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19 May 2017
Husband and Wife Indicted for Ponzi Scheme Relating to Hedge Fund Investments in Foreign CurrenciesRead the Press Release
NEWARK, N.J. – The owners and operators of a purported hedge fund were indicted by a federal grand jury yesterday for allegedly defrauding approximately 20 investors by making extraordinary guarantees about investment returns and then using the money for extravagant purchases or to pay off other victims, Acting U.S. Attorney William E. Fitzpatrick announced.
Alcibiades Cifuentes, 34, and his wife, Jennifer Wee Cifuentes, 36, both of West New York, New Jersey, are charged with four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of stealing funds intended for investment in commodities. The arraignment is pending.
According to the indictment:
Alicbiades and Jennifer Wee Cifuentes allegedly engaged in an investment fraud scheme from 2012 through March 2015. They fraudulently induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies, and then almost immediately spent those investment funds on personal items, such as an Audi R8 and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. They allegedly defrauded approximately 20 victims of approximately $500,000.
Each count of wire fraud and wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The count of commodities theft carries a maximum potential penalty of 10 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited inspectors of the U.S. Postal Inspection Services under the direction of Inspector in Charge James V. Buthorn, and criminal investigators with the U.S. Attorney’s Office, for the investigation. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Christopher Porrino and Bureau Chief Christopher W. Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Director James M. McDonald, for their respective roles in the investigation.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office’s Economic Crimes Unit.
Defense counsel:
Alcibiades Cifuentes: Joseph Rotella Esq.
Jennifer Wee Cifuentes: Aidan O'Connor Esq.Hotevilla Man Sentenced to 90 Months for Assault with a Dangerous WeaponRead the Press Release
PHOENIX– This week, Melvin C. Yazzie, 40, of Hotevilla, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 90 month of imprisonment, to be followed by three years of supervised release. Yazzie had previously pleaded guilty to assault with a dangerous weapon.
On Sept. 8, 2015, Yazzie engaged in a physical fight with the victim near Ft. Defiance, Ariz. During the fight, Yazzie stabbed the victim with a knife eighteen times. The victim survived and was hospitalized for numerous days. The victim and Yazzie are both enrolled members of the Navajo Nation.
The investigation in this case was conducted by Navajo Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08022-PCT-DLR
RELEASE NUMBER: 2017-045_YAZZIE
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Honduran National Charged with Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS ALBERTO PINEDA-CANTOR, age 40, a citizen of Honduras, was charged today in a one-count Bill of Information with illegal reentry of a removed alien, in violation of Title 8 U.S.C. Section 1326(a).
According to the Bill of information, PINEDA-CANTOR reentered the United States on or about December 31, 2016 after having been previously removed therefrom on or about December 26, 2007.
If convicted, PINEDA-CANTOR faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year of supervised release after imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Irene González is in charge of the prosecution.
Grants Pass Gun Dealer Sentenced to Two Years in Federal Prison for Illegal Gun SalesRead the Press Release
MEDFORD, Ore. – On May 18, 2017, United States District Court Judge Ann Aiken sentenced Wilson Lee Clow, Jr., 68, of Grants Pass, Oregon, to two years in federal prison for illegal gun sales. Upon his release from prison, Clow will be on supervised release for three years. A federal jury previously found Clow guilty on three counts of selling a firearm to a felon and two counts of making false statements during firearms sales during a three-day trial ending June 29, 2016.
According to court documents, Clow was a Federal Firearms Licensee (FFL) who owned and operated a Grants Pass gun shop called 2nd Amendment Guns. In 2012, he sold high-caliber handguns to a known felon and falsified the paperwork related to the transactions. During these sales, Clow advised the felon that if law enforcement caught him with one of the firearms, the felon should tell the officers he purchased it at a garage sale. Clow also sold firearms from his private collection to avoid federally required paperwork and maintained a list of firearms for other felons who might be interested in purchasing them.
"Federally licensed firearms dealers are expected to be a first line of defense in preventing guns from reaching the hands of criminals," said Billy J. Williams, United States Attorney for the District of Oregon. "This sentence sends a message that gun dealers who violate the law and fail to uphold their duties to the community will be arrested, prosecuted and held accountable for their actions."
"The illicit trafficking of firearms remains ATF's highest national priority," said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. "Mr. Clow's willingness to operate outside the law, despite being a duly-licensed Federal Firearms Licensee, directly put his fellow Americans at risk."
The ATF Seattle Field Division’s area of responsibility includes the District of Oregon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and was prosecuted by Nathan J. Lichvarcik and Amy Potter, Assistant United States Attorneys for the District of Oregon.
Four-Time Felon and Drug Dealer in Tok Sentenced for Possessing Arsenal of 32 FirearmsRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a four-time convicted felon was sentenced to 64 months in federal prison for illegally possessing 32 firearms, some of which were stolen, and possessed in connection to drug distribution in Tok, Alaska.
Floyd Julius Stuck, 49, of Tok, Alaska, was sentenced today by Senior U.S. District Judge Ralph R. Beistline, to 64 months, three years of supervised release, and 80 hours of community service. On March 3, 2017, Stuck pled guilty in federal court for being a felon in possession of firearms, and agreed to forfeit all rights to firearms and ammunition named in the forfeiture allegation.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, the Alaska State Troopers (AST) obtained a search warrant on Feb. 2, 2016, for Stuck’s property in Tok after numerous reports of drug trafficking and other criminal activity. AST found and seized approximately 32 firearms (three of which proved to be stolen), ammunition, as well as numerous additional items of stolen property at Stuck’s Tok residence.
Reported to be the “biggest drug pusher” or dealer in Tok, evidence that Stuck was trafficking methamphetamine, heroin, prescription opiates, and marijuana was also seized from his home, along with evidence that Stuck was selling the drug paraphernalia needed to use those drugs. The investigation further revealed that Stuck accepted stolen firearms and other stolen property as payment for the drugs he was selling. In addition to Stuck’s federal firearms charge, he is also facing pending state drug charges arising from the same search warrant.
At sentencing, Judge Beistline noted that Stuck had “come to Tok to avoid the law” and “set up [a] criminal lifestyle” in that small Interior community. Judge Beistline underscored that it is important “to get the word out” that criminal conduct like Stuck’s will not be tolerated.
Acting U.S. Attorney Schroder commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) who conducted the investigation, as well as AST for their substantial assistance, leading to the successful prosecution of this case.
Four D.C. Men Indicted for String of Armed RobberiesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury has returned an indictment charging four Washington, D.C. residents for their alleged roles in 19 separate armed robberies in the Washington, D.C., metro area.
According to allegations in the indictment, from Nov. 1, 2016 to April 12, Desmar Rashad Gayles, Andrew Bernard Duncan, Anton Durrell Harris, and Lamont Kortez Gaines committed a total of 19 armed robberies of commercial establishments and three carjackings, allegedly using two of the vehicles that they carjacked to commit some of the armed robberies. In ten of the armed robberies, the defendants used an Intratec 9 mm semi-automatic pistol with an extended magazine. That firearm was recovered in Harris’ residence on April 13 with the extended magazine fully loaded and a round in the chamber.
Name, Age
Hometown
Charges (#)
Max Penalty
Desmar Rashad Gayles, 25
Washington, D.C.
Conspiracy (1)
Armed robbery (6)
Carjacking (1)
Brandishing firearm during crime of violence (7)
Life
Andrew Bernard Duncan, 26
Washington, D.C.
Conspiracy (1)
Armed robbery (10)
Brandishing firearm during crime of violence (10) Felon in possession of a firearm (3)
Life
Anton Durrell Harris, 27
Washington, D.C.
Conspiracy (1)
Armed robbery (6)
Brandishing firearm during crime of violence (6) Felon in possession of a firearm (4)
Life
Lamont Kortez Gaines, 27
Washington, D.C.
Conspiracy (1)
Armed robbery (5)
Carjacking (1)
Brandishing firearm during crime of violence (6) Felon in possession of a firearm (5)
Life
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; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; M. Jay Farr, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; Charles L. Owens, Bladensburg Chief of Police; and Henry P. Stawinski III, Prince George’s County Chief of Police, made the announcement after the indictment was returned yesterday evening. Assistant U.S. Attorneys Rebeca H. Bellows and Alexander Blanchard are prosecuting the case.
The D.C. Metropolitan Police Department provided significant assistance during the investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-106.
Former U.S. Postal Service Employee Guilty of Workers’ Compensation FraudRead the Press Release
SAN JUAN, P.R. – Today, former U.S. Postal Service (USPS) employee Ricardo Rivera-Ortiz was found guilty on all counts of fraud associated with Department of Labor (DOL) Office of Workers’ Compensation Program (OWCP), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. United States District Court Judge Gustavo A. Gelpí presided over the trial.
On August 30, 2013, Rivera-Ortiz was charged with three counts of false statements for lying to the U.S. Department of Labor, Office of Workers Compensation, one count of theft of government property for lying to the Social Security Administration Disability Benefits Program and a fifth count of concealing a material fact to the Social Security Administration for failing to disclose an improvement in his physical condition and capacity to work.
The defendant was found guilty on all counts. During trial, the government presented checks, invoices, vouchers, photos, videos and other documentary evidence and witness testimonies that proved that the defendant had been requesting and receiving unwarranted disability benefits from the OWCP and SSA while failing to report that he was working as a Union representative of the American Postal Workers Union.
“This conviction marks yet another victory in our fight against fraud in Puerto Rico. I thank our team of prosecutors and our federal law enforcement partners for the teamwork they showed in leading us to a successful outcome today,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The charges were prosecuted by Special Assistant United States Attorney Amanda C. Soto Ortega from the United States Postal Service-Office of the Inspector a General and Assistant United States Attorney Dennise N. Longo Quiñones. The defendant faces a sentence of imprisonment of at least 10 years for the theft of government property, at least 5 years of imprisonment for the false statement and concealment counts.
The case was investigated by the USPS-OIG with the collaboration of Social Security Administration - Office of Inspector General, the FBI, and the Puerto Rico Police Department.
The sentencing hearing was scheduled for October 10, 2017.
Former Regions Bank Branch Manager Sentenced to 15-Months in Federal PrisonRead the Press Release
Memphis, TN – The former manager of the Regions BankWhitehaven North Branch was sentenced to 15-months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Renwick Chavez Edwards, 46, pled guilty in February of this year to a charge that he embezzled $45,002.71 from Regions Bank in March 2014. According to information presented in court by the United States, at the time of Edwards’ guilty plea between October 2013 and March 2015, Edwards embezzled approximately $223,000 from accounts of Regions’ customers.
