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22 May 2017
Two defendants sentenced to federal prison for drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two defendants were sentenced today to federal prison for drug crimes, announced United States Attorney Carol Casto. Miana Miller, 20, of Huntington, was sentenced to two years in prison for distribution of heroin. In a separate prosecution, Ashara Mayes, 29, of Decatur, Georgia, was sentenced to seven months in prison for possession with intent to distribute cocaine.
Miller admitted that on September 15, 2015, she sold heroin to a confidential informant working with the Huntington FBI Drug Task Force. The drug deal took place at the corner of 9th Street West and Monroe Avenue in Huntington. Miller also admitted that she was involved in two additional sales of heroin to the same confidential informant on September 24 and October 21, 2015. On May 15, 2015, law enforcement conducted a search of Miller’s residence on 9th Avenue in Huntington and found approximately 83 grams of crack in the pocket of a coat in Miller’s bedroom. Law enforcement also discovered a loaded firearm in another bedroom of the home. Furthermore, Miller admitted that from October 3, 2015, to February 19, 2016, she leased a residence located at 1438 Lynn Street in Huntington in her name for another individual. Miller admitted that she did not live at that location and that the residence was unoccupied. Miller additionally admitted that the residence was used as a “stash house” to store drugs. In a search of that location on February 19, 2016, law enforcement seized 98 grams of crack and 11 grams of heroin.
In a separate prosecution, on February 25, 2016, Mayes received a package containing cocaine and crack from codefendant Trevor Bethel in Atlanta. Mayes then transported the package to Huntington for Bethel in exchange for $500. After Mayes arrived in Huntington, she met Bethel and took the package to the residence of Jarrell Johnson, another codefendant, located on Rear 9th Avenue in Huntington. Laboratory analysis determined that the package contained over 160 grams of cocaine and over 11 grams of crack. For his part in the drug conspiracy, Johnson was sentenced to five years in federal prison. Bethel remains a fugitive.
The Huntington Police Department and the Huntington FBI Drug Task Force conducted the investigation of Miller. The investigation of Mayes and her codefendants was conducted by the Drug Enforcement Administration. Assistant United States Attorney Gregory McVey is handling these prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two defendants plead guilty to federal drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two defendants pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Jessica Ann Barnett, 29, of South Point, Ohio, pleaded guilty to conspiracy to distribute heroin. In a separate prosecution, Malik Muhammad Abdull Williams, 24, of Michigan, pleaded guilty to possession with intent to distribute heroin and crack.
Between November 2014 and June 8, 2016, Barnett participated with multiple individuals in a conspiracy to distribute heroin in the Huntington area. At various times during the conspiracy, Barnett was provided with cash that constituted proceeds from heroin sales. Barnett would then wire the money to a third party in Michigan via money transfer companies such as Western Union and MoneyGram. Barnett transferred proceeds from heroin distributions on at least 27 occasions totaling approximately $26,410. On multiple occasions, Barnett also sold small amounts of heroin. Barnett faces up to 20 years in federal prison when she is sentenced on August 28, 2017.
In a separate prosecution, on May 2, 2016, members of the Huntington FBI Drug Task Force were conducting surveillance at the Greyhound Bus Station in Ashland, Kentucky, after receiving information Williams would be arriving on a bus in possession of drugs. Agents observed Williams exit a bus and enter a vehicle that traveled to Huntington. Agents conducted a traffic stop of the vehicle at 1st Street and 4th Avenue in Huntington and discovered Williams in possession of approximately 31 grams of heroin and 41 grams of crack concealed in his pants. Williams admitted that he intended to sell the drugs in Huntington. Williams faces up to 20 years in federal prison when he is sentenced on August 28, 2017.
The Huntington FBI Drug Task Force conducted the investigations. Assistant United States Attorney Joseph F. Adams is handling these prosecutions. The plea hearings were held before Chief United States District Judge Robert C. Chambers.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Truck Driver Sentenced for 44-Plus Pounds of CocaineRead the Press Release
KANSAS CITY, KAN. - A truck driver was sentenced Monday to 46 months in federal prison for hauling more than 44 pounds of cocaine to Kansas, U.S. Attorney Tom Beall said.
Erick Omar Rios, 37, San Ysidro, Calif., pleaded guilty to one count of possession with intent to distribute cocaine. In his plea, he admitted he was operating a tractor pulling a refrigerated trailer when he was stopped by the Kansas Highway Patrol. Troopers found 10 vacuum wrapped packages containing 44 pounds of cocaine hidden in a cooling unit on the trailer. They learned Rios had picked up the load in Los Angeles to deliver to Plainfield, Ind. He was expecting to be paid $4,000 when he returned to Los Angeles.
Beall commended the Kansas Highway Patrol, the Drug Enforcement Administration and Special Assistant U.S. Attorney Skip Jacobs for their work on the case.
Statement by U.S. Attorney John Parker Concerning United States v. John Wiley Price and Kathy Louise NealyRead the Press Release
Although I am disappointed in the outcome of this case, my responsibility is larger than the consideration of my subjective views. I must objectively consider the totality of circumstances that the prosecution now faces. Having painstakingly done so, it is my considered judgment that pursuing another trial against Mr. Price will not serve the interests of justice. I have concluded the same is true regarding the pending trial against Ms. Nealy.
My decision today is fundamentally different than the initial decision to seek this indictment and in no way reflects on the soundness of that earlier decision. I have information available to me now that was not available at the time of the indictment and could only be obtained through the trial process. This additional information compels the conclusion that the reasonable, good-faith beliefs we had at the time of indictment regarding our chances for success at trial have been substantially diminished.
The evidence and facts as known at the time of indictment demanded that this office pursue this case. However, while it is our responsibility to seek justice when presented with such evidence, it is never our responsibility to secure a conviction at all costs.
I am extremely proud of the dedicated prosecutors and agents who worked tirelessly on these matters for many years. These public servants discharged their duties with the utmost integrity and never shrunk from the challenges inherent in what everyone knew was going to be a difficult and polarizing trial.
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Singapore Shipping Company Admits to Probation ViolationRead the Press Release
Hartford, Conn. – Singapore-based ODFJELL ASIA II PTE LTD (“OAII”), which was convicted in 2014 of violating the Act to Prevent Pollution from Ships, has admitted to violating the conditions of its probation, announced Deirdre M. Daly, U.S. Attorney for the District of Connecticut, and Jeffrey H. Wood, Acting Assistant Attorney General of the Environment and Natural Resources Division (ENRD). As a result, OAII’s term of probation, which was scheduled to conclude this month, was extended by one year, and the company has agreed to additional probation conditions.
On May 14, 2014, U.S. District Judge Vanessa L. Bryant in Hartford sentenced OAII to a three-year term of probation and a total criminal penalty of $1.2 million dollars for violating the Act to Prevent Pollution from Ships (“APPS”). The APPS is the U.S. law that implements the International Convention for the Prevention of Pollution from Ships (“MARPOL”). A special condition of probation required OAII to implement remedial environmental measures as part of an Environmental Management System Plan (EMS/P). As part of the EMS/P, OAII was required to implement enhanced procedures for internal reporting of violations.
On May 16, 2016, a crewmember reported to OAII that, while he was serving onboard OAII's vessel Bow Santos, there may have been a MARPOL compliance issue involving the disposal of machinery-space bilge water in December 2015. OAII reported the possible MARPOL compliance issue to U.S. authorities and conducted an internal investigation. During OAII’s internal investigation, the vessel’s chief engineer, Oswaldo Dela Torre Salazar, denied any knowledge of, or involvement in, any MARPOL violations. Upon completion of its internal investigation, OAII was unable to determine whether a MARPOL violation occurred.
The U.S. and OAII agree that there was a breakdown in OAII’s internal reporting system in that it took more than six months before any crewmember of the Bow Santos reported the alleged incident to OAII. OAII also agrees that the breakdown in OAII’s internal reporting system constitutes a probation violation because the EMS/P’s internal reporting system had not been fully implemented as required by the special conditions ordered by the court.
As a result of this violation, on May 15, 2017, Judge Bryant ordered that OAII’s term of probation be extended for one year. During the additional year of probation, the Bow Santos will undergo an environmental audit, and OAII must notify the U.S. Probation Office, the U.S. Department of Justice and the U.S. Coast Guard if Oswaldo Dela Torre Salazar is serving onboard an OAII vessel bound for a U.S. port.
This case was investigated by the U.S. Coast Guard Sector Long Island Sound, Coast Guard Investigative Service, and Coast Guard office of Investigations and Analysis (CG-INV). This matter is being prosecuted by Assistant U.S. Attorney Ray Miller from the U.S. Attorney’s Office for the District of Connecticut, and Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice.
Roommate of Alleged Tampa Palms Shooter Charged with Federal Explosives ViolationsRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Brandon Russell (21, Tampa) has been charged by criminal complaint with possession of an unregistered destructive device and unlawful storage of explosive material, in violation of federal law. If convicted, he faces a maximum penalty of 11 years in federal prison.
According to the criminal complaint, the Tampa Police Department responded on May 19, 2017, to a double homicide at an apartment in the Tampa Palms area, where Russell, Devon Arthurs, and the deceased men had been living together. The alleged shooter, Arthurs, stated that he, Russell, and the two victims shared common neo-Nazi beliefs, and that Russell participated in online neo-Nazi chat rooms where he threatened to kill people and bomb infrastructure. During a search of the apartment, law enforcement discovered a cooler in the garage containing the explosive HMTD (hexamethylene triperoxide diamine), along with various explosive precursors in close proximity. Upon questioning, Russell admitted that he had manufactured the HMTD located in the garage.
