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22 May 2017
Alien Smugglers Get Hefty Sentences for Smuggling Venture that Led to DeathRead the Press Release
BROWNSVILLE, Texas – A 38-year-old undocumented alien from Oaxaca, Mexico, who had been living in Brownsville has been ordered to prison on immigration charges that led to a death of a woman, announced Acting U.S. Attorney Abe Martinez. A Brownsville federal jury convicted Galdino Jose Ruiz-Hernandez Jan. 11, 2017, after a two-day trial.
Today, U.S. District Judge Hilda Tagle, who presided over the trial, handed Ruiz-Hernandez an 80-month sentence for human smuggling and a 24-month sentence for his illegally re-entering the county. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Evidence presented at the trial showed that on April 24, 2015, Ruiz-Hernandez reported to Port of Brownsville authorities that a “friend” told him he saw a female body floating in the Brownsville ship channel. Law enforcement located the body and noticed injuries. Ruiz-Hernandez was initially arrested for illegally re-entering the U.S. after having been previously deported and later charged with alien smuggling as well.
Investigators learned Ruiz-Hernandez had actually been guiding the female illegal alien at midnight in the water across the ship channel when they were struck by a Coast Guard boat. Evidence presented at trial showed he guided her on behalf of Gabriel Sanchez-Aburto, 46, who had taken him to Mexico to pick up the woman. Ruiz-Hernandez and the victim entered the U.S. illegally, walked to the Port of Brownsville ship channel and began crossing the water in darkness. While in the water, a Coast Guard boat struck them. The autopsy revealed the boat’s propeller caused the injuries that resulted in her death.
At the hearing today, additional evidence was presented including that Ruiz-Hernandez had tried to convince another individual to testify falsely that the Coast Guard boat intentionally struck female alien he was transporting.
As part of the investigation, agents with Immigrations and Customs Enforcement’s Homeland Security Investigation (HSI) arrested Sanchez-Aburto on a warrant for the alien smuggling death incident on Oct. 27, 2015. He and others were in the process of smuggling other aliens at the time. Authorities found and detained seven undocumented aliens and arrested three brothers - Lazaro Comunidad-Hernandez, 48, Pablo Comunidad-Hernandez, 25, and Luciano Comunidad-Hernandez, 39, all from Puebla, Mexico.
The brothers were sentenced last year to terms from 10-15 months and are expected to face deportation proceedings following their release from prison.
Sanchez-Aburto entered a guilty plea to both alien smuggling charges and was also sentenced today to a total of 87 months imprisonment. Additionally, Judge Tagle ordered restitution of $6,000 for expenses incurred following the death of the alien.
Ruiz-Hernandez and Sanchez-Aburto will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Albuquerque Man Sentenced to Prison for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Paul Keenahan, 45, of Albuquerque, N.M., was sentenced on Friday afternoon, May 19, 2017, in federal court to 60 months in prison followed by 15 years of supervised release for his conviction on child pornography charges. Keenhan also was ordered to pay $11,000 in restitution to the victims of his crimes. Keenahan will also be required to register as a sex offender when he completes his prison sentence.
Keenahan was arrested in Sept. 2015, on a criminal complaint charging him with distributing child pornography in Bernalillo County, N.M. According to court filings, the investigation into began in July 2015, when the New Mexico Internet Crimes Against Children (ICAC) Task Force received a tip about an IP address that was being used to share child pornography. Investigation revealed that the IP address was subscribed to a motel on Candelaria Road NE in Albuquerque, where it was being used by , who was then employed by and living at the motel.
Law enforcement officers executed a state search warrant at Keenahan’s home on July 23, 2015, and seized a laptop computer containing files consistent with child pornography. Keenahan was arrested on state charges that day. A forensic examination of Keenahan’s laptop computer revealed that it contained more than 10,000 files of child pornography.
Keenahan was indicted on Oct. 7, 2015, and charged with three counts of distribution of child pornography and three counts of possession of child pornography.
On Nov. 2, 2016, Keenahan pled guilty to three counts of possession of child pornography. In entering the guilty plea, Keenahan admitted that from Feb. 14, 2012 through July 23, 2015, he possessed electronic devices containing visual depictions of minors engaging in sexually explicit conduct. Keenahan further admitted the following:
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From Nov. 2014 through July 2015, he possessed a computer containing approximately 1,010 video files and 8,949 images of child pornography;
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From Aug. 2014 through July 2015, he possessed an external hard drive that contained approximately 58 video files and 1,530 images of child pornography; and
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From Feb. 2012 through July 2015, he possessed six DVDs containing approximately 170 videos and images of child pornography.
This case was investigated by the New Mexico ICAC Task Force, Bernalillo County Sheriff’s Office, Albuquerque office of the FBI, Office of the New Mexico Attorney General, the U.S. Marshals Service and the New Mexico Regional Computer Forensic Laboratory with assistance from the 2nd Judicial District Attorney’s Office and the U.S. Attorney’s Office for the Northern District of New York.
Assistant U.S. Attorney Sarah Mease prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
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Albuquerque Man Pleads Guilty to Illegally Possessing Firearm While Under a Domestic Violence Restraining OrderRead the Press Release
ALBUQUERQUE – Daniel Arushanov, 24, of Albuquerque, N.M., pled guilty today in federal court to possession of a firearm while under a domestic violence restraining order.
Arushanov was arrested in Jan. 2017, on a criminal complaint charging him with being a prohibited person in possession of firearms and ammunition on Nov. 9, 2016, in Bernalillo County, N.M. According to the complaint, on that day, University of New Mexico (UNM) police officers arrested Arushanov for carrying a firearm and ammunition while on the UNM campus. Court documents indicate that a routine check of criminal and judicial databases revealed that in Nov. 2016, Arushanov was the subject of an order of protection issued by the Superior Court of California in Sacrament County, Calif., on Sept. 15, 2015, to protect Arushanov’s former wife and her immediate family members.
Arushanov was indicted on Feb. 7, 2017, and charged with two counts of possession of firearms and ammunition while under a domestic violence restraining order. According to the indictment, the restraining order explicitly prohibited Arushanov from possessing firearms or ammunition.
During today’s proceedings, Arushanov pled guilty to one count of possession of a firearm while under a domestic violence restraining order. In entering the guilty plea, Arushanov admitted that on Nov. 9, 2016, he possessed a firearm and ammunition while he was subject to a court order that restrained Arushanov from harassing, stalking or threatening an intimate partner.
At sentencing, Arushanov faces a maximum penalty of ten years in federal prison. Arushanov remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the UNM Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Akron man sentenced to 12 years in prison, former letter carrier sentenced to three years for bringing methamphetamine to Ohio from CaliforniaRead the Press Release
An Akron man was sentenced to 12 years in prison for mailing large shipments of methamphetamine from California to Ohio, and a former letter carrier was sentenced to more than three years in prison for delivering the drugs.
U.S. District Judge Dan A. Polster sentenced Wesley J. Tucker, 40, to 144 months in prison. Polster sentenced former U.S. Postal employee Jailila S. Stoudemire, 28, of Euclid, to 37 months in prison.
Tucker and Stoudemire conspired together in November 2015 to distribute more than three kilograms of methamphetamine.
Stoudemire provided Tucker with addresses on her mail route so she could intercept the drugs and deliver the methamphetamine to Tucker, according to court documents.
They arranged for parcels containing methamphetamine to be shipped from post offices in Sacramento and Garden Grove, California, to addresses on White Pond Drive and Liberty Drive in Akron. Stoudemire received the packages, removed the contents and attempted to deliver them to Tucker, according to court documents.
“We will continue to work with our law enforcement partners to aggressively prosecuted those who ship dangerous drugs into our community,” Acting U.S. Attorney David A. Sierleja said.
USPS OIG Special Agent in Charge Monica Weyler, Eastern Area Field Office, stated: “The vast majority of the 600,000 postal employees nationwide are hard-working, trustworthy individuals dedicated to delivering mail every day. For some reason, a select few decide to risk their freedom and good paying job to deliver drugs to drug dealers for what is a very small amount of money. The prison sentences handed down in this case should be a warning that USPS OIG special agents, postal inspectors, and local law enforcement aggressively investigate all allegations of postal employees facilitating drug trafficking in our communities. To report crimes committed by postal employees, contact 888-USPS-OIG or www.uspsoig.gov.”
This case was prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, and Akron Police Department.
Akron convenience store operator sentenced to more than two years in prison for bribing then-Summit County councilwomanRead the Press Release
A North Canton man was sentenced to 30 months in prison for paying bribes to a Summit County councilwoman, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Omar Abdelqader, 50, previously pleaded guilty to conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Then-Summit County Councilwoman Tamela Lee solicited and accepted things from Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Abdelqader, or through Bi-Rite, according to court documents and testimony
In return, Lee performed and promised to perform official acts for Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Abdelqader and his associates navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to court documents and testimony.
Lee was convicted following a jury trial of conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement. Her sentencing is pending.
This case is being prosecuted by Assistant U.S. Attorneys Linda Barr and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
19 May 2017
Woman Sentenced for Freddie Mac and Veterans Affairs ID TheftRead the Press Release
ALEXANDRIA, Va. – A woman who used personally identifiable information stolen from employees of the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Department of Veterans Affairs (VA) was sentenced today to 5 1/2 years in prison.
Allise Jones, 29, of Lanham, Maryland, was convicted by a federal jury on February 16. According to court documents and evidence presented at trial, Jones conspired with others to use personally identifiable information (PII) about current and former employees of Freddie Mac, the VA, and others. From October 2012 to April 2014, Jones and her co-conspirators had access to PII from over 100 VA employees and more than 2,000 Freddie Mac employees and affiliates. Jones and her co-conspirators used that information to obtain fraudulent identification documents and credit accounts used to defraud financial institutions, retailers, and others. Jones used the information to obtain credit cards she used to purchase goods and services such as plastic surgery, expensive jewelry, and travel.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steven Perez, Special Agent in Charge, Federal Housing Finance Agency (FHFA) Office of Inspector General; and Michael J. Missal, Inspector General of the Department of Veterans Affairs (VA), made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorneys Lindsay Castanien and Charlie Divine and Assistant U.S. Attorney Jonathan Fahey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-282.
Woman Convicted of Unlawfully Obtaining Citizenship Through Sham Marriage in HoustonRead the Press Release
HOUSTON – A Louisville, Kentucky, resident has admitted she unlawfully obtained citizenship by entering into a sham marriage with a Houston man, announced Acting U.S. Attorney Abe Martinez.
