacrifice.
Those who have fallen in defense of our country have earned an honor that must be recognized by both our words and deeds. Through its Servicemembers and Veterans Initiative, the Department of Justice is working tirelessly to ensure that all members of our military receive the legal and constitutional protections that they have fought so hard – and so valiantly – to help secure. They deserve the best that we have to give, because they have given the best of themselves. This Memorial Day, please join us at the Department of Justice to, as Abraham Lincoln stated at Gettysburg, dedicate ourselves to “the great task remaining before us—that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion.”
26 May 2017
Wichita Business Owner Pleads Guilty in $250,000 Tax CaseRead the Press Release
WICHITA, KAN. – A Wichita business owner pleaded guilty Friday to withholding more than $258,000 in taxes from employee salaries that he failed to paid over to the government, U.S. Attorney Tom Beall said.
Michael J. Skladzien, 54, Wichita, Kan., pleaded guilty to one count of failing to pay over taxes. In his plea, he admitted that while he owned S&S Floor Maintenance he withheld approximately $258,610 from salaries of employees to pay federal taxes. Instead of paying the funds over to the government, he spent the money on personal expenses including gambling.
Sentencing is set for Aug. 11, 2017. He faces up to five years in federal prison. Beall commended Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Alan Metzger for their work on the case.
Virginia Man Admits to Falsely Certifying Bridge Inspection VehiclesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CAROL “CASEY” SMITH, 56, of Chester, Virginia, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to a federal charge related to his false certification of bridge inspection vehicles.
According to court documents and statements made in court, Under Bridge Inspection (“UBI”) vehicles are vehicles that contain a moveable boom with a platform. The vehicles are used to conduct inspections of bridges by positioning the vehicle on top of the bridge and, using the boom, lifting a platform carrying inspectors alongside or beneath a bridge deck. “Company A” rents or leases bridge access equipment, including UBI vehicles, to engineering companies and government agencies for use on bridge inspection and bridge maintenance projects. Company A’s UBI vehicles travel on interstate highways to job locations throughout the U.S. Company A has several locations, including one in Connecticut.
SMITH was the president and chief surveyor for Virginia-based Martin Enterprizes, Inc. (“MEI”). Between January 2012 and January 2015, SMITH falsely represented that he, as the chief surveyor for MEI, examined the UBI vehicles in Company A’s fleet on an annual basis. During that time, SMITH created 165 Certificates of Unit Text/Examination of Material Handling Device (the “Certificate of Inspection”) for UBI vehicles in Company A’s fleet. As part of the Certificate of Inspection, SMITH verified that he personally examined the specified UBI vehicle and that the UBI vehicle met federal requirements. SMITH also issued 165 annual stickers representing that he had inspected the UBI Vehicles, and he knew that an employee or employees of Company A would affix the stickers to the UBI vehicles, and that those UBI vehicles would be driven on interstate highways and used on jobs throughout the U.S., including Connecticut.
Between 2012 and 2015, in exchange for the Certificates of Inspection for the UBI vehicles, as well as other vehicles in its fleet, Company A paid SMITH a total of $76,400.
SMITH pleaded guilty to one count of making a false statement, which carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Utah Man Sentenced to 110 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a West Valley, Utah, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on May 16, 2017, by U.S. District Judge Roberto A. Lange.
Alfredo Chavez Mendoza, a/k/a Alfredo Chavez-Mendoza, a/k/a Maniac, a/k/a Julian, age 27, was sentenced to 110 months in custody, followed by 4 years of supervised release, a fine of $500, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Mendoza was indicted by a federal grand jury on April 13, 2016. He pled guilty on February 6, 2017.
Beginning in August of 2015, and continuing through April of 2016, Mendoza knowingly and intentionally conspired with others to distribute between 350 and 500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Mendoza came to South Dakota with friends to “scope things out” and sell drugs. Mendoza admitted to selling methamphetamine to Kristina Lofton, who was convicted of conspiracy to distribute methamphetamine in and around Eagle Butte, South Dakota, and sentenced in January of 2017. Mendoza admitted he received distributable quantities of methamphetamine to distribute in South Dakota, and that he provided others with methamphetamine to further distribute.
This case was investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, and the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Mendoza was immediately turned over to the custody of the U.S. Marshals Service.
Two Dunkirk Men Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a six count indictment charging Fred A. Santiago, 29, and Michael Pacheco, 27, both of Dunkirk, NY with conspiracy to distribute and distribution of five or more kilograms of cocaine, possession with intent to distribute and distribution of cocaine, and maintaining a drug premise. The charges carry a mandatory minimum penalty of 10 years, a maximum of life and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on May 2, 2017, a state search warrant was executed at Santiago’s residence. Law enforcement officers seized scales, a heat sealer, heat sealing bags, a drug press, and over 600 grams of suspected cocaine. On the same day, members of the Southern Tier Regional Drug Task Force stopped Pacheco’s vehicle and seized an amount of cocaine that was secreted away inside a potato chip bag.
The defendants were arraigned today before the U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being held pending detention hearings on June 2, 2017 at 11:45 a.m.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. hunt, new York Field Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, and the Dunkirk Police Department, under the direction of Chief David Ortolano.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Defendants Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — U.S. District Judge Sidney A. Fitzwater sentenced three defendants, including a doctor, a pharmacist, and the owner of McAllen Medical Clinic, today for their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Muhammad Faridi, 41, of Murphy, was sentenced to 108 months in federal prison following his guilty plea in August 2016 to one count of conspiracy to launder monetary instruments.
Dr. Richard Andrews, 64, of Dallas, was sentenced to 96 months in federal prison following his guilty pleas in January 2017 to one count of conspiracy to distribute a controlled substance, namely, Oxycodone, and one count of conspiracy to launder monetary instruments.
Ndufola Kigham, 45, of Arlington, was sentenced to 27 months in federal prison following her guilty pleas in February 2017 to two counts of misprision of felony.
“These diverted prescription pain pills kill more people in this country than heroin, while simultaneously fueling demand for heroin itself,” said U.S. Attorney Parker. “Eighty percent of heroin users started down that dark, steep path by abusing prescription pain pills first. Those who divert legitimate drugs from their lawful, therapeutic purposes to illicit, deadly purposes all in the name of money are no better than any other drug trafficker and will be treated accordingly.”
According to documents filed in the case, from approximately January 2013 through July 2014, Andrews, a doctor of osteopathy, and his co-conspirators, including Faridi, who is not a physician but who owned the McAllen Medical Clinic, distributed and caused to be distributed at least 150,000 30mg oxycodone pills in Dallas. The prescriptions were issued in Andrews’ name and under his DEA registration number. Andrews wrote or signed prescriptions for 30mg oxycodone pills without conducting medical exams of patients, without determining there was a legitimate medical purpose for the prescription, and outside the usual course of professional practice. Sometimes Faridi filled out the prescriptions Andrews had previously signed. Andrews and his coconspirators issued the illegitimate prescriptions to make money.
The proceeds of the drug-trafficking conspiracy consisted of cash payments collected by Faridi and other coconspirators at McAllen Medical Clinic for fake patient visits. Those payments varied per patient, per visit, and were payable only in cash. Andrews received a share of those cash payments
Co-defendant Kigham, a registered pharmacist who owned, operated, and served as the pharmacist in charge of GenPharm Pharmacy on Wheatland Road in Desoto, Texas, knew of the conspiracy and failed to notify any authority of it. Instead, she committed affirmative acts to conceal the conspiracy, such as filling prescriptions for 30mg oxycodone written for multiple different individuals and dispensing the filled prescriptions to a single individual, and not to the individuals named on the prescription. By filling these prescriptions while the conspiracy was ongoing, Kigham dispensed more than 70,000 30mg oxycodone pills based on illegitimate prescriptions.
In March 2015, a federal grand jury in Dallas indicted 23 individuals on offenses related to a prescription drug distribution conspiracy. Andrews, Kigham and Faridi were charged in December 2015 by a superseding indictment. The indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions and to fill those prescriptions at designated pharmacies.
