Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 May 2017
Former U.S. Secret Service Officer Sentenced to 20 Years in Prison for Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland, resident was sentenced today to 20 years in prison to be followed by a lifetime term of supervised release for enticement of a minor to engage in sexual activity and attempting to transfer obscene materials to a minor, announced Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Lee Robert Moore, 38, pleaded guilty March 1, 2017, before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida and Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former State Trooper Charged with Cyberstalking, Deprivation of Rights Under Color of LawRead the Press Release
COLUMBUS, Ohio – A former law enforcement officer has been arrested and charged by criminal complaint with cyberstalking and deprivation of rights under color of law.
William P. Elschlager, 48, of Marietta, Ohio, was arrested yesterday evening by Washington County Sheriff’s Office deputies and is scheduled for an initial appearance today in federal court in Columbus at 2:30pm before U.S. Magistrate Judge Terrence P. Kemp.
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 Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the arrest.
According to the affidavit filed in support of the criminal complaint, Elschlager was a lieutenant with the Ohio State Highway Patrol in Marietta, Ohio, where he was the post commander. He had been employed with the Ohio State Highway Patrol for approximately 19 years.
Elschlager and the wife of a fellow Ohio State Highway Patrol Trooper engaged in a sexual affair from April to September 2015, at which point the victim described Elschlager as being “creepy.” Specifically, according to the victim, she found a large ball of hair in the defendant’s home that he said he had made from hair he found in his house and that she believed to be her hair.
The victim said she also discovered digital folders on Elschlager’s iPad labeled with women’s names that included pictures of the women taken from social media accounts. For example, the folder in her name included pictures of the victim with her husband cut out.
Finally, the victim stated she would awake to Elschlager taking photographs of her sleeping when she did not know he was in the home with her.
Elschlager allegedly began stalking the victim in October 2015 after she ended their relationship. The affidavit alleges that he frequently followed the victim in vehicles, texted her knowledge of her whereabouts and showed up at her residence unannounced.
In December 2015, Elschlager allegedly placed a GPS tracking device on the victim’s vehicle and conducted an unlawful traffic stop of the victim, during which time he turned off his audio recording. Around this time, Elschlager also allegedly told the victim that he had named her and her son on his life insurance policy. He had obtained their personal information from the personnel file of the victim’s husband.
During that same month, the victim’s vehicle broke down due to a missing radiator cap and Elschlager arrived on the scene. Search warrants obtained by the Washington County Sheriff’s Office for Elschlager’s residence and electronic devices revealed Internet searches such as “how long can a car go without a radiator cap.”
The victim said she became increasingly fearful of Elschlager and that on one occasion when she noted he was carrying guns on his person he responded: “I always have a gun on me. You’ve just never known it.”
Subsequent search warrants and investigation by the Washington County Sheriff’s Office in January 2016 showed GPS tracking software on Elschlager’s personal cell phone, which had been tracking the victim’s vehicle for two months. Investigators discovered video recordings and photographs taken through the window of a residence in which the victim was located. They also revealed law enforcement information and photographs generated from the driver’s licenses of at least 10 females on Elschlager’s personal computer. The females confirmed that they were stopped by an Ohio State Highway Patrol Trooper on the dates of the photographs; they could not verify the name of the trooper that stopped them.
Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Washington County Sheriff’s Office, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
# # #
Former Rockford Coach Sentenced to 22 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Timothy Vallier, 31, of Ada, Michigan, was sentenced in federal court for attempted sexual exploitation of children and possession of child pornography, Acting U.S. Attorney Andrew Byerly Birge announced today. U.S. District Judge Gordon J. Quist imposed a sentence of 22 years. In addition to the prison term, Vallier was ordered to serve 5 years of supervised release, to pay restitution, and to register as a sex offender for the rest of his life.
On September 28, 2016, Vallier pled guilty to producing approximately 86 hidden camera videos of girls changing clothes at two high school facilities: the Rockford rowing team’s boathouse and the Rockford Freshman Center. He made these videos between January 2012 and April 2016 while he was the rowing coach at Rockford High School. The charges followed an investigation by the Kent County Sheriff’s Department, the Michigan State Police Internet Crimes Against Children Task Force, and Homeland Security Investigations.
"While no amount of prison time can adequately punish a child predator, this sentencing will hopefully begin the healing process for those impacted by Mr. Vallier's depraved acts," said HSI Acting Special Agent in Charge Steve Francis. "This was an excellent collaboration between HSI and its partners at the Kent County Sheriff’s Office and Michigan State Police to bring this predator to justice."
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Information concerning suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1- 800-THE-LOST. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the suspect alerts page.