Nigerian native Euphemia Chinyeaka Okeke, 41, admitted to marrying a Houston resident and U.S. citizen while in Nigeria. She then applied for an immigrant visa and alien registration based on that marriage, claiming her permanent residence would be Houston.
However, shortly after she arrived in the United States, Okeke conceived a child and lived in Louisville with Kenneth Okeke, a Nigerian citizen with no legal status to reside in the United States. Mr. and Mrs. Okeke have since lived in Louisville and have two children together there.
In her application for naturalization, however, she testified under oath and penalty of perjury that since arriving in this country, she continuously lived in Houston with her purported husband and no one else, had not lived in any other place in the United States and had no children. She became a naturalized citizen on Sept. 14, 2011.
Less than a month later, Euphemia Okeke filed for divorce. She married Kenneth Okeke two weeks later and filed a petition for alien relative in an attempt to obtain lawful immigration status for him. In that petition, she stated under oath and penalty of perjury that she was divorced two years before she actually was and that she had lived and worked in Louisville since arriving in the United States.
U.S. District Judge Melinda Harmon accepted the plea and has set sentencing for Aug. 4, 2017. At that time, Euphemia Okeke faces up to 10 years in federal prison and possible revocation of her citizenship.
Kenneth Okeke is currently in deportation proceedings.
U.S. Citizenship and Immigration Services conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Willmax Capital Management, Inc. and a Senior Corporate Manager Sentenced for Charges Related to Illegal Asbestos ReleaseRead the Press Release
DENVER – Willmax Capital Management, Inc. (Willmax Capital) and a senior corporate manager John Tom Williams, age 58, of Dallas, Texas, were sentenced earlier this week by Senior U.S. District Court Judge Lewis T. Babcock for crimes related to an illegal release of asbestos during a renovation project at a Willmax Capital-managed residential complex known as The Overlook at Mile High at 3190 West 14th Avenue in Denver, Colorado. The release, which affected more than a hundred individuals, occurred in early 2014.
Willmax Capital was ordered to spend 5 years on probation. Chief Judge Babcock ordered that as a condition of probation, the company must pay for and comply with a medical monitoring program for individuals who were exposed to asbestos as a result of the offense. The program will be conducted at National Jewish Health in Denver.
The judge will hold a hearing on August 7, 2017, to determine the amount of restitution the corporation must pay.
The judge sentenced Williams to serve 8 months in federal prison, followed by 1 year on supervised release. Williams was also ordered to pay a $100,000 fine.
The sentences were announced by the U.S. Attorney’s Office and the Environmental Protection Agency (EPA) Office of Criminal Investigations.
Willmax Capital Management was charged on November 16, 2016, with violating an EPA rule requiring it to inspect facilities for asbestos prior to renovation. Williams was charged the same day with negligently releasing asbestos into the air and thereby negligently placing other persons in imminent danger of death or serious bodily injury. The defendants entered guilty pleas to those counts on December 14, 2016.
According to the stipulated facts in the defendants’ plea agreements, WillMax Capital failed to conduct an inspection to determine whether asbestos was present before starting the renovation. Williams’s plea agreement described him as the ultimate decision-maker for renovation activities at the Overlook, including the abatement of asbestos-containing materials, and noted that his subordinates relied on him to alert them when such activities might disturb asbestos.
“EPA did an exceptional job with this investigation and, together with our prosecutor, crafted a resolution that properly punishes dangerous activity at the same time it brings tangible relief to the real people who suffered the asbestos exposure," said Acting U.S. Attorney Bob Troyer.
“The defendants’ negligence in this case exposed more than 100 people to asbestos and jeopardized their health and safety,” said Special Agent in Charge Jeffrey Martinez, who oversees EPA’s Criminal Enforcement Program in Colorado. “This plea agreement was negotiated to provide the victims with restitution and medical assistance they would not otherwise have received, and this case serves as a warning that violating rules that protect against public endangerment can have serious consequences.”
This case was investigated by special agents of the EPA Office of Criminal Investigations and was prosecuted by the U.S. Attorney’s Office’s Economic Crimes Section, part of the Criminal Division.
Webster Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Brian Donaldson, 50, of Webster, NY, pleaded guilty to conspiracy to possess with intent to distribute five grams or more of methamphetamine before U.S. District Court Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendant and his co-defendant Pablo Ulloa. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box which contained a much larger quantity of methamphetamine.
A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale and pipes.
Charges are pending against Pablo Ulloa. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division and the Hamburg Police Department, under the direction of Chief Gregory Wickett.Sentencing is scheduled for August 28, 2017, at 11:00 a.m. before Judge Skretny.
Washington, Pa., Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine, Acting United States Attorney Soo C. Song announced today.
Richard Lassic, II, 43, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that the defendant was one of 17 individuals indicted as a result of an investigation from June to November of 2015, using various investigative techniques including court authorized Title III wiretaps. Lassic was intercepted over a co-conspirator’s phone between August and October of 2015 purchasing multiple ounces of powder cocaine and crack cocaine.
On various dates, Lassic purchased cocaine and crack cocaine, which he referred to as various types of Adidas shoes. On October 6, 2015, Lassic purchased approximately 4.5 ounces of cocaine and crack cocaine for $5,900. He was subsequently pulled over on I-70 by a State Trooper for vehicle code violations. Lassic consented to a search of his car, during which the trooper located three plastic baggies containing approximately 124 grams (almost 4.5 ounces) of cocaine.
Based on intercepted calls, Lassic obtained well over 500 grams of cocaine from a co-conspirator during the interception period.
Judge Bissoon scheduled sentencing for August 30, 2017. The law provides for a term of imprisonment of not less than five years and not more than 40 years, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Bissoon ordered that the defendant remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, the Allegheny County Sheriff’s Department, and the Allegheny County Police Department conducted the investigation leading to the prosecution of Lassic. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Virginia Man Pleads Guilty to Producing Child Pornography in ErieRead the Press Release
ERIE, Pa. - A former resident of Ashland, Virginia pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
Kerry Eccles, 62, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Eccles traveled to Erie from Virginia for the purpose of engaging in sexual conduct with a minor. While in Erie, Eccles took sexually explicit photos of a ten-year-old victim and sexually assaulted the victim. Eccles then transported the child pornography images of the victim back to Virginia where they were discovered during a search of his residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for September 11, 2017. The law provides for a total sentence of ninety years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Erie County Detectives conducted the investigation that led to the prosecution of Eccles.
Virginia Man Arrested and Charged in Manhattan Federal Court with $100 Million Market Manipulation Scheme Involving Fitbit StockRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the arrest and unsealing of a complaint charging ROBERT WALTER MURRAY with securities and wire fraud in connection with a scheme to manipulate the public market for the stock of Fitbit, Inc. (“Fitbit”) by filing a sham tender offer with the Securities and Exchange Commission (“SEC”). The sham tender offer reported a fictitious bid to purchase all outstanding Fitbit stock at a significant premium to the then-existing market price, resulting in a temporary but significant increase in the price of Fitbit stock on the NASDAQ stock exchange. Given the number of shares outstanding, the sham tender offer resulted in a manipulation of the market by over $100 million. MURRAY was arrested in Virginia and will be presented in the federal court in Manhattan today.
In a separate action, the SEC filed civil charges against MURRAY.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Robert Walter Murray created a fake tender offer for Fitbit to drive up its share price and then illegally profit from his manipulation of the market. After profiting at the expense of the public, Murray allegedly took elaborate steps to hide that he was behind the fraud. Our Office remains committed to ensuring that the securities markets are fair and free from manipulation. And we thank our partners at the U.S. Postal Inspection Service, as well as the SEC, who as committed to this mission as we are.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Murray was clever, but not as much as the Fitbit brand he allegedly used when he set out to devise his stock manipulation scheme. In an effort to ‘get rich’ quick fraudsters believe they can game the system, but this arrest proves that no matter how much thought goes into a devious scheme, you can never outsmart law enforcement.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
On or about November 8, 2016, MURRAY, purporting to be an officer at a China-based entity called ABM Capital, filed forms with the SEC requesting access to the SEC’s Electronic Data Gathering, Analysis, and Retrieval (or “EDGAR”) system. The following day, on or about November 9, 2016, MURRAY submitted a filing on EDGAR that reported that ABM Capital had offered to purchase Fitbit for approximately $12.50 a share, a significant premium to the price of Fitbit stock at the time. Fitbit’s stock jumped when this filing was made public on EDGAR the following day: while Fitbit’s stock closed at approximately $8.55 a share on November 9, 2016, it reached a high of approximately $9.27 per share, with significantly increased trading volume, after the tender offer filing was made public. Fitbit, however, had not actually received a tender offer from ABM Capital, and MURRAY’s filing was entirely fictitious.
Moreover, MURRAY took significant steps to hide his connection to the tender offer filing. MURRAY used a different name, purporting to be an officer at ABM Capital. And he created a separate email account to register with the SEC and file the sham tender offer, taking care to disguise his actual IP address when accessing it. While logged into that email account, MURRAY visited websites explaining how to use the SEC’s EDGAR system and conducted internet searches for similar market-manipulation schemes. Indeed, just days before filing his own sham tender offer with the SEC, MURRAY accessed a Bloomberg article that detailed a similar fraudulent tender offer for stock in Avon Products, Inc. – conduct that led to charges being filed in this District in United States v. Nedko Nedev, 16 Cr. 093.
In order to profit from his scheme, MURRAY bought call options for Fitbit stock on or about November 9, 2016. When the sham tender offer become public the following day, MURRAY sold his options for a profit. The options that MURRAY purchased had strike prices near or above the market price of Fitbit stock when they were purchased, and had expiration dates of November 11, 2016, meaning that they were set to expire the day after MURRAY filed his sham tender offer.
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MURRAY is charged with one count of securities fraud and one count of wire fraud. Each of these charges carries a maximum term of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the exceptional work of the Office’s criminal investigators, and thanked the USPIS, the Securities and Exchange Commission, and the SEC office of Inspector General for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Virginia Beach Man Convicted of ID Theft and Bank FraudRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted Virginia Beach man last night of bank fraud and identity theft offenses.