The prescription medications were then distributed like street drugs in Texas and Louisiana.
This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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Three Charged with Illegal Trafficking of $17 Million Worth of Sea CucumbersRead the Press Release
NEWS RELEASE SUMMARY – May 26, 2017
SAN DIEGO – A Tucson firm and two executives were arraigned in federal court today on charges related to the illegal trafficking of $17 million worth of sea cucumbers from 2010-2012.
Blessings, Inc. of Tucson, its owner David Mayorquin, and Ramon Torres Mayorquin of San Diego were charged in a 26-count indictment with conspiracy, illegal trafficking in wildlife, importation contrary to law, false labeling and criminal forfeiture.
According to the indictment, defendant David Mayorquin, on behalf of Blessings, contacted suppliers of sea cucumbers in Mexico and agreed to purchase approximately $13 million worth of sea cucumbers, knowing that it had been illegally harvested, that is, in excess of permit limits, or without a proper license or permit, or out of season.
It was a further alleged that defendant Ramon Mayorquin received the shipments of sea cucumbers from the Yucatan to Tijuana, Mexico, and created false invoices to be submitted to U.S. Customs officials, knowing that the sea cucumbers had been illegally harvested, sold and transported, and lacked the proper paperwork required under Mexican law.
According to the indictment, the fraudulent sales invoices submitted to U.S. Customs falsely represented defendant Ramon Mayorquin to be the supplier of the sea cucumbers to Blessings, from a non-existent address in Mexico, for a price less than one tenth of the true price paid by Blessings for the sea cucumbers.
The indictment states that after the sea cucumbers had been imported into the United States, defendant David Mayorquin sold the sea cucumbers on behalf of Blessings for approximately $17.5 million to customers in China and elsewhere. The indictment alleges that as part of the scheme payments were made to bank accounts held under false names to conceal the illegal sales and hide the proceeds, and payments were also made to Mexican officials to insure that no action was taken against the illegally harvested sea cucumbers. In furtherance of the scheme, it is alleged that in June of 2011, a co-conspirator in Mexico sent an email to defendant David Mayorquin, stating in substance “We want what is owed in freight to be your contribution for the bribe, 32K.”
Mexican law requires that the lawful origin of fisheries products be demonstrated by means of an arrival, harvest, production, or collection notice or an import permit. The original sales invoice for fisheries products must bear the number associated with the notice of arrival, harvest, production or collection, as well as a description of the product, and all subsequent invoices must bear the number of the invoice from which it derived, so that all fisheries products sold in Mexico can be traced to their lawful origins.
In addition, in Mexico a fisheries waybill is needed for the interstate transportation of fisheries products. It is also violation of Mexican law to harvest, possess, transport, or sell a species out of season, or of less than the minimum established size and weight, or to harvest a species in excess of permit limits or without a proper license or permit. The indictment alleges that the defendants imported sea cucumbers into the United States they knew had been harvested, transported and sold in violation of these Mexican laws.
Since the beginning of this investigation, with the increased cooperation with Mexican officials, the importation of sea cucumbers from Mexico to the United States through the ports of entry in San Diego have decreased approximately 93% in the past three years. According to the NOAA Office of Science and Technology, Commercial Fisheries Statistics Division website, total sea cucumber imports from 2013 through 2016 into the San Diego ports of entry have decreased from 1,096,258 kg in 2013 to 70,708 kg in 2016. Total sea cucumber imports to the U.S. from Mexico have decreased from 4 million kg in 2013 to 3 million kg in 2016.
“This case demonstrates the coordination between U.S. federal law enforcement agencies in detecting illegal, unreported, and unregulated (IUU) fishing and stopping the trafficking of sea cucumbers into the U.S. from Mexico,” said Assistant Director Will Ellis of NOAA's Office of Law Enforcement. “Sea cucumbers is an important commercial fishery for Mexico and NOAA's Office of Law Enforcement is committed to cooperating with our international partners to safeguard this marine resource.”
“The Service's investigation and this subsequent indictment will help stop the illegal harvest and transport of thousands of pounds of sea cucumbers, whose numbers have fallen dramatically over the past few years,” said Ed Grace, Deputy Assistant Director for U.S. Fish and Wildlife Service Office of Law Enforcement. “Sea cucumbers serve an important role in the marine ecosystem, helping recycle nutrients and break down organic matter. Illegal over-harvest threatens more than just the species themselves, impacting delicate coral reefs and local fisheries. Going after criminal poachers and wildlife traffickers like these is not only critical for saving protected species such as sea cucumbers, it also ensures some justice for those impacted by their illegal activities.”
“A large overseas demand for sea cucumbers harvested in Mexico has fueled an increase in illicit importation-schemes uncovered at commercial ports of entry on the U.S.-Mexico border, ” said Dave Shaw, special agent in charge for Homeland Security Investigations in San Diego. “This investigation underscores HSI’s commitment to ensuring U.S. trade laws are not exploited by those seeking financial gain.”
The defendants were ordered to appear before U.S. District Judge Roger T. Benitez for a hearing on all motions on July 10, 20917, at 2:00 pm.
DEFENDANTS Criminal Case No. 17cr1254-BEN
Blessings, Inc Incorporated: 2003
Tucson, Arizona
David Mayorquin Age: 39
Tucson, Arizona
Ramon Torres Mayorquin Age: 75Chula Vista, California
SUMMARY OF CHARGES
Count 1
Conspiracy, 18 U.S.C. § 371
Maximum penalty: 5 years’ prison, fine of $250,000
Counts 2-8
Unlawful Importation of Wildlife, 16 U.S.C. §3372(a)(2)(A) and §3373(d)(1)(A)
Maximum Penalty: 5 years’ prison, $250,000 fine
Counts 9-17
Importation Contrary to Law, 18 U.S.C. §545
Maximum Penalty: 20 years’ prison, $250,000 fine or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.
Counts 18-26
False Labeling, 16 U.S.C. §3372(d)(1) and §3373(d)(#)(A)
Maximum Penalty: 5 years’ prison, $250,000 fine
AGENCIES
National Oceanic and Atmospheric Administration, Office of Law Enforcement
U.S. Fish & Wildlife Service, Office of Law Enforcement
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Buffalo Men Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Derrick Pitts, 46, Shawn Cunningham, 46, and Travel Jefferson, 36, all of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the complaint, between April 2017 and May 17, 2017, the defendants conspired to sell and sold several ounces of crack cocaine on Jewitt Avenue in the Central Park area of Buffalo. The investigation included undercover drug purchases on April 17; May 16; and May 24, 2017.
During the execution of search warrants at residences located at 269 Jewett Avenue and 1945 Hertel Avenue, law enforcement officers recovered drug paraphernalia, including packaging, and scales with suspected cocaine residue, a plastic bag containing suspected cocaine, two plastic baggies containing suspected crack cocaine, cash, and a cell phone.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder. Shawn Cunningham and Travel Jefferson were released on conditions; Derrick Pitts is being held pending a detention hearing on June 2, 1017 at 10:00 a.m.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, and the Federal Bureau of Investigation, under the direction of Special Agent-in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Texas Woman Pleads Guilty to Using Offshore Accounts in Panama to Conceal More than $1.3 Million from the IRSRead the Press Release
A resident of College Station, Texas, pleaded guilty today to conspiring to defraud the United States by using offshore accounts in Panama to conceal more than $1.3 million in royalty income that she earned from oil wells, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, Joyce Meads, 73, admitted that she filed false 1997 through 2009 individual income tax returns, omitting more than $1.3 million in royalty income that she received from oil wells. From approximately April 1997 through April 2010, she conspired with offshore promoters to disguise this income, setting up nominee companies in Delaware and Panama in the name of W.G. Holdings Corporation and transferring her interest in the oil wells to the nominee entity in Delaware. Meads’s monthly royalty checks were issued to W.G. Holdings. For approximately a decade, Meads had her royalty checks sent to a Miami post office box where they were picked up, couriered to Panama and deposited into her nominee accounts. Meads repatriated funds by disguising them as scholarships or loans from W.G. Holdings to herself. She later transferred the funds to bank accounts in her own name or her mother’s name. Meads admitted that she caused a tax loss of more than $250,000. Two of the promoters who assisted Meads, Marc Harris of The Harris Organization, Republic of Panama, and Boyce Griffin of Offshore Management Alliance Ltd., Republic of Panama, have also been convicted of conspiracy and other charges and were previously sentenced to prison.