On May 21, 2017, Russell was arrested in Key Largo. He made his initial appearance before United States Magistrate Judge Andrea Simonton in the Southern District of Florida. Russell was detained pending further proceedings in the Middle District of Florida.
Devon Arthurs was arrested on May 19, 2017, by officers from the Tampa Police Department. He is in custody facing state charges.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Tampa Police Department and the Monroe County Sheriff’s Office. It will be prosecuted by Assistant United States Attorneys Josephine W. Thomas and Daniel A. George.
Readout of Meeting Between U.S. Attorney General Sessions and Qatari Attorney General Al MarriRead the Press Release
U.S. Attorney General Jeff Sessions met in Washington on May 19, 2017, with Dr. Ali Bin Fetais Al Marri, Attorney General of the State of Qatar. They discussed the close cooperation between the U.S. Department of Justice and the Qatari Office of the Attorney General and agreed to continue this cooperation, including on fighting terrorism and transnational crime. Attorney General Sessions and Dr. Al Marri also discussed anti-corruption issues.
Rapid City Man Sentenced on Fraud and Tax ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Wire Fraud and Making and Subscribing a False Tax Return was sentenced on May 19, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Mike Lundy, a/k/a Barkley J.W. Lundy, age 68, was sentenced to 5 years of imprisonment, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund, $1,368,671.96 in restitution to victims, and $257,399.00 in restitution to the Internal Revenue Service.
Lundy was charged on February 7, 2017, and pleaded guilty on February 14, 2017. The conviction stems from Lundy, a registered investment advisor, encouraging clients to invest in a company called Associates Investments, which he claimed offered investments in municipal bonds or other types of securities. Numerous victims provided Lundy a total of $4,247,123.19. Associates Investments was not an actual investment firm, but rather Lundy took the investors’ money and deposited it into a checking account solely controlled by him. Despite leading the victims to believe he was investing the money provided to him and Associates Investments, the monies were never invested. Although some investors received payments on their investments, those payments were largely funded with incoming money fraudulently obtained from new investors. Lundy also used a portion of the monies for his own personal expenses such as a mortgage, vacations, a car, and remodeling projects. During the years in which Lundy was fraudulently running his scheme, he underreported his income to the Internal Revenue Service.
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Lundy was immediately turned over to the custody of the U.S. Marshals Service.
Operation “REAL-TIME”: Spartanburg Felon Enters Guilty Plea in Federal Court on Ammunition ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Ray Anthony Kelly, age 55, of Spartanburg, pled guilty this morning in federal court in Anderson to possession of ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Timothy M. Cain accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office. Kelly, a previously convicted felon who is prohibited from possessing firearms or ammunition, faces a statutory maximum sentence of 10 years in federal prison. Kelly was arrested on federal firearms charges on June 16, 2016, and has remained in custody since his federal arrest.
Evidence presented at the change of plea hearing this morning established that on June 6, 2016, members of the Spartanburg Police Department (SPD) responded to a call regarding shots-fired in the parking lot of an auto repair store on John White Boulevard. When SPD officers arrived and began to process the scene, they recovered eight .9mm shell casings and interviewed multiple individuals present at the location. Based on those interviews, SPD officers determined that an earlier argument between two individuals in the parking lot led to an exchange of gun fire. Officers learned that during that exchange, Kelly returned fire, firing 9mm shots from a firearm. A firearm was not recovered however, as earlier noted, .9mm shell casings were collected by SPD. On June 9, 2016, during an interview with SPD officers, Kelly admitted to possession of the ammunition during the shooting.
Kelly was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community. In addition to the Spartanburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 7th Circuit Solicitor’s Office, the 10th Circuit Solicitor’s Office, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office. Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 100 defendants and seizure of approximately 115 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Spartanburg Police Department along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen is prosecuting the case.
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One Pleads Guilty and Two Are Sentenced for Marijuana-Growing Operations in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — One defendant pleaded guilty and two others were sentenced today for their involvement in large-scale marijuana cultivation operations in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
Guilty Plea to Cultivation Conspiracy in National Forest
(1:16-cr-106 LJO)Abel Toledo-Villa, 35, of Mexico, pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 3,850 plants found in the Sequoia National Forest in Kern County. In pleading guilty, Toledo acknowledged that he had left the area after law enforcement agents entered the grow site. He was later found in a vehicle that contained about 8.5 pounds of processed marijuana, fertilizer, a rifle, and 106 rounds of ammunition. He agreed to pay $5,233 in restitution to the U.S. Forest Service for the damage he caused to public land and natural resources.
Toledo-Villa is scheduled for sentencing on August 14, 2017, before Chief U.S. District Judge Lawrence J. O’Neill. Toledo-Villa faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison for the drug conspiracy, and up to a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) , the Southern Tri‑County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, the Kern County Sheriff’s Office, the Riverside County Sheriff’s Department, the Fontana Police Department, and the Victorville Police Department.
Sentencing in Giant Sequoia National Monument Cultivation Operation
(1:16-cr-156 DAD)Following their guilty pleas earlier this year, Audencio Pineda-Gaona, 37, and Candelario Jimenez-Ramirez, aka Candelario Rodriguez-Jimenez, 55, both of Mexico, were each sentenced to two and a half years in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on forest land in the Giant Sequoia National Monument in Tulare County. They were each also ordered to pay $5,252 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site.
According to court documents, the defendants and several other men were found trimming marijuana buds in the grow site in the Giant Sequoia National Monument in Tulare County. As the agents approached, the men fled. The defendants were apprehended, and agents found 5,707 marijuana plants and 200 pounds of processed marijuana. They also found a large box of 9 mm ammunition, a holster and a shoulder rig for a 9 mm handgun.
The marijuana cultivation operation caused extensive damage to the land and natural resources. Native trees and shrubs had been cut down to make room for the marijuana plants. Water had been diverted from a tributary stream of the Kern River, which supports Kern River rainbow trout, a “Species of Special Concern” in the state of California.. Agents also found harmful banned pesticides and large amounts of trash.
This case was the product of an investigation by the U.S. Forest Service, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office.
Assistant United States Attorney Karen Escobar is prosecuting both cases.
New York Man Sentenced to 50 Months in Prison for Conspiracy to Distribute 10 Kilograms of Synthetic Designer DrugsRead the Press Release
NEWARK, N.J. – A Queens, New York, man was sentenced today to 50 months in prison for his role in a scheme to distribute controlled substance analogues, which are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances, Acting U.S. Attorney William E. Fitzpatrick announced.
Elmostafa Charif, 37, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to distribute, and one count of possessing with intent to distribute, the controlled substance analogues NM2201 and 5F-AMB. NM2201 and 5F-AMB are most closely related to synthetic Tetrahydrocannabinol, or THC.
According to documents filed in this case and statements made in court:
Since February 2011, the Drug Enforcement Administration (DEA) has been investigating the importation, distribution, and use of designer drugs popularly known as synthetic cannabinoids. “K2” and “Spice” are common examples of synthetic cannabinoids.
Synthetic cannaboids are created when damiana leaves – an inert, plant-like substance – are sprayed with controlled substance analogues and treated with synthetic flavoring. The flavored and treated damiana leaves are then smoked by users.
Charif admitted that on April 13, 2015, he conspired with others to purchase and distribute approximately 10 kilograms of synthetic cannabinoids, including approximately five kilograms of NM2201 and approximately five kilograms of 5F-AMB. Charif also admitted that he purchased liquid flavoring and damiana leaves with the controlled substance analogues, knowing that they would be used to create a product that was smoked or otherwise consumed by users.
NM2201 and 5F-AMB are each controlled substance analogues as defined under the Analogue Act due to the fact that both NM2201 and 5F-AMB have chemical structures and hallucinogenic properties similar to the Schedule I controlled substances 5F-PB-22 and ADB-PINACA, respectively.
In addition to the prison term, Judge McNulty sentenced Charif to two years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Organized Crime Drug Enforcement Task Force Unit in Newark.
Nashville Man Pleads Guilty to Federal Firearms Charge for Shooting in Cayce HomesRead the Press Release
Antonio Eugene Boyd, aka Tony T, 37, of Nashville, Tenn., pleaded guilty today in U.S. District Court, to being a convicted felon in possession of a firearm and ammunition, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
These charges resulted from an incident on September 15, 2016, where Metropolitan Nashville Police officers responded to a shooting in the area of South 7th St. and Sylvan St., within the James A. Cayce public housing development. The subsequent investigation determined that Boyd had been walking down the street with his girlfriend when he saw a blue Dodge Charger approaching. Boyd drew a 9mm semi-automatic from his waistband and fired multiple rounds at the car as it approached, and continued firing as it passed by. Two adults and young children occupied the Charger. The shooting also occurred at approximately 8:00 a.m., when there were school buses and several children outside and in the immediate vicinity.
Boyd told investigators that he had numerous prior altercations with an occupant of the Charger and initially claimed the occupants shot at him first, although the video surveillance did not support the claim that any shots were fired from the vehicle.