According to court records and evidence presented at trial, Richard Huff, 53, agreed to cash auto loan checks that were fraudulently obtained in the names of stolen identities as part of a conspiracy to defraud Navy Federal Credit Union. When applying for the auto loans, Huff’s co-conspirators identified Huff as the seller of new and used Mercedes and BMWs that Huff did not own and was not authorized to sell. At the time the applications were made, the vehicles proffered as collateral for the loans were listed for sale at car dealerships located in Hampton and Newport News. In July 2016, Huff presented two fraudulent loan checks for cashing at Navy Federal Credit Union branches in Virginia Beach and Chesapeake. Huff used his cell phone to create video recordings of both transactions. On July 13, 2016, Huff successfully cashed a $40,000 check. Huff was arrested when he attempted to cash a $45,000 check on July 20, 2016.
The jury convicted Huff of conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Huff faces a mandatory minimum penalty of two years in prison to run consecutive to a maximum possible penalty of 30 years in prison when sentenced on October 25. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge Henry Coke Morgan, Jr., accepted the verdict. Assistant U.S. Attorneys Kaitlin C. Gratton and Howard J. Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-18.
Vermont Man Pleads Guilty to Escape ChargeRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Robert Rosploch, 34, formerly of Leicester, Vermont, pleaded guilty today to escape from federal custody.
According to court documents and statements made in court, on November 16, 2016, Rosploch escaped from a halfway house in Manchester, New Hampshire, by climbing out of a first-floor window. Within hours, Deputy U.S. Marshals located Rosploch on the streets of downtown Manchester, and took him into custody without incident. At the time of his escape, Rosploch was serving a sentence for a previous conviction in Vermont federal court for conspiring to distribute cocaine.
Rosploch is scheduled to be sentenced on August 24, 2017.
This matter was investigated by the U.S. Marshals Service, and the case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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United States Citizenship and Immigration Services Officer Charged with Accepting a BribeRead the Press Release
United States Citizenship and Immigration Services Officer Jovany Perez, 34, of Miami, Florida, was arrested on a criminal complaint charging him with receiving a bribe while a public official.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida and Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), made the announcement.
According to the allegations contained in the criminal complaint, on April 20, 2017, Perez interviewed a female alien beneficiary in his capacity as a United States Citizenship and Immigration Services (“USCIS”) officer. The interview related to the validity of the beneficiary’s marriage, which would have afforded her lawful permanent residency in the United States if found to be valid. During the interview, Officer Perez confronted the beneficiary with his belief that her marriage was fraudulent. Perez completed a written statement, purporting to be a confession by beneficiary that she had committed marriage fraud. He directed the beneficiary to sign the statement. The beneficiary signed the written statement and submitted it to Perez. At the conclusion of the interview, Perez provided the beneficiary with his contact information and told her that he could help her with her case, but that he could not do so at the USCIS office.
Later that same day, the beneficiary contacted Perez and they scheduled to meet later that day in the parking lot of a restaurant located in Miami-Dade County. During the meeting, while sitting with the beneficiary in his vehicle, Perez fondled the beneficiary’s breasts, asked her whether she was wearing a wire, and exposed his penis to her. Perez also explained to her that he was the ultimate decision maker in her case, and stated that the two could have a sexual encounter there in the vehicle. The beneficiary declined and the two agreed to meet on a later date.
On May 9, 2017, the beneficiary met with Perez and Perez informed her that he possessed her file, that he would remove her written statement from the file, and that he would replace it with another statement that he would help her draft. When the beneficiary asked Perez what she would have to do in exchange for his assistance, Perez stated that she could pay him money. The two agreed that the beneficiary would pay Perez $2,000.00 in exchange for his assistance.
May 17, 2017, Perez accepted $2,000.00 from the beneficiary, in return for his promise to remove the previously-written statement regarding the validity of her marriage and replace it with a statement to assist her permanent residency petition. Perez was arrested that same day.
Perez is scheduled to be arraigned on June 1, 2017 at 10:00 a.m. before the U.S. Magistrate Duty Judge in Miami.
Mr. Greenberg commends the investigative efforts of the DHS-OIG. This case is being prosecuted by Special Assistant United States Attorney Michele Vigilance and Assistant United States Attorney Jessica Kahn Obenauf.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney’s Office Presents over $1.8M Forfeited from Synthetic Drug Case to Fresno County Sheriff’s OfficeRead the Press Release
FRESNO, Calif. — The U.S. Attorney’s Office has distributed to the Fresno County Sheriff’s Office $1,813,575 of forfeited drug proceeds seized in connection with the investigation of a synthetic drug trafficking organization, U.S. Attorney Phillip A. Talbert announced.
On May 15, 2014, Victor Anthony Nottoli, 51, of Hillsborough, pleaded guilty to conspiring to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA. He also pleaded guilty to causing at least 24 tons of misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate commerce. In pleading guilty, Nottoli specifically agreed to forfeit more than $6.5 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a 2013 Ford F350 pickup truck and a 2014 Airstream travel trailer. He is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 26, 2018.
“The Asset Forfeiture Program literally takes the profits out of crime and distributes them fairly, effectively, and with tremendous benefit to the American people,” stated U.S. Attorney Talbert. “On behalf of the U.S. Department of Justice, I am pleased to return a portion of the forfeited funds in this case to the Fresno County Sheriff’s Office for their outstanding cooperation and investigative work in this synthetic marijuana trafficking case.”
Fresno County Sheriff Margaret Mims stated: “This case is a great example of the results that can be achieved when local and Federal law enforcement agencies partner to impact organized crime. The proceeds will be used in accordance with equitable sharing guidelines to combat illegal drug activity in our region.”
“Buyer beware,” said Michael T. Batdorf, Special Agent in Charge, IRS-CI. “Victor Nottoli sold harmful smokable synthetic cannabinoids throughout the country and profited tremendously from the illegal sales of these synthetic drugs. Working with our law enforcement partners we were able to dismantle this sizable drug organization and share the forfeited assets with several local agencies. We are honored that the Fresno County Sheriff’s Office can put this money to good use for their department.”
Drug Enforcement Administration Special Agent in Charge John J. Martin stated: “Strong partnerships build stronger communities. This investigation exemplifies how the Department of Justice’s equitable sharing program successfully takes the profit out of crime and benefits public safety. The proceeds seized from this criminal organization and distributed to law enforcement will help insure Fresno County is a safer place to live.”
“Local law enforcement partnerships are critical to achieving the overall public safety mission,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Today’s presentation is clear evidence of how our partnerships are impacting public safety around the country. Together, we will continue our unwavering commitment to keep Americans safe.”
According to court documents, between April 1, 2011, and June 26, 2013, Nottoli and his co-conspirators generated at least $33 million by manufacturing and distributing the SSC products, commonly known as K2 or spice, to distributors and retail outlets throughout the U.S. and from his six smoke shops in Fresno, Visalia and Bakersfield. The misbranded drugs were intended for human consumption and were fraudulently packaged as herbal incense or potpourri. They were sold without the labeling necessary to protect the user and required by law including: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings against use by children or where its use may be dangerous to health; warning against unsafe dosage; or methods or duration of administration or application.
These funds were made available through the U.S. Department of Treasury - Executive Office for Asset Forfeiture and the U.S. Department of Justice’s equitable sharing program.
The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Treasury Forfeiture Fund (TFF). The mission of the TFF is to affirmatively influence the consistent and strategic use of asset forfeiture by participating agencies to disrupt and dismantle criminal enterprises. TEOAF, through the provision of leadership, guidance, and stewardship, works to maximize the impact of forfeitures performed by the participating federal agencies.
The U.S. Department of Justice’s equitable sharing program is designed to enhance cooperation among federal, state, and local law enforcement agencies through the sharing of proceeds resulting from federal forfeitures. State and local law enforcement agencies generally receive equitable sharing revenues by participating directly with DOJ agencies in joint investigations leading to the seizure or forfeiture of property. The amount shared with state and local law enforcement agencies is based on the degree of the agencies’ participation in the case.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS-CI, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Office of Criminal Investigations of the Food and Drug Administration (FDA) and the Fresno County Sheriff’s Office, which initiated the case. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case and Assistant U.S. Attorney Jeffrey A. Spivak is handling the forfeiture of assets.
Two More Retailers Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Baltimore retailers ordered to pay over $7 million cumulatively for defrauding the Food Stamp Program
Baltimore, Maryland – In August 2016, a federal grand jury returned nine indictments charging 14 retail store operators in the greater Baltimore area with food stamp fraud and wire fraud in connection with obtaining over $16 million from the United States Department of Agriculture by illegally trading food stamp benefits for cash. Twelve of the fourteen charged defendants have pleaded guilty, and two defendants were sentenced this week to federal prison.
Today, U.S. District Judge Richard D. Bennett sentenced Mohammad Shafiq, age 51, of Baltimore, Maryland to 46 months in prison, followed by three years of supervised release. Judge Bennett ordered Shafiq to pay restitution in the amount of $3,712,353.00.
In a separate sentencing hearing held on May 18, 2017, Judge Bennett sentenced Mohammad Irfan, age 59, of Baltimore County, Maryland, to 51 months in prison, followed by three years of supervised release. Judge Bennett also ordered Irfan to pay restitution in the amount of $3,550,662.00.
The sentences were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
Although charged in separate and unrelated schemes, Shafiq and Irfan engaged in similar conduct to defraud the SNAP program.
According to two separate plea agreements, from October 2010 through at least July 2016, Shafiq, Irfan and co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. They typically paid half the value of the EBT benefits in cash. To avoid detection, they often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually.
Shafiq and Irfan owned and/or operated stores in the Baltimore area that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program and were aware that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Shafiq and his family members owned and operated four stores: Quick Stop Convenience Store, 237 N. Patterson Park Avenue; New York Food Mart, 1201 N. Patterson Park Avenue; and Barclay Food Mart, 2454 Barclay Street, all in Baltimore; and Shafiq Corporation, 6929 Holabird Avenue, in Dundalk, Maryland. From October 2010 through July 2016, Shafiq himself, and by and through his family members obtained more than $3.7 million in payments for food sales that never occurred or were substantially inflated.
Irfan and his family members also owned and/or operated four stores: New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. From October 2010 through August 2016, Irfan and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.
Two retail store operators have previously been sentenced to federal prison. On March 27, 2017, Muhammad Sarmad was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $3,550,662. On April 27, 2017, Shaheen Tasewar Hussain was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $778,183.00.