In addition to the 15-month sentence in federal prison, Edwards was ordered to pay restitution to Regions Bank in the amount of $226,332.02 and to serve a period of three years on supervision after his release from prison.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Program Director of Supplemental Educational Services Provider to Detroit Public Schools Sentenced to 37 MonthsRead the Press Release
The former program director of Priority: My Education, a supplemental educational service provider, was sentenced to 37 months in federal prison after previously pleading guilty to federal program fraud, Acting United States Attorney Daniel Lemisch announced today.
Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Bernadette Kakooza, Inspector General of the Detroit Public Schools.
TheodoreThomas Pride, III, 38 of Detroit was sentenced by United States District Judge Bernard A. Friedman.
According to court records, Pride obtained at least $684,644 from Detroit Public Schools by submitting fraudulent invoices for tutorial services that DPS students never received. Pride’s scheme ran from 2011-2012, while he served as the resident agent and program director of Priority: My Education, a company approved by the State of Michigan to provide supplemental educational services to eligible students.
This case was investigated by agents of the FBI and the Office of Inspector General for the Detroit Public Schools. This case was prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Former Law Firm Office Manager Charged Defrauding Law Firm of over $400,000Read the Press Release
Memphis, TN – A federal grand jury returned a 39-count indictment against a former law firm office manager. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
The indictment alleges 38 counts of wire fraud, and one count of interstate transportation of monies stolen or taken by fraud. Misty West, 40, of Olive Branch, Mississippi, was employed as the office manager, bookkeeper and paralegal at the Fowler Law Firm, located on Dr. Martin Luther King, Jr., Avenue in Memphis. Between August 2011 and July 2016, West engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000.
In some instances, West presented blank checks drawn against the firm’s Suntrust Bank account and asked Fowler to sign the checks telling him she needed to pay the firm’s bills. Fowler signed the checks in blank and West completed the payee information and the amounts. The indictment alleges that West routinely made some of the checks payable to herself and deposited them to her Suntrust account and used the funds to pay her personal bills and expenses. West fraudulently obtained approximately $308,000 in this manner.
The indictment alleges that West also fraudulently obtained a debit card associated with a Suntrust account styled “Charles Wesley Fowler, d/b/a, the Candy Factory.” The Candy Factory was the name of a group of office suites owned by Fowler and which were leased to other individuals and businesses. After obtaining the debit card, the indictment alleges that West used the card to make ATM withdrawals without Fowler’s knowledge. West fraudulently obtained approximately $90,000 in this manner.
According to the indictment, West used the internet to transfer funds from the law firm’s account to pay her personal cell phone bill without Fowler’s knowledge or authorization. West fraudulently obtained approximately $17,000 in this manner.
West faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release on the 38 counts of wire fraud, and 10 years’ imprisonment, $250,000 fine and 3 years supervised release on the count charging interstate transportation of monies stolen or taken by fraud.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Correctional Officer in West Virginia Pleads Guilty to Using Force to Punish A DetaineeRead the Press Release
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and Acting United States Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia jointly announced that a former Elkins, West Virginia Correctional Officer, Adam Joseph Neal Graham, 26, pleaded guilty today in federal court to a civil rights violation for an incident in which he assaulted a handcuffed pretrial detainee.
According to information provided in connection with his guilty plea, Graham was serving as a Correctional Officer at the Tygart Valley Regional Jail on March 9, 2015, when he assisted with the intake screening for the victim, an 18 year-old pretrial detainee. This was the victim’s first arrest. The detainee was handcuffed, sitting on a chair, and acting distraught. Graham told the detainee to “be quiet” several times. Even though the detainee posed no threat to Graham or any other person, Graham applied pressure points to the victim’s shoulder and neck area. Then, suddenly and without warning, Graham grabbed the detainee by the neck and forcefully slammed him to the ground. During the plea hearing, Graham acknowledged that his use of force was not justified by any legitimate law enforcement or correctional objective.
“The U.S. Constitution protects every person in this country, including those who are detained in our jails,” said Acting Assistant Attorney General Wheeler. “The federal government will actively prosecute those correctional officers, who like the defendant, abuse their authority and violate their oath by unlawfully utilizing physical force as a form of punishment.”
The FBI’s Pittsburgh Division investigated the case. Special Litigation Counsel Gerard V. Hogan and Trial Attorney Olimpia E. Michel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Sarah W. Montoro of the Northern District of West Virginia prosecuted the case.
Former Chief Financial Officer of Public Computer-Services Company Pleads Guilty to Federal Fraud ChargeRead the Press Release
CHICAGO — The former chief financial officer of a public computer-services company admitted in federal court today that he participated in a scheme to defraud a global telecommunications provider out of at least $3 million.
ANTHONY ROTH, 52, of Upton, Mass., pleaded guilty to one count of wire fraud. The conviction carries a maximum sentence of 20 years in prison. U.S. District Judge Amy J. St. Eve did not immediately set a sentencing date.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided valuable assistance.
Roth served as the chief financial officer of ContinuityX Solutions Inc., a computer-services company based in Metamora, Ill. Roth stated in a plea agreement that he and ContinuityX’s former chief executive officer, DAVID GODWIN, approached certain companies to buy services from an international telecommunications firm that the companies did not need or intend to use. Godwin and Roth promised these companies that they would not have to pay for the services because he had arranged separate side deals with other companies to fund and use the services, according to Roth’s plea agreement. Roth and Godwin then created false financial information to fraudulently inflate the financial condition of the companies, the plea agreement states. They did all of this so that the telecommunications firm would approve the sales to these companies and pay ContinuityX hundreds of thousands of dollars in commissions for purportedly having brought new customers to the telecommunications company, the plea agreement states.
In 2011 and 2012 Roth and Godwin fraudulently caused ContinuityX to receive approximately $3 million in commission payments from the telecommunications company, according to Roth’s plea agreement. The commissions were paid upfront, and Godwin provided some of the money to the companies that signed up for the services, the plea agreement states.
Godwin, 55, of Germantown Hills, Ill., and a third defendant, former ContinuityX sales representative JOHN COLETTI, 56, of Canyon Country, Calif., are also charged in the case. Godwin has pleaded not guilty to 14 counts of wire fraud, while Coletti has pleaded not guilty to five counts of wire fraud and one count of making false statements to the FBI. Godwin and Coletti are scheduled for a jury trial on Sept. 25, 2017.
The public is reminded that charges are not evidence of guilt. Godwin and Coletti are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorneys Steven Dollear, Brian Wallach and John Mitchell.
Florida Man Pleads Guilty to Marijuana ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Travis Beckley, 63, of Miami, FL, pleaded guilty to attempt to possess with intent to distribute 50 kilograms or more of marijuana, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on August 10, 2016, the defendant attempted to receive a shipment of approximately 145 pounds of high-grade marijuana. The marijuana was in individual bags, each weighing approximately one pound, all of which were packed into four barrels in three wooden crates. These crateswere shipped from the State of Nevada to a storage locker located in Erie County, NY. Beckley traveled from Miami to Western New York, signed for the marijuana load, and was immediately arrested by law enforcement officers.
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 1:00 p.m. before Judge Arcara.
Five Plead Guilty for Roles in Credit Card Fraud SchemeRead the Press Release
Roanoke, VIRGINIA – Five men, who target rural communities in the southeast to commit credit card fraud and aggravated identity fraud pled guilty during a series of hearings this week in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
The conspirators, Keyshawn Berchel Hunter, 27, of Florence, S.C., Daquan Damese James, 24, of Darlington, S.C., Roland Marcell Bruce, 23, of Darlington, S.C. and Markese Davon Robinson, 21, of Darlington, S.C., each pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. A fifth defendant, Markese Tyshawn James, 22, of Darlington, S.C., pled guilty to one count of conspiracy to commit access device fraud. The investigation remains ongoing and additional defendants may be charged.
According to evidence presented during this week’s hearings by Assistant United States Attorney Ashley B. Neese, authorities in Pearisburg, Virginia responded to the Pearisburg Wal-Mart for a report of several males attempting to use multiple debit cards that make purchases that were declined. A loss prevention employee noted that he observed the same males in the store a week earlier, attempting the same scheme and gave authorities a description of the subjects vehicle.
Authorities located a vehicle matching the description given by the Wal-Mart employee parked nearby and approached it, noticing the strong smell of marijuana as they did. Based on the smell of marijuana, police searched the vehicle and recovered a bag of green leafy material near the driver’s seat, 16 Visa debit cards. Additional search of the occupants of the vehicle recovered 40 Visa gift cards in the van’s center console and 52 Visa gift cards, one credit card skimmer and one HP laptop computer elsewhere in the van. Forensic examination by the United States Secret Service performed later revealed that 89 of those cards were re-encoded with stolen credit card numbers.
Additionally, one of the conspirators admitted the group targeted Wal-Mart stores in the southeast because the store wanted to keep the lines moving, which worked to their advantage.
The investigation of the case was conducted by the United States Secret Service, the Pearisburg Police Department, and the Giles County Sheriff’s Office. The Office of the Commonwealth Attorney for Giles County also assisted with the overall prosecution. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Fifth Man Arrested for Robbery of McDonald’s RestaurantRead the Press Release
St. Thomas, USVI – Troy Titley, 36, of St. Thomas made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged by indictment with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, possession of a firearm during a crime of violence and conspiracy to possess a firearm during a crime of violence, Acting United States Attorney Joycelyn Hewlett announced. Titley, who was detained pending a detention hearing on May 22, 2017, also has been charged under Virgin Islands law with possession of a firearm during a crime of violence and possession of a firearm in a public housing zone.
Four other men charged in the robbery of the McDonald’s restaurant on March 25, 2017 at the Lockhart Shopping Center on St. Thomas made their initial appearances before Judge Miller on April 26, 2017. The four men are Hanselo Recio, Betel Paulino, Junior Feliz and Helwood Paris.
If convicted, Titley faces up to 20 years in prison on the Hobbs Act robbery and local robbery charges; a mandatory 10 year consecutive sentence for the federal possession of a firearm during a crime of violence and 15 and 30 year sentences on the territorial firearm charges.