Boyd had been previously convicted of multiple felonies, including robbery; possession with intent to sell cocaine; and being a convicted felon in possession of a firearm. The plea agreement in this case requires Boyd to be sentenced to 96 months in prison when he is sentenced on August 21, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Mescalero Apache Man Sentenced to 81 Months for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Darwin Neal Kinzhuma, 52, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 81 months in prison followed by five years of supervised release for his conviction on a sexual abuse charge. Kinzhuma will also be required to register as a sex offender when he completes his prison sentence.
Kinzhuma was arrested on March 23, 2016, on a criminal complaint charging him with sexually abusing a Mescalero Apache woman on June 28, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M. Kinzhuma was subsequently indicted on the same charge on Aug. 17, 2016.
On Dec. 21, 2017, Kinzhuma pled guilty to the indictment charging him with aggravated sexual abuse. In entering the guilty plea, Kinzhuma admitted that on June 28, 2015, he sexually abused the victim on the Mescalero Apache Indian Reservation.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Marshall County, Kentucky, Resident Sentenced to 51 Months in Prison for Bank Fraud and Multiple Counts of Identity FraudRead the Press Release
Ordered to pay $109,064.94 in restitution
PADUCAH, Ky. – A Marshall County, Kentucky, resident was recently sentenced in United States District Court, by Senior Judge Thomas B. Russell, to 51 months in prison, followed by a three year period of supervised release and was ordered to pay $109,064.94 in restitution for committing bank fraud and identity fraud announced United States Attorney John E. Kuhn, Jr
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Corey Thorson, 41, of Benton, Kentucky pleaded guilty to all charges in a six-count indictment on January 12, 2017 before Judge Russell. He was sentenced on Friday, May 19, 2017, and remains in federal custody.
Between May 2013, and December 2014, Thorson was employed at State Farm Insurance Agency. Thorson, during his employment with State Farm, had access to the personal information of his clients. Using their personal information, Thorson was able to apply for and receive numerous automobile loans under his clients’ names. Thorson used their names, dates of birth, Social Security numbers, and forged his clients’ signatures on the loan documents. Further, he was able to influence State Farm Bank to approve the loans. Thorson knew he did not have authority to apply for or obtain these loans, but did so anyways with the intent to defraud State Farm Bank.
This case was prosecuted by Assistant United States Attorney Nute A. Bonner, and was investigated by the Kentucky Department of Insurance and the Kentucky State Police.
Lea County Felon Sentenced to Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Lewis Templeton, 62, of Eunice, N.M., was sentenced this afternoon in federal court in Las Cruces, N.M., to 46 months in prison followed by two years of supervised release for violating the federal firearms laws.
Templeton was arrested on May 4, 2016, on a criminal complaint charging him with possessing an unregistered firearm and being a felon in possession of a firearm on Nov. 3, 2015, in Lea County, N.M. According to the complaint, on Nov. 3, 2015, law enforcement officers found two rifles and ammunition while executing a search warrant at Templeton’s residence. A search of the National Firearms Registration and Transfer Record (NFRTR) confirmed that one of the firearms, a sawed-off rifle, was not registered with the NFRTR.
According to court documents, Templeton was prohibited from possessing firearms or ammunition because he previously had been convicted of a number of felony offenses. Templeton’s criminal history includes a conviction for conspiracy to possess methamphetamine with intent to distribute.
On Sept. 26, 2016, Templeton pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Templeton admitted that on Nov. 3 2015, he possessed two firearms and ammunition even though he was prohibited from possessing firearms and ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the 5th Judicial District Attorney’s Office. Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Jamaican National Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL JARAMILLO, also known as “Percy Drains,” 42, a citizen of Jamaica last residing in Hartford, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of possession of a firearm by an alien unlawfully in the United States.
According to court documents and statements made in court, in August 2014, a Homeland Security Investigations Task Force officer investigating a marijuana trafficking and money laundering ring encountered an individual who identified himself as “Percy Drains” at Bradley International Airport after $59,500 was found in a piece of Drains’ luggage. Law enforcement seized the cash as suspected drug proceeds. Drains was subsequently identified as JARAMILLO
The investigation revealed that JARAMILLO arrived in the U.S. from Jamaica in October 2001 and overstayed the time period authorized by his visa. In November 2004, JARAMILLO was charged in the District of Connecticut with marijuana trafficking offenses, but he fled and remained a fugitive for more than a decade. The indictment against him was dismissed in 2016.
On March 21, 2017, investigators encountered JARAMILLO at his residence on Adelaide Street in Hartford. A search of the residence revealed a .40 caliber semi-automatic pistol and numerous rounds of ammunition.
JARAMILLO has been detained since his arrest on March 21. Chief Judge Hall scheduled sentencing for September 6, 2017, at which time JARAMILLO faces a maximum term of imprisonment of 10 years.
This matter has been investigated by Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Marshal Service and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Identity Theft Ring Convicted for Unemployment Fraud and ConspiracyRead the Press Release
Three individuals were convicted following a five-day jury trial in Ann Arbor on charges relating to identity theft, Acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by Special Agent in Charge James Vanderberg, Department of Labor - Office of Inspector General, and Wanda Stokes, Director, Michigan Talent Investment Agency, Unemployment Insurance.
Convicted were Kenneth Dixon, Nakita Washington, and Jamela Washington, all from Warren, Michigan. The defendants were charged with use of counterfeit access devices, aggravated identity theft, theft of government money, and conspiracy to commit those offenses.
Evidence presented at trial established that between October 2009 through April 2012, the defendants systematically engaged in a conspiracy to obtain the personal identification information of unsuspecting victims, and then used that information to submit fraudulent on-line claims for unemployment compensation benefits. Over 100 individuals were victimized.
“The guilty verdicts of Kenneth Dixon, Jamela Washington, and Nakita Washington are the culmination of an extensive investigation into a conspiracy that victimized individuals by stealing their identities and defrauded the Michigan Unemployment Insurance Agency of over $400,000”, stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance Program.”
Sentencing for all three has been set for September 19, 2017. Each face a statutory maximum penalty of ten years in federal prison.
The case was investigated by special agents of the Department of Labor, Office of Inspector General with the assistance of the State of Michigan Unemployment Insurance Agency. The case was prosecuted by Assistant U.S. Attorney C. Barrington Wilkins
Hampshire County man guilty of possessing child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Shanks, West Virginia man was convicted today of possession of child pornography, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Allen Newcomb, age 58, was charged with one count of “Possession of Child Pornography.” Newcomb pled guilty to the charge today, admitting to possessing child pornography containing children under the age of 12 in June 2016 in Hampshire County.
Newcomb faces up to 20 years incarceration and up to a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Office of Homeland Security investigated.
U.S. Magistrate Judge Robert R. Trumble presided.
Hacker Sentenced to 30 Months in Prison for Role in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Ukrainian hacker was sentenced today to 30 months in prison for his role in an international scheme to hack into three business newswires, steal yet-to-be published press releases containing non-public financial information, and use that information to make trades that generated approximately $30 million in illegal profits, Acting U.S. Attorney William E. Fitzpatrick announced.
Vadym Iermolovych, 29, of Kiev, Ukraine, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to commit computer hacking, and aggravated identity theft. Judge Arleo imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Iermolovych admitted that he was personally involved in the hacks into Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire (collectively, the “Victim Newswires”). He admitted to hacking into PRN’s network between January 2013 and March 2013. He also admitted that he obtained a set of user credentials of PRN employees stolen from a computer hack into a social networking website and then used at least one of those credentials to ultimately gain access into PRN’s computer network. Iermolovych also admitted that he sold press releases stolen from the network intrusion into Marketwired, and purchased access into Business Wire’s network, all in furtherance of a larger conspiracy to profit from the stolen draft press releases.
Five other members of the conspiracy – two computer hackers and three securities traders – were charged by federal indictment brought by the District of New Jersey (DNJ). The related 23-count DNJ indictment charged Ivan Turchynov, 29, Oleksandr Ieremenko, 25, and Pavel Dubovoy, 34, all of Ukraine, as well as Arkadiy Dubovoy, 52, and Igor Dubovoy, 30, both of Alpharetta, Georgia. Arkadiy Dubovoy and Igor Dubovoy both pleaded guilty to the wire fraud conspiracy charged in Count One of the DNJ indictment on Feb. 18, 2016 and Jan. 20, 2016, respectively.
The Eastern District of New York (EDNY), in a related indictment, charged four securities traders: Vitaly Korchevsky, 51, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 46, of Brooklyn, New York, and Odessa, Ukraine, Leonid Momotok, 48, of Suwanee, Georgia, and Alexander Garkusha, 49, of Cummings and Alpharetta, Georgia. Garkusha pleaded guilty to the wire fraud conspiracy charged in Count One of the EDNY indictment on Dec. 21, 2015. Momotok pleaded guilty to the same charge on Aug. 2, 2016.
As alleged in the indictments, between February 2010 and August 2015, computer hackers based in Ukraine gained unauthorized access into the computer networks of the Victim Newswires. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material information.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about hundreds of companies, including Align Technology Inc., Caterpillar Inc., Hewlett Packard, Home Depot, Panera Bread Co., and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
In addition to the prison term, Judge Arleo sentenced Iermolovych to three years of supervised release and ordered him to pay restitution of $3,004,685.06.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Randolph D. Alles, and special agents from the U.S. Secret Service Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation. He also thanked the U.S. Securities and Exchange Commission, for its significant cooperation and assistance in the investigation and the newswires, which cooperated with law enforcement over the course of the investigation.