The defendants listed below have all pleaded guilty and are awaiting sentencing:
Walayat Khan, age 37, of Reisterstown, Maryland;
Barbara Ann Duke, age 51, of Owings Mills, Maryland;
Kelym Novas Perez, age 35, of Baltimore;
Jose Remedio Gonzalez Reyes, age 51, of Baltimore;
Mulazam Hussain, age 55, of Windsor Mill, Maryland;
Alia Shaheen, age 25, of Baltimore;
Mahmood Hussain Shah, age 58, of Catonsville, Maryland;
Muhammad Rafiq, age 32, of Reisterstown;
Rizwan Pervez, age 39, of Essex, Maryland; and
Kassem Mohammad Hafeed, a/k/a Kassam Mohammad Hafeed, age 51, Baltimore
Acting United States Attorney Stephen M. Schenning commended the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Rachel M. Yasser and Kathleen O. Gavin, who separately prosecuted Shafiq and Irfan.
Two Men Sentenced to Prison Terms for Killing of Man Following Fistfight in Southeast WashingtonRead the Press Release
WASHINGTON - Anthony Wade, 30, of Washington, D.C., and his uncle, Antwain Bailey, 47 of Temple Hills, Md., were sentenced to prison terms today for their roles in the killing of a man last year in Southeast Washington, U.S. Attorney Channing D. Phillips announced. Wade was sentenced to 20 years in prison and Bailey to a 13-year prison term.
Both men entered guilty pleas in January 2017, in the Superior Court of the District of Columbia. Wade pled guilty to second-degree murder while armed, and Bailey pled guilty to voluntary manslaughter while armed.
The pleas, which were contingent upon the Court’s approval, called for Wade to be sentenced to between 15 and 24 years in prison and for Bailey to be sentenced to 13 years. The Honorable Milton C. Lee accepted the pleas today and sentenced the defendants accordingly. Following their prison terms, the men will be placed on five years of supervised release. They also will be required to register as gun offenders.
According to the government’s evidence, in the late afternoon of March 9, 2016, Bailey had a verbal altercation with the victim, Aubrey Dansbury, in an apartment in the 800 block of Chesapeake Street SE. During the argument, Wade called his uncle, Bailey, and provided Bailey with his location. Wade then walked outside and Mr. Dansbury followed. Once outside, the two men began to fist fight. People from the neighborhood tried unsuccessfully to break up the fight.
As the fight continued, Bailey drove onto the block in a black Lexus sedan. Bailey parked the car and got out, and Wade ran over to him. When Mr. Dansbury and Wade began to fight again, Bailey intervened and walked Wade to the front of the car. Bailey then handed Wade a gun. Wade turned and began shooting at Mr. Dansbury, who was standing at the back of the Lexus. Wade fired the gun at least two times, but neither shot hit Mr. Dansbury. The gun jammed. Wade handed the gun to Bailey, who unjammed the weapon and handed it back. Wade then repeatedly fired the gun as he followed Mr. Dansbury around the car. Mr. Dansbury got inside of the back seat of the sedan to seek cover. Wade then shot Mr. Dansbury multiple times. Mr. Dansbury fell out of the car onto the sidewalk. Bailey got into the driver’s seat and Wade got into the back seat and the car pulled off. Mr. Dansbury, 27, died from the gunshot wounds on March 17, 2016.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Victim/Witness Advocate Diana Lim and Paralegal Specialist Lashone Samuels. Finally, he commended the work of Assistant U.S. Attorneys Adrienne Dedjinou, Matthew Massey and Allessandra Stewart, who investigated and prosecuted the case.
Two Essex County, New Jersey, Men Charged for Their Roles in $500,000 Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were arrested this morning and charged in connection with a scheme that allegedly caused losses of approximately $500,000 by deceiving victim banks into crediting certain customer accounts that could be fraudulently accessed by members of the conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Yaseen Salih, 19, of East Orange, New Jersey, and Chad Brown, 21, of Orange, New Jersey, are charged by complaint with one count of conspiracy to commit bank fraud. They appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court. Salih was released on $200,000 bond. Brown was detained.
According to the complaint:
From September 2015 through the present, Salih, Brown, and others conspired to fraudulently obtain money from two victim banks.
First, Salih, Brown and others obtained information pertaining to actual bank accounts belonging to customers of the two victim banks, including the customers’ bank account numbers and their personal identification numbers. In some instances, the conspirators obtained debit cards associated with the accounts or Salih and Brown personally requested access from the account owners.
Afterwards, a member of the conspiracy called a teller at the victim bank. After deceiving the teller into believing that the caller was an employee of the victim bank, the caller convinced the teller to credit funds into the above customer accounts.
Once the funds were credited into the customer accounts, members of the conspiracy used debit cards associated with the accounts to obtain the fraudulently credited funds, either by withdrawing the funds directly from ATM machines at branch locations of the victim banks, or by purchasing postal money orders.
To date, the losses associated with the conspiracy exceed approximately $500,000.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Salih: Hassen Ibn Abdellah Esq.
Brown: Perry Primavera Esq.
Toledo men charged after DEA seizes six kilograms of heroinRead the Press Release
Two Toledo men were criminally charged after DEA agents arrested them for distributing six kilograms of heroin.
Ricardo Rivera, 40, was arrested after DEA agents observed him take a black duffel bag from 1443 Western Avenue in Toledo and place it in the trunk of a vehicle. That car was stopped in North Baltimore, Ohio, and found to have six kilograms of heroin.
Rivera was charged with felonious assault in March 2017 following a shooting. The day of the drug transaction, Rivera was traveling with a security detail. One of the bodyguards wore a vest with the insignia and name “Omens,” a motorcycle gang from Detroit, according to an affidavit filed in the case.
Rivera was charged in federal court with distribution of heroin.
Andres Mendez, 25, was charged in state court for his role in the sale and transportation of the heroin.
“We will continue to aggressively prosecute those who traffic the heroin and opioids that have killed so many of our neighbors and relatives,” said Acting U.S. Attorney David A. Sierleja. “Only through enforcement, combined with education and prevention efforts, can we hope to turn the tide on this epidemic.”
“This investigation demonstrates that the disruption of heroin trafficking and putting the brakes on the current opioid epidemic is DEA’s top priority,” said DEA Special Agent in Charge Timothy J. Plancon. “The seizure of six kilograms of heroin in Toledo is significant, and not only puts a dent into heroin trafficking in the community, but also illustrates that DEA and our partners in law enforcement are working hard to slow the supply of this deadly drug into the region.”
This case is being prosecuted by Assistant U.S. Attorney Michael Freeman following an investigation by the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three charged federally in Amazon fraud schemeRead the Press Release
Alleged to have stolen and sold over $1.2 million in consumer electronics
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that three individuals were charged this week in connection with an alleged scheme to defraud online retailer Amazon of hundreds of consumer electronics items and sell them on the black market. Erin Finan, 37, and Leah Finan, 37, husband and wife from the Muncie-Anderson area, agreed to plead guilty to federal mail fraud and money laundering charges. Danijel Glumac, 28, of Indianapolis, was charged in a grand jury indictment with interstate transportation of stolen property and money laundering.
“Consumer fraud is absorbed by all of us through higher retail prices,” said Minkler. “Buying and selling black market items across state lines is against federal law and those who choose to ignore that will be held accountable.”
According to court documents, the Finans defrauded Amazon by falsely claiming that the electronics they ordered were damaged or not working, and then requesting and receiving replacements from Amazon at no charge. Amazon’s customer service policy allows, under certain circumstances, customers to receive a replacement before they return a broken item. Amazon closely monitors customers’ accounts and orders for possible fraudulent activity. The Finans allegedly went to great lengths to conceal their fraud, creating hundreds of false online identities to perpetrate the scheme. Eventually, however, Amazon and federal law enforcement caught up with them. In total, the Finans allegedly stole over $1.2 million in consumer electronics from Amazon, including GoPro digital cameras, Microsoft Xboxes, Samsung smartwatches, and Microsoft Surface tablets.
The charges further alleged that Glumac fenced the Finans’ stolen goods to an entity in New York. The Finans allegedly sold the stolen electronics out of their van to Glumac at a price substantially below their retail value. Glumac then marked them up and sold and shipped them to the New York entity, which in turn sold them to the public. Glumac also allegedly advised the Finans on how to evade detection by Amazon.
Finally, the charges alleged that Glumac laundered the proceeds from his sales of the stolen electronics through bank accounts associated with his clothing business before paying the Finans their cut. In total, Glumac allegedly received over $1.2 million from the New York entity, of which he paid approximately $725,000 to the Finans.
This case was investigated by the Internal Revenue Service, the United States Postal Inspection Service, and the Indiana State Police.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that the charges carry maximum sentences of between 10 and 20 years in prison and fines of between $250,000 and $500,000.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Three Albuquerque Residents Charged with Operating Sex Trafficking OrganizationRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department announced the indictment of three residents of Albuquerque, N.M., on commercial sex trafficking offenses.
The indictment charges Cornelius Galloway, 34, Danielle Galloway, 43, and Matthew Woods, 28, with conspiracy, commercial sex trafficking and commercial sex trafficking of a minor. Cornelius Galloway and Danielle Galloway were arrested on May 17, 2017. Danielle Galloway made her initial appearance yesterday and was arraigned on the indictment this morning, entering a not guilty plea. Danielle Galloway was ordered detained pending trial during this morning’s proceedings. Cornelius Galloway made his initial appearance this morning in federal court and remains detained pending arraignment and detention hearings scheduled for May 22, 2017. Woods is in state custody on unrelated state charges; he will be transferred to federal custody for an arraignment hearing scheduled on May 30, 2017.
The four-count indictment charges the Galloways and Woods with participating in a conspiracy to engage in commercial sex trafficking by using force, threats, fraud and coercion. It also charges the three defendants with commercial sex trafficking and commercial sex trafficking of a minor. Woods also is charged with attempting to recruit a victim to engage in a commercial sex act. The Galloways and Woods allegedly committed the crimes charged in Bernalillo County, N.M., between Oct. 2016 and May 2017.
According to the indictment, the three defendants were members of a criminal sex trafficking organization allegedly led by Cornelius Galloway. The indictment alleges that Cornelius Galloway and Danielle Galloway promoted the organization’s commercial sex services by advertising on various websites between Oct. 2016 and May 2017. The indictment further alleges that the defendants forced a victim to engage in commercial sex acts from Oct. 2016 to Nov. 2016, and employed a minor victim to work as a prostitute for a two-week period in March and April 2017, for the financial benefit of the organization.