This case was prosecuted by Assistant U.S. Attorneys Tessa K. Hessmiller and Daniel Y. Mekaru as part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
END
Former New York Bank Manager and Two Others Charged in Manhattan Federal Court in Multimillion-Dollar Fraud and Money Laundering SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today the filing of a criminal complaint charging CHITAKRA RAMUDIT, a/k/a “Lilian Ramudit,” LOUIS LITVIN, and MELISSA CHAN with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit money laundering in a multimillion-dollar scheme to steal from a real estate company (“Company-1”), which was a client of a major retail bank in Manhattan at which RAMUDIT was a branch manager. LITVIN was Company-1’s chief financial officer, and CHAN was a bookkeeper for Company-1. RAMUDIT abused her position as a bank manager to help LITVIN and CHAN steal from Company-1, and RAMUDIT also separately stole more than $100,000 from two elderly account holders at the bank. RAMUDIT and CHAN were arrested and will be presented later today before the U.S. Magistrate Judge Gabriel W. Gorenstein. LITVIN was arrested in Florida this morning and was presented before a Magistrate Judge in the Southern District of Florida.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Chitrakra Ramudit, a former bank manager, allegedly abused her position to steal more than a million dollars from the bank’s customers, including elderly account holders. Together with Louis Litvin and Melissa Chan, who worked at a victim real estate company, Ramudit also worked to launder their fraud proceeds through various back office dealings. These defendants allegedly took advantage of their positions at the bank and the victim company to steal money and launder it through a series of opaque transactions.”
According to the Complaint[1] unsealed today in Manhattan federal court:
RAMUDIT is a former branch manager at a major retail bank in Manhattan (“Bank-1”), with significant management authority and control over large financial transactions. RAMUDIT abused her position and authority to steal more than $1 million from client accounts, including accounts held by Company-1 and elderly individual account holders. RAMUDIT conspired with LITVIN, Company-1’s former CFO, and CHAN, a former Company-1 bookkeeper, to steal from Company-1. The defendants carried out their scheme through various means, including fraudulent wire transfers, unauthorized writing and cashing of cashier’s checks, and unauthorized withdrawals from Company-1’s accounts. The defendants laundered the illicit proceeds from these schemes through multiple bank accounts, and used the illicit proceeds to purchase various assets.
RAMUDIT appears to have received substantial kickbacks from LITVIN and CHAN for facilitating their theft from Company-1. For example, in 2010 and 2011, RAMUDIT conducted several transactions to help LITVIN and CHAN steal approximately $400,000 from Company-1, for which RAMUDIT received approximately $175,000 in payments to a bank account she controlled that was in the name of a family member. RAMUDIT also helped CHAN and LITVIN steal money by permitting them to cash or deposit Company-1’s checks. RAMUDIT would often personally cash Company-1’s checks for CHAN and CHAN would meet at RAMUDIT’s office to receive the cash from RAMUDIT. Some of the money CHAN stole was invested into a Brooklyn-based restaurant, in which RAMUDIT was also an investor.
LITVIN, who solely controlled Company-1’s payroll system, separately also stole more than $7 million from Company-1 through its payroll account with Bank-1. After LITVIN’s theft through the payroll system was discovered, he was fired by Company-1, and CHAN discussed unleashing a virus on Company-1’s computer systems to corrupt their files and cover up the crimes.
* * *
RAMUDIT, 56, of Queens, LITVIN, 63, of West Palm Beach, Florida, and CHAN, 38, of Queens, are each charged with conspiracy to commit bank fraud and bank fraud, each of which carries a maximum sentence of 30 years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. RAMUDIT and LITVIN are each also separately charged with an additional count of bank fraud, which carries a maximum sentence of 30 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 defendants will be determined by the judge.
Acting U.S. Attorney Kim praised the work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York, and the agents of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eli J. Mark and Jacob Warren are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former EDD Employee Arrested for Unemployment Benefits Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — An 18-count indictment was unsealed today after two of five defendants were arrested today for unemployment benefits fraud and an identity theft scheme, U.S. Attorney Phillip A. Talbert announced.
The indictment charges Pamela Emanuel, 57, of San Jose; Gregory Lee, 55, of Antioch; Russell White III, 35, of Turlock; Brittany Maunakea, 27, of Turlock; and Sergio Reyna, 24, of Stockton with conspiracy to commit mail fraud and 16 counts of mail fraud. Emanuel and Lee are also charged with separate counts of aggravated identity theft. Emanuel and Reyna were arrested today and are scheduled to be arraigned at 2:00 p.m. today.