The government is represented by Assistant U.S. Attorneys Daniel Shapiro, Justin Herring, and Svetlana Eisenberg of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, David M. Eskew, Chief of the General Crimes Unit, Trial Attorney Andrew S. Pak, of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: Donna Newman Esq., New York
Getaway Driver Sentenced in Leawood Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Kansas City man was sentenced Monday to 52 months for a robbery at a Leawood bank, U.S. Attorney Tom Beall said.
Chad English, 43, Kansas City, Mo., pleaded guilty to one count of bank robbery. In his plea, he admitted he drove the getaway car during an Aug. 24, 2016, robbery at Central Bank of the Midwest at 4801 Town Center Drive in Leawood. Co-defendant Terry Lovelady, 58, Kansas City, Mo., went into the bank and gave the clerk a note saying, “Hurry up. Put the $$ in the bag. No funny bizz.” He left the bank with stolen money and a hidden tracking device.
Police followed the tracking device to locate the getaway car where it was stopped at a traffic light at 119th Street and Glenwood. The robbers led police on a chase, running red lights, cutting off other drivers and reaching a speed of 90 mph. The robbers crossed into Missouri before stopping the car and fleeing on foot. Officers tackled English. Lovelady was found hiding in a hospital parking garage.
Lovelady pleaded guilty and he is set for sentencing July 31.
Beall commended the FBI, the Leawood Police Department, the Kansas City, Mo., Police Department and Assistant U.S. Attorney Leon Patton for their work on the case.
Fort Defiance Woman Sentenced to 28 Months in Prison for Stabbing on the Navajo Nation Indian ReservationRead the Press Release
PHOENIX – Today, Donna Karen Holyan, 50, was sentenced by U.S. District Judge John J. Tuchi to 28 months in prison, followed by three years’ supervised release. Holyan had previously pleaded guilty to assault resulting in serious bodily injury.
The evidence showed that Holyan stabbed the victim approximately four times at a grocery store on the Navajo Nation Indian Reservation. Both Holyan and the victim are enrolled members of the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08245-PCT-JJT
RELEASE NUMBER: 2017-046_Holyan
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Treasurer of Henderson, Kentucky, Church Sentenced to 21 Months in Prison for Embezzling FundsRead the Press Release
Ordered to pay $201,260.02 in restitution
Money was used to pay personal expenses over a ten year period
OWENSBORO, Ky. – The former treasurer of Greater Norris Baptist Church, located in Henderson County, Kentucky, was sentenced in United States District Court today, by Chief Judge Joseph H. McKinley Jr., to 21 months in prison, followed by a three year period of supervised release and was ordered to pay $201,260.02 in restitution, announced United States Attorney John E. Kuhn, Jr.
“People contribute to organizations like churches and other non-profits simply because they want to do good in the world,” stated United States Attorney John Kuhn. “Stealing funds from these groups is not only criminal, it’s disgraceful. This sentence punishes Tillman and insures she will pay back every penny that was not hers to take.”
According to the plea agreement, Delanie L. Tillman, of Henderson County, devised a scheme to defraud and obtain money and property by means of false pretenses, from the Greater Norris Baptist Church, between 2004 and June 5, 2014.
Specifically, Tillman was charged, in an 11 count indictment, with making unauthorized wire transfers and writing unauthorized checks to pay for personal expenses using the church’s funds.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Henderson Police Department and the Federal Bureau of Investigation.
Former Roofing Company Executive Sentenced to Prison in Alien Employment CaseRead the Press Release
KANSAS CITY, KAN. - A former executive of a Kansas City-area roofing company has been sentenced to prison in connection with the company’s employment of aliens not authorized to work in the United States, U.S. Attorney Tom Beall announced today.
The former executive, Tommy F. Keaton, 71, Shawnee, Kan., was sentenced Monday by Chief U.S. District Judge Julie Robinson to 12 months and 1 day in federal prison, to be followed by one year of supervised release. Keaton was indicted in June 2016 in connection with the use of undocumented workers by Century Roofing, whose corporate name is Canadian West, Inc., to install commercial and residential roofs in the Kansas City metropolitan area.
In addition, Judge Robinson ordered the forfeiture of $1.4 million seized from Keaton in the case. Keaton remains on bond but must report to federal prison when so ordered by the U.S. Marshals Service. He pleaded guilty Feb. 16 to harboring an alien unlawfully in the U.S., a felony, pursuant to a plea agreement in which he admitted his conduct involved harboring up to 24 undocumented aliens in the United States through roofing projects managed by Century.
Previously, two other defendants pleaded guilty and were sentenced in the case, Graziano Cornolo, 56, Lenexa, and Alberto Diaz-Hernandez, 34. Cornolo pleaded guilty to unlawful employment of aliens and was placed on probation. In addition, Cornolo forfeited more than $800,000 and his interest in $500,000 seized from Century. Diaz-Hernandez pleaded guilty to misprision of a felony in connection with Century’s unlawful employment practices and was placed on two years’ probation.
In all, more than $2 million is assets were forfeited in the case, in addition to the criminal convictions and sentences. Beall said the case involved multiple local, state and federal law enforcement agencies led by Homeland Security Investigations, and he thanked them for their outstanding work on the case. The case was prosecuted by Assistant U.S. Attorney Brent Anderson.
Former North Shore Resident Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that a former North Shore resident, who had left the country last year before being charged in early 2017, pled guilty today to one count of conspiracy to commit wire fraud.
BILAL AHMED, also known as Bill, 42, formerly of Covington, acknowledged as part of his guilty plea that he devised a scheme to defraud others of money and property. As part of this scheme, he posed as a wealthy individual who stood to received millions of dollars from his native country of Pakistan. He induced at least one other conspirator to work with him, directing this conspirator to pretend to be a bank employee and to make other false statements. During the conspiracy, AHMED presented false documents, including a fraudulent $10,000,000 loan document to others. As a result of AHMED’s false and fraudulent representations, he caused wirings totaling $70,000 to be made in interstate commerce.
AHMED faces a statutory maximum sentence of five years in prison. He also faces monetary penalties, supervised release, and restitution. U.S. District Judge Jay C. Zainey set sentencing for August 22, 2017.
Acting U.S. Attorney Evans commended special agents of Homeland Security Investigations and St. Tammany Parish Sheriff’s Deputies, who investigated the case. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Former North Carolina Law Enforcement Officer Found Guilty for Role in Providing Armed Support to Large-Scale Drug Trafficking OrganizationRead the Press Release
WASHINGTON – A jury in the Eastern District of North Carolina found a former North Carolina police officer guilty of drug, firearm and bribery charges stemming from his participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina made the announcement.
Antonio Tillmon, 33, a former police officer with the Windsor City Police Department, was found guilty of multiple counts of conspiring to distribute controlled substances, attempting to possess with intent to distribute controlled substances, conspiring to use and carry firearms in relation to drug trafficking offenses, using and carrying firearms in relation to drug trafficking offenses and federal programs bribery. Senior U.S. District Judge Malcom J. Howard of the Eastern District of North Carolina scheduled sentencing for Aug. 8, 2017.
The charges stemmed from a large scale undercover investigation into allegations of systemic law enforcement corruption in Northampton County, North Carolina. The evidence at trial established that Tillmon accepted $6,500 from undercover FBI agents posing as drug traffickers in return for transporting a total of 30 kilograms of heroin from North Carolina to Maryland over three separate occasions between August 2014 and April 2015. On each occasion, Tillmon carried his law enforcement badge and a firearm to secure the illicit narcotics. Tillmon was prepared to use his badge and fake documentation to evade drug interdiction in the event the transport vehicle was stopped. The evidence also showed that Tillmon agreed to participate in a fourth drug transport, to which he brought five firearms, including an assault rifle accompanied by three magazines of ammunition.
Fourteen other defendants, 13 of whom were law enforcement or correctional officers, were charged in the drug trafficking and firearm conspiracies – the law enforcement and correctional officers were also charged with federal programs bribery. Those defendants all pleaded guilty to various offenses and are scheduled to be sentenced later this year. Tillmon is the only charged defendant who proceeded to trial.
The case is being prosecuted by Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby Lathan of the Eastern District of North Carolina. The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency.
Former North Carolina Law Enforcement Officer Found Guilty for Role in Providing Armed Support to Large-Scale Drug Trafficking OrganizationRead the Press Release
A jury in the Eastern District of North Carolina found a former North Carolina police officer guilty of drug, firearm and bribery charges stemming from his participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina made the announcement.
Antonio Tillmon, 33, a former police officer with the Windsor City Police Department, was found guilty of multiple counts of conspiring to distribute controlled substances, attempting to possess with intent to distribute controlled substances, conspiring to use and carry firearms in relation to drug trafficking offenses, using and carrying firearms in relation to drug trafficking offenses and federal programs bribery. Senior U.S. District Judge Malcom J. Howard of the Eastern District of North Carolina scheduled sentencing for Aug. 8, 2017.
The charges stemmed from a large scale undercover investigation into allegations of systemic law enforcement corruption in Northampton County, North Carolina. The evidence at trial established that Tillmon accepted $6,500 from undercover FBI agents posing as drug traffickers in return for transporting a total of 30 kilograms of heroin from North Carolina to Maryland over three separate occasions between August 2014 and April 2015. On each occasion, Tillmon carried his law enforcement badge and a firearm to secure the illicit narcotics. Tillmon was prepared to use his badge and fake documentation to evade drug interdiction in the event the transport vehicle was stopped. The evidence also showed that Tillmon agreed to participate in a fourth drug transport, to which he brought five firearms, including an assault rifle accompanied by three magazines of ammunition.