The indictment also alleges that members of the conspiracy murdered two individuals to further the objectives of the criminal sex trafficking organization. According to the indictment, two members of the conspiracy, identified as John Doe 1 and John Doe 2, murdered a victim, identified as D.Y., on Jan. 15, 2017. John Doe 1 also allegedly murdered a second victim, identified as T.S. on that same day. The victims allegedly were murdered at the direction of Cornelius Galloway because their activities were contrary to the objectives of the criminal sex trafficking organization.
If convicted of the crimes charged in the indictment, Cornelius Galloway, Danielle Galloway and Woods each face a statutory mandatory minimum penalty of 15 years and a maximum penalty of life in prison. Charges in indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Texas Man Sentenced to 353 Months in Prison for Federal Drug and Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Silvano Zaragoza-Ambriz, 31, of McAllen, Texas, was sentenced today to 353 months in prison after pleading guilty in August 2016 to armed drug trafficking and conspiracy to distribute heroin, methamphetamine, and cocaine. Co-defendant Kyle James Corbi, 32, of Milton, Florida, pled guilty to conspiracy and was sentenced in October 2016 to 180 months in prison. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In 2014, law enforcement officers discovered 19 firearms, a grenade, and 8 kilograms of methamphetamine on the Texas/Mexico border. One of these firearms was connected with Corbi in Milton, Florida. In May 2016, agents arrested Zaragoza-Ambriz in Texas, and a search of his residence revealed approximately 45 kilograms of cocaine. Officers determined that Zaragoza-Ambriz had been providing Corbi with large quantities of heroin, methamphetamine, and cocaine, and that Corbi had paid for the illegal drugs with firearms.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Edwin F. Knight prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tampa Man Pleads Guilty in Scheme to Sell Nearly $300,000 in Stolen Federal Tax Refund ChecksRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that Xavier Williams (48, Tampa) today pleaded guilty to receipt of stolen government property and aggravated identity theft. He faces a maximum penalty of 12 years in federal prison.
According to the plea agreement, Williams obtained a number of federal tax refund checks belonging to taxpayers who were victims of identity theft. He then sold or attempted to sell the checks to others. The checks, issued by the U.S. Department of Treasury, ranged in amounts from $4,000 to over $128,000, with an aggregate value of over $297,000.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Stockton Woman Sentenced to 5 Years in Prison for Aiding and Abetting Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jolene Davis, 41, of Stockton, was sentenced today to five years in prison for her role in the sexual exploitation of a child of whom she had custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on August 13, 2011, Davis met with co-defendant Jason S. Wymer, 45, of Citrus Heights, and permitted him to sexually exploit a child for whom she was caring. Wymer photographed that act.
Wymer pleaded guilty to this conduct and also admitted to a separate instance of sexual exploitation of a four-year-old child with co‑defendant Stormy M. Avers, 37, of Placerville. On July 29, 2016, Wymer was sentenced to 30 years in prison for sexual exploitation of minors. On June 24, 2016, Avers was sentenced to 20 years in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
State Prisoner Sentenced to 129 Months in Federal Prison for Tax Fraud ConspiracyRead the Press Release
LEXINGTON, Ky. – A prisoner in eastern Kentucky has been sentenced to 129 months after pleading guilty to conspiring to submit false tax returns using the names of other prisoners.
U.S. District Judge Danny C. Reeves sentenced William Helton, 37, of Mt. Sterling, Ky., for conspiracy to commit mail and wire fraud, and aggravated identity theft. Judge Reeves also ordered
Helton to pay $96,522 in restitution, plus interest. Under federal law, Helton must serve at least
85 percent of his prison sentence, and upon his release, he will serve three years of supervised release.In his plea agreement, Helton admitted that while he was a state prisoner, he and a co- conspirator outside of prison, Jason Tyre, met and corresponded through a prison pen-pal program and developed a conspiracy in which they and other co-conspirators submitted numerous false tax returns, using other people’s personal information to fraudulently obtain money from tax refunds.
Helton also admitted that the overall conspiracy amounted to $390,000 of false tax refund claims over four years.
Helton acknowledged that he obtained other prisoners’ personal information, without their knowledge, such as social security numbers and provided that information in a letter to Tyre.
Then at Helton’s direction, Tyre filled out tax forms using the names and personal information of other prisoners. Tyre made false claims on the tax forms regarding items such as, filing status, income, employment, and number of dependents, in order to maximize the refund amount.
Helton further admitted that he directed Tyre to open bank accounts in Tyre’s name to hold the money from the fraudulent tax refunds and to wire the money to other co-conspirators once he received the tax refunds.
Helton was in state prison for convictions related to burglary, theft and drugs.
Tyre is scheduled for sentencing on May 26.
Carlton Shier, IV, Acting U.S. Attorney; Tommy Coke, Inspector in Charge, Pittsburgh Division, U.S.
Postal Inspection Service, and Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service
Criminal Investigation, jointly made the announcement.The investigation was conducted by the United States Postal Inspection Service and the IRS.
Assistant U.S. Attorney Neeraj Gupta prosecuted this case on behalf of the federal government.Sex Offender Who Failed to Register Sentenced to over 6 Years in PrisonRead the Press Release
BATON ROUGE, LA –Acting United States Attorney Corey Amundson announced today that Bryant Emerson Freeman, age 40, of Grants Pass, Oregon, was sentenced by U.S. District Judge Shelly D. Dick to a total of 73 months in federal prison as a result of failing to update his registration as a sex offender and violating the terms of his supervised release.
In April 2016, FREEMAN absconded from a federal halfway house in Baton Rouge. Three months later, he was caught in Seattle, Washington. FREEMAN, a convicted rapist, was required to report to authorities every three months and update his sex offender registration. FREEMAN failed to adhere to these requirements after fleeing the halfway house, resulting in the instant prosecution and sentence. While granting the government’s request for a severe sentence, the Court noted that FREEMAN had a pattern of failing to comply with sex registration laws and risked being a recidivist.
Acting U.S. Attorney Amundson stated: “Requiring sex offenders to register is critical to protecting our community, especially our children, from those who may pose a heightened threat. Sex offenders who fail to abide by such registration requirements face severe consequences, as illustrated by today’s sentence. I greatly appreciate the commitment of the U.S. Marshal’s Service and the prosecutors in my office in pursuing these offenders.”
Acting United States Marshal Randy Breckwoldt stated: “The investigation and apprehension of sex offenders is a top priority in this District. The Marshal’s Service will continue to work tirelessly to bring to justice any sex offender who fails to register.”
This matter was prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by the United States Marshal’s Service.
Seven Venezuelan Men Arrested for Conspiracy to Possess Controlled Substances on Board a VesselRead the Press Release
St. Croix, USVI – Felix Gomez, 37; Roman Jose Aguilera Gig, 37; Jesus Garcia, 34; Rosauro Morao, 47; Manuel Rodriguez, 51; Juan Rodriguez, 25,; and Jhoan Gomez, 28, all of Venezuela, made their initial appearances today before U.S. Magistrate Judge George W. Cannon, Jr., after being charged in a complaint with conspiracy to possess controlled substance on board a vessel, and possession of controlled substances on board a vessel, Acting United States Attorney Joycelyn Hewlett announced. A detention hearing is scheduled for May 23, 2017.
According to court records, during the afternoon of May 8, 2017, a suspicious go-fast vessel was detected by a maritime patrol aircraft in international waters off Martinique. The Coast Guard out of San Juan interdicted the go-fast, detained the seven men onboard and seized multiple bales, which tested positive for marijuana. The Coast Guard transported the seven men and approximately 573 pounds of marijuana to St. Croix on Thursday, May 11, 2017.
If convicted of conspiracy to possess controlled substances and possession of controlled substances on board a vessel, each defendant faces a maximum sentence of 15 years in prison and a $250,000 fine.
The interdiction was the result of ongoing, multi-agency and international law enforcement efforts in support of Operation Unified Resolve and Operation Caribbean Guard. The case is being investigated by the U.S. Drug Enforcement Administration and the United States Coast Guard. It is being prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Acting United States Attorney Hewlett reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Seven Individuals Associated with Armed Robbery Conspiracy Sentenced to Prison Final Defendant Receives 138 Year Prison TermRead the Press Release
The last of seven individuals associated with a string of violent armed robberies in Miami-Dade County has been sentenced to over 138 years in prison.
Benjamin C. Greenberg, Acting United States Attorney for the Southern District of Florida, Pete J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), Daniel Junior, Interim Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.
Seven defendants were charged and convicted for their roles in a violent armed robbery conspiracy that began operating in Miami-Dade County, as early as 2006. Andrew Nelson, 24, of Miami, was the final defendant to be sentenced, after having been convicted at trial, in January of 2017, of one count of participating in a Hobbs Act robbery conspiracy, six counts of Hobbs Act robbery, and six counts of brandishing a firearm during a crime of violence (Case No. 16-CR-20119). On May 16, 2017, United States District Court Judge Donald M. Middlebrooks sentenced Nelson to 1,662 months in prison.
According to evidence presented at trial, starting in 2006, members of the conspiracy began committing armed robberies of civilians, businesses, a bank, and illegal enterprises, including narcotics traffickers in Miami-Dade County. As part of the robbery conspiracy, Nelson and his co-conspirators would shoot at victims and sell the narcotics they stole from other drug dealers. After their arrest, members of the conspiracy used jailhouse telephone calls to communicate with their conspirators about planning crimes, collecting debts, and attempting to obstruct justice by planning to attack state prosecution witnesses.
Six co-conspirators were sentenced to varying prison terms following their guilty pleas to associated criminal offenses, including unlawful firearms possession. Steven Stafford, 18, of Miami, was sentenced to 20 years; Anthony Stuckey, 19, of Miami, was sentenced to 32 years; Jarvis Robinson, 25, of Miami, was sentenced to 32 years; Leon Pearson, 27, of Miami, was sentenced to 36 months, and Terril Kinchen, 25, of Miami, was sentenced to 35 years, in prison (Case No. 16-CR-20119). Torrence Lawton, 19, of Miami, was charged in a separate indictment (Case No. 15-CR-20783) and plead guilty to using a firearm in furtherance of two armed robberies, which he committed with members of the conspiracy. Lawton was sentenced to 35 years in prison.