The case is being investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco and Firearms and VIPD. It is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Acting United States Attorney Hewlett reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Felon Wounded in Drug Deal Gunfight Sentenced to 10 Years in Prison for Illegal Firearm PossessionRead the Press Release
A 25-year-old Seattle man was sentenced today in U.S. District Court in Seattle to ten years in prison and five years of supervised release for three felony counts related to illegal gun possession, announced U.S. Attorney Annette L. Hayes. FRANKIE MANUEL MIRANDA survived an August 2015, gun battle inside a car at a downtown Seattle Shell gas station. In the shooting, another young man was shot in the head and killed. The shooting occurred during a drug deal involving MIRANDA and three others. At sentencing U.S. District Judge Robert S. Lasnik said, “The Defendant armed himself not once, but three times with a firearm. His decisions resulted in tragic consequences and death.”
“This case demonstrates yet again that guns and drugs don’t mix,” said U.S. Attorney Annette L. Hayes. “The devastating results are clear – one dead and a number of others who came far too close to the unthinkable. My office is steadfastly committed to working with our state and local partners to bring federal charges against convicted felons who flout the law and illegally possess firearms.”
According to records filed in the case, MIRANDA and another man drove into the Shell station on Denny Way in Seattle intending to do a drug deal. Different witnesses have said the deal was for marijuana, or for prescription cough syrup, or Xanax. What is known is that after two other men got into the back seat of the car, gunfire erupted and 22-year-old Wafi Kilaouy was shot in the head and killed. MIRANDA and a third man, Dion Hooks – also charged federally – were both shot but survived. The car’s driver managed to get out of the car uninjured and fled the scene.
The shooting on Lower Queen Anne Hill followed two other incidents in which MIRANDA, a convicted felon, illegally possessed firearms. As part of the resolution of the case, MIRANDA has pled guilty to two other felonies: possession of a stolen .40 caliber Smith and Wesson handgun in December, 2013; and possession of a stolen Glock .357 semi-automatic handgun in January 2014.
King County prosecutors, working with their federal partners, determined that MIRANDA could argue self-defense in connection with any charges brought for the death of Wafi Kilaouy. The resolution in federal court holds MIRANDA responsible for multiple instances of illegal firearms possession. MIRANDA has a prior adult conviction for the unlawful possession of a firearm.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Federal Jury Convicts Alien for Illegal Reentry After DeportationRead the Press Release
NEW BERN – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that on May 17, 2017, in federal court, ISMAEL AZUA-RINCONADA, 27, of Mexico, was convicted following a three-day trial before United States District Judge Louise Wood Flanagan. The jury found the defendant guilty of Illegal Reentry of a Deported Alien.
At trial, the evidence showed that AZUA-RINCONADA, a citizen of Mexico, was found in Robeson County, North Carolina, after having previously been deported from the United States on June 21, 2011, at Hidalgo, Texas, and again on September 17, 2011, at Calexico, California. The evidence further showed that AZUA-RINCONADA had been previously convicted of illegal entry and reentered without having obtained the express permission of the Attorney General or the Secretary of Homeland Security.
The investigation of this case was conducted by agents of Homeland Security Investigation and the Hoke County Sheriff’s Office.
Farmington Hills Doctor Sentenced to 19 Years in Prison for Distributing Prescription Drugs and Health Care FraudRead the Press Release
A Farmington Hills, Michigan, doctor was sentenced yesterday to 19 years in prison for participating in a conspiracy to distribute prescription pills and conspiracy to commit health care fraud, Acting U.S. Attorney Daniel Lemisch announced.
Adelfo Pamatmat, 71, was sentenced by U.S. District Judge Robert H. Cleland.
Dr. Pamatmat was found guilty, along with two co-defendants, after a seven-week jury trial. Dr. Pamatmat was convicted on two felony counts, conspiracy to illegally distribute prescription drugs and conspiracy to commit health care fraud. The convictions arose from the operation of a fraudulent medical practice known as Compassionate Doctors. The medical practice purported to be a visiting physician’s practice, but was actually a scheme that involved patient marketers bringing paid “patients” to residences to obtain fraudulent prescriptions for controlled substances. Medicare would be billed for medical examinations and tests that were not conducted properly or were not conducted at all. The marketers would fill the controlled substance prescriptions at cooperating pharmacies and sell the drugs on the street market.
According to evidence submitted at trial and at sentencing, Dr. Pamatmat was employed at Compassionate from 2007 until 2009. He then continued his illegal behavior in cooperation with other conspirators until he was arrested in 2013. While on bond, he was ordered not to prescribe controlled substances. Evidence submitted in connection with sentencing showed that he continued to prescribe controlled substances, in violation of conditions of bond, in 2014 and 2015.
Dr. Pamatmat was personally responsible for illegally prescribing over 200,000 dosage units of oxycodone (including Oxycontin) and opana, powerful Schedule II opiates. He illegally prescribed over 1 million dosage units of another opiate, hydrocodone (Vicodin, lortab), and over 3 million dosage units of controlled substances of all kinds. He was responsible for over $4 million in health care fraud.
Oxycodone, and hydrocodone are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These powerful and addictive drugs in the opioid class are easily abused, and can lead to addiction and eventual heroin use.
“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” Lemisch said. “In addition, prescription drug addiction has led to resurgence in heroin use. Licensed professionals who participate in the diversion of prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”
Dr. Pamatmat was one of 44 defendants named in a multi-count second superseding indictment unsealed in March of 2013. Five other doctors and five pharmacists were convicted, either by guilty plea or at trial.
Dr. Pamatmat has already surrendered his federal DEA license to prescribe controlled substances, and will face state action against his medical license as a result of his convictions.
The investigation in this case was handled by the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Department of Treasury Internal Revenue Service.
Erie Man Pleads Guilty to Sex Trafficking Two Minor VictimsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of sex trafficking of a child and conspiracy to commit sex trafficking, Acting United States Attorney Soo C. Song announced today.
Devonte Lamonte Lucas, 22, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from March 2015 to October 2015, Lucas and a co-defendant knowingly recruited, enticed, harbored, transported, provided, advertised and maintained two minor victims who engaged in commercial sex acts at the behest of Lucas and his co-defendant. Lucas’ illegal activity was ultimately stopped when members of the Millcreek Police Department observed Lucas transport a minor female to a Millcreek motel after the Millcreek officers, acting in an undercover capacity, had set up a meeting at the motel with the victim via an Internet advertisement that had been placed by Lucas’ co-defendant.
Judge Cercone scheduled sentencing for September 11, 2017. The law provides for a total sentence of life in prison, a fine of $500,000, 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, and the Millcreek Police Department conducted the investigation that led to the prosecution of Lucas.
Erie Man Admits Illegally Possessing Gun and AmmunitionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
Adam John Carlson, 34, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Carlson possessed a firearm and numerous rounds of ammunition which he was precluded from possessing because of an active protection from abuse order.
Judge Cercone scheduled sentencing for September 11, 2017 at 11:30 a.m. The law provides for a total sentence of twenty years in prison, a fine of $500,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Erie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Carlson.
Eagle Butte Woman Sentenced for Distribution of a Controlled MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Distribution of a Controlled Substance, was sentenced on May 15, 2017, by U.S. District Judge Roberto A. Lange.
Jorie Malcolm Cavanaugh, age 27, was sentenced to 6 months of home confinement at her parent’s home in Eagle Butte, or at another home or shelter outside of the Cheyenne River Sioux Tribe Indian Reservation, to commence within 30 days of the Court’s Judgment Order. She also received 4 years of probation, a $500 fine, and the $100 mandatory special assessment to the Federal Crime Victims' Fund.
Cavanaugh was indicted by a federal grand jury on December 14, 2016. She pled guilty on February 21, 2017.
Cavanaugh admitted to distributing methamphetamine, a Schedule II Controlled Substance, on three occasions in Eagle Butte; twice on July 7, 2016, and once on July 8, 2016.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Cavanaugh was released following sentencing.
Eagle Butte Woman Charged with Perjury, False Declaration Before a Court, and Criminal ContemptRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Perjury, False Declaration Before a Court, and Criminal Contempt.
Demi Marie Gunville, age 24, was indicted on May 16, 2017. She appeared before U.S. Magistrate Judge Veronica L. Duffy on May 18, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $210 to the Federal Crime Victims’ Fund. Restitution may also be ordered.
The Indictment alleges that on January 27, 2017, Gunville, after having taken an oath before a competent tribunal, to testify truthfully, made false statements to a U.S. Magistrate Judge. The Indictment also alleges that Gunville willfully and unlawfully disobeyed and resisted a process, order, decree, and command of the U.S. District Court, in that she failed to comply with an order and command issued by a U.S. Magistrate Judge.
The charges are merely accusations and Gunville is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Gunville was released on bond pending trial. A trial date has not been set.
Drug Dealer Sentenced to Prison for Meth DistributionRead the Press Release
ALEXANDRIA, Va. – Robert Mason Wildes, 35, of Dunn Loring, was sentenced today to 136 months in prison for distribution of 50 grams or more of methamphetamine.
Wildes pleaded guilty on February 3. According to court documents, Wildes regularly drove to meet with his customers in the Washington D.C., area to distribute ounce to half-pound quantities of methamphetamine. On Dec. 6, 2016, law enforcement seized approximately 4.8 kilograms of methamphetamine and drug proceeds from Wildes’s vehicle and home in Dunn Loring. During a search of his home, law enforcement also seized fraudulent identification cards, packaging materials, and other items consistent with Wildes operating a sophisticated distribution operation.
The case was investigated by the DEA and U.S. Postal Inspection Service as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Ring of Ice. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-17.
Dorchester Man Pleads Guilty to Federal Gun OffenseRead the Press Release
Michael Browne, 49, of Dorchester, pleaded guilty today in federal court in Boston to knowingly selling a firearm and ammunition to a felon. United States District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 1, 2017.
On Oct. 4, 2010, Browne sold a .357 caliber Smith and Wesson revolver and four bullets for $700 to an individual Browne knew had been previously convicted of a felony offense.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney David G. Tobin is prosecuting the case.
District Man Sentenced to 22 Months in Prison for Possession of a Firearm by a FelonRead the Press Release
WASHINGTON – Pierre Mercer, 31, of Washington, D.C., has been sentenced to 22 months in prison on a federal firearms offense for carrying a semi-automatic handgun in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Mercer pled guilty in July 2016, in the U.S. District Court for the District of Columbia, to a charge of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He was sentenced on May 18, 2017, by the Honorable Ketanji Brown Jackson. Following his prison term, Mercer will be placed on two years of supervised release.