Fourteen other defendants, 13 of whom were law enforcement or correctional officers, were charged in the drug trafficking and firearm conspiracies – the law enforcement and correctional officers were also charged with federal programs bribery. Those defendants all pleaded guilty to various offenses and are scheduled to be sentenced later this year. Tillmon is the only charged defendant who proceeded to trial.
The case is being prosecuted by Trial Attorneys Lauren Bell and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby Lathan of the Eastern District of North Carolina. The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency.
Former New York City Buildings Inspector Pleads Guilty to ExtortionRead the Press Release
Earlier today, Massimo Dabusco, also known as “Max,” pled guilty at the federal courthouse in Brooklyn, New York, to conspiracy to commit extortion. According to court filings and facts presented during the plea proceeding, Dabusco was formerly an Inspector with the New York City Department of Buildings (DOB) and a silent partner in a business, A&G Contracting Group Corp. (A&G), a demolition and excavation company.
The plea 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), and Mark G. Peters, Commissioner New York City Department of Investigation (DOI).
According to court filings, between December 2013 and June 2015, Dabusco abused his position as a DOB Inspector by threatening punitive action against contractors and property owners in an effort to benefit A&G. In one instance, Dabusco threatened to use his authority at the DOB to shut down all of a contractor’s existing jobs if the contractor did not pay outstanding fines owed by A&G. Dabusco also unlawfully warned contractors about impending DOB inspections in an effort aid another contractor. Dabusco resigned his job as a DOB Inspector in August 2015.
Today’s plea took place before United States District Court Chief Judge Dora L. Irizarry.
When sentenced, Dabusco faces up to 20 years in prison, as well as forfeiture and a fine of up to $250,000.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Martin Coffey is in charge of the prosecution.
The Defendants:
MASSIMO DABUSCO
Age: 54
Yorktown Heights, New York
E.D.N.Y. Docket No.16-CR-559 (DLI)
Former CEO of Vann’s, Inc. Sentenced to 5 Years in PrisonRead the Press Release
MISSOULA – George Leslie Manlove, 59, of Eagle, Idaho, was convicted of 170 counts of wire fraud, money-laundering, bank fraud, false statements, bankruptcy fraud and conspiracy following a three-week jury trial. U.S. District Court Judge Dana L. Christensen presided. Sentencing occurred on May 19, 2017.
Manlove, the former CEO of Vann’s, Inc., an electronics and appliance retailer, was initially indicted in December of 2015 on 221 counts of fraud. A second superseding indictment was returned by a grand jury in March, 2016. Manlove’s fraudulent activity occurred between 2006 and 2013. Vann’s declared bankruptcy on August 5, 2012.
At trial, the government introduced evidence that Manlove, aided and abetted by co-conspirator, former CFO Paul Lyn Nisbet, established two shell-companies, JPEG and Painted Sky, LLC (Nisbet pled guilty to one count of conspiracy on Oct. 27, 2016). These shell-companies were established as part of a real-estate leaseback scheme. The defendants, with less than a $500 initial investment to create the LLC’s, obtained loans to purchase commercial property, and then leased that retail space back to Vann’s. The defendants obtained these loans without full disclosure of the lease terms, a vote from the company’s Board of Directors or even valid, written lease contracts.
In one of the schemes, Manlove purchased the Vann’s store in Helena, appraised at nearly $2.8M, for approximately $1.9M. From loan proceeds, Manlove then applied $100K towards paying down his own Home Equity Line of Credit (HELOC). Manlove continued to charge Vann’s “rent” on the properties even after the stores closed. These rent payments continued even after Vann’s declared bankruptcy. Payments made by wire transfer served as the basis for dozens of wire fraud counts.
Ultimately, the jury also found that Manlove committed bankruptcy fraud by making a claim for $2.4M against Vann’s bankruptcy estate after the company folded. The legal theory behind Manlove’s claim - by failing to continue to pay rent on the Helena Store, Vann’s “breached its contract” with Manlove, even though no written contract ever existed.
The jury also found that Manlove defrauded his company through dozens of unauthorized credit card purchases, reimbursements, trades and other transactions. The government presented evidence of flights and hotel expenses for a “mother/daughter” shopping week in New York City; Manlove’s trades of Vann’s Accounts Receivables for diamond earrings and a Rolex watch; Manlove’s receipt of thousands of dollars for a realtor’s commission on the sale of a Vann’s property, and thousands of dollars of unauthorized travel. Chief among these unauthorized purchases was Manlove’s expenditure of over $200,000 of Vann’s funds for tuition and expenses for an Executive MBA degree at Northwestern University’s Kellogg School of Business. Shortly after obtaining this degree, Manlove used Vann’s funds to purchase resume writing services from TheLadders.com and a class ring from Kellogg totaling approximately $1,500.
Manlove himself testified at trial. On the witness stand, he claimed that he only obtained the MBA degree to help Vann’s compete in a challenging economy. However, under cross-examination prosecutors confronted Manlove with an email from the spring of his last year at school in which he had stated to a colleague: “During the second year at Kellogg, I began pondering the next chapter in my life both personally and professionally… I have decided to open the next chapter in my life and am planning my exit from our company. I believe my skills are very marketable, so it is a matter of timing and finding something I am passionate about.”
Another of Manlove’s defenses was that one of the main reasons he went to Kellogg was to recruit talent so that Vann’s could compete with Amazon.com in online sales. However, the government produced evidence that undercut this claim. Shortly after obtaining his degree, Manlove sent an email to management at Amazon. Attached to his email was a resume and cover letter in which Manlove asked to be considered for a senior executive position at Amazon.
Manlove also claimed that his travel expenses to Kellogg, New York and elsewhere were related to efforts to obtain venture capital funds for the benefit of Vann’s, Inc. However, evidence presented at trial showed that one of Manlove’s trips to New York in 2012 occurred when he was simultaneously drawing a paycheck from both Vann’s and Velodyne Inc. – a Vann’s competitor. No evidence of the identity of any supposed venture capitalist or any venture capital investment was offered at trial. Manlove negotiated a separation agreement with Vann’s shortly after this trip.
Prosecutors overcame an advice-of-counsel defense and were successful in striking the Defendant’s proposed expert witness testimony that the “Business Judgement Rule” provided a justification for Manlove’s conduct. In fact, the Court excluded much of the Defendant’s expert’s testimony altogether due to that expert’s conflicts of interest (the same attorney who advised Manlove during the company’s descent into bankruptcy and who was the crux of the “advice of counsel” defense).
At the conclusion of the three-week trail, the jury rendered a guilty verdict on 170 counts of fraud. The following day (Saturday, February 4) the jury also returned a forfeiture verdict in the amount of $2.4M.
Mr. Manlove was sentenced by U.S. District Court Judge Dana L. Christensen on May 19, 2017 to 5 years, 3 months in federal prison. After a five hour hearing, Judge Christensen ordered Manlove to self-report to begin serving his sentence in Sheridan, Wyoming. He also ordered Manlove to make payments on his forfeiture verdict of $2,467,574.56.
A former employee of Vann’s Inc., Jay Allen, wrote:
“This is yet another cautionary tale; a tale of individual greed and unchecked ego being permitted to horse collar a successful company of 200 hard-working and committed employees and scatter them across an employment landscape still reeling from the recession. A sordid story of faith breached.”
The United States would like to express sincere gratitude to the 13 men and women of the jury for their service. The United States also expresses its thanks to DOL Investigator Rachel Hackman, IRS Special Agent Martin Halko, FBI Special Agent Shaun Schrader, as well as former AUSA Kris McLean, who were all instrumental in building the prosecution of the case.
The case was prosecuted by Assistant U.S. Attorneys Adam Duerk and Zeno Baucus.
Former CEO Pleads Guilty to Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A former chief executive officer of an investment company pleaded guilty today to her role in an investment fraud scheme involving foreign exchange currency.
According to the statement of facts filed with the plea agreement, Angelina Lazar, 54, a Canadian citizen from Windsor, Ontario, was the Chairman and CEO of Charismatic Exchange, Inc., an investment firm in Las Vegas. From May 2005 through February 2007, Lazar solicited individuals to invest money in foreign exchange currency funds she managed. As part of the scheme, Lazar guaranteed investors a monthly return of 20 percent or more. However, Lazar falsely represented her experience, her success rate, how funds would be invested, and how funds were ultimately spent. For example, Lazar told investors her company used special software program to facilitate and enhance her ability to successfully trade foreign currencies. In truth, Lazar did not possess the software nor did her company ever purchase it. Likewise, Lazar showed investors trading reports that purportedly validated executed foreign currency trades resulting in significant profits. In fact, the trading reports represented only simulated currency trades and no money was actually invested. As a result of her fraudulent conduct, victim investors suffered at least $20,000 in losses.
As part of her plea agreement, Lazar will be immediately deported from the United States to Canada.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea and announced the sentence. Assistant U.S. Attorney Uzo Asonye prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:09-cr-175.
Five-Time Convicted Felon Sentenced to Prison for Possession of FirearmsRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Jhordis Deshon Woods, 34, of Mobile, was sentenced today to 92 months in prison for being a felon in possession of two firearms. United States District Judge Kristi K. DuBose also sentenced Woods to five years of supervised release following his prison sentence.