“For more than a decade, Joyce Meads attempted to conceal her income from the Internal Revenue Service (IRS) by assigning it to a nominee entity and stashing it offshore,” said Acting Deputy Assistant Attorney General Goldberg. “As today’s plea makes clear – the days of safely hiding your money offshore are over – the Department continues to work with its law enforcement partners to find and hold accountable those who seek to evade paying their fair share of taxes.”
“Joyce Meads’ attempt to use complex offshore schemes to evade paying her fair share of income taxes was no match for the skills of IRS Criminal Investigation special agents,” said Chief Richard Weber of IRS Criminal Investigation (CI). “IRS CI and the Department of Justice’s Tax Division share the same vision when it comes to investigating those who attempt to hide their income; whether it’s through offshore holdings or state-side entities, we are determined to put an end to this type of fraudulent activity.”
Sentencing is scheduled for Aug. 4. Meads faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant Chief Greg Tortella of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Sureno Gang Member Sentenced to 100 Months in Prison for RICO Conspiracy and the Use of Firearms in Furtherance of ConspiracyRead the Press Release
SAN JOSE – Mario Cardenas was sentenced yesterday to 100 months in prison based on his conviction on charges of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and use of a firearm, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge, and represents the sixteenth conviction resulting from a proactive operation by the FBI’s Santa Clara County Violent Gang Task Force targeting gang members committing violent crimes and selling methamphetamine in San Jose.
Cardenas, 22, of San Jose, pleaded guilty on February 22, 2017, to being a member of Sur Santos Pride (SSP) and to using a gun during an in relation to a crime of violence. According to the plea agreement, Cardenas was a member of SSP for at least five years from January 2009 through January 2014. Cardenas acknowledged SSP was made up of Sureño gang members and associates from San Jose who coordinated and engaged in criminal activity together. The objective of SSP was to have its members and associates commit acts of violence including murder, attempted murder, and robbery for the benefit of the gang. To carry out their violent crimes, the SSP gang regularly collected money for firearms for the gang. Like other Sureño gangs in San Jose, SSP pledged their loyalty to the Mexican Mafia prison gang and followed its directives. Cardenas admits in his plea agreement that he participated in meetings during which money was collected so SSP could buy more guns; SSP members decided to extort local pimps for money and to use violence (including assaults with firearms) to enforce SSP’s demands for money, if necessary; SSP members collected money to pay as “taxes” to the Mexican Mafia; and gang members decided which people would hold guns for the group.
Cardenas was among 27 Sureño gang members in San Jose indicted on March 19, 2014, with various charges. For his part in the scheme, Cardenas was charged with RICO conspiracy, in violation of 18 U.S.C. § 1962(d); conspiracy to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); conspiracy to assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6); and use and possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c). Pursuant to his plea agreement, Cardenas pleaded guilty to the RICO conspiracy and § 924(c) charges.
The investigation leading to the indictment was part of the FBI’s crackdown on Sureño gangs in Santa Clara County. Fifteen of the other charged defendant have already been sentenced as reflected in the chart below. Several other defendants are scheduled to be sentenced in the coming months. Three defendants are in custody pending trial, and a status conference is scheduled for June 5, 2017.
Defendant
Charges
Sentence
JOSE DAVID SANCHEZ a/k/a “Joker”
Distribution of Methamphetamine
Sentenced on 10/21/14 to 77 months in prison
JUAN CHAVEZ
a/k/a “Dukester”
Distribution of Methamphetamine
Sentenced on 10/30/14 to 77 months in prison
ANDY LAMB LOPEZ a/k/a “Solo”
Felon in Possession of Firearm
Sentenced on 2/23/15 to 45 months in prison
MIGUEL MIRANDA
a/k/a “Payaso”
Distribution of Methamphetamine
Sentenced on 2/23/15 to 120 months in prison
MARIO GUERRERO
a/k/a “Lil Junior”
Distribution of Methamphetamine
Sentenced on 8/27/15 to 85 months in prison
FRANCISCO RAMIREZ a/k/a “Cisco”
Distribution of Methamphetamine
Sentenced on 11/2/15to 46 months in prison
JORGE RODRIGUEZ a/k/a “Brownie”
RICO Conspiracy and VICAR Attempted Murder
Sentenced on 2/1/16 to 160 months in prison
RICARDO MONTOYA
a/k/a “Necio”
RICO Conspiracy and VICAR Attempted Murder
Sentenced on 5/16/16 to 108 months in prison
JOSE MORENO
a/k/a “Lil Chocolate”
RICO Conspiracy and Use of a Firearm
Sentenced on 8/4/16 to 160 months in prison
MARCOS LOMELI
a/k/a “Cookie”
RICO Conspiracy and Use of a Firearm
Sentenced on 9/26/16 to 127 months in prison
FERNANDO CRUZ
a/k/a “Nano”
RICO Conspiracy
Sentenced on 11/10/16 to 87 months in prison
FRANCISCO FONSECA
a/k/a “Griffo”
RICO Conspiracy, Distribution of Methamphetamine, Felon in Possession of a Firearm
Sentencing Scheduled for 6/5/17
DANIEL CORTEZ
a/k/a “Lil Temper”
RICO Conspiracy
Sentenced on 12/19/16 to 60 months in prison
FELIX HERNANDEZ CRISTOBAL a/k/a “Pato”
RICO Conspiracy
Sentenced on 12/19/16 to 80 months in prison
BENITO CANALES
a/k/a “Dopey”
RICO Conspiracy
Sentenced on 3/10/17 to 24 months in prison
DENNIS SANDOVAL
a/k/a “Criminal”
VICAR Attempted Murder
Sentenced on 1/23/17 to 108 months in prison
Assistant United States Attorneys Stephen Meyer, Cynthia Frey, and Amie Rooney are prosecuting the case with the assistance of paralegals Nina Burney and Kevin Costello. The case is the result of an investigation by the FBI.
St Marys Man Sentenced for Tax EvasionRead the Press Release
TOPEKA, KAN. – A St. Marys man was sentenced Thursday to five years in federal prison for tax evasion, U.S. Attorney Tom Beall said. He was ordered to pay more than $8.4 million in restitution.
David G. Pflum, 71, St. Marys, Kan., owner of Coil Springs Specialties, was found guilty in a jury trial in January on one count of tax evasion and one count of obstructing the Internal Revenue Service. During trial, the prosecutor presented evidence that Pflum submitted false documents claiming he had less than $475 in assets and his income was $470 a month. In fact, he owned more than $2 million worth of real estate and his income was more than $16,000 a month. He urged renters, buyers and other people indebted to him to ignore collection efforts by the IRS.
Beall commended the IRS and Assistant U.S. Attorney Christine Kenney for their work on the case.
Seven Members of Armed Robbery Crew Sentenced for their roles in Virginia-Highland Wells Fargo Bank RobberyRead the Press Release
Seven members of an Atlanta-based robbery crew have been sentenced for their roles in the February 2015 armed robbery of the Wells Fargo bank at the intersection of Virginia and North Highland Avenues in Atlanta, Georgia.
“This robbery crew targeted a bank at one of the busiest pedestrian thoroughfares in the city, at the height of the morning rush hour,” said U.S. Attorney John Horn. “The robbers stormed the bank, pointed loaded firearms directly at bank employees and customers, threatened to kill them, and stole over $20,000 from the bank’s safe and cash drawers. The robbers compounded their violence by leading law enforcement on a high-speed chase throughout metro Atlanta at speeds topping 170 miles per hour. The convictions and lengthy sentences for the members of this crew puts an end to their ability to inflict further violence and mayhem in our district.”