According to the government’s evidence, on Sept. 22, 2015, officers from the Metropolitan Police Department’s Criminal Interdiction Unit went to an apartment in the 1300 block of Savannah Street SE to serve a search warrant. Officers were in full uniform and were operating unmarked police vehicles. Upon arrival, officers observed three individuals at the rear of the location, within several feet from the door. Additionally, officers recognized one of the individuals as Mercer.
Officers stopped the three individuals and conducted protective pat downs of them. As Mercer was being patted down, he began to struggle and actively resist by not allowing officers to conduct a thorough pat down of him. During the struggle, Mercer bit an officer on her right middle finger, causing a minor cut to the affected area. Mercer than spontaneously stated, “Okay, I got a gun on me.” Officers lifted up Mercer’s shirt, revealing an elastic band around his stomach area concealing a black and silver handgun.
The firearm recovered from the defendant was a .40-caliber Smith and Wesson semi-automatic handgun. There were 10 .40 caliber bullets in the magazine of the handgun, with no rounds in the chamber. Ammunition, a bullet-resistant vest, an ID bracelet for Pierre Mercer, and other items were recovered in a search of the residence.
In an earlier case, Mercer was sentenced in March 2004 to a seven-year prison term after pleading guilty in the Superior Court of the District of Columbia to conspiracy and armed robbery charges.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.
Detroit One Collaboration Leads Gang Leader Sentenced to Nearly 20 Years in Prison for Gang-Related Violence and Shootings in Northwest DetroitRead the Press Release
A leader of the Band Crew street gang was sentenced to nearly 20 years in prison for his role in gang-related attempted murders, robberies, and shootings. An associate of the Band Crew street gang was also sentenced yesterday to nearly seven years in prison for his role in the gang’s criminal activities. Corey Deandre Mapp, a/k/a Lil Corey, 23, and Mario Perkins, a/k/a Rio, both of Detroit, were sentenced following their guilty pleas to RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence. Mapp and Perkins both pleaded guilty in late 2016, before Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan.
Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, and Chief James Craig of the Detroit Police Department made the announcement.
“These convictions and sentences are particularly important since Mr. Mapp was a leader of the gang, participated in shootings, and encouraged this violence to occur, which included Mr. Perkins participation in gang-related shootings and violence” said Acting U.S. Attorney Lemisch. “We believe these sentences send a strong message of deterrence to those who may want to pursue the gang lifestyle.”
“These sentences are the culmination of countless hours of dedicated work by ATF agents and our law enforcement partners,” said Special Agent in Charge Shoemaker. “ATF will continue to aggressively target and dismantle criminal enterprises threatening the safety of Detroit’s citizens.”
According to court documents, Band Crew was an association comprised of smaller gangs, including Constantly Making Hundreds (CMH), Young N Crispy (YNC), Pushit (or Pusha) Boy Family (PBF), and Family Over Everything Love is Forever (FOE Life). Band Crew operated in northwest Detroit, and the gang’s members claimed this area as their territory by “tagging” buildings with gang-related graffiti, including markings such as “#22 BandCrew,” “BAND CREW,” “22 BAND CREW,” “YNCMH” and “PBF.” Band Crew members and associates worked to defend their territory, to promote and maintain the status and reputation of the gang, and to engage in or threaten violence in retaliation for perceived wrongs. Band Crew’s specific base of operation in northwest Detroit was in the area in and around Seven Mile Road, with Southfield Freeway to the west, West McNichols Road to the south, Eight Mile Road to the north, and Greenfield Road to the east. The gang members claimed this area as “Band Crew Territory.”
Mapp, Perkins, and their co-defendants were responsible for a multitude of crimes that took place in and around Northwest Detroit. Mapp and Perkins, according to plea agreements and court documents, directly participated or encouraged acts of assault with intent to murder, home invasions, aggravated assaults, shootings in public places, drug dealing, and robberies. Mapp’s criminal conduct spanned the duration from Band Crew’s inception until he and his co-defendants were arrested in the fall of 2015.
All defendants charged in the indictment have been convicted. In addition to Mapp and Perkins, six other members, leaders, and associates of the Band Crew, all of Detroit, have pleaded guilty to charges related to racketeering, assault a dangerous weapon in aid of racketeering, or other weapons offenses. The remaining Band Crew members are scheduled to be sentenced over the next three months.
A very important component to the federal prosecution was earlier successful state prosecutions by the Wayne County Prosecutor’s Office of a number of Band Crew members for specific violent state felony offenses that served as a foundation to the federal Racketeering Conspiracy.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Band Crew street gang, and identified the leaders and key members of the gang, who now have been held accountable. This prosecution was also part of a larger coordinated effort to address ongoing gang violence in Northwest Detroit. During the time of the Band Crew investigation, federal law enforcement and the U.S. Attorney’s Office also investigated, prosecuted, and convicted members of the RTM street gang, chief rival to the Band Crew.
The ATF and Detroit Police Department investigated the case. Assistant U.S. Attorney John N. O’Brien of the Eastern District of Michigan and Assistant U.S. Attorney Jeremy R. Jehangiri of the District of South Dakota prosecuted the case.
Court Sentences Convicted Felon to 70 Months for the Illegal Possession of a WeaponRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Chief Judge Kristi K. DuBose sentenced Thomas Jefferson Laffitte on May 19, 2017 to serve a term of imprisonment of 70 months followed by 3 years of supervised release for illegally possessing a firearm in Mobile, Alabama on July 23, 2016 in violation of 18 USC § 922(g)(1). The defendant, who had an extensive criminal history entered a guilty plea before the Court on February 15, 2017.
This case was investigated by the United States Marshals Service-Gulf Coast Regional Fugitive Task Force, and the Mobile County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Corry Area Schools Federal Credit Union Manager Sentenced to Prison for Embezzling $741,362Read the Press Release
ERIE, Pa. - A resident of Bear Lake, Pennsylvania, has been sentenced in federal court to 24 months in jail, to be followed by 5 years of supervised release, and was ordered to make restitution in the amount of $696,273.72 on her conviction of embezzlement of credit union funds, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Karen Schenck, 50.
According to information presented to the court, from January 2008 through August 2015, while employed as the Office Manager/CEO for the federally insured Corry Area Schools Federal Credit Union in Corry, Ms. Schenck embezzled approximately $741,362.00. Ms. Schenck successfully embezzled the funds in a variety of ways. She made $268,402.25 in unauthorized or fictitious loans in the names of her family members, the proceeds of which she used for her personal benefit or to conceal out of balance conditions in various general ledger accounts. Ms. Schenck made over sixty fictitious deposits into her own account or the accounts of family members totaling approximately $317,897.00, which she used for her personal benefit. Ms. Schenck withdrew approximately $51,035.03 and $44,572.47 from two accounts without the authorization of the account holders. Ms. Schenk created approximately $42,118.07 in loans to herself and fabricated loan underwriting documentation to give the appearance that she would have qualified for the loans. Finally, Ms. Schenck used the embezzled credit union funds to pay off personal credit card balances and engaged in unauthorized credit card limits causing approximately $17.338.00 in losses to the credit union.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Schenck.
Convicted Russian Cyber Criminal Roman Seleznev faces charges in AtlantaRead the Press Release
ATLANTA – Roman Seleznev, of Vladivostok, Russia, has been arraigned on federal cyber fraud charges associated with the 2008 hack and theft of banking credentials from RBS Worldpay, a payment processing company located in Atlanta, Georgia. Seleznev was indicted by a federal grand jury on December 22, 2014.
“In 2008, an American credit card processor was hacked in what was then the most sophisticated and organized computer fraud attack ever conducted,” said U. S. Attorney John Horn. “Using banking credentials stolen during the hack, a team of hackers and cashers in 280 cities around the world stole over $9 million dollars in only 12 hours from 2,100 ATMs worldwide. The defendant is alleged to have stolen over $2,000,000 as part of that scheme.”
“We must continue to impose real costs on criminals who believe they are protected by geographic boundaries and can prey on the American people and institutions with impunity. This arraignment highlights the benefits of global cooperation among the United States and international law enforcement. It further demonstrates the FBI’s long-term commitment to identifying and pursuing cyber criminals world-wide, and serves as a strong deterrent to others targeting America’s financial institutions,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice,” said Kenneth Cronin, Special Agent in Charge of the Secret Service's Atlanta Field Office. “Our longstanding role in transnational cyber investigations and network intrusions was crucial in combatting this complex hacking ring and today’s arraignment proves that there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”
According to U.S. Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Georgia.
The group used sophisticated hacking techniques to compromise the data encryption that was then used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan and Canada. The $9 million loss occurred within a span of less than 12 hours.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cashout, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Roman Seleznev, 32, a Russian national from Vladivosotk, was arraigned before U.S. Magistrate Judge Linda Walker. He is alleged to have been responsible for cashing out $2,178,349 associated with five hacked debit card numbers.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
On April 21, 2017, Seleznev was sentenced by the U.S. District Court for the Western District of Washington to 27 years in prison for other computer hacking crimes that caused more than $169 million in damage to small businesses and financial institutions. Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case. Assistance was provided by the U.S. Attorney’s Office for the Western District of Washington, the Justice Department’s Office of International Affairs, and the Criminal Division’s Computer Crime and Intellectual Property Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Convicted Felon Sentenced for Illegally Purchasing and Selling 16 GunsRead the Press Release
RICHMOND, Va. – A convicted felon who illegally purchased firearms in Virginia and trafficked them to Maryland for re-sale was sentenced today to 87 months in prison.
Devon Kennedy, 23, of Waldorf, Maryland, pleaded guilty on February 16. According to the statement of facts filed with the plea agreement, Kennedy, a convicted felon, traveled to the Richmond area repeatedly between April 28 and May 23, 2016, where he directed his cousin to purchase 16 firearms and several extended magazines. Kennedy provided his cousin with the cash to purchase the firearms, as well as instructions on the types of firearms he wanted his cousin to buy. After supervising his cousin’s purchases, Kennedy took possession of the weapons and then transported those firearms back north to Maryland, where he sold them on the street to various buyers. Kennedy was arrested in Prince George County on May 26, 2016, three days after his most recent trip to Richmond, carrying one of three pistols his cousin had purchased on his behalf. Kennedy had already sold the other two firearms.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Thomas A. Garnett prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-154.