In December of 2016, Woods pled guilty to possession of two firearms after having been convicted of several felonies. Woods had previously been convicted of two counts of Robbery 1st, Theft of Property 1st, Possession of Marijuana 1st, and Possession/Receipt of a Controlled Substance, in addition to numerous misdemeanor offenses. The charge arose from an investigation by the Mobile Police Department Narcotics and Vice Unit, which arranged four controlled buys of marijuana from Woods in May of 2016. A search warrant was obtained for Woods’s apartment, where police recovered two semiautomatic pistols, marijuana, and cash.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Sean P. Costello prosecuted the case for the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/
Five Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging FRANCISCO ACUAPA-MADRIGAL, age 30, of Mexico, ALEJANDRO GALVAN-GABRIEL, age 42, of Mexico, JOSE MANUEL MARTINEZ-ORTEGA, age 37, of Mexico, JORGE SALVADOR-MORALES, age 35, of Mexico, JOSE VELASQUEZ-JUAREZ, age 19, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, ACUAPA-MADRIGAL, GALVAN-GABRIEL, MARTINEZ-ORTEGA, ROBLERO-VASQUEZ, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
SALVADOR-MORALES is alleged to have been previously deported subsequent to a felony conviction (trafficking marijuana). Therefore, if convicted, he faces a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security and the United States Department of State.
Fernandina Beach Man Pleads Guilty to Drug and Firearm OffensesRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Frank Malik Drummond, Jr. (21, Fernandina Beach) today pleaded guilty to distribution of cocaine and possession of a firearm by a convicted felon. He faces a maximum penalty of 20 years in federal prison for the drug charge and up to 10 years’ imprisonment for the firearm offense.
According to the plea agreement, Drummond sold cocaine to a confidential informant on three separate occasions. When he was arrested on January 26, 2017, he had a semi-automatic pistol in his pocket. Drummond has two prior felony convictions for drug sales and is therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Nassau County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Essex County, New Jersey, Man Pleads Guilty to Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man today admitted his role in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Shaheed Blamahsah, a/k/a “Aboo,” 29, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a two-count information charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
On Sept. 6, 2015, Blamahsah and at least two other conspirators agreed to rob a club in Passaic at gunpoint. During his plea hearing, Blamahsah admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and that sentence must be consecutive to any other sentence imposed. The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Blamahsah’s sentencing is scheduled for Sept. 11, 2017.
Blamahsah was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 28, of South Orange, New Jersey, in November 2016. Cooper and Lawrence were indicted by a federal grand jury on March 24, 2017 for their alleged roles in the robbery of the Passaic club. The charges against Cooper and Lawrence are merely allegations, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Division of Public Safety for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Kevin Buchan Esq., Holmdel
Eleventh Circuit Affirms Wire Fraud Convictions in Tampa-Area Sinkhole CaseRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that the United States Court of Appeals for the Eleventh Circuit has affirmed the convictions of Spring Hill residents Glenn and Kathryn Jasen.
According to court documents, in 2009, the Jasens discovered a sinkhole beneath their home and filed a claim with their insurance carrier, Citizens Property. In compensation for their loss, Citizens paid them $153,745.37. Rather than using the money to repair the sinkhole, the Jansens kept it. The couple then made cosmetic repairs to the house and listed it for sale, keeping the sinkhole a secret from prospective buyers. A family with five children bought the house and, in March 2015, the family heard a crash in the earth beneath it. They discovered a crack running across the floor of their living room and immediately evacuated. In October 2015, a federal jury found Glenn and Kathryn Jasen guilty of one count of wire fraud. The couple then appealed their convictions.
In affirming their convictions, the Eleventh Circuit Court of Appeals summarized the case against them, saying: “It is undisputed the Jasens knew their property had a sinkhole on it when they sold the property—they had already collected over one hundred fifty thousand dollars in insurance proceeds because of it.” “Nevertheless,” the Court continued, “they indicated on their disclosure statement that they knew of no sinkhole on the property. They reiterated this misrepresentation in multiple transaction documents and the purchaser relied on these statements in acquiring the property, testifying he would not have done so had he known of the sinkhole.” The Court of Appeals concluded that the evidence “demonstrates that the Jasens intentionally made material misrepresentations concerning their property that were calculated to deceive the buyer into purchasing the property.”
Assistant United States Attorney David C. Waterman handled the appeal. The Florida Department of Law Enforcement Tampa Bay Regional Operations Center investigated the case, and Assistant United States Attorney Thomas N. Palermo prosecuted it.
Drug Trafficker Sentenced to 24 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Lavon Williams, 38, of Jamaica, New York, to 292 months in prison on charges of conspiracy to distribute and to possess with intent to distribute marijuana and conspiracy to commit money laundering, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Williams was also ordered to serve eight years of supervised release after he is released from prison, and to pay a money judgment of $1.5 million for the value of the marijuana involved in the conspiracy.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed documents and court proceedings, from October 2014 to February 2015, Williams transported more than 880 pounds of marijuana and drug proceeds from San Francisco to Charlotte via commercial aircrafts. Court records indicate that, over the course of the conspiracy, Williams flew at least 11 times, and carried approximately 40 pounds of marijuana each trip. Court records show that on February 4, 2015, Williams’ co-conspirator, Thajuan Brown, was arrested at Charlotte Douglas International Airport with 46 pounds of marijuana. Evidence recovered from that investigation linked Williams to the drug trafficking conspiracy. On February 10, 2015, law enforcement arrested Williams with $40,000 in drug proceeds at the San Francisco airport.
Two remaining defendants are fugitives wanted by law enforcement. They are: Pierre Buissereth, 35, of New York. and Toccara Quantavia King, 35, of Virginia. Anyone with information about Buissereth or King are asked to contact the Homeland Security Investigations office at 704-679-6140.
This prosecution is part of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was led by HSI and CMPD. Assistant U.S. Attorney Steven R. Kaufman coordinated the investigation and prosecution of this OCDETF operation.
District Man Pleads Guilty to Narcotics and Firearms Charges Relating to His Operation of an Open-Air Drug MarketRead the Press Release
WASHINGTON – Marques Henderson, 36, of Washington, D.C., pled guilty today to narcotics and firearm offenses stemming from his operation of an open-air drug market in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Henderson pled guilty before the Honorable Tanya S. Chutkan in the U.S. District Court for the District of Columbia, to one count of unlawful distribution of cocaine base and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense. The plea agreement, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 10 years in prison, to be followed by five years of supervised release. Judge Chutkan scheduled sentencing for Sept. 8, 2017.
The government’s evidence established that Henderson, known on the street as “DA BEAST,” was the subject of investigations by both the FBI and MPD and that he sold PCP and crack cocaine in the 300 block of Ridge Road SE with his base of operations at 359 Ridge Road. In the course of the investigation, law enforcement seized five firearms, numerous rounds of ammunition, distribution quantities of PCP and crack cocaine, and numerous types of drug paraphernalia.
As part of his plea agreement, Henderson acknowledged selling PCP and crack cocaine to an MPD undercover officer on four separate occasions and having both PCP and crack cocaine on his person, along with a loaded firearm, when arrested on June 20, 2016, by the FBI.
At the time of his arrest, Henderson was on supervised release for three separate felony cases in the Superior Court of the District of Columbia. He now faces formal revocation of his supervise released and additional incarceration, separate from the above-referenced sentence, from the U.S. Parole Commission.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of the FBI/MPD Safe Streets Task Force in shutting down Henderson’s drug trafficking operation. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Anthony Scarpelli and Christopher Macchiaroli of the Violent Crime and Narcotics Trafficking Section and Paralegal Specialist Candace Battle.
Defense Contractor Employee Pleads Guilty to Selling Satellite Secrets to Undercover Agent Posing as Russian SpyRead the Press Release
LOS ANGELES – An engineer who worked for a cleared defense contractor pleaded guilty today to federal charges of economic espionage and violating of the Arms Export Control Act for selling sensitive satellite information to a person he believed to be an agent of a Russian intelligence service.
Gregory Allen Justice, 49, of Culver City, who worked as an engineer on military and commercial satellite programs, pleaded guilty to two felony offenses that could send him to federal prison for as long as 35 years.
According to a plea agreement filed in this case, Justice stole proprietary trade secrets from his employer and provided them to a person he believed to be a Russian agent – but who in fact was an undercover FBI employee.
In addition to their proprietary nature, the documents contained technical data covered by the United States Munitions List and therefore were subject to controls restricting export from the United States under the International Traffic in Arms Regulations.
In exchange for providing these materials during a series of meeting between February and July of 2016, Justice sought and received thousands of dollars in cash payments. During one meeting, Justice and the undercover agent discussed developing a relationship like one depicted on the television show “The Americans,” and during their final meeting, Justice offered to take the undercover agent on a tour of his employer’s production facilities where Justice said all military spacecraft were built, according to the plea agreement.
Justice specifically pleaded guilty to one count of attempting to commit economic espionage and one count of attempting to violate the Arms Export Control Act.
Justice pleaded guilty before United States District Judge George Wu, who scheduled a sentencing hearing for September 18. Justice has been in custody since his arrest last July.
The case against Justice was investigated by the FBI and the Air Force Office of Special Investigations.
Prosecutors from the Terrorism and Export Crimes Section of the United States Attorney’s Office and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defense Contractor Employee Pleads Guilty to Selling Satellite Secrets to Undercover Agent Posing as Russian SpyRead the Press Release
Today, Gregory Allen Justice, 49, of Culver City, California, pleaded guilty to federal charges of one count of attempting to commit economic espionage and one count of attempting to violate the Arms Export Control Act. The charges are related to Justice’s selling sensitive satellite information to a person he believed to be an agent of a Russian intelligence service. Justice was an engineer who worked for a cleared defense contractor. Specifically, he worked on military and commercial satellite programs.