According to court documents, between April 13, 2013, and July 14, 2016, the defendants conspired to execute a scheme to defraud the state of California. Emanuel worked as a tax compliance representative for the California Employment Development Department. She used her position to access the personal identifying information of workers throughout California and gave that information to other members of the conspiracy who filed fraudulent unemployment claims in the names of the unknowing victims. When Emanuel contacted EDD to pose as a laid-off employee, she used a Virtual Private Network designed to mask her IP address in an attempt to hide her identity. When the defendants filed claims with EDD, they usually provided the name of a fake business as the claimant’s last employer. As a result, the victim’s true employer was not immediately notified that a claim was filed.
The scheme resulted in the conspirators receiving over $800,000 in fraudulent unemployment benefits and over 250 stolen identities.
This case is the product of an investigation by the United States Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department – Investigations Division. Assistant U.S. Attorney Jared C. Dolan is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Emanuel and Lee also face statutory mandatory minimum penalty of two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Bank Officer Pleads Guilty to Role in Mortgage Fraud ConspiracyRead the Press Release
Tampa, FL – Acting United States W. Stephen Muldrow announces that Ross D. Pickard (63, Naples) today pleaded guilty to conspiracy to commit loan and credit application fraud. He faces a maximum penalty of five years in federal prison.
According to the
plea agreement , Pickard was a senior loan officer at JP Morgan Chase Bank. He conspired with others in a scheme to defraud the bank by completing, certifying, and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements. The false statements included overinflated income and assets, understated liabilities, and false occupancy. By relying on Pickard’s false and fraudulent statements on the loan applications, JP Morgan Chase funded mortgage loans for otherwise unqualified borrowers.The approximate losses suffered by JP Morgan Chase Bank associated with Pickard’s criminal conduct exceeds $33 million.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Final Group of Physicians and Owner of Medical Practice Plead Guilty in Medical Kickback SchemeRead the Press Release
Pam Gardner, 55, of Springfield, Tennessee, pleaded guilty yesterday, to conspiracy to solicit and receive cash kickbacks in exchange for making patient referrals, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
During a hearing before U.S. District Court Judge Sean Cox, sitting by designation, Gardner admitted that, as the owner and operator of Medical Necessities, Inc., a medical practice located in Springfield, Tenn., she agreed to receive cash kickbacks in exchange for causing patients to be referred to Air Affiliates, a Nashville-based medical equipment provider. Gardner admitted to accepting at least $15,000 in cash kickbacks, in exchange for referring patients to Air Affiliates, who provided these patients with Durable Medical Equipment such as continuous positive airway pressure (“CPAP”) ventilators. Gardner further acknowledged that some of the patients she referred in exchange for cash payments were Medicare beneficiaries.
Gardner faces up to five years in prison and a $250,000 fine when she is sentenced on September 26, 2017.
Also yesterday, Torvis Gardner, 41, of Springfield, Tennessee, an employee at Medical Necessities, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. He faces up to one year in prison and a fine of up to $10,000. Gardner is scheduled to be sentenced on September 26, 2017.
These guilty pleas follow several other recent convictions in this district involving individuals who paid for or accepted cash kickbacks in exchange for patient referrals, or who caused false statements to be made in claims submitted under a federal health care program:
- On May 8, 2017, Dr. Donald Boatright, 72, of Nashville, Tenn., a physician who practiced at Medical Necessities, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. He faces up to one year in prison and up to a $10,000 fine when he is sentenced on September 26, 2017.
- April 25, 2017, Dr. Hailu Kabtimer, 57, a physician practicing in Hendersonville, Tennessee, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. Kabtimer faces up to one year in prison and up to a $10,000 fine when he is sentenced on August 22, 2017.
- On February 19, 2016, Dr. Bruce Rubinowicz, 54, of Aventura, Florida and previously of Franklin, Tennessee, pleaded guilty to one count of soliciting and receiving a cash kickback in exchange for making patient referrals to Air Affiliates. Rubinowicz faces up to five years in prison and a $25,000 fine when he is sentenced on July 31, 2017.
- On August 6, 2015, Bradley Sensing, 55, of Nashville, Tenn. and the owner of Air Affiliates, pleaded guilty to one count of conspiring to pay cash kickbacks in exchange for patient referrals. Sensing is scheduled to be sentenced on June 26, 2017.
All sentences will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Federal Bribery and Tax Charges Filed Against Former Reeves County Judge Jimmy GalindoRead the Press Release
Former Reeves County Judge Jimmy Galindo faces federal bribery and income tax related charges announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, San Antonio Division.
Today, the United States Attorney’s Office for the Western District of Texas filed an Information charging Galindo, age 53, of Selma, TX, with one count of conspiracy to commit bribery and one count of failure to file income tax returns.