Clarksburg woman admits to mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia woman pled guilty today to mail fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Chasity Costilow, age 38, pled guilty to one count of “Mail Fraud.” Costilow admitted to taking part in a staged vehicular accident in September 2012 in Marion County. She also admitted to faking injuries from said accident and filing a false insurance claim, from which she received a settlement of approximately $60,000.
Costilow faces up to twenty years and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service are investigating.
U.S. Magistrate Judge Michael John Aloi presided.
Chinese National Pleads Guilty to Economic Espionage and Theft of a Trade Secret from U.S. CompanyRead the Press Release
Today, Xu Jiaqiang, 31, formerly of Beijing, China, pleaded guilty to economic espionage and theft of a trade secret, in connection with Xu’s theft of proprietary source code from Xu’s former employer, with the intent to benefit the National Health and Family Planning Commission of the People’s Republic of China. Xu pleaded guilty to all six counts with which he was charged.
The announcement was made by Acting Assistant Attorney General for the National Security Dana Boente and Acting U.S. Attorney Joon H. Kim for the Southern District of New York. The pleas were entered before U.S. District Judge Kenneth M. Karas in White Plains, New York federal court.
“Today, Xu pleaded guilty to stealing trade secrets from his former employer for his own profit and intending to benefit the People’s Republic of China,” said Acting Assistant Attorney General Boente. “The Economic Espionage Act is a key tool in protecting our economic and security interests. The National Security Division will pursue and prosecute any individual who steals intellectual property from American businesses to benefit a foreign government.”
“Xu Jiaqiang admitted and pled guilty today to stealing high tech trade secrets from a U.S. employer, intending to benefit the Chinese government. What Xu did was not only a federal crime, but a threat to our national security and the American spirit of innovation. Our Office is committed to finding, arresting and holding accountable those who take advantage of American businesses by engaging in economic espionage.”
According to the allegations contained in the Complaint and the Superseding Indictment filed against Xu, as well as statements made in related court filings and proceedings:
From November 2010 to May 2014, Xu worked as a developer for a U.S. company (the “Victim Company”). As a developer, Xu enjoyed access to certain proprietary software (the “Proprietary Software”), as well as that software’s underlying source code (the “Proprietary Source Code”). The Proprietary Software is a clustered file system developed and marketed by the Victim Company in the U.S. and other countries. A clustered file system facilitates faster computer performance by coordinating work among multiple servers. The Victim Company took significant precautions to protect the Proprietary Source Code as a trade secret. Among other things, the Proprietary Source Code is stored behind a company firewall and can be accessed only by a small subset of the Victim Company’s employees. Before receiving Proprietary Source Code access, Victim Company employees must first request and receive approval from a Victim Company official. Victim Company employees must also agree in writing at both the outset and the conclusion of their employment that they will maintain the confidentiality of any proprietary information. The Victim Company took these and other precautions in part because the Proprietary Software and the Proprietary Source Code are economically valuable, which value depends in part on the Proprietary Source Code’s secrecy.
In May 2014, Xu voluntarily resigned from the Victim Company. Xu subsequently communicated with one undercover law enforcement officer (“UC-1”), who posed as a financial investor aiming to start a large-data storage technology company, and another undercover law enforcement officer (“UC-2”), who posed as a project manager, working for UC-1. In these communications, Xu discussed his past experience with the Victim Company and indicated that he had experience with the Proprietary Software and the Proprietary Source Code. On March 6, 2015, Xu sent UC-1 and UC-2 code, which Xu stated was a sample of Xu’s prior work with the Victim Company. A Victim Company employee (“Employee-1”) later confirmed that the code sent by Xu included proprietary Victim Company material that related to the Proprietary Source Code.
Xu subsequently informed UC-2 that Xu was willing to consider providing UC-2’s company with the Proprietary Source Code as a platform for UC-2’s company to facilitate the development of its own data storage system. Xu informed UC-2 that if UC-2 set up several computers as a small network, then Xu would remotely install the Proprietary Software so that UC-1 and UC-2 could test it and confirm its functionality.
In or around early August 2015, the FBI arranged for a computer network to be set up, consistent with Xu’s specifications. Files were then remotely uploaded to the FBI-arranged computer network (the “Xu Upload”). Thereafter, on or about Aug. 26, 2015, Xu and UC-2 confirmed that UC-2 had received the Xu Upload. In September 2015, the FBI made the Xu Upload available to a Victim Company employee who has expertise regarding the Proprietary Software and the Proprietary Source Code (“Employee-2”). Based on Employee-2’s analysis of technical features of the Xu Upload, it appeared to Employee-2 that the Xu Upload contained a functioning copy of the Proprietary Software. It further appeared to Employee-2 that the Xu Upload had been built by someone with access to the Proprietary Source Code who was not working within the Victim Company or otherwise at the Victim Company’s direction.
On Dec. 7, 2015, Xu met with UC-2 at a hotel in White Plains, New York (the “Hotel”). Xu stated, in sum and substance, that Xu had used the Proprietary Source Code to make software to sell to customers, that Xu knew the Proprietary Source Code to be the product of decades of work on the part of the Victim Company, and that Xu had used the Proprietary Source Code to build a copy of the Proprietary Software, which Xu had uploaded and installed on the UC Network (i.e., the Xu Upload). Xu also indicated that Xu knew the copy of the Proprietary Software that Xu had installed on the UC Network contained information identifying the Proprietary Software as the Victim Company’s property, which could reveal the fact that the Proprietary Software had been built with the Proprietary Source Code without the Victim Company’s authorization. Xu told UC-2 that Xu could take steps to prevent detection of the Proprietary Software’s origins – i.e., that it had been built with stolen Proprietary Source Code – including writing computer scripts that would modify the Proprietary Source Code to conceal its origins.
Later on Dec. 7, 2015, Xu met with UC-1 and UC-2 at the Hotel. During that meeting, Xu showed UC-2 a copy of what Xu represented to be the Proprietary Source Code on Xu’s laptop. Xu noted to UC-2 a portion of the code that indicated it originated with the Victim Company as well as the date on which it had been copyrighted. Xu also stated that Xu had previously modified the Proprietary Source Code’s command interface to conceal the fact that the Proprietary Source Code originated with the Victim Company and identified multiple specific customers to whom Xu had previously provided the Proprietary Software using Xu’s stolen copy of the Proprietary Source Code.
In connection with the economic espionage counts charged in the Superseding Indictment, Xu stole, duplicated, and possessed the Proprietary Source Code with the intent to benefit the National Health and Planning Commission of the People’s Republic of China.
Xu pleaded guilty to three counts of economic espionage, each of which carries a maximum sentence of 15 years in prison, and three counts of theft of a trade secret, each of which carries a maximum sentence of 10 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Xu’s sentencing is scheduled for October 13.
Mr. Kim praised the FBI’s outstanding investigative efforts. He also thanked the U.S. Department of Justice’s National Security Division.
The case is being handled by the Office’s Terrorism and International Narcotics Unit and its White Plains Division. The prosecution is being handled by Assistant U.S. Attorneys Benjamin Allee, Ilan Graff and Shane T. Stansbury for the Southern District of New York, with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.
Chinese National Pleads Guilty to Economic Espionage and Theft of A Trade Secret from U.S. CompanyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Dana Boente, Acting Assistant Attorney General for National Security, announced today that XU JIAQIANG pled guilty to economic espionage and theft of a trade secret, in connection with XU’s theft of proprietary source code from XU’s former employer, with the intent to benefit the National Health and Family Planning Commission of the People’s Republic of China. XU pled guilty earlier today to all six counts with which he was charged, before the U.S. District Judge Kenneth M. Karas in White Plains federal court.
Acting U.S. Attorney Joon H. Kim said: “Xu Jiaqiang admitted and pled guilty today to stealing high tech trade secrets from a U.S. employer, intending to benefit the Chinese government. What Xu did was not only a federal crime, but a threat to our national security and the American spirit of innovation. Our Office is committed to finding, arresting and holding accountable those who take advantage of American businesses by engaging in economic espionage.”
Acting Assistant Attorney General Dana Boente said: “Today, Xu pleaded guilty to stealing trade secrets from his former employer for his own profit and intending to benefit the People’s Republic of China. The Economic Espionage Act is a key tool in protecting our economic and security interests. The National Security Division will pursue and prosecute any individual who steals intellectual property from American businesses to benefit a foreign government.”
According to the allegations contained in the Complaint and the Superseding Indictment filed against XU, as well as statements made in related court filings and proceedings:
From November 2010 to May 2014, XU worked as a developer for a particular U.S. company (the “Victim Company”). As a developer, XU enjoyed access to certain proprietary software (the “Proprietary Software”), as well as that software’s underlying source code (the “Proprietary Source Code”). The Proprietary Software is a clustered file system developed and marketed by the Victim Company in the United States and other countries. A clustered file system facilitates faster computer performance by coordinating work among multiple servers. The Victim Company takes significant precautions to protect the Proprietary Source Code as a trade secret. Among other things, the Proprietary Source Code is stored behind a company firewall and can be accessed only by a small subset of the Victim Company’s employees. Before receiving Proprietary Source Code access, Victim Company employees must first request and receive approval from a particular Victim Company official. Victim Company employees must also agree in writing at both the outset and the conclusion of their employment that they will maintain the confidentiality of any proprietary information. The Victim Company takes these and other precautions in part because the Proprietary Software and the Proprietary Source Code are economically valuable, which value depends in part on the Proprietary Source Code’s secrecy.
In May 2014, XU voluntarily resigned from the Victim Company. XU subsequently communicated with one undercover law enforcement officer (“UC-1”), who posed as a financial investor aiming to start a large-data storage technology company, and another undercover law enforcement officer (“UC-2”), who posed as a project manager, working for UC-1. these communications, XU discussed his past experience with the Victim Company and indicated that he had experience with the Proprietary Software and the Proprietary Source Code. On March 6, 2015, XU sent UC-1 and UC-2 a code, which XU stated was a sample of XU’s prior work with the Victim Company. A Victim Company employee (“Employee-1”) later confirmed that the code sent by XU included proprietary Victim Company material that related to the Proprietary Source Code.
XU subsequently informed UC-2 that XU was willing to consider providing UC-2’s company with the Proprietary Source Code as a platform for UC-2’s company to facilitate the development of its own data storage system. XU informed UC-2 that if UC-2 set up several computers as a small network, then XU would remotely install the Proprietary Software so that UC-1 and UC-2 could test it and confirm its functionality.