The announcement was made by Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Sandra R. Brown for the Central District of California.
According to a plea agreement filed in this case, Justice stole proprietary trade secrets from his employer and provided them to a person he believed to be a Russian agent – but who in fact was an undercover FBI employee.
In addition to their proprietary nature, the documents contained technical data covered by the U.S. Munitions List and therefore were subject to controls restricting export from the U.S. under the International Traffic in Arms Regulations.
In exchange for providing these materials during a series of meeting between February and July of 2016, Justice sought and received thousands of dollars in cash payments. During one meeting, Justice and the undercover agent discussed developing a relationship like one depicted on the television show “The Americans,” and during their final meeting, Justice offered to take the undercover agent on a tour of his employer’s production facilities where Justice said all military spacecraft were built, according to the plea agreement.
Justice faces a maximum sentence of 35 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Justice pleaded guilty before U.S. District Judge George Wu, who scheduled a sentencing hearing for September 18. Justice has been in custody since his arrest in July 2016.
This case was investigated by the FBI and the Air Force Office of Special Investigations.
Attorneys from the Terrorism and Export Crimes Section of the U.S. Attorney’s Office and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defendant Pleads Guilty to Making False Statements on Tax Return and Wire FraudRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on May 12, 2017 Lynette Lomibao (age:46) of Sheboygan pleaded guilty to a two-count information charging her with making a false statement on Internal Revenue Service (IRS) Form 1040 in violation of Title 26, United States Code, Section 7206(1) and wire fraud in violation of Title 18, United States Code, Section 1343.
According to information in the plea agreement, Lomibao was employed by Beaudry Electric Motors (BEM), in Sheboygan, Wisconsin. In connection with her employment as office manager, Lomibao used her position to embezzle $431,690 in company funds. Lomibao then under-reported her income to the IRS.
As part of the plea agreement, Lomibao agreed to pay restitution of $431,690 for embezzled funds and $127,222 in back taxes to the IRS. She faces up to twenty-three years’ imprisonment and a $250,000 fine. Lomibao’s sentencing is scheduled for August 2017.
This case was investigated by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Christopher Ladwig.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Council Bluffs Man Sentenced to 130 Months in Prison for Methamphetamine and Gun PossessionRead the Press Release
COUNCIL BLUFFS, IA - On May 19, 2017, Christopher Alan Durrett, age 24, of Council Bluffs, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 130 months in prison for possession of methamphetamine with the intent to deliver and possession of a firearm by a prohibited person, announced United States Attorney Kevin E. VanderSchel. Durrett will be required to serve five years of supervised release following his imprisonment.
On January 4, 2017, Durrett pleaded guilty to these charges and admitted on October 24, 2016, he possessed over 38 grams of methamphetamine that he intended to distribute. Durrett admitted he was also in possession of a 9mm handgun with ammunition. Durrett had previously been convicted of misdemeanor domestic abuse assault, and, as a result, was prohibited from possessing a firearm.
The Southwest Iowa Narcotics Enforcement Task Force, the Council Bluffs Police Department and the Pottawattamie County Attorney’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Conroe Man Sentenced for Producing Child Pornography and Possessing More Than 10,000 ImagesRead the Press Release
HOUSTON – A 59-year-old man from the Conroe area has been ordered to federal prison following his conviction of sexual exploitation of a child as well as distribution and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Robert Neal Hatchell pleaded guilty Dec. 19, 2016, admitting he took sexually-explicit photographs and a video of minor relatives and possessed more than 10,000 pornographic images.
Today, U.S. District Judge Lynn N. Hughes handed Hatchell sentences of 15 years each for the production and distribution charges as well as 10 years for possession child pornography. The sentences will run concurrently. He was further ordered to pay a $10,000 fine and will serve 10 years of supervised release following completion of the prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
Hatchell first came to the attention of authorities as part of a nationwide investigation into the online sexual exploitation of children. Hatchell, who was identified online as “kiddycat,” had posted images of child pornography on a known child pornography website. During the execution of a search warrant at Hatchell’s residence, law enforcement discovered that he produced pornographic images and videos of two minor relatives. Hatchell had 26 images and videos of those minors as well as 1515 videos and 10,873 images containing child pornography.
At the time of his plea, Hatchell admitted to taking sexually explicit photographs and a video of the minors. He further distributed these images to others who share his sexual interest in children.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Complaint Filed and Initial Appearance Held for Anil UskanliRead the Press Release
HONOLULU – Anil Uskanli, age 25, of Turkey, had his Initial Appearance today on a Criminal Complaint that was signed over the weekend and filed this morning in the United States District Court for the District of Hawaii. The Complaint charges him with one count of Interference with Flight Crew Members and Attendants. That crime carries a maximum penalty of 20 years in prison.
Acting United States Attorney Elliot Enoki said that, according to the Complaint, on May 19, 2017, Uskanli boarded American Airlines Flight 31 from Los Angeles International Airport, bound for Honolulu International Airport. In the course of the flight, Uskanli got up to use the restroom, but did not lock the door to the lavatory, and became agitated, yelled, and pounded on the walls when a fellow passenger entered the lavatory. After this incident, the pilot executed a level 1 security measure, locking down the flight deck. Thereafter, Uskanli again got up from his seat, wrapped a blanket around his head, and took his laptop to the front area of the plane. A flight attendant used a drink cart to block Uskanli from advancing any further toward the cockpit. When Uskanli tried to push the drink cart down the aisle toward the front of the plane, the flight attendant asked nearby passengers for assistance. Once several passengers stood up, Uskanli put the laptop on the drink cart and walked back to his seat. The flight attendants were frightened of the laptop, due to recent information about laptops potentially posing a threat to airplane security because such devices may contain explosives.
An off-duty law enforcement officer walked with Uskanli back to his seat. The law enforcement officer and Uskanli remained in the seats for the rest of the flight. Flight attendants followed protocol for handling of possible explosive materials. They also alerted the captain of the events, and the captain then implemented a level 4 emergency. Two military fighter jets from Joint Base Pearl Harbor-Hickam were dispatched to escort the flight to safe landing.
The aircraft landed safely at Honolulu International Airport at 11:35 a.m. Bomb technicians worked to secure the plane. K-9 units were deployed to sweep the aircraft. All passengers and carry-on bags were rescreened, and checked bags inspected by a TSA Explosive Detection Canine Team. No explosives were discovered.
The Honorable Barry M. Kurren, United States Magistrate Judge, ordered the proceedings suspended pending the outcome of a competency evaluation.
The charges contained in the Complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation, with assistance from U.S. Department of Homeland Security, the State of Hawaii Department of Public Safety Sheriff’s Office, the Los Angeles Police Department and the Los Angeles Airport Police. It is being prosecuted by Assistant United States Attorney Morgan Early.
Cheektowaga Man Pleads Guilty to Attempting to Possess Child PornographyRead 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 Andrew Reiner, 29, of Cheektowaga, NY, pleaded guilty to attempting to possess child pornography, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that beginning in June 2016, the defendant communicated with a 15-year-old girl via cellphone applications Kik and Skout. After learning the victim’s age, Reiner texted the victim messages of a sexual nature in order to entice her into sexual activity. Through communications via the cellphone applications and text messaging, the defendant convinced the victim to sneak out of her home late at night to meet him for sexual activity on more than one occasion. Reiner also attempted to entice the victim to ask her friends to participate in sexual activity. Between June 2016 and July 2016, the defendant asked the 15-year-old girl to send him sexually explicit photographs.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 30, 2017, at 1:00 p.m. before Judge Arcara.
Canadian Men to Plead Guilty to Cocaine ChargeRead the Press Release
COLUMBUS, Ohio – Sylvain Desjardins, 48, and David Ayotte, 46, both of Maribel, Canada, agreed to plead guilty to possession with intent to distribute more than five kilograms of cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, announced the filing of the plea documents today.
Law enforcement and other agencies involved in this case include: U.S. Department of Homeland Security Investigations, U.S. Drug Enforcement Administration, Federal Aviation Administration, Ohio University Police Department, the Ohio University Airport, Athens County Sheriff’s Office, U.S. Customs and Border Protection Air and Marine Operations, Ohio National Guard Counter Drug Program, Ohio Bureau of Criminal Investigations, U.S. Homeland Security Investigations Attaché Office Montreal, Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force, Royal Canadian Mounted Police, Canada Border Services Agency and Service de Police del la Ville de Montreal.
According to the Statement of Facts filed in support of the plea documents, on March 29, 2017, a U.S. Customs and Border Protection Air and Marine Operations center official in Riverside, Calif. detected an aircraft that departed from the Bahamas and was traveling to Windsor, Ontario, Canada but had diverted to Gordon K. Bush Airport at Ohio University.
The official contacted the Athens County Sheriff’s Office, who, along with agents from HSI, executed a search warrant on the plane upon arrival. While doing so, investigators discovered approximately 132 kilograms or 290 pounds of cocaine.
Desjardins was the pilot and Ayotte was his passenger. The two men intended on flying the cocaine to Canada to then distribute, but discovered that the plane was having mechanical issues.
Change-of-plea hearings before U.S. District Judge Algenon Marbley have not yet been scheduled.