“I can’t imagine the terror those innocent victims inside the bank felt,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “We are extremely fortunate that no one was physically hurt or killed in this rage of violence. Rarely do we see so much havoc created in such a short period of time in a very busy area. These seven suspects disregard for employees and customers of the bank, and motorists on our public streets is reprehensible. The lengthy sentences they received will not only stop them, but also send a message to anyone else who might think about committing this type of violence.”
According to U.S. Attorney Horn, the charges, and other information presented in court: On February 27, 2015, Bruce Brown, Kayode Philip Adeleye, and Ryan Vincent Hill arrived at a Wells Fargo Bank branch in Atlanta, Georgia, wearing hoods, masks, and gloves. Brown, Adeleye, and Hill entered the bank while Brown and Adeleye each brandished a loaded handgun. Brown stationed himself at the front door while Adeleye jumped over the teller counter and Hill walked behind that counter.
Adeleye pointed his gun into the back of one of the tellers and threatened to kill him if he did not open the bank’s safe. Adeleye forced another teller to the ground while pointing his gun at him and instructing him to lie face down. After one of the tellers opened the bank safe and cash drawers, Adeleye and Hill stole $22,343.40 in U.S. currency, and fled with Brown. The robbers escaped in a rental sport-utility vehicle bearing stolen tags. They later switched vehicles, twice, with help from Xavier Cornelius Shields, Connie Cristobul Montoya, and Joe Francisco Montoya.
The robbery crew consisted of seven individuals, all from metro Atlanta, which was led by Hill and Adeleye. Hill and Adeleye, along with Brown committed the armed robbery at gunpoint. Shields, C. Montoya, and J. Montoya assisted with the robbery by driving switch cars and acting as lookouts. Paris Lashay Paggett assisted with the concealment of evidence after the fact.
Using various investigative means, law enforcement located the fleeing robbers while they were still in transit. Officers and agents from the Atlanta and DeKalb County police departments, the Georgia State Patrol, and the FBI pursued the robbers as they traveled in a Mercedes AMG sports car leased and driven by Hill. The robbers led law enforcement on a high-speed chase through various highways and streets at speeds reaching up to 170 miles per hour. Law enforcement was unable to apprehend the robbers during the chase, but they did recover most of the stolen money, and several other items of evidence, at a residence in Ellenwood, Georgia, shortly after the robbery.
In the weeks that followed, the FBI, APD, and the Georgia Bureau of Investigation worked together to locate and develop evidence that identified the robbers. On June 17, 2015, a grand jury in the Northern District of Georgia returned an eight-count superseding indictment charging Hill, Adeleye, Brown, Shields, C. Montoya, J. Montoya, Paggett, and Tekevious Nicole Brandon with various offenses in connection with their roles in the robbery conspiracy. Hill, Adeleye, Brown, Shields, C. Montoya, and J. Montoya were charged with conspiracy to interfere with commerce by robbery and armed bank robbery. Hill, Adeleye, and Brown were also charged with brandishing a firearm during a crime of violence. Adeleye, C. Montoya, and J. Montoya were also charged with illegal possession of a firearm. Paggett and Brandon were charged as accessories after the fact.
Seven of the eight defendants pleaded guilty or were convicted at trial, and U.S District Judge Amy Totenberg imposed sentences on the three principal members of the crew as follows:
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Ryan Vincent Hill, 28, of Atlanta, Georgia, was sentenced on May 9, 2017, to 17 years and one month in prison, followed by three years of supervised release. Hill had pled guilty to counts one (conspiracy) and two (armed bank robbery) on August 3, 2016. Hill proceeded to trial on count three (brandishing a firearm during a crime of violence). The jury convicted him on January 26, 2017.
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Kayode Philip Adeleye, 34, of McDonough, Georgia, was sentenced on March 28, 2017, to 16 years in prison, followed by five years of supervised release. Adeleye had pled guilty to counts two (armed bank robbery) and three (brandishing a firearm during a crime of violence) on July 27, 2016.
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Bruce Brown, 27, of East Point, Georgia, was sentenced on May 10, 2017, to 11 years and two months in prison, followed by three years of supervised release. Brown had pled guilty to counts one (conspiracy), two (armed bank robbery), and three (brandishing a firearm during a crime of violence) on January 4, 2017.
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Xavier Cornelius Shields, 24, of Decatur, Georgia, was sentenced on March 24, 2017, to six years and eleven months in prison, followed by two years of supervised release. Shields had pled guilty to count one (conspiracy) on July 26, 2016.
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Connie Cristobul Montoya, 39, of Mableton, Georgia, was sentenced on March 30, 2016, to 6 years and 6 months in prison, followed by three years of supervised release. C. Montoya had pled guilty to count one (conspiracy) on November 30, 2015.
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Joe Francisco Montoya, 36, of Mableton, Georgia, was sentenced on November 12, 2015, to approximately seven months in prison, followed by ten months of supervised release. J. Montoya had pled guilty via criminal information to misprision of a felony on August 26, 2015.
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Paris Lashay Paggett, 26, of College Park, Georgia, was sentenced on May 10, 2017, to three years of probation. Paggett had pled guilty via criminal information to misprision of a felony on December 2, 2016.
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Tekevious Nicole Brandon, 36, of Atlanta, Georgia, had her charges dismissed on December 9, 2016, after successfully completing pretrial diversion under the conditions set forth in the parties’ pretrial diversion agreement.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Atlanta Police Department, the DeKalb County Police Department, and the Georgia State Patrol.
Assistant U.S. Attorneys John S. Ghose and Richard S. Moultrie, Jr. prosecuted 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.
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Rosebud Man Sentenced to 121 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Conspiracy to Distribute a controlled Substance was sentenced on May 16, 2017, by U.S. District Judge Roberto A. Lange.
Shaun Adam Espino, age 44, was sentenced to 121 months in custody, followed by 4 years of supervised release, a fine of $1,000, forfeiture of $7,682 in U.S. currency and two firearms, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Espino was indicted by a federal grand jury on March 15, 2016. He pled guilty on February 7, 2017.
Beginning in January of 2015, and continuing through March of 2016, Espino knowingly and intentionally conspired with others to distribute between 500 and 1,500 grams of methamphetamine, a Schedule II Controlled Substance, in South Dakota. Espino admitted that he received distributable quantities of methamphetamine from others who knew that he intended to engage in further distribution, and that he provided methamphetamine to others knowing that they intended to further distribute it. Found in Espino’s residence during the execution of a search warrant were 73 grams of methamphetamine, $7,682 in U.S. currency, a pistol, and a shotgun.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Espino was immediately turned over to the custody of the U.S. Marshals Service.
Registered Sex Offender Indicted for Cyberstalking and Enticing a Minor Victim to Engage in Sexually Explicit ConductRead the Press Release
Ceradoy was convicted of possession of child pornography in 2005 and attempted sexual exploitation of a minor in 2014
Baltimore, Maryland – A federal grand jury has charged Piere Ceradoy, age 36, of Crofton, Maryland, for production and advertisement of child pornography, coercion and enticement, cyberstalking, transfer of obscene material, and for engaging in this conduct while a registered sex offender. The indictment was returned on May 23, 2017. He was also ordered to be detained following a detention hearing held on May 25, 2017.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to the seven count indictment, and information presented at the detention hearing, Ceradoy met a minor victim on social networking apps in the spring of 2016, within months of being released from prison in Washington for his conviction on attempted sexual exploitation of a minor.
The victim told Ceradoy she was 13, and Ceradoy immediately initiated sexually explicit discussions. Ceradoy enticed the victim to engage in sex acts, and received videos and photos of the victim engaged in these acts. He also threatened to post the explicit photos on the internet and to send them to the victim’s family, and Ceradoy threatened to kill the victim and members of her family.