Mr. Greenberg commended the collaborative investigative efforts of the ATF Miami Field Office/MDPD Street Terror Offender Program, FBI Miami Field Office, MDPD’s Robbery Bureau, MDCR’s Security Threat Group Unit, and the MPD Robbery Unit. These cases were prosecuted by Assistant United States Attorneys Ignacio J. Vazquez, Jr., Brian Dobbins and Cary Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sentencings for May 12, 2017Read the Press Release
Esteban Cova-Rodriguez, 45, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Cova-Rodriguez was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Moises Daniel Machuca-Salmoran, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Machuca-Salmoran was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Luis Rosales-Nicolas, 47, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Rosales-Nicolas was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edgardo Gaona-Labra, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Gaona-Labra was arrested in Lander, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Sacramento Man Sentenced to 10 Years in Prison for Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — Zargham Bukhari, 22, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to 10 years in prison for sex trafficking a minor, United States Attorney Phillip A. Talbert announced.
According to court documents, between February and April of 2014, Bukhari transported a 14-year-old victim to various motels and other locations in and around Sacramento to have sex with men for money. Bukhari would then take the money from the victim. Bukhari also gave the victim methamphetamine while he trafficked her.
This case was the product of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department. Assistant U.S. Attorney Michele Beckwith is prosecuted case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rapid City Man Sentenced for Illegally Possessing Body ArmorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Body Armor by a Violent Felon was sentenced on May 18, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric William Ladeaux, age 30, was sentenced to 20 months of imprisonment, followed by 1 year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ladeaux was charged on October 20, 2015, and pleaded guilty on January 6, 2017.
The conviction stems from Ladeaux leading law enforcement on a high-speed chase and, after his arrest, was found to be wearing a ballistic vest. As a previously convicted felon, it is illegal for Ladeaux to possess body armor.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Ladeaux was immediately turned over to the custody of the U.S. Marshals Service.
Ramapo Town Supervisor, Christopher St. Lawrence, Found Guilty After Trial of Conspiracy, Securities Fraud, and Wirefraud in Municipal Bond Securities Fraud CaseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found former Ramapo Town Supervisor Christopher St. Lawrence guilty of 20 counts of conspiracy, securities fraud, and wire fraud in connection with municipal bonds issued by the Town of Ramapo (the “Town”) and the Ramapo Local Development Corporation (“RLDC”). St. Lawrence was acquitted of one count of securities fraud and one count of wire fraud. Today's verdict, which came after a four-week trial in federal court in White Plains, marks the first conviction for securities fraud in connection with municipal bonds.
Acting U.S. Attorney Kim said: “As the jury found today after trial, Christopher St. Lawrence lied repeatedly to the investing public about the state of Ramapo’s finances. The integrity of the $3.7 trillion municipal bond market is of critical importance to both investors and municipalities that rely on this market. The verdict today in a case of public corruption meets securities fraud, stands as a victory for both honest government and fair financial markets.”
According to the allegations contained in the Indictment and the evidence presented in court during the trial:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo.
While the fraud predated the construction of the stadium, the Town's financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town's guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and St. Lawrence’s public statements that no public money would be used to pay for the stadium.
The Indictment charged that St. Lawrence lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its own money. St. Lawrence lied to investors primarily by making up false assets in the Town’s General Fund.
The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the fund’s balance. The fund balance is a cushion that can be spent during difficult financial times. The size of the fund balance relative to the amount of the fund’s revenue and trends in a town’s General Fund balance over time are the primary indicators of the town’s financial health.
According to the Indictment and the evidence, St. Lawrence lied to the RLDC’s bond rating service in January 2013 when he told them in a telephone call that the 2012 fund balance would remain unchanged from the 2011 balance. Immediately after that call ended, St. Lawrence told Town employees “to do [an upcoming] refinancing of the short term debt as fast as possible because . . . we’re going to have to all be magicians to get to some of those numbers.”
When the RLDC issued $25 million in bonds to build the stadium building itself in 2011, St. Lawrence inflated the size of the Town’s General Fund by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have negative in that year.
In addition, St. Lawrence inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. It first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land turned out to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books - and reduce the size of the General Fund balance by $3.08 million, thereby pushing it into negative territory - St. Lawrence claimed the receivable had to do with the RLDC’s purchase of another property from the Town, which had already taken place. To keep it on the books, St. Lawrence then caused the Town Attorney to tell the Town’s auditors over a period of years that the receivable would be paid back within a year, which was required if the receivable was going to stay in the General Fund. Without this fake receivable alone, the Town’s General Fund balance would have been negative for years.
In May 2013, the FBI searched Town Hall in connection with this investigation. Less than 10 days later, St. Lawrence inflated another receivable in the General Fund - this one for money from the Federal Emergency Management Agency (“FEMA”) to reimburse the Town for expenses from Hurricanes Irene and Sandy. St. Lawrence claimed that the Town was going to receive $3.145 million from FEMA when the Town hadn’t even submitted those claims to FEMA yet. Without St. Lawrence’s inflation of this receivable alone, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
Finally, the Indictment alleged and the evidence showed that St. Lawrence told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments from money it borrowed from the bank or money it got from the Town.
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ST. LAWRENCE, 65, of Wesley Hills, New York, was found guilty of 11 counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; eight counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FBI and the Rockland County District Attorney's Office. Mr. Kim also thanked the Securities & Exchange Commission for its substantial assistance in the investigation and trial.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon, Stephen Ritchin and Daniel Loss are in charge of the prosecution.
Oglala Tribal Member Pleads Guilty to Involuntary ManslaughterRead the Press Release
POCATELLO – Ruben Wounded Head, III, 19, of Chubbuck, Idaho, pleaded guilty today to two counts of involuntary manslaughter resulting from a drunk driving crash, Acting U.S. Attorney Rafael Gonzalez, announced. Wounded Head was indicted in March 2016 by a federal grand jury in Pocatello.
According to the plea agreement, on November 13, 2015, Wounded Head drove with friends to buy alcohol, and his friends left the store with two bottles of Bacardi rum and went to an area on the Fort Hall reservation known as Ferry Butte. There, Wounded Head drank one bottle of rum. Wounded Head then drove his friends back to a residence on the reservation and then proceeded to drive home. At approximately 2:50 a.m., at the intersection of Hawthorne Road and Cemetery Road, Wounded Head’s 2005 Chevrolet Avalanche crossed the centerline and crashed head-on into a Chevrolet Tahoe, killing both occupants of the Tahoe. Wounded Head’s Avalanche was traveling between 59 – 61 miles per hour at the time of crash. The posted speed limit in the area is 45 miles per hour.
The charge of involuntary manslaughter is punishable by up to eight years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be August 2, 2017, before Chief U.S. District B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Tribal Police.
North Carolina Sex Offender Pleads Guilty to Failing to Register in New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Curtis D. Solomon, 33, recently of Rochester, NY, pleaded guilty to failing to register as a sex offender, before Chief U.S. District Judge Frank P. Geraci. The charge carries maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Solomon was convicted in 2005 in North Carolina of soliciting a sex offense in the first degree. As a result, the defendant was required by the Sex Offender Registration and Notification Act to register and to update his registration if he moved to another state. Following his release from prison in North Carolina, Solomon moved to Rochester sometime in 2016 but failed to register in New York State. The defendant also failed to notify the authorities in North Carolina of his move. Solomon lived in the Rochester community until March 6, 2017, when he was arrested.
The plea is the result of an investigation by the United States Marshals Service, under the direction of United States Marshal Charles Salina.
Sentencing is scheduled for August 15, 2017, at 9:30 a.m., before Judge Geraci.
New Haven Man Charged with Distributing Heroin and Fentanyl Involved in Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DEVELL CONLEY, 31, of New Haven, was arrested yesterday and charged in a criminal complaint with distributing heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
CONLEY appeared yesterday before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on May 5, 2017, the East Haven Police Department responded to a report of an untimely death of a 27-year-old female at a residence in East Haven. At the scene, officers seized drug and non-drug evidence, including three small bags that contained a substance that field-tested positive for the presence of fentanyl. Investigators also seized the victim’s cellphone. The investigation revealed that CONLEY had provided drugs to the victim shortly before her death.
The complaint charges CONLEY with possession with intent to distribute, and distribution of heroin and fentanyl, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the East Haven, New Haven and West Haven Police Departments. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Patrick Caruso.
Nationwide Identity Theft and IRS Tax Fraud Scheme Results in Federal Prison SentencesRead the Press Release
MEDFORD, Ore. – On Thursday, May 18, 2017, United States District Court Judge Ann Aiken sentenced Oluwatobi Reuben Dehinbo, 32, and Oluwaseunara Temitope Osanyinbi, 36, both from Nigeria and the Atlanta area, to federal prison for conspiracy to commit wire and mail fraud, aggravated identity theft, wire fraud and mail fraud. Dehinbo was sentenced to 108 months and Osanyinbi was sentenced to 72 months. Both defendants are subject to a two-year mandatory minimum for possessing or using a victim’s identity to commit a fraud. Dehinbo and Osanyinbi were ordered to pay $2.7 million and $876,161 in restitution respectively. Having been convicted of aggravated felonies, both defendants will be subject to deportation upon completion of their prison sentences.
The Nature of the Conspiracy
According to court documents, in May 2013, a Medford victim notified the Internal Revenue Service (IRS) that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth. The federal refund was deposited into an account via a prepaid debit card in a suburb of Chicago while the state refund was directed to a bank account in Texas.
An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendants and other co-conspirators to further their fraudulent scheme. At a Chicago residence, agents seized approximately 150 prepaid debit cards and $50,000 in money orders. Agents learned that the Chicago co-conspirator was connected to an identity-theft scheme being run out of Lagos, Nigeria since at least 2011. In Maryland and Georgia, the IRS seized more than 50 electronic devices, 40 money orders in amounts exceeding $29,000, $14,000 in cash and numerous Greendot prepaid debt cards containing over $12,000 in fraudulent tax refunds. Agents arrested Dehinbo and Osanyinbi while conducting searches in Georgia.
The IRS investigation revealed that the co-conspirators possessed stolen PII from more than 250,000 victims. This included identities from an Oregon company’s database stolen and sold to the co-conspirators by sources in Vietnam. For tax years 2012, 2013, and 2014, the co-conspirators used the information to file nearly 5,500 false federal tax returns seeking over $48 million in fraudulent federal refunds. Actual losses exceeded $12 million.
In carrying out their scheme, the co-conspirators used the stolen PII to acquire electronic filing PINs from the IRS in the taxpayers’ names and use them to bypass IRS authentication procedures. They also obtained and used pre-paid debit cards with the victims’ stolen identities to receive direct electronic tax refund deposits. Those refunds were withdrawn from the debit cards and at least 2,000 wire transfers totaling over $2.1 million were sent to Nigeria.