In or around early August 2015, the FBI arranged for a computer network to be set up, consistent with XU’s specifications. Files were then remotely uploaded to the FBI-arranged computer network (the “Xu Upload”). Thereafter, on or about August 26, 2015, XU and UC-2 confirmed that UC-2 had received the Xu Upload. In September 2015, the FBI made the Xu Upload available to a Victim Company employee who has expertise regarding the Proprietary Software and the Proprietary Source Code (“Employee-2”). Based on Employee-2’s analysis of technical features of the Xu Upload, it appeared to Employee-2 that the Xu Upload contained a functioning copy of the Proprietary Software. It further appeared to Employee-2 that the Xu Upload had been built by someone with access to the Proprietary Source Code who was not working within the Victim Company or otherwise at the Victim Company’s direction.
On December 7, 2015, XU met with UC-2 at a hotel in White Plains, New York (the “Hotel”). XU stated, in sum and substance, that XU had used the Proprietary Source Code to make software to sell to customers, that XU knew the Proprietary Source Code to be the product of decades of work on the part of the Victim Company, and that XU had used the Proprietary Source Code to build a copy of the Proprietary Software, which XU had uploaded and installed on the UC Network (i.e., the Xu Upload). XU also indicated that XU knew the copy of the Proprietary Software that XU had installed on the UC Network contained information identifying the Proprietary Software as the Victim Company’s property, which could reveal the fact that the Proprietary Software had been built with the Proprietary Source Code without the Victim Company’s authorization. XU told UC-2 that XU could take steps to prevent detection of the Proprietary Software’s origins – i.e., that it had been built with stolen Proprietary Source Code – including writing computer scripts that would modify the Proprietary Source Code to conceal its origins.
Later on December 7, 2015, XU met with UC-1 and UC-2 at the Hotel. During that meeting, XU showed UC-2 a copy of what XU represented to be the Proprietary Source Code on XU’s laptop. XU noted to UC-2 a portion of the code that indicated it originated with the Victim Company as well as the date on which it had been copyrighted. XU also stated that XU had previously modified the Proprietary Source Code’s command interface to conceal the fact that the Proprietary Source Code originated with the Victim Company and identified multiple specific customers to whom XU had previously provided the Proprietary Software using XU’s stolen copy of the Proprietary Source Code.
* * *
XU, 31, formerly of Beijing, China, pled guilty to three counts of economic espionage, each of which carries a maximum sentence of 15 years in prison, and three counts of theft of a trade secret, each of which carries a maximum sentence of 10 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 the defendant will be determined by the judge.
Xu's sentencing is scheduled for October 13, 2017.
Mr. Kim praised the FBI’s outstanding investigative efforts. He also thanked the U.S. Department of Justice’s National Security Division.
The case is being handled by the Office’s Terrorism and International Narcotics Unit and its White Plains Division. Assistant U.S. Attorneys Benjamin Allee, Ilan Graff, and Shane T. Stansbury, with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
Carter Lake Iowa Man Sentenced for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 19, 2017, Mitchell Eugene Obrechtheather Jean Reekr, a 41 year-old resident of Carter Lake, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 97 months in prison for possession of child pornography, announced United States Attorney Kevin E. VanderSchel. Obrecht will be required to serve 10 years of supervised release following his imprisonment.
On January 30, 2017, Obrecht pleaded guilty to an indictment charging him with possession of child pornography on or about September 18, 2015. The charge resulted from an investigation into the posting of a video and an image, each depicting child pornography, on a social networking site. Law enforcement followed up with a search warrant of Obrecht’s residence and located two computers that contained over 1,000 of images of child pornography.
The Iowa Division of Criminal Investigation’s Internet Crimes Against Children Task Force, Carter Lake Iowa Police Department, and Douglas County Nebraska Sheriff’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Buffalo Woman Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Tashaira Vazquez, 30, both of Buffalo, NY, pleaded guilty to obtaining controlled substances through fraud, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between July 2013 and May 2015, co-defendant Brandon Coburn, a licensed nurse practitioner who was legally authorized to prescribe controlled substances, provided prescriptions that were not issued for legitimate medical purposes to Vazquez and nine others. Vasquez and the others filled the prescriptions, and then sold the drugs, which included fentanyl, oxycodone, oxymorphone, and amphetamine, on the street in the Buffalo area. Vazquez filled a total of 28 prescriptions.
To date, six defendants charged in this investigation have been convicted. 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 James J. Hunt, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for August 23, 2017, at 1:00 p.m. before Judge Arcara.
Buffalo Man Pleads Guilty to Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U. S. Attorney James P. Kennedy, Jr. announced today that Dellsean Hamilton, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute, and distribution of, heroin and being a felon in possession of a firearm. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between March 2015, and February 29, 2016, the defendant conspired with Brittney Ridgeway and others to sell heroin. During the course of the conspiracy, Hamilton and Ridgeway regularly sold heroin, fentanyl, and butyryl fentanyl in the Buffalo and Cheektowaga areas. On March 25, 2015, Cheektowaga Police conducted a traffic stop of a vehicle occupied by Ridgeway, the defendant and a juvenile and recovered $2,315 in cash. Ridgeway was found with 141 envelopes containing nearly four grams of fentanyl.
On July 15, 2015, the Erie County Sheriff’s Narcotics Unit executed warrants at two residences linked to Hamilton. At 16 Dash Street, deputies seized drug paraphernalia, including wax envelopes commonly used to package heroin. At 75 Edison Street, they seized approximately 2,000 wax envelopes containing approximately 50 grams of heroin, additional envelopes containing more than a gram of a mixture of heroin, fentanyl, and butyryl fentanyl, three firearms, and a digital scale.
Hamilton was arrested on state charges and while on bail, the defendant and Ridgeway continued their narcotics trafficking activities. On December 11, 18 and 23, 2015, Hamilton sold butyryl fentanyl to a confidential source working with the Drug Enforcement Administration and the Cheektowaga Police Department. This resulted in a federal search warrant and arrest warrant. On January 11, 2016, the defendant was arrested and found in possession of a large amount of cash and baggies containing approximately a gram of fentanyl. Inside of Hamilton’s vehicle, which was occupied by Ridgeway, officers seized approximately $5,000 in cash. During a subsequent search of Hamilton’s residence at 1150 East Lovejoy in Buffalo, officers seized a semi-automatic pistol and ammunition.
While incarcerated on the federal charges, Hamilton continued his drug trafficking activities with Ridgeway. Specifically, during a recorded jail call between the two, Hamilton instructed Ridgeway not to consent to the search of a residence again. Ridgeway then continued trafficking heroin as Hamilton had done prior to his incarceration. On February 4 and 11, 2016, Ridgeway sold butryrl fentanyl and fentanyl, respectively, to a confidential source working with DEA and the Cheektowaga Police Department.
Brittney Ridgeway has been convicted and is awaiting sentencing.
The plea is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 28, 2017, at 12:30 p.m. before Judge Arcara.
Berlin Man Sentenced to 36 Years in Federal Prison for Production of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced David Edward Weatherholtz, age 57, of Berlin, Maryland today to 36 years in prison, followed by a lifetime of supervised release, for production of child pornography. Judge Hollander also ordered that Weatherholtz pay a total of $105,471.12 in restitution to the victims and ordered that Weatherholtz forfeit certain property, including his interest in the commercial real estate property located at 12600 Marjan Lane, Ocean City, MD 21842.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Worcester County State’s Attorney Beau Oglesby; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least August 1990 through his arrest in 2015, Weatherholtz had sexual contact and/or sexual intercourse with at least four minors.
On December 3, 2014, an undercover detective with the Worcester County Sheriff’s Office responded to a sexually explicit ad placed on an internet website. Records obtained from the website identified Weatherholtz as the person who posted the advertisement and further indicated that the ad was one of many posted by Weatherholtz from 2009 to December 2014 for the purpose of meeting young males interested in sex.
Weatherholtz and the undercover detective exchanged emails and text messages, in which the detective identified himself as a 13-year-old deaf white male who lived with his aunt in Snow Hill. Weatherholtz sent the detective two video files by text messages. In the first video file Weatherholtz depicted himself greeting the purported 13-year-old deaf male, and in the second video file he pretended to be the 13-year-old deaf male greeting Weatherholtz.
Weatherholtz arranged to meet the purported 13-year-old male at a restaurant in Snow Hill on December 16, 2014, and indicated that he would bring the boy back to his residence. When Weatherholtz arrived at the meeting location, he was taken into custody. A search warrant was also executed at his home and law enforcement seized numerous computers, hard drives, and other media storage devices. Subsequent forensic analysis of those items recovered numerous still photographs and a video of Weatherholtz engaged in sexually explicit conduct with a minor male victim.
On August 17, 2016, an employee at a building formely owned by Weatherholtz found a box on the property that was addressed to “Aaron Weatherholtz” – the defendant’s dog. Inside the box were photos of minor males engaged in sex acts; sheets of paper called “official progress charts” that depicted dated, hand-traced outlines of erect male penises; CDs and DVDs; and two VHS-compatible camcorder cassette tapes. A review of that material revealed three other minor male victims engaged in sexually explicit conduct.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore, Worcester County Sheriff’s Office, Worcester County State’s Attorney’s Office, Maryland State Police, and the Internet Crimes Against Children Task Force for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Ayn B. Ducao and Paul A. Riley, who prosecuted the case.
Arizona Woman Pleads Guilty to Federal Drug Trafficking Charge Arising Out of Seizure of Five Pounds of HeroinRead the Press Release
ALBUQUERQUE – Tabitha Marie Ochoa, 29, of Nogales, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge.
Tabitha Marie Ochoa and co-defendant Maryhelen Princess Ochoa, 32, also of Nogales, Ariz., were arrested in Feb. 2017, after law enforcement officers found nine bundles of heroin weighing 2387 grams (5.26 pounds) in their vehicle during a routine traffic stop. According to the complaint, the traffic stop took place on Jan. 30 and 31, 2017, in Cibola County, N.M.
During today’s proceedings, Tabitha Marie Ochoa pled guilty to an information charging her with possession of heroin with intent to distribute. In entering the guilty plea, Tabitha Marie Ochoa admitted possessing the heroin seized from the vehicle in which she was traveling on Jan. 31, 2017. Tabitha Marie Ochoa admitted that she was being paid to deliver the heroin to another person.