Ceradoy faces a mandatory minimum of 15 years and a maximum of 30 years in prison, followed by a lifetime of supervised release for each counts of production and advertising of child pornography; a mandatory minimum of 10 years and a maximum of life in prison, followed by a lifetime of supervised release for coercion and enticement; a maximum of 10 years, followed by three years of supervised release for cyberstalking; a maximum of 10 years, followed by three years of supervised release for transfer of obscene matter to a minor; and 10 years consecutive to all the charges stated above, excluding cyberstalking, for being a registered sex offender, followed by a lifetime of supervised release.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Qiran Li Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant QIRAN LI, age 31, from Susupe, Saipan, was sentenced in District Court to an 18-month term of imprisonment, to be followed by two years of supervised release, and 50 hours of community service, for Distribution of a Controlled Substance (Methamphetamine). The Court also ordered LI to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On December 2, 2016, LI was charged by Indictment with Distribution of a Controlled Substance (Methamphetamine), in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). He entered a guilty plea to the charge on January 27, 2017. During the course of the underlying investigation, LI sold methamphetamine to a confidential informant on two separate occasions in March of 2016, and law enforcement was able to seize a total of 9.7 grams with a 98 percent purity level.
The investigation was conducted by the Drug Enforcement Administration, with the assistance of Task Force Officers from CNMI Customs and the CNMI Department of Public Safety. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
Pennsylvania Man Charged with Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A Pennsylvania man was charged yesterday in federal court in Boston with failure to register as a sex offender.
Carlos Pagan-Reyes, 31, was indicted for failing to register as a sex offender after moving from Pennsylvania to Boston.
According to court documents, on Feb. 17, 2017, Pagan-Reyes was arrested in Boston on state charges of possession of narcotics, buying/receiving stolen goods, assault with a dangerous weapon and failure to register as a sex offender. Pagan-Reyes was released from state custody pending charges. On April 27, 2017, federal investigators arrested Pagan-Reyes for failing to register as a sex offender in Massachusetts.
The court documents further allege that on April 25, 2007, Pagan-Reyes was convicted in Dauphin County, Penn., of statutory sexual assault and indecent assault on a child less than 16-years-old. Pagan-Reyes was sentenced to state prison and ordered to register as a sex offender in any communities where he lived and worked upon release. Upon his release from prison, Pagan-Reyes registered as a sex offender in Pennsylvania. However, Pennsylvania authorities later became aware that Pagan-Reyes had left Pennsylvania without notifying the proper authorities, as he was required to do; they then issued a warrant for his arrest. Pagan-Reyes was arrested by federal authorities in Boston after determining that he had been living in Massachusetts since Nov. 30, 2016, and had not registered as a sex offender.
The charging statute provides for a sentence of no greater than 10 years in prison, a minimum of five years and no longer than a lifetime of supervised release and a fine of $250,000. 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 John Gibbons, U.S. Marshal of the District of Massachusetts, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Orwigsburg Postmaster Pleads Guilty to Making False ClaimsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carl R. Bonser, age 56, of Lehighton, Pennsylvania, pled guilty today before United States District Judge James M. Munley to making false claims against the government. Bonser is scheduled to be sentenced on September 1, 2017.
According to United States Attorney Bruce D. Brandler, from January 1, 2016 through October 31, 2016, Bronser, in his official capacity as Postmaster of the Orwigsburg Post Office, requested compensation for travel that never occurred, causing a loss of $6,500.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Orange County Man Pleads Guilty to Taking $2.2 Million from Distressed Homeowners in Bogus Loan Modification SchemeRead the Press Release
SANTA ANA, California – An Orange County man pleaded guilty this morning to federal charges relating to his operation of a fraud scheme that took $2.2 million from distressed homeowners through false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages.
Kevin Frank Rasher, 45, who has been in custody since his arrest at his Coto de Caza residence one year ago, pleaded guilty to 12 counts of mail fraud.
Rasher pleaded guilty before United States District Judge Josephine L. Staton, who is scheduled to sentence the defendant on September 29. Rasher faces a statutory maximum sentence of 240 years in federal prison.
In a plea agreement filed in federal court, Rasher admitted that, between 2011 and March 2016, he falsely told distressed homeowners that he was an employee of HUD and/or an attorney, and that the homeowners had been approved for a reduced mortgage payment or interest rate. Rasher then instructed the homeowners to mail their mortgage payments to one of his businesses, claiming that he would forward the money to the homeowners’ mortgage lenders. Instead of forwarding the money to the mortgage lenders, Rasher deposited the money into his bank accounts and used it for his own personal expenses.
Rasher admitted that he fraudulently obtained approximately $2.24 million from more than 500 victims.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the United States Postal Inspection Service; the Federal Housing Finance Agency’s Office of the Inspector General; and the Federal Bureau of Investigation.
The case against Rasher is being prosecuted by Assistant United States Attorneys Rosalind Wang and Robert J. Keenan of the Santa Ana Branch Office.
Niagara Falls Residents Indicted on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Raymond Hopson, 32, and Lindsay Carrier, 32 both of Niagara Falls, NY, with conspiracy to possess with intent to distribute and to distribute 28 grams or more of crack cocaine base, possession with intent to distribute and distribution of crack cocaine, possession with intent to distribute cocaine and marijuana, and maintaining a drug involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $5,000,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that, between July 2016 and November 9, 2016, and April 2017 and May 17, 2017, the defendants conspired with others to possess and sell crack cocaine in in the Niagara Falls area.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New Haven Man Sentenced to 10 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HALBY LOPEZ, also known as “Harv,” 41, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by LOPEZ. Omar Polanco-Mendez and Bernardo Roman-Rolan were the second and third in command, respectively. The investigation revealed that LOPEZ, Polanco-Mendez and Roman-Rolan were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.
Between January 2016 and March 2016, LOPEZ, with the assistance of Polanco-Mendez, arranged for the delivery of approximately seven kilograms of cocaine. LOPEZ used the La Familia Barber Shop located on Howard Avenue in New Haven, which he owned and operated, to distribute cocaine.
On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging LOPEZ, Polanco-Mendez, Roman-Rolan and seven other individuals with various narcotics offenses. All of the defendants pleaded guilty.
LOPEZ has been detained since his arrest on March 11, 2016. On September 14, 2016, he pleaded guilty to one count of conspiracy to distribute more than five kilograms of cocaine.
LOPEZ’s criminal history includes convictions for drug trafficking, weapons possession and burglary.
On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment. On March 2, 2017, Roman-Rolan was sentenced to 68 months of imprisonment.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.
Mother and Son Sentenced to Prison for Fraudulent Corporate Tax ReturnsRead the Press Release
SAN FRANCISCO –Howard Hsu was sentenced to 33 months in prison and his mother, Tracy Chang, was sentenced to 12 months and a day in prison today following their convictions on tax fraud charges, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. The sentences were handed down by the Honorable William H. Orrick, U.S. District Judge, following a one-week trial at the conclusion of which a jury found the defendants guilty of conspiring to file fraudulent corporate income tax returns, filing false tax returns, and aiding the preparation of false tax returns.
According to the evidence presented at trial, Hsu, 36, owned and operated Didsee Corporation (Didsee), a business incorporated in Nevada, that provided advertisement marketing services to online websites and marketplaces. Chang, 65, was Disdee’s bookkeeper and listed as the President, Secretary, Treasurer, and Director. Chang opened bank accounts for the business, transferred money between accounts, signed the company’s tax returns, and paid Didsee’s bills.
“Today’s sentences are a cogent reminder to all business owners that the obligation to faithfully pay taxes amounts to more than a simple duty to be fair and honest,” said U.S. Attorney Stretch. “It is a legal obligation that, if flouted, can land you in prison.”
“Every taxpayer is required to file accurate returns and to pay their fair share,” said Acting Deputy Assistant Attorney General Goldberg. “Mr. Hsu ignored that responsibility, and with today’s prison sentence is held fully to account for deducting personal expenses as business expenses and filing false returns.”
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law, however, no one is entitled to defraud the United States and the American taxpayers,” said Special Agent in Charge Michael T. Batdorf of IRS Criminal Investigation (CI). “After paying a large tax bill, Tracy Chang and her son, Howard Hsu endeavored to virtually eliminate any future tax due from their company, Didsee Corporation. Those who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t. IRS-CI and the Department of Justice will investigate and prosecute those who violate our tax system.”