In 2014, the co-conspirators gained access to the IRS "Get Transcript" system where they obtained sensitive taxpayer information and used it to file additional fraudulent returns. In 2015, as a result of these and other security breaches, the IRS discontinued the "Get Transcript" program nationwide.
Osanyinbi’s Role in the Conspiracy
Osanyinbi came to the United States in 2013 on a student visa. Within months, he filed fraudulent tax returns and committed marriage fraud by paying a woman $4,500 to marry him so that he could obtain lawful permanent resident status. He possessed over 35,000 stolen identities in his email and instant messenger accounts, including over 18,500 victims from the database stolen in Oregon. 5,500 of these identities were Oregon residents. Osanyinbi also had more than 190 IRS E-File PINs and 89 routing and account numbers from accounts listed on the fraudulent returns. He was linked to the filing of 251 fraudulent federal tax returns and the wiring of $430,000 to Nigeria. IRS agents seized over $11,000 in money orders from Osanyinbi’s home in Georgia. Before coming to the United States, Osanyinbi was involved in soliciting stolen PII, obtaining and passing stolen credit card information that included victims’ names, addresses and card numbers from the United States and engaging in online scams.
Dehinbo’s Role in the Conspiracy
Dehinbo came to the United States in 2012 on a visa. Beginning in 2013, he began filing fraudulent tax returns and continued until his arrest in May 2015. In addition, he instructed others how to obtain unique E-File PINs; access taxpayer information via the Internet; obtain debit cards in victims’ names and use them to collect fraudulent tax refunds; check the status of an IRS refund; transfer fraudulent refunds off of debit cards and dispose of the funds through wire services. Dehinbo was linked to 419 separate wire transfers totaling $398,297. He possessed over 46,000 stolen identities in his email and instant messenger accounts. These identities included 13,725 from the database stolen in Oregon, 6,270 of whom were Oregon residents. He also possessed more than 3,350 unique IRS E-File PINs and over 600 debit cards. Dehinbo was ultimately linked to the filing of 1,344 fraudulent federal tax returns. Before coming to the United States, he was also involved in locating hackers to obtain stolen credit card information, used and provided credit card information and victim PII to others and engaged in online romance scams posing as a Swedish woman working for UNICEF in Nigeria.
This case results from a joint investigation by IRS-Criminal Investigation (IRS CI), the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration (TIGTA); the U.S. Postal Inspection Service (USPIS); the U.S. Department of State; the U.S. Department of Homeland Security, Homeland Security Investigations (DHS HSI); U.S. Citizenship and Immigration Services (USCIS) and the Atlanta Police Department. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.
Mount Vernon Man Sentenced to 15 Years in Prison for Possession and Distribution of Images of Child RapeRead the Press Release
A 32-year-old Mount Vernon, Washington man was sentenced today in U.S. District Court in Seattle to 15 years in prison for possession and distribution of child pornography, announced U.S. Attorney Annette L. Hayes. ERIC BONGIORNI was arrested in March 2016, when a court authorized search warrant revealed he had numerous images and videos of child sexual abuse on his electronic devices. BONGIORNI pleaded guilty in February 2017. At sentencing, U.S. District Judge Robert S. Lasnik also imposed a lifetime period of supervised release.
According to records filed in the case, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was working online in an undercover capacity when he downloaded images of child pornography being shared over a peer-to-peer file sharing network. The investigation linked the images to an internet protocol address (IP address) belonging to BONGIORNI. The law enforcement investigation revealed BONGIORNI is a registered sex offender, with a 2009 conviction in Skagit County Superior Court for three counts of child molestation.
In his plea agreement, BONGIORNI admits he collected child pornography since 2003. One device seized at his home contained 436 images and 267 videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Mother Sentenced to 26 Months in Prison for Taking Child from Illinois to Canada in International Parental Kidnapping CaseRead the Press Release
WASHINGTON – A Canadian woman was sentenced to serve 26 months in prison following her December conviction for international parental kidnapping, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Sarah M. Nixon, 48, of Montreal, Canada, was sentenced before U.S. District Judge Colin S. Bruce of the Central District of Illinois. On Dec. 21, 2016, a federal jury found Nixon guilty of one count of international parental kidnapping for taking her minor child from the United States to Canada in July 2015, with the intent to obstruct the lawful exercise of the father’s rights.
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night. When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert. Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada. Authorities then returned the child to the father. Nixon was arrested in New York on Sept. 20, 2015 as she attempted to return to the United States.
Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Criminal Division’s Office of International Affairs.
Mother Sentenced to 26 Months in Prison for Taking Child from Illinois to Canada in International Parental Kidnapping CaseRead the Press Release
A Canadian woman was sentenced to serve 26 months in prison following her December conviction for international parental kidnapping, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Sarah M. Nixon, 48, of Montreal, Canada, was sentenced before U.S. District Judge Colin S. Bruce of the Central District of Illinois. On Dec. 21, 2016, a federal jury found Nixon guilty of one count of international parental kidnapping for taking her minor child from the United States to Canada in July 2015, with the intent to obstruct the lawful exercise of the father’s rights.
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night. When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert. Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada. Authorities then returned the child to the father. Nixon was arrested in New York on Sept. 20, 2015, as she attempted to return to the United States.
Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Criminal Division’s Office of International Affairs.
Mission Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 16, 2017, by U.S. District Judge Roberto A. Lange.
Justin H. Black Moon, age 27, was sentenced to 18 months in prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Moon was indicted by a federal grand jury on November 9, 2016. He pled guilty on February 21, 2017.
The conviction stems from an incident that occurred on October 15, 2016, wherein Black Moon was confronted by a man at a public event in Rosebud, South Dakota. Black Moon assaulted and repeatedly struck the man, causing nasal and orbital bone fractures, which required hospitalization.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Black Moon was immediately turned over to the custody of the U.S. Marshals Service.
Medical Resident Pleads Guilty to Fraudulently Obtaining Prescription Opioid Pain MedicationsRead the Press Release
St. Louis, MO – Kyle Betts pled guilty today to fraudulently obtaining pain relief drugs, including Percocet® and Norco®, by writing over seventy false prescriptions.
According to the plea agreement, during November 2014 through February 2016, Betts was a medical resident associated with a medical school that was located in the City of St. Louis, Missouri. Betts wrote the opioid prescriptions using the names of six separate persons, although he did not have a physician- patient relationship with any of them. Betts used the names of his family members for some of the prescriptions, and the names of persons with whom he had romantic relationships for other prescriptions. For some of these prescriptions, Betts went to the pharmacy and personally presented prescriptions for drugs using other peoples’ names. The Medicare and Illinois Medicaid programs funded some of the drugs obtained under these false prescriptions.
Betts pled guilty to one felony count of obtaining prescription drugs that contained controlled substances through misrepresentation, fraud, forgery, deception, and subterfuge before United States District Judge Catherine Perry. Sentencing has been set for August 17, 2017.
This charge carries a maximum penalty of four years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
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Mason City Man Pleads Guilty to Possession of Child PornographyRead the Press Release
A man who possessed child pornography pled guilty today in federal court in Cedar Rapids.
Jeffery Landheer, age 46, from Mason City, Iowa, was convicted of one count of possession of child pornography. At the plea hearing, Landheer admitted that, between 2009 and 2016, he knowingly possessed child pornography on a computer hard drive.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Landheer was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Landheer faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-3011.
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Married Couple Plead Guilty to Participating in Fraud that Targeted Elderly Victims Throughout the United StatesRead the Press Release
Two more people, a married couple, who participated in a scheme to defraud victims across the United States have pled guilty in federal court in Cedar Rapids.
Michael Marcov, age 26, and Stephanie Marcov, age 27, from Hazel Green, Wisconsin, pled guilty today and were each convicted of one count of wire fraud.
At their plea hearings and in written plea agreements, the Marcovs admitted they participated in a scheme to defraud people throughout the United States and that the fraud was primarily targeted towards the elderly. They admitted that while they never made calls to victims, other individuals involved in the scheme called victims on the phone and told these victims that a relative was in jail. The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released. They further admitted that the money was being wired to various participants in the fraud who would pick up the wire transfers. Both Marcovs admitted that they were participants in and around Dubuque who received wire transfers from the victims and also sent the proceeds of the fraud via wire transfer to other participants of the scheme often located in the Dominican Republic.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Michael Marcov remains in custody of the United States Marshal pending sentencing. Stephanie Marcov remains remains free on bond previously set. Each faces a possible maximum sentence of 20 years’ imprisonment, a fine, and 3 years of supervised release following any imprisonment.
Two other people have previously pled guilty to their role in the scheme. On March 2, 2017, Shawn Vaassen pled guilty and admitted that he too was picking up wire transfers sent to the Dubuque area by victims of the scheme. At the same plea hearing, Vaassen also pled guilty to unlawfully possessing a sawed off shotgun. On May 9, 2017, Carlos Rodriguez pled guilty and admitted that he was also picking up wire transfers sent to the Dubuque area by victims.
The cases are being prosecuted by Assistant United States Attorneys Timothy Vavricek and Anthony Morfitt and were investigated by Homeland Security Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-1001 and 17-CR-1004.
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Law Enforcement's Diversity and Dedication Protect Us AllRead the Press Release
Police officers in the Southern District of Ohio are diverse in every way but one: they put their lives on the line for us every day on the job. I am grateful for our officers’ diversity—and even more grateful for their one commonality.
The officers I’ve met and worked with in the Southern District of Ohio are diverse in almost every respect. They are men and women, many races, and many religions. Different officers hold different political viewpoints. They have different body types. Officers come from all kinds of different places. Some are young, and others are older. They have different kinds of education and experience. Almost any stereotype about police is bound to be wrong, or at least incomplete, in the face of this diversity.
Just as the police officers in the Southern District of Ohio are themselves diverse, so too are their agencies. There are federal, state, and local law enforcement agencies here. The geographic spaces for which different agencies are responsible vary widely in size, not to mention population, terrain, and demography. Some of the heads of these agencies are appointed; others are elected. Departments in our biggest cities may have a thousand or two thousand officers and civilian employees. The police departments in other of our municipalities might consist of a chief and one or two officers, perhaps part-time. So the police of the Southern District of Ohio work for diverse law enforcement agencies too.