At sentencing, Tabitha Marie Ochoa faces a maximum penalty of 20 years in federal prison. She remains in custody pending a sentencing hearing, which has yet to be scheduled.
Maryhelen Princess Ochoa remains in custody pending presentation of the case against her to a grand jury. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Anthony Weiner Pleads Guilty in Manhattan Federal Court to Transferring Obscene Material to A MinorRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”) announced that ANTHONY WEINER was charged with, and pled guilty to, transferring obscene material to a minor. WEINER surrendered to the FBI in New York this morning, pled guilty before United States District Judge Loretta A. Preska, and was released on bail pending sentencing. Sentencing has been scheduled for September 8, 2017, at 11 a.m.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Today, former Congressman Anthony Weiner admitted and pled guilty to sending sexually explicit images and directions to engage in sexual conduct to a girl he knew to be 15 years old. Weiner’s conduct was not only reprehensible, but a federal crime, one for which he is now convicted and will be sentenced. We thank the FBI and the NYPD for their work in this investigation.”
FBI Assistant Director in Charge William F. Sweeney Jr. said: “We work every day in the FBI and law enforcement to stop adults from preying on vulnerable children. Our partnership with the NYPD cannot be stressed enough in this case, and we would like to thank the Special Victims Unit for all the work and effort they put into this investigation.”
According to the Information filed in Manhattan federal court today and statements made in Court during today’s plea proceeding, between in or about January and March 2016, WEINER used online messaging and video chat applications to communicate with a minor girl he knew to be 15 years old (the “Minor Victim”). In the course of those communications, WEINER transferred obscene material to the Minor Victim, including directions to engage in sexual conduct and sexually explicit images.
* * *
WEINER, 52, of New York, New York, has pled guilty to one count of transferring obscenity to a minor, which carries a maximum sentence of 10 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the Special Victims Division of the New York City Police Department.
The case is being handled by the Office’s General Crimes unit. Assistant United States Attorneys Amanda Kramer and Stephanie Lake are in charge of the prosecution.
Anchorage Man Found Guilty of Attempting to Spend Counterfeit Money at Anchorage International AirportRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was found guilty yesterday of attempting to pass a counterfeit $100 bill at the Anchorage International Airport. Abdikhaliq Hussein, 28, of Anchorage, was convicted by Chief U.S. District Judge Timothy M. Burgess after a two-day bench trial. Sentencing is scheduled for Aug. 8, 2017. The maximum potential penalty is 20 years imprisonment and a fine of $250,000.
According to Assistant U.S. Attorney Jonas Walker, Hussein went to the Anchorage International Airport on Jan. 14, 2017, and made a reservation for a one-way trip to San Francisco. In attempting to pay for the ticket, Hussein handed seven counterfeit $100 bills to an airline employee. The employee immediately noticed that the bills were counterfeit due to their texture and appearance, including Chinese text in bright pink and red on both sides of the bills. The Chinese text translates as “training coupon, sample, for practice only, no circulation.”
Two airline employees explained to Hussein that the bills were not valid United States currency. The employees tested the fake funds with a counterfeit-detection marker and showed Hussein the resulting dark mark. After the airline employees explained to Hussein that the bills were false, Hussein tried to use an identical counterfeit $100 bill to pay for $7 worth of drinks and snacks from Starbucks located in the terminal. Police contacted Hussein shortly thereafter and found that the total amount of counterfeit currency he possessed was $11,220. At trial, Hussein testified that he found the money in a plastic bag along an Anchorage street and believed it was real. However, Judge Burgess found that Hussein was deliberately indifferent to the money being counterfeit and that he intended to deceive the Starbucks employee.
Acting U.S. Attorney Schroder commends the Anchorage International Airport Police and Fire Department, the Anchorage Police Department, the Federal Bureau of Investigation, the Secret Service, and the Department of Homeland Security for their cooperation in investigating this offense.
The U.S. Attorney’s Office cautions the community that federal law prohibits spending counterfeit currency as if it were authentic, even by a person who did not print it. A photo of the counterfeit $100 is attached.
Albuquerque Felon Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Carlos Vasquez, 47, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking and firearms charges under a plea agreement with the U.S. Attorney’s Office
Vasquez was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Vasquez was charged in a three-count indictment filed on June 14, 2016, with distribution of cocaine and methamphetamine on May 26, 2016 and being a felon in possession of a firearm and ammunition on June 1, 2016. According to the indictment, Vasquez committed the crimes in Bernalillo County. In June 2016, Vasquez was prohibited from possessing firearms or ammunition because he previously had been convicted of aggravated battery on a household member, attempted armed robbery, and abandonment or abuse of a child.
During today’s proceedings, Vasquez pled guilty to possessing methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Vasquez admitted that on May 26, 2016, he sold methamphetamine to an individual working with law enforcement. Vasquez also admitted that on June 1, 2016, he gave a firearm and ammunition to an undercover law enforcement agent. Vasquez acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Vasquez faces a maximum penalty of 20 years in federal prison. Vasquez remains in custody pending a sentencing hearing, which has yet to be scheduled.
To date, 50 of the 104 defendants have entered guilty pleas, and 18 have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. This case is being prosecuted by Assistant U.S. Attorney Eva Fontanez.
Air Force Engineer Pleads Guilty to Making False Statement About Unreported Foreign 'Romantic Liaisons'Read the Press Release
DAYTON – Michael Volf Ol, 44, of Xenia, Ohio pleaded guilty today in U.S. District Court to one count of making a false statement.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, and Randall Pendleton, Commander of the Air Force Office of Investigation, Field Investigation Squadron at Wright-Patterson Air Force Base, announced the plea entered into before U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, Ol had been employed as a civil service aeronautical engineer at Wright-Patterson Air Force Base since September 1993. In 2014, Ol knowingly lied on a background questionnaire for national security positions, stating that he had not had any close contacts with any foreign nationals within the previous seven years. In actuality, the defendant had multiple romantic contacts in October and December 2012 with a female foreign national in France and in Ohio, Pennsylvania, New York, New Jersey and Virginia – all while on official Air Force sponsored trips.
As part of the plea, Ol has agreed to resign from his civil service position with the United States Department of the Air Force. The parties involved in the case recommended a three-year term of probation and $5,000 fine as part of the plea agreement as well, which Judge Rose will consider at a future sentencing hearing.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Air Force Office of Investigation, as well as Assistant United States Attorney Dwight Keller, who is representing the United States in this case.
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37 San Antonio-Based Texas Mexican Mafia Members and Associates Indicted on Federal Drug Trafficking, Extortion and Firearms ChargesRead the Press Release
Today, federal, state and local authorities arrested 26 individuals, including “TMM General” Raul Ramos, and are looking for four others in connection with a heroin/cocaine trafficking operation in the San Antonio area announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; and, District Attorney Daniel Kindred, 38th Judicial District Attorney’s Office.
A federal grand jury this week returned an indictment against a total of 37 defendants (listed below): 26 arrested today, eight who were already in custody, and, three who remain fugitives. Charges contained in a federal grand jury indictment unsealed this afternoon in San Antonio are: conspiracy to interfere with Commerce by threats or violence (Count 1); conspiracy to distribute controlled substances (Count 2); possession with intent to distribute a controlled substance (Count 3); use, carrying, or discharging a firearm in relation to a drug trafficking crime (Count 4).
The indictment alleges that the defendants are responsible for distributing heroin and methamphetamine since January 2015 as well as collecting the “dime,” a ten percent tax imposed by the TMM on non-members who distribute narcotics. The indictment states that failure to pay the tax could result in serious bodily injury, robbery or death.
The defendants face up to 20 years in federal prison upon conviction of the extortion conspiracy charge. The defendants face between five and 40 years in federal prison upon conviction of the drug conspiracy charge or drug possession charge. The defendants face a mandatory ten years in federal prison consecutive to any other prison time assessed upon conviction of the firearms charge. Those defendants arrested today remain in federal custody awaiting detention hearings in federal court next week.
This indictment resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the FBI and the DEA together with Homeland Security Investigations (HSI), the San Antonio Police Department, Texas Department of Public Safety, Bexar County Sheriff’s Office, New Braunfels Police Department, Medina County Sheriff’s Office, Hondo Police Department, and the District Attorney’s Office for the 38th Judicial District. Since October 2016, the 38th Judicial District DA's Office in Hondo, TX, has obtained over 50 state indictments of TMM members and their associates in the Hondo area related to this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
U.S. v. Ramos, et al. defendants
SA17cr391
** Already in custody prior to today
Name, Age, Residence, Charges
Raul Ramos (aka Alto, aka Naranjo, aka GQ), age 51 of San Antonio, Counts 1,2
Victor Garcia (aka Café, aka Pelon, aka BF), age 48 of San Antonio, Counts 1,2
Angel Cantu Garcia (aka Mad, aka Che), age 53 of San Antonio, Counts 1,2Robert M. Cantu (aka Rock, aka Aguila), age 52 of San Antonio, Counts 1,2
Mariano Valdez III (aka Huesos, aka Rage), age 48 of San Antonio, Counts 1,2
**Fernando Gonzales (aka Nando, aka Sunny), age 37 of San Antonio, Counts 1,2
**Richard Gamez (aka Richio, aka Mack), age 40 of San Antonio, Counts 1,2
Arthur Gallegos (aka Teflon, aka Llano), age 41, of San Antonio, Count 1
Daniel Garza (aka Yogi), age 46 of San Antonio, Counts 1,2
Ricky Escobedo (aka Striker, aka Richio, aka Guero), age 41 of San Antonio, Counts 1,2
Jimmy Lee Zuniga (aka Goon),age 30 of San Antonio, Count 1
**Miguel Hernandez (aka Mikio), age 35 of San Antonio, Count 2
Ramiro R. Carrizales (aka Rudy C), age 45 of San Antonio, Counts 1,2
Abel Joseph Guerrero (aka Sandman, aka Plex), age 29 of San Antonio, Counts 1,2
Joe Perez III (aka JJ), age 31 of San Antonio, Counts 1,2
Julian Rosas Garza (aka Juju), age 26 of San Antonio, Counts 1,2
Juan Jose Gonzales (aka Wedo), age 38 of San Antonio, Counts 1,2,3,4
Roman Gabriel Gonzales (aka Roman), age 44 of San Antonio, Counts 1,2
**Joe Angel Arredondo (aka Porkchop), age 36 of San Antonio. Counts 2,3,4
**Johnny Ray Morales (aka Chone), age 29 of San Antonio, Counts 1,2,3,4
**Mario Vega (aka Chore), age 39 of San Antonio, Count 1
Alfred Garansuay (aka Alfred), age 45 of San Antonio, Counts 1,2
Fran Marie Gonzales (aka China), age 38 of San Antonio, Counts 1,2
Roberto Hernandez (aka Bobby), age 72 of San Antonio, Counts 1,2
Albert Guerra Mata (aka Pajaro), age 45 of San Antonio, Counts 1,2
Jimmy Perez (aka Turtle, aka Reaper), age 40 of San Antonio, Counts 1,2
Robert Rodriguez (aka Chino), age 43 of San Antonio, Count 1
Johnny Ramon Fonseca (aka Mad Cow, aka MC), age 44 of San Antonio, Count 1
Pedro Torrez (aka Infamous), age 34 of Floresville, TX, Counts 1,2
Jesus Rodriguez (aka Texas), age 29 of San Antonio, Counts 1,2
Frederick Rocha (aka Lil Mac), age 38 of San Antonio, Count 1
Oscar Martinez (aka Pelon), age 70 of Laredo, TX, Count 2
**Jose Luis Cortez (aka Listo, aka T-Bone), age 40 of San Antonio, Count 1
**Marc Thomas Reyes (aka Panda), age 29 of San Antonio, Counts 1,2
18 May 2017
“Dino the Casino” of Los Angeles Pleads Guilty to Operating Statewide Illegal Gambling Business and Distributing CocaineRead the Press Release
SACRAMENTO, Calif. — Nive Hagay, 31, of Los Angeles, pleaded guilty today to conducting an illegal gambling business and distributing cocaine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, starting in 2008 until November 2016, Hagay, who also went by the name “Dino the Casino,” installed and maintained video slot machines in smoke shops, convenience stores and other small businesses from Bakersfield to Sacramento. Hagay then laundered the proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8.