The evidence at trial established that Hsu and Chang conspired together to file fraudulent 2008 through 2009 corporate income tax returns, and an amended 2007 corporate tax return, cheating the Internal Revenue Service (IRS) out of approximately $500,000. Hsu provided false summaries to Didsee’s return preparers, which claimed business expenses that were not incurred and included Hsu’s personal expenses. Chang signed the fraudulent returns as Didsee’s President. On January 29, 2015, a federal grand jury indicted Hsu and Chang; the indictment charged Chang with two counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1); Hsu with three counts of aiding and assisting the preparation of false tax returns, in violation of 26 U.S.C. § 7206(2); and both defendants with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. One of the aiding and assisting charges against Chang was dismissed before trial and on February 13, 2017, the jury found defendants guilty on all of the remaining charges.
In addition to the prison terms, Judge Orrick ordered Hsu and Chang both to serve three years of supervised release, to pay restitution to the IRS in the amount of $396,306, and to pay costs of prosecution in the amount of $8,570.95. Further, Judge Orrick ordered Hsu to pay a fine of $75,000 and Chang to pay a fine of $7,500. Judge Orrick ordered the defendants to surrender on or before August 1, 2017, to begin serving their sentence.
Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS–Criminal Investigation who conducted the investigation.Man Found Guilty on Multiple Home Invasion and Car–Jacking ChargesRead the Press Release
PLANO, Texas – A jury has found a 26-year-old Norman, Oklahoma man guilty of federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jermaine Webster Harris was found guilty by a jury following a nine-day trial before U.S. District Judge Marcia Crone in Plano. Harris had been named in a 17-count indictment in which he was charged with conspiracy to carry a firearm during and in relation to a crime of violence, conspiracy to commit theft of firearms, conspiracy to possess stolen firearms, car-jacking, use and carry of a firearm in furtherance of a crime of violence, theft of firearms, and possession of stolen firearms.
According to information presented in court, Harris, along with his co-defendants, committed numerous home invasion robberies, burglaries, and two car-jackings in and around Plano and Frisco, Texas. Harris was armed during the car-jackings.
Under federal statutes, Harris faces up to life in federal prison at sentencing. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
“Congratulations to all who contributed to achieving this conviction,” said Brit Featherston, Acting U.S. Attorney, “When violent criminals endanger the citizens of this community, they better keep watch over their shoulder, because the weight of the federal government, and all of law enforcement, is coming to get them.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bedford Police Department, the Plano Police Department, the Frisco Police Department, and the Lewisville Police Department. This case was prosecuted by Assistant U.S. Attorney, Tracey Batson and Assistant U.S. Attorney Ernest Gonzalez.
Local Newspaper Editor Sentenced to 41 Months in Federal Prison for Illegally Possessing Firearms in ‘Guns for Haiti’ InvestigationRead the Press Release
LOS ANGELES – The editor of a newspaper that covers the Sunland/Tujunga area has been sentenced to 41 months in federal prison for illegally possessing firearms.
David “Doc” DeMulle, 75, of Tujunga, the editor-in-chief of The Foothills Paper, was sentenced on Monday by United States District Judge Otis D. Wright III.
DeMulle pleaded guilty in 2016 to being a convicted felon in possession of firearms. When he imposed the sentence earlier this week, Judge Wright found that DeMulle possessed 25 firearms and hundreds of pounds of ammunition that he was forbidden to possess because of convictions for perjury and welfare fraud in 1990.
This matter came to the attention of the firearms trafficking unit of the Los Angeles Police Department and ATF agents when DeMulle published an advertisement in his paper concerning “Guns for Haiti Quake Relief.” The ad solicited donations of firearms, which DeMulle then purportedly would sell, using the proceeds to support earthquake relief efforts in Haiti. Undercover LAPD officers responded to the advertisement and delivered two firearms to DeMulle, who illegally accepted them.
Subsequent searches of DeMulle’s home and business led authorities to recover 23 additional firearms, as well as hundreds of pounds (not rounds) of ammunition.
The investigation also revealed that DeMulle had previously placed classified ads in The Foothills Paper soliciting firearms, which resulted in him purchasing several firearms from a private citizen while falsely claiming that he possessed a federal firearms dealer’s license and would handle the firearms transfer paperwork.
The case against DeMulle was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Los Angeles Police Department.
This case was prosecuted by Assistant United States Attorney Gregory Lesser of the Violent and Organized Crime Section.
Little Eagle Woman Sentenced for Theft of a Postal Money OrderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, woman convicted of Theft of a Postal Money Order was sentenced on May 18, 2017, by U.S. District Judge Charles B. Kornmann.
Lucenda Bobtail Bear, age 35, was sentenced to 8 months in custody, followed by 3 years of supervised release, $275 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bobtail Bear was indicted by a federal grand jury on September 13, 2016. She pled guilty on January 6, 2017.
The conviction stems from an incident sometime between May 1, 2016, and June 20, 2016, when Bobtail Bear entered the Little Eagle Post Office and stole two postal money orders. The postal money orders were for the amounts of $165 and $110. The payee portion was left blank. At no time did Bobtail Bear tender payment to the U.S. Postal Service for these money orders.
Subsequently, Bobtail Bear went to a local pawn shop and purchased two small items from the pawn shop owner. She filled the name of the payee and received the two items she purchased and $245 dollars in change. Bobtail Bear then left the store with her items and cash.
This case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
Law Enforcement Officers Receive Awards at Annual ConferenceRead the Press Release
On May 25, 2017, Acting United States Attorney Sean R. Berry of the Northern District of Iowa and United States Attorney Kevin VanderSchel of the Southern District of Iowa presented awards to numerous Iowa law enforcement officers at the 31st Annual Law Enforcement Coordinating Committee’s Executive Training Conference. The awards are presented to law enforcement officers who have gone above and beyond the call of duty in their efforts to make our community safer.
Awards were given to four groups of law enforcement officers:
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The Cedar Rapids Safe Streets initiative, comprised of the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation, was honored for its work in identifying and prosecuting the most violent offenders in Cedar Rapids. Through a concerted, proactive, long-term effort, the Cedar Rapids Safe Streets initiative utilized the expertise of multiple agencies and targeted the most violent actors in the community. In a single year, this initiative resulted in the indictment of ten individuals, seven of whom have been convicted and sentenced for a total of more than 44 years.
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The Des Moines Police Department, Ames Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives were honored for their work in investigating a string of robberies in the Des Moines area in 2016. As a result of the tireless efforts of numerous officers, on April 28, 2017, the ring-leader of the robbery crew, Alexander Hamilton, pled guilty to interference with commerce by robbery and admitted to committing 17 robberies from March 2016 to April 2016, included robberies of Git-N-Go (10); Kum & Go (3); Hy-Vee (3); and U.S. Bank (1). Three other individuals, Sarah Coe, Shelly Avery, and Chris Avery, pled guilty to aiding and abetting the robberies. All defendants are scheduled to be sentenced this summer. Each faces up to 20 years’ imprisonment.
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Officers from the Sioux City Police Department, the Federal Bureau of Investigation, and the Minnehaha County, South Dakota, Sheriff’s Office were honored for their work in investigating the brutal murder of Tony Canfield in 2011 as he attempted to escape armed robbers holding him and his wife captive. In 2016, Courtland Clark, from Flowery Branch, Georgia, Robert Beaver from Sioux City, Iowa, and Devery Hibbler from Dumas, Arkansas, were each convicted of one count of interference with commerce by robbery in relation to the murder. In addition, Clark and Hibbler also pled guilty to one count of use of a firearm during and in relation to a crime of violence causing death. Hibbler was sentenced to 35 years in federal prison. Clark, who supplied the gun for the robbery, was sentenced to 21 years. Finally, Beaver was sentenced to 20 years' imprisonment.