Posession with intent to distribute more than 5 kilograms of cocaine is a crime punishable by a range of 10 years to life in prison.
U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Deputy Criminal Chief Michael J. Hunter, who is representing the United States in this case.
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Cambridge Hedge Fund Manager Arrested for Investment Fraud SchemeRead the Press Release
BOSTON – The owner of two Cambridge-based investment advisory firms was arrested in Vermont on Saturday, May 20, 2017, in connection with a scheme to defraud hedge fund investors.
Yasuna J. Murakami, 44, of Cambridge, was charged with wire fraud in federal court in Boston. Murakami was arrested in Vermont as he crossed back into the United States from Canada. He is scheduled to appear in federal court in Boston on May 24, 2017.
Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which Murakami established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund. It is alleged that between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts he controlled. He allegedly used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores. According to court documents, Murakami used new investor contributions to make Ponzi scheme-like payments to earlier investors who had made redemption requests and to place investments in his own name.
As part of the fraud, it is also alleged that Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing their investments were safe.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. January 2017, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
Buffalo Man Sentenced in Drug ConspiracyRead 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 Steven Martinez, 51, of Buffalo, NY, who was convicted of possession with intent to distribute more than 100 grams of heroin, was sentenced to 216 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that co-defendant Jeffrey Coleman was the courier of a heroin distribution conspiracy which brought heroin to Buffalo from New York City. Coleman was stopped on February 26, 2014, and found in possession of more than $65,000 in cash which was payment for the delivery of heroin. Within the currency was a note, written and signed by defendant Martinez which served as a receipt for the delivery and an order for another delivery in the future. Martinez was also stopped and found in possession of more than $2000 and a small quantity of heroin.
Also on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue in Buffalo. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash.
Martinez and Coleman were arrested along with Elias Figueroa, Julio Sanchez and Tomas Figueroa. All five defendants have been convicted.
Today’s 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 Division.
Bogalusa man sentenced to 12 and a half years in prison for cocaine distributionRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Bogalusa man was sentenced to 150 months in prison for possession with intent to distribute cocaine.
Craig Antwon Jefferson, 30, of Bogalusa, La., was sentenced by U.S. District Judge Robert G. James on one count of possession with intent to distribute a controlled substance. He was also sentenced to eight years of supervised release. According to the March 1, 2017 guilty plea, law enforcement officers pulled over Jefferson’s vehicle April 14, 2016 on Interstate 10 in Calcasieu Parish for a traffic violation. An officer searched the vehicle and found 6.5 pounds of cocaine and 6 grams of marijuana in a backpack. When officers attempted to arrest Jefferson, he fled on foot and was later apprehended.
Homeland Security Investigations and the Calcasieu Parish Combined Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Banamex USA Agrees to Forfeit $97 Million in Connection with Bank Secrecy Act ViolationsRead the Press Release
Today Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division announced that Banamex USA (BUSA), a financial institution based in Los Angeles, California, and a subsidiary of Citigroup Inc., agreed to forfeit $97.44 million and entered into a non-prosecution agreement (NPA) to resolve an investigation into BUSA’s Bank Secrecy Act (BSA) violations. In its agreement with the Justice Department, BUSA admitted to criminal violations by willfully failing to maintain an effective anti-money laundering (AML) compliance program with appropriate policies, procedures, and controls to guard against money laundering and willfully failing to file Suspicious Activity Reports (SARs).
According to admissions contained in the NPA and the accompanying statement of facts, from at least 2007 until at least 2012, BUSA processed more than 30 million remittance transactions to Mexico with a total value of more than $8.8 billion. During the same period, BUSA’s monitoring system issued more than 18,000 alerts involving more than $142 million in potentially suspicious remittance transactions. BUSA, however, conducted fewer than 10 investigations and filed only nine SARs in connection with these 18,000-plus alerts, filing no SARs on remittance transactions between 2010 and 2012.
BUSA also admitted that, for several years, BUSA recognized that it should have improved its monitoring of MSB remittances but failed to do so. BUSA employed a limited and manual transaction monitoring system, running only two scenarios to identify suspicious activity on the millions of remittance transactions it processed. These two scenarios produced paper reports that were intended to be reviewed by hand by the two employees assigned to perform the BSA functions of the bank, in addition to time-consuming non-BSA responsibilities. As BUSA began to expand its remittance processing business in 2006, BUSA understood the need to enhance its anti-money laundering efforts, yet failed to make necessary improvements to its transaction monitoring controls or to add staffing resources.
In July 2015, in a related matter, the Federal Deposit Insurance Corporation (FDIC) and California Department of Business Oversight ordered BUSA to pay a $140 million civil money penalty to resolve separate BSA regulatory investigations. Thus, the combined penalties paid by BUSA associated with the criminal and regulatory investigations of its BSA compliance violations amount to approximately $237.44 million. In March 2017, the FDIC also announced related enforcement actions against four former senior BUSA executives relating to BUSA’s violations of the BSA. As part of those actions, two executives were fined and prohibited from working at financial institutions in the future, one was fined, and one was prohibited from working at financial institutions in the future.
As explained in the Non-Prosecution Agreement, the Justice Department reached this resolution based on a number of factors. In particular, BUSA engaged in extensive remedial actions, including devoting significant resources to remediation of the BSA and AML deficiencies, exiting BUSA’s MSB business entirely, and ultimately ceasing all banking operations at BUSA. BUSA received partial credit for its cooperation with the Justice Department’s criminal investigation, including making factual presentations, voluntarily making foreign-based employees available for interviews in the United States, producing documents from foreign countries in ways that did not implicate foreign data privacy laws, and collecting, analyzing and organizing voluminous evidence and information for the Justice Department, including identifying and providing documents relating to certain individuals and topics. In addition, pursuant to the NPA, BUSA and Citigroup agreed to cooperate fully in this and any other Justice Department investigation relating to violations of the BSA and federal money laundering statutes and, for a period of one year, to report to the Justice Department any evidence or allegation of violations of the BSA or money laundering laws. Citigroup further agreed to report to the Justice Department regarding implementation of compliance measures to improve oversight of its subsidiaries’ BSA compliance.
This case was investigated by the Drug Enforcement Administration’s New England Field Division, the Internal Revenue Service’s Criminal Investigation Boston Field Office and the FDIC’s Office of Inspector General. Senior Trial Attorney Jennifer E. Ambuehl and Trial Attorney J. Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section, Bank Integrity Unit, prosecuted the case. Assistant U.S. Attorneys David J. D’Addio and James E. Arnold of the U.S. Attorney’s Office for the District of Massachusetts provided significant assistance in this investigation.
The Justice Department wishes to thank the FDIC – both the San Francisco Office and FDIC Headquarters for its cooperation in this investigation.
Banamex USA NPABakersfield Man Admits to Splitting up over $4.2M in Cash Deposits to Avoid Reporting RequirementsRead the Press Release
FRESNO, Calif. — Ramsey Jeries Farraj, 42, of Bakersfield, pleaded guilty today to conspiring with his former business partner, Majed Bashir “Mike” Akroush, 49, to structure $4,204,965 obtained from the sale of smokable synthetic drugs, U.S. Attorney Phillip A. Talbert announced.
Smokable synthetic cannabinoids are commonly known as K-2 or spice. They are sometimes marketed as incense or potpourri but contain powerful hallucinogenic chemicals. Consumption of smokable synthetic cannabinoids can lead to illness or even death.
In pleading guilty, Farraj acknowledged that he and co-defendant Akroush sold synthetic cannabinoids through their online businesses Blue Whale and World of Incense. They deposited over $4.2 million in proceeds in amounts under $10,000 into various bank accounts they maintained in order to avoid filing a currency transaction report, or CTR, that is required for amounts over $10,000. In pleading guilty, Farraj agreed to forfeit over $5 million seized from various bank accounts, seven properties, a 1962 Chevrolet Impala, one Rolex watch, and the domain name and websites used to conduct the illicit drug sales.
The case is part of a nationwide synthetic drug takedown in connection with Project Synergy Phase III that targeted the synthetic designer drug industry, including wholesalers, money launderers, and other criminal facilitators. In connection with this case, federal law enforcement officers arrested and charged Farraj, along with Akroush, Haitham Eid Habash, aka Eddie Habash, 54, of Hawthorne, and Zaid Elodat, 30, of Lawndale, and executed 12 search warrants in Bakersfield and the Los Angeles area.
Farraj is scheduled for sentencing on August 14, 2017, before U.S. District Judge Dale A. Drozd. Farraj faces a maximum statutory penalty of five years in prison and a fine of up to twice the gross gain obtained by him. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Elodat previously pleaded guilty and is scheduled for sentencing later this year. The charges against Akroush and Habash are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the California Highway Patrol, with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the U.S. Postal Inspection Service, the California Department of Motor Vehicles, the Kern County Probation Department, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the Los Angeles County Sheriff’s Office. Assistant United States Attorneys Karen A. Escobar, Grant B. Rabenn, and Jeffrey A. Spivak are prosecuting the case.
This case was also designated an Organized Crime Drug Enforcement Task Force (OCDETF) case. The OCDETF program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Attorney General Jeff Sessions Issues Memorandum on Implementation of Executive Order 13768, “Enhancing Public Safety in the Interior of the United States”Read the Press Release
Attorney General Jeff Sessions today issued the attached memo to all Department of Justice grant making components on the implementation of Executive Order 13768, “Enhancing Public Safety in the Interior of the United States.”
Memo on Implementation of Executive Order 13768