Finally, on October 15, 2016, at a smoke shop in Sacramento, Hagay sold approximately one ounce of a mixture that tested positively for cocaine. The sale was recorded, and in the video, Hagay is seen pulling the bag of the substance from his pocket and taking the resulting money. In the recording, he discusses the quality of the cocaine, describes where he got it and offers to get more and of higher quality in the future.
As a part of his plea agreement, Hagay has agreed to forfeit assets acquired from proceeds of the illegal gambling business, including a 2010 Aston Martin Rapide, a 2016 Mercedes Benz AMG GT, several Ducati motorcycles, hundreds of thousands of dollars in cash seized from his home, the illegal slot machines, and various bank accounts.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Hagay is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 24, 2017. Hagay faces a maximum statutory penalty of five years in prison and a $250,000 fine for the illegal gambling offense and 20 years in prison and a $1 million fine for the cocaine distribution charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Youth Organizer Charged with Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A teen mentor and founder of a nonprofit youth organization has been charged in a federal criminal complaint for sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Kevin Ray McMillan, 37, of Corpus Christi, is a teen mentor with the Boys and Girls Club of Corpus Christi and founder of Texas Youth Entrepreneurs, which is a nonprofit youth organization that mentors aspiring young future business owners, according to the charges.
He was taken into custody last night as he was traveling to allegedly engage in sexual activity with a minor. A federal criminal complaint was filed this afternoon. He is expected to make his initial appearance before U.S. Magistrate B. Janice Ellington at 2:00 p.m. tomorrow.
The charges allege McMillan had been sending sexually-explicit text messages via cellular telephone to a juvenile female. According to information in the complaint, McMillan also engaged in sexual activity with the young girl which was photographed via cellular telephone.
If convicted, he faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Wisconsin man sentenced to more than four years in prison for falsely claiming he was a Navy SEAL wounded in Vietnam to get benefitsRead the Press Release
A Wisconsin man was sentenced to more than four years in prison for crimes related to his false claims that he was a Navy SEAL wounded four times in Vietnam, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and Gavin McClaren, Resident Agent in Charge of the Department of Veterans Affairs Office of Inspector General’s Cleveland office.
Kenneth E. Jozwiak, 68, of Kenosha, Wisconsin, previously pleaded guilty to unlawfully exhibiting a military discharge certificate, theft of government money, making false statements to federal agents, and attempting to obstruct an official proceeding.
“This defendant’s lies about his service are an affront to those who saw combat and those wounded fighting on behalf of our nation,” Sierleja said. “This defendant did neither, and falsely inflated his service record in an effort to get additional benefits.”
“Falsifying service records to defraud taxpayers and plagiarize other veterans valorous service will not be tolerated,” McClaren said.
Jozwiak in 2014, exhibited a DD-214 (military discharge certificate) that claimed, in part, that Jozwiak was a highly decorated Vietnam War veteran, that he was a four-time recipient of the Purple Heart, and that he was a Navy SEAL -- all entries Jozwiak knew were totally false, according to court documents.
Additionally, Jozwiak defrauded the Department of Veterans Affairs of $2,289 through veteran’s entitlements he received between August and December 2014. In January 2015, Jozwiak made several false statements to federal agents about his fraudulent activities and his military service, and that he attempted to obstruct an official proceeding by tampering with a material witness, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the Department of Veterans Affairs Office of Inspector General—Criminal Investigative Division.
West Virginia Man Pleads Guilty in Two Western PA Pharmacy RobberiesRead the Press Release
PITTSBURGH - A resident of Fairmont, West Virginia, pleaded guilty in federal court to charges of conspiracy to commit robbery of a pharmacy, robbery of a pharmacy, brandishment of a firearm in relation to a crime of violence, and possession with the intent to distribute Schedule II controlled substances, Acting United States Attorney Soo C. Song announced today.
Dana Lee Shipley, 51, pleaded guilty to four counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on March 11, 2016, Palmer's Pharmacy located in Russellton, (Allegheny County) Pennsylvania, was robbed by two individuals armed with firearms and wearing masks. The suspects stole approximately 10,000 dosage units of prescription drugs, including Oxycodone and Fentanyl, with an estimated street value of approximately $235,000. As a result of their comprehensive and extensive investigation, the Drug Enforcement Administration (DEA) and West Deer Police Department developed a general description of at least one suspect.
On April 28, 2016, Keystone Pharmacy located in New Alexandria Boro, (Westmoreland County) Pennsylvania, was robbed by two individuals wearing masks. One suspect had a gun and the other had pepper spray. The assailants placed employees on the ground and handcuffed them. Investigators determined that between 15,000 - 20,000 dosage units were stolen. Noting the similarities between both robberies, DEA then coordinated its investigation with that of the Pennsylvania State Police to identify and arrest the individuals in question. After locating and interviewing one suspect, agents secured a full confession. Immediately thereafter, the other suspect, Dana Shipley, was identified and arrested. When he was arrested, Shipley had a backpack containing a large amount of pills, money from the New Alexandria robbery and both masks used in the New Alexandria robbery. Shipley also had a .32 caliber firearm used in the commission of the crime concealed in his pocket. Shipley has an extensive criminal history and had recently been released from prison after serving time for armed robbery.
Judge Ambrose scheduled sentencing for October 2, 2017. The law provides for a maximum total sentence of twenty years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Ambrose ordered that the defendant remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Police and the West Deer Township Police Department conducted the investigation leading to the prosecution of Shipley.
Wareham Man Pleads Guilty to Cocaine TraffickingRead the Press Release
BOSTON – A Wareham man pleaded guilty today in federal court in Boston in connection with trafficking cocaine.
Aaron Mott-Frye, 27, pleaded guilty to conspiracy to distribute cocaine and possession of cocaine with the intent to distribute. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 28, 2017.
Mott-Frye was a cocaine supplier to Christopher Wilkins and Christian Chapman, members of the Nauti-Block gang that operated on Cape Cod. On June 14-15, 2016, Mott-Frye distributed cocaine to a cooperating witness.
Christian Chapman and Christopher Wilkins previously pleaded guilty to heroin trafficking charges, amongst other crimes, and will be sentenced on July 12, 2017, and Aug. 16, 2017, respectively. Denzel Chisholm, who is alleged to have been a leader of the Nauti-Block gang, and co-defendant Molly London, have pleaded not guilty to the charges against them and are scheduled for trial on June 5, 2017.
The charges provide for a sentence of no greater than 20 years in prison, three years to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Sentenced for Trafficking in FirearmsRead the Press Release
St. Thomas, USVI – Mohammed Jubran, 27, of St. Thomas, was sentenced today to 21 months in prison, and co-defendant, Raji Yusuf, 30, of Puerto Rico, was sentenced to 27 months in prison, both for trafficking in firearms, Acting United States Attorney Hewlett announced. District Court Judge Curtis V. Gomez also sentenced each of the two men to serve three years of supervised release, pay a $100 special assessment, and perform 350 hours of community service.
On November 8 and 18, 2016, Jubran and Yusuf pleaded guilty to trafficking in firearms. According to the plea agreements, between October 15, 2015 and February 10, 2016, Yusuf provided an AK-47 to Jubran that Jubran sold to an individual in St. Thomas. Neither Jubran nor Yusuf is a federally licensed firearms dealer, and neither is licensed under Virgin Islands law to possess firearms.
This case was a joint investigation by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Sigrid Tejo-Sprotte.
Thomas Allan Scarbrough Sentenced to 70 Months in Prison for Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. - On May 17, 2017, Thomas Allan Scarbrough, 46, of Rockwood, Tennessee, was sentenced by the Honorable Leon Jordan, Senior U.S. District Judge, to serve 70 months in prison for possession of child pornography. Upon his release from prison, Scarbrough will serve 10 years under the supervision of the U.S. Probation Office. Additionally, pursuant to the federal Sex Offender Registration and Notification Act, he will be required to register as a sex offender anywhere he resides, is employed, or is a student.
Following an undercover investigation, a federal search warrant was obtained to seize computers in Scarbrough’s possession. A forensic examination of his computer revealed that he possessed a large cache of digital child pornography that he had downloaded from the Internet. In addition to his prison sentence and supervised release outlined above, Judge Jordan ordered Scarbrough to forfeit his computer and pay $4,500.00 to the victims whose images were found on the computer.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, 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.”
The Federal Bureau of Investigation, Knoxville Police Department’s Internet Crimes Against Children Task Force and U.S. Postal Inspection Service conducted this investigation. Assistant U.S. Attorney Matthew T. Morris represented the United States.
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