Increasingly, moreover, yet a third vector of diversity for our police officers is in the kinds of duties we expect them to perform. The days when police officers could concern themselves only with patrolling the streets and ferreting out crime, if they ever existed, are long gone. Police work today requires officers to engage proactively in preventative social work. Law enforcement officers are on the front lines of engaging with populations suffering from mental health conditions. And officers must face and respond to the daily health and safety problems posed by addiction, including especially the dangers that addicted people pose to themselves.
But there is one thing that all police have in common: they put their own lives on the line to serve and protect our communities. That is the one thing that unites all police officers, regardless of their diversity from one another in so many respects. It is inherent in being a police officer.
Just last week, Kirkersville Police Chief Steven DiSario made the ultimate sacrifice in the performance of his duty. Responding to a call of an armed man outside a nursing home on Main Street, Chief DiSario engaged the gunman, who shot and killed him. The gunman then killed two other people before turning the weapon on himself.
Also last week, to our immediate north, East Liverpool Police Officer Chris Green accidentally touched fentanyl and overdosed. Responding to a traffic stop, he searched the car of two men arrested for drug trafficking, and in the course of the search, some white powder got on his shirt. When he later brushed it off, he passed out; four doses of naloxone were needed to revive him. The white powder turned out to be fentanyl, the synthetic opioid that is one 50–100 times stronger than heroin and that is ravaging our state.
Cincinnati Police Officer Kenneth Grubbs and Columbus Police Officer Patrick Shrodes were shot in the line of duty earlier this year. Fortunately, they are recovering from their injuries.
These four officers were and are as different from each as could be in so many respects. But they have one crucial thing in common: each put his life on the line—and, in the case Kirkersville Police Chief DiSario, tragically gave it—in the performance of his duty.
I thank all police officers for their dedication and honorable service.
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Justice Department Announces the National Blue Alert NetworkRead the Press Release
The Justice Department, along with the Federal Communications Commission (FCC) and Department of Homeland Security (DHS), today announced the nationwide rollout of the National Blue Alert Network, including newly developed deliverables and federal interagency cooperation to enhance the safety and support of America’s law enforcement officers. Under implementation by the Office of Community Oriented Policing Services (COPS Office), the National Blue Alert Network promotes rapid dissemination of information to law enforcement, the media and the public about violent offenders who have killed, seriously injured or pose an imminent threat to law enforcement, or when an officer is missing in connection with official duties.
Named in honor of two fallen New York City Police Department (NYPD) officers who were ambushed in December 2014, the Rafael Ramos and Wenjian Liu National Blue Alert Act was signed into law in May 2015. The COPS Office was selected to implement the Act in September 2016 and has partnered with other federal agencies, including the FCC and the Federal Emergency Management Agency (FEMA), to establish enhanced communications systems, guidelines and resources.
“This network provides the means of quickly identifying, pursuing and capturing violent offenders who have hurt, killed or pose an imminent danger to law enforcement,” said Attorney General Jeff Sessions. “This National Police Week, we are proud to show our support for our nation’s brave police officers, and to work with our federal partners to keep them safe.”
“The men and women of law enforcement put their lives on the line to protect and serve the public,” said Acting Associate Attorney General Jesse Panuccio. “The Department of Justice is committed to supporting law enforcement, and the National Blue Alert Network will provide this country with the necessary framework for rapid response to help save lives and apprehend criminals who would attack those who bravely protect public safety.”
Blue Alerts are operationally similar to AMBER Alerts and can be broadcast on television, radio, and sent to cellphones and other wireless devices. Like AMBER Alerts, which are designed to quickly provide information about missing children to the public, Blue Alerts provide details about possible assailants, including physical descriptions, vehicle information and other identifying characteristics.
At present, there are 27 states with Blue Alert plans; however, this coordinated framework will help facilitate and streamline the adoption of new Blue Alert plans throughout the nation and help integrate existing plans. To learn more about the National Blue Alert Network, visit https://cops.usdoj.gov/bluealert.
The COPS Office is a federal agency responsible for advancing community policing nationwide and has a long history of supporting officer safety and wellness. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Judge Sentences Ohio Man to Prison for Running Cocaine from Texas to PennsylvaniaRead the Press Release
ERIE, Pa. - A former resident of Akron, Ohio, has been sentenced in federal court to 48 months in jail on his conviction of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Oscar Mata Garcia, 28.
According to information presented to the court, from June 2013 through February 2015, Mata Garcia engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The Court was advised that Mata Garcia’s specific role in the conspiracy was to assist in driving vehicles to the Houston, Texas area to pick up loads of cocaine and then to transport the cocaine to Erie, Pennsylvania and elsewhere, with the cocaine concealed in hidden compartments. According to information provided to the Court, on November 1, 2014, Mata Garcia was in one of the load vehicles with another co-conspirator when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. The Court was advised that Mata Garcia and his co-conspirator had just traveled to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie, Pennsylvania and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than 5 kilograms of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police for the investigation leading to the successful prosecution of Garcia.
Itasca County Christmas Tree Thief SentencedRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JOSEPH LEON EDMINSTER, 70, for stealing thousands of black spruce tree tops from the Chippewa National Forest. EDMINSTER, who pleaded guilty on January 13, 2017, to one count of theft of government property, was sentenced today before U.S. District Judge Wilhelmina M. Wright in St. Paul, Minn.
“People need to understand that taking plants or animals from federal lands is a serious crime punishable by substantial fines and even time in federal prison,” Assistant U.S. Attorney Laura Provinzino notes. “Mr. Edminster took responsibility for his actions. Had he not, his punishment could have been even more severe. But make no mistake, those who steal from our public lands for personal profit will be held accountable as today’s sentence shows.”
“The successful outcome of this case is the result of federal agencies working together to protect the resources of our national forests,” said Mary King, special agent in charge for the U.S. Forest Service Eastern Region. “The penalties reflect the seriousness of the crimes committed against our nation’s natural resources, and we hope they will act as a deterrent in the future. Our goal is to dissuade illegal activities from taking place in our forests and serve notice to everyone that Forest Service law enforcement officers are ever vigilant in the service of conservation and public safety.”
According to the defendant’s guilty plea and documents filed in court, between October 2008 and October 2014, EDMINSTER illegally cut and stole more than 12,000 black spruce tree tops from the Chippewa National Forest. After stealing the tree tops, EDMINSTER sold them to wholesalers and retailers for use as Christmas decorations for approximately $1.50 each. Retailers would then sell the tops to various retail outlets in Minnesota, Iowa and Illinois for up to $6 each. Since 2008, EDMINSTER stole more than $24,000 worth of spruce tops from federal land.
Black spruce is a North American pine species. It is widespread across Canada and the northern United States, including the Great Lakes region. Black Spruce is found in northern and northeastern parts of Minnesota, extending as far south as northern Anoka County.
The popularity of black spruce tops and other forest products that are used in the seasonal holiday decorative market has surged over the last 20 years. The spruce tops are sold at landscape retailers and some grocery and home improvement stores nationwide.
The cutting or otherwise damaging of any timber, tree or other forest product, to include black spruce is prohibited on National Forest land except as authorized by a special use authorization, timber sale, contract or other federal law or regulation.
This case is the result of an investigation conducted by the U.S. Forest Service’s Law Enforcement and Investigations division.
This case was prosecuted by Assistant United States Attorney Laura Provinzino.
Defendant Information:
JOSEPH LEON EDMINSTER, 70
Grand Rapids, Minn.
Convicted:
- Theft of government property, 1 count
Sentenced:
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Three years’ probation
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$ 24,199.50 in restitution paid to the U.S. Forest Service
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200 hours community service
Isleta Pueblo Man Pleads Guilty to Assaulting Indian Woman and a Federal OfficerRead the Press Release
ALBUQUERQUE – Jonathan Abeita, 23, an enrolled member of the Isleta Pueblo who resides in Albuquerque, N.M., pled guilty today in federal court to assault charges, including an assault on a federal officer charge. The plea agreement recommends that Abeita be sentenced to 17 months of imprisonment followed by a term of supervised release to be determined by the court.
Abeita was arrested on March 8, 2017, on an indictment charging him with assault resulting in serious bodily injury and assault on a federal officer. According to the indictment, Abeita committed the crimes on Aug. 13, 2016, on Isleta Pueblo in Valencia County, N.M.
During today’s proceedings, Abeita pled guilty to the indictment. In his plea agreement, Abeita admitted that on Aug. 13, 2016, he assaulted one victim, an Indian woman, by threatening her and punching her, causing her bottom teeth to become loose. Abeita also admitted that when tribal police officers responded to a call from the victim, he assaulted a tribal police officer who was commissioned as a Special Federal Officer by the BIA with a hatchet. Abeita remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Isleta Pueblo Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney Lucy B. Solimon as part of 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 American 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.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on May 15, 2017 and entering pleas of Not Guilty were:
- KRISTA LEAH ANDERSON, a 27-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the most serious charge contained in the indictment, ANDERSON faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-48
- CATHERINE MABEL BROCK, a 41-year-old transient, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, BROCK faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-52
- STEVEN NEIL HOPPER, a 29-year-old resident of Laurel, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, HOPPER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-44
- CURTIS WAYNE OLSON, a 46-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the most serious charge contained in the indictment, OLSON faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-48
Appearing before U.S. Magistrate Johnston in Great Falls on May 15, 2017 and entering pleas of Not Guilty were:
- GREGORY CANTRELL AZURE, a 35-year-old resident of Wolf Point, appeared on charges of assault resulting in serious bodily injury, and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, AZURE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-28
- NICHOLAS DANIEL BURSHIA, a 18-year-old resident of Fort Kipp, appeared on charges of aggravated sexual abuse, and abusive sexual contact. If convicted of the most serious charge contained in the indictment, BURSHIA faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-29
- VINCENT PAUL FUREY, a 41-year-old resident of Idaho Falls, Idaho, appeared on charges of interstate communication of a threat to injure, interstate communication with intent to extort, and interstate stalking. If convicted of the most serious charges contained in the indictment, FUREY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-07
Appearing before U.S. Magistrate Johnston in Great Falls on May 11, 2017 and entering pleas of Not Guilty were:
- PAUL BRIAN HARWOOD, a 36-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury, and domestic abuse by a habitual offender. If convicted of the most serious charge contained in the indictment, HARWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-30
- ROBERT DAVID LINN, JR., a 52-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, LINN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations, Great Falls Police Department, and Russell Country Drug Task Force. PACER Case Reference. 17-31
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.