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Members of the Iowa City Police Department, Johnson County Sheriff’s Office, Coralville Police Department, Iowa Division of Narcotics Enforcement, and the Johnson County Drug Task Force were honored for their work in combating heroin trafficking in Iowa City. Beginning in and around December 2015, the Iowa City/Coralville area saw an increase in heroin-related deaths and overdoses. Through the coordinated efforts of nine separate law enforcement agencies, six arrests were made, resulting in six convictions for trafficking in heroin. Investigators believed the heroin distributed by this conspiracy was associated with at least six heroin related deaths or overdoses. As a result of this investigation and subsequent convictions, the Iowa City/Coralville area saw a significant decline in heroin related deaths and overdoses.
All of the law enforcement officers honored have gone above and beyond the call of duty to assist crime victims and make the community a safer place. Because of their dedication, long hours, and commitment to service, our communities are better places.
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Last Defendants Sentenced in Massive Conspiracy to Commit Tax Fraud in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced that Diallo Dotson, Charleeta Cork and Simone Watkins were sentenced in federal district court this week for conspiring to defraud the United States through the filing of false income tax returns to receive fraudulent federal income tax refunds. These sentencings mark the conclusion of the prosecution of 33 individuals engaged in a conspiracy with Derrick J. Gibson, of Battle Creek, Michigan, to file false federal income tax returns. The conspiracy operated from 2008 to 2016 and resulted in more than $22 million dollars of loss to the Internal Revenue Service.
The ring-leader, Derrick J. Gibson, was sentenced on January 6, 2017, to the statutory maximum sentence of 10 years in prison and restitution of $16 million. This week, Diallo Dotson was sentenced to serve two years of probation including six weekends in jail and restitution of $76,476. Charleeta Cork was sentenced to a day in prison (time served), two years of supervised release including four weekends in jail and restitution of $41,075. Simone Watkins was sentenced to a day in prison (time served), two years of supervised release and restitution of $84,934.
A multi-year joint investigation led by the Internal Revenue Service Criminal Investigation, Veterans Affairs – Office of the Inspector General, United States Postal Inspection Service, the Bureau of Alcohol Tobacco and Firearms, Department of Homeland Security, Battle Creek Police Department, Albion Police Department, Calhoun County Sheriff’s Department, and Michigan State Police resulted in the federal charges.
"The sentencings in this case and the fact the perpetrators will have to pay back what they took illegally, shows that the government is serious when it comes to prosecuting those that want to use the tax system as their own personal bank account," said Special Agent in Charge Manny Muriel of IRS-Criminal Investigations. "This conspiracy involved 33 people, including three federal employees who stole from the American taxpayer through the filing of false tax returns in innocent people’s names. IRS Criminal Investigations and its law enforcement partners are dedicated to ferreting out these perpetrators and protecting the American public."
This case was prosecuted by Assistant U.S. Attorney B. Rene Shekmer.
END
Last Defendant in Methamphetamine, Cocaine and Marijuana Distribution Conspiracy Sentenced to 15 Years in Federal PrisonRead the Press Release
LUBBOCK, Texas — Victor Manuel Castillo, aka “Victor Manuel Garza,” 44, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison for his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Castillo pleaded guilty in January 2017 to one count of distribution and possession with intent to distribute 50 grams or more of Methamphetamine. Castillo has been in custody since his arrest in June 2016.
Castillo and twelve other West Texas residents, including three other members of the Texas Syndicate, were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
All defendants have been sentenced for their roles in the conspiracy to the following:
Cruz Perez, aka “Travieso,” 41, 327 months
Christopher Lee Gonzalez, aka “Gonzo,” 44, 327 months
Evan Cruz Parson, aka “Evan,” 22, 168 months
Jose Gutierrez, III, aka “Baby Joey,” 22, 151 months
Christopher David Gonzales, aka “Chris,” 42, 121 months
Jasmine Pillar Hernandez, aka “Crazy,” 33, 120 months
Alexander Alfonzo Mendoza, aka “Alex,” 21, 48 months
Robert Diaz, Jr., aka “Bobby,” 34, 48 monthsAdrian Rodriguez, 38, 48 months
Johnny Trevino, Jr., aka “Baby John,” 27, 48 months
Crystal Dimas, aka “Babe,” 29, 33 months
The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.
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Las Vegas Man Pleads Guilty to Stealing over $85,000 in Section 8 Housing Assistance BenefitsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today for stealing more than $85,000 in public housing benefits over a six-year period and for providing false statements to a government agency, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Abdallah D. Hamey, 57, pleaded guilty before U.S. District Chief Judge Gloria M. Navarro to one count of theft of government property and five counts of false statement to a government agency.
According to the plea agreement, from August 2009 to April 2015, Hamey stole more than $85,000 in Section 8 public housing benefits. On at least seven applications for public housing assistance, Hamey falsely claimed that he held no bank accounts and possessed minimal assets. In fact, he owned and operated several businesses registered in his children’s names and controlled several business and personal bank accounts that together received approximately $1.7 million in deposits during the time he applied for public housing assistance. Based on the fraudulent applications, Hamey received Section 8 housing assistance to rent a house. During the same time he received housing assistance benefits, Hamey paid rent on four other houses in the Las Vegas area. In addition, he admitted to making five false statements to HUD officials.
Sentencing is scheduled for Aug. 18, 2017. Hamey faces the statutory maximum penalty of 10 years in prison and a $250,000 fine for the theft of government property charge and the statutory maximum penalty of five years in prison and a $250,000 fine for the false statement to a government agency charge.
The case is being investigated by the FBI, the U.S. Housing and Urban Development’s Office of the Inspector General (HUD-OIG), and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Dan Cowhig.
To report suspected fraud in a HUD program, call the HUD-OIG Hotline at 1-800-347-3735 (Toll-Free) or e-mail [email protected].
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Joint Federal and State Investigation Seizes More Than 115 Firearms; More Than 45 Members or Associates of Chicago Street Gang ChargedRead the Press Release
CHICAGO — More than 45 members or associates of the Gangster Two-Six Nation street gang are facing federal or state charges for their alleged roles in dealing guns and drugs on Chicago’s South Side and surrounding suburbs.
The joint federal and state investigation, dubbed “Operation Bunny Trap,” spanned more than two years and resulted in the seizures of approximately 118 firearms, including several assault rifles and shotguns, 25 rounds of ammunition, two ballistic vests, more than 800 grams of cocaine, more than 250 grams of fentanyl, and more than 280 grams of crystal meth. Authorities uncovered the alleged criminal activity through the use of undercover narcotics purchases and extensive surveillance. The probe was led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).
Twenty-one defendants were charged in federal court, and most of them were arrested Thursday. Some of the federal defendants made initial court appearances Thursday before U.S. Magistrate Judge Jeffrey Cole, while others will appear today.
Twenty-seven defendants are facing state charges. They will be making court appearances in Cook County Criminal Court.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of ATF; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The officials recognized the valuable assistance of the Chicago Field Division of the U.S. Drug Enforcement Administration, the Chicago office of the U.S. Marshals Service, and the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Federal and local law enforcement agencies since late 2014 have been investigating alleged criminal activities by members and associates of the Gangster Two-Six Nation street gang. The gang is national in scope but particularly prevalent on the South Side of Chicago and the surrounding suburbs, as well as Indiana, Wisconsin, Texas, Georgia and Kansas.
The investigation uncovered numerous illegal gun transactions, including two deals in January 2017 that occurred in the parking lot of a grocery store in the South Loop neighborhood of Chicago. EDUARDO CASTRO sold three handguns to a confidential source who was cooperating with law enforcement, the complaints state. Castro was under law enforcement surveillance when he sold the firearms, the complaints state. Castro, 30, of Chicago, is charged with illegal possession of a firearm by a felon and dealing firearms without a license.
The investigation further revealed gun and drug transactions inside a pizza parlor in the Brighton Park neighborhood of Chicago. ANTHONY LOPEZ sold cocaine and a handgun to a confidential source who was cooperating with law enforcement, the complaints state. The deals occurred in a bathroom of the pizza parlor in January and February 2015, the complaints state. Lopez, 34, of Chicago, is charged with illegal possession of a firearm by a felon.
The charges describe illegal firearm transactions in several other neighborhoods on Chicago’s South Side, including Chicago Lawn, Clearing, Chatham and Englewood, as well as the suburbs of Berwyn, Homewood and Alsip.
In addition to Castro and Lopez, the federal complaints charge 17 other defendants: JULIAN ALEJANDRO, 25, of Chicago: illegal possession of a firearm by a felon; VINCENT AVILA, 45, of Alsip: illegal possession of a firearm by a felon and possession of a controlled substance with intent to distribute; HERIBERTO BALDERAS, 49, of Chicago: possession of a controlled substance with intent to distribute; JOSEPH BUSTOS, 36, of Chicago: illegal possession of a firearm by a felon; JOSEPH CARDENAS, 43, of Chicago: possession of a controlled substance with intent to distribute; FRANCISCO CARDOZA, 36, of Chicago: possession of a controlled substance with intent to distribute; JAMES CORTEZ, 39, of Chicago: dealing firearms without a license; ARBNOR GASHI, 24, of Chicago: illegal possession of a firearm by a felon; JAMES KACHIROUBAS, 20, of Chicago: dealing firearms without a license; JUAN OCHOA, 58, of Alsip: possession of a controlled substance with intent to distribute; JAMES PELIKAN, 29, of Chicago: illegal possession of a firearm by a felon; REY BENITEZ, 33, of Chicago: illegal possession of a firearm by a felon; JOHN REPEL, 37, of Chicago: possession of a controlled substance with intent to distribute and illegal possession of a firearm by a felon; ALEXANDER RIVERA, 26, of East Chicago, Ind.: illegal possession of a firearm by a felon; TARA ZAMBRANO, 24, of Griffith, Ind.: illegal possession of a firearm by a felon; JOSE CORTEZ, 39, of Orland Hills: knowingly possessing a firearm with an obliterated serial number; FRANCISCO SANCHEZ, 50, of Chicago: illegal possession of a firearm by a felon.
Two other federal defendants were previously indicted in federal court in Chicago as part of this investigation: RICHARD GACHO, 43, of Burbank: illegal possession of a firearm by a felon; and DAVID SANTIAGO, 35, of Kansas: illegal possession of a firearm by a felon and possession of a controlled substance with intent to distribute. Gacho and Santiago have pleaded not guilty and are awaiting trial.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Illegal possession of a firearm by a felon is punishable by up to ten years in federal prison. Dealing firearms without a license and knowingly possessing a firearm with an obliterated serial number are each punishable by up to five years in federal prison. The maximum federal penalties vary for possession of a controlled substance with intent to distribute. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Assistant U.S. Attorneys Eric Pruitt, Timothy Storino, Andrew Dixon and Allison Ray are representing the government in the federal cases. The Cook County State’s Attorney’s Office is representing the government in the state cases.
Jingbo Chen Sentenced to Jail and Ordered to Pay Fine in Airport Smuggling CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that defendant JINGBO CHEN, also known as Jingbo San Nicolas or “Kim,” age 43, of Navy Hill, Saipan, was sentenced in District Court to a thirty (30) day term of imprisonment, to be followed by one year of supervised release, for Entering a Secure Area at an Airport by False Pretenses. The Court also ordered CHEN to pay a $2,000 fine and a mandatory $100 assessment fee.
On August 5, 2016, CHEN was charged by Indictment with Removing Goods from Customs Custody, in violation of 18 U.S.C. § 549, and Entering a Secure Area at an Airport by False Pretenses, in violation of 18 U.S.C. §§ 1036(a)(4) and (b)(1). She entered a guilty plea to an Information charging her with one count of Entering a Secure Area at an Airport by False Pretenses on October 6, 2016. The investigation revealed that CHEN, then an Airport Service Agent for Pacific Oriental Inc. Aviation (POI), went to the Saipan International Airport in her uniform although it was her day off, and made a number of false statements to co-workers prior to entering a secure area of the airport. After entering the secure area, CHEN received a bag from an arriving passenger and took it with her through an access door before it could be inspected by CNMI Customs.
The investigation was conducted by Department of Homeland Security, Homeland Security Investigations, with the assistance of Task Force Officers from CNMI Customs and the CNMI Department of Public Safety. The case was prosecuted by Garth Backe, Assistant United States Attorney for the District of the NMI.
International Narcotics Transporter Extradited from ColombiaRead the Press Release
Later today, Gustavo Bermudez-Vanegas will be arraigned at the federal courthouse in Brooklyn, New York, on an international cocaine distribution conspiracy charge. The defendant was arrested in Colombia on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Colombia to the United States on May 25, 2017.
The extradition was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
According to court documents, between February 2016 and July 2016, Bermudez-Vanegas conspired to use airplanes and submarines to transport tonnage quantities of cocaine from Colombia, Ecuador, and Venezuela through Central American countries to Mexico, for the purpose of unlawfully importing the cocaine into the United States for further distribution. Bermudez-Vanegas provided his transportation services to Mexico-based drug cartels.
“The United States will continue to prosecute international narcotics traffickers wherever they may be operating,” stated Acting United States Attorney Rohde. “As alleged, the defendant conspired to transport narcotics across several borders and continents, from South America to the United States. Now he faces justice in the Eastern District of New York, with the help of our law enforcement partners in Colombia, who effectuated his capture and extradition to the United States.” Ms. Rohde thanked the Department of Justice’s Office of International Affairs (OIA) for its assistance with the extradition of the defendant.
“The United States has been besieged by drug traffickers bringing drugs into our country. In contrast, drug law enforcement has brought Bermudez-Vanegas, a significant trafficker who used submarines and planes into our country to face charges for such crimes,” stated DEA Special-in-Charge Hunt.
The defendant is scheduled to be arraigned later today before United States Magistrate Judge Robert M. Levy.
If convicted, Bermudez-Vanegas faces a mandatory minimum sentence of 10 years’ imprisonment. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Narcotics & Money Laundering Section. Assistant United States Attorneys Michael Robotti, Hiral Mehta, and Ameet Kabrawala are in charge of the prosecution.
The Defendant:
GUSTAVO BERMUDEZ-VANEGAS
Age: 57
Colombia
E.D.N.Y. Docket No. 16-CR-416 (FB)
Individual Sentenced to 62 Years in Prison for Rico Act ViolationsRead the Press Release
SAN JUAN, P.R. –Carlos E. López-Soto, a.k.a. “Chemito” was sentenced to 744 months (62 years), in prison and 5 years of supervised release for his participation in a gang that committed fourteen (14) armed robberies in Puerto Rico announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On December 19, 2016, a jury convicted Carlos López-Soto of a RICO conspiracy, two Hobbs Act robberies and related firearm offenses for his role in this gang. The evidence at trial revealed that the purpose of the criminal enterprise was to enrich its members and associates. To accomplish this, the members of the organization would: (1) commit armed robberies during which, through the use of force, violence, and intimidation, they would take money, electronics, and other property from persons and businesses, (2) pool resources in order to accomplish the robberies, (3) use guns to commit the robberies, (4) have a getaway driver for the robberies, (5) sell the items that were obtained from the robberies, and (6) share the proceeds of the robberies. The members of this organization were responsible for fourteen (14) armed robberies to persons, businesses, and street vendors. Through these robberies, defendants were able to obtain at least eighty-thousand dollars ($80,000.00) in profits. The other members of the organization were convicted after pleading guilty to the charges filed against them.
United States District Court Judge Daniel Domínguez presided over the case, which was prosecuted by Assistant United States Attorneys Victor O. Acevedo-Hernández and Kelly Zenón-Matos. The FBI was in charge of the investigation.
Honduran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Honduran national was charged yesterday in federal court in Boston with a federal immigration crime.
Ivan DeJesus Lopez-Lopez, 29, a Honduran national residing in Boston, was charged with illegally reentering the United States after being deported.
According to the indictment, Lopez-Lopez was deported in November 2009 for unlawfully entering the United States. In May 2017, federal agents in Boston discovered Lopez-Lopez and found him to be again illegally present in the United States.
The charge of illegal reentry after deportation provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. Lopez-Lopez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.