Galindo served as County Judge for Reeves County from January 1995 through December 2006. The Information states that as an elected official, Galindo had a fiduciary duty to the people of Reeves County. Galindo, on behalf of Reeves County, negotiated a contract with a company owned by Vernon C. Farthing, III, of Lubbock, TX, to provide medical services for inmates located in the Reeves County Correctional Center. Galindo signed the contract on September 13, 2006. The Information alleges that Galindo conspired with Farthing and District 19 Texas State Senator Carlos Uresti to ensure that Farthing’s company was awarded that contract.
According to the Information, Galindo provided Farthing’s company with information not known to the general public about pricing which under the contract was more favorable to Farthing’s company than to Reeves County. To secure the contract, the Information states that Farthing agreed to hire Uresti as a consultant and pay him $120,000 year. Uresti, in turn, agreed to pay Galindo one-half the money he received from Farthing’s company. From September 2006 until December 2011, Farthing’s company paid Uresti approximately $600,000. Of that amount, Galindo received approximately $285,000. From January 2012 until December 2015, Farthing’s company, and its successor companies, paid Uresti approximately $252,500. Of that, Uresti paid Galindo approximately $116,740. The Information also alleges that Galindo failed to file individual income tax returns for the years 2004 to the present.
Upon conviction, Galindo faces up to five years in federal prison on the bribery charge and up to one year in federal prison on the tax charge. Galindo’s initial appearance date has yet to be scheduled.
A federal grand jury indictment, returned Tuesday in San Antonio, charges District 19 Texas State Senator Carlos I. Uresti and 44–year-old Vernon C. Farthing, III, of Lubbock, TX, with one count of conspiracy to commit bribery and one count of conspiracy to commit money laundering.
U.S. Magistrate Judge Henry Bemporad released Farthing on bond following his initial appearance this morning in San Antonio. Judge Bemporad released Uresti on bond following his initial appearance yesterday.
The FBI’s Pubic Corruption Task Force is conducting this investigation. The Task Force is comprised of investigators from the FBI, IRS-CI, Texas Department of Public Safety (DPS) and the Peace Corps-Office of Inspector General. Assistant United States Attorneys Joseph E. Blackwell, William R. Harris and Mark Roomberg are prosecuting this case on behalf of the Government.
It is important to note that an information and indictment are merely charges and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Fayette County man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Michael Terrell, 31, of Smithers, entered his guilty plea to possession with intent to distribute methamphetamine.
Terrell admitted that on December 8, 2015, he possessed over 160 grams of methamphetamine at his residence in Smithers that he intended to sell. Agents of the Central West Virginia Drug Task Force discovered the drugs during the execution of search warrant at Terrell’s residence. Prior to executing the search warrant, agents utilized a confidential informant to buy methamphetamine from Terrell at his residence on December 3 and again on December 6, 2015. During the execution of the search warrant, agents also seized approximately $10,000 cash that included prerecorded buy money used in each of the controlled buys.
Terrell faces up to 20 years in federal prison when he is sentenced on August 10, 2017.
The Central West Virginia Drug Task Force conducted the investigation. Assistant United States Attorney John Frail is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Drug Distributor and Member of Upstate Drug Conspiracy Sentenced to Twelve Years ImprisonmentRead the Press Release
Columbia, South Carolina --- United States Attorney Beth Drake announced today that Sergio Smith, age 31, was sentenced today in federal court to 12 years imprisonment followed by 10 years of supervised release. Smith was a member of a drug trafficking organization that operated for approximately 13 years in multiple states, including South Carolina, Louisiana, Alabama, Georgia, and Texas. During the course of the conspiracy, members of the conspiracy distributed millions of dollars’ worth of cocaine, crack cocaine, and marijuana.
This prosecution was part of the US Attorney’s Office’s Organized Crime and Drug Enforcement Task Force (OCDETF) efforts. OCDETF is a program administered by the Department of Justice that targets large scale, multi-state drug trafficking organizations.
Smith worked for co-defendant Walter Lee, and distributed cocaine and crack cocaine in Anderson, South Carolina. Moorman told the Court during proceedings that Smith’s prior criminal history, his participation in the conspiracy, and his conduct after his arrest warranted a lengthy prison sentence.
During the course of the investigation, law enforcement seized in excess of $1.5 million in U.S. Currency, over 5 kilograms of cocaine, quantities of marijuana and crack cocaine, and numerous firearms.
The Drug Enforcement Administration, the Internal Revenue Service, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case. Assistant US Attorneys Andy Moorman, Bill Watkins, and Jeanne Howard of the Greenville office prosecuted the case.
#####
Citizen of Honduras Charged with Illegal ReentryRead the Press Release
Franklin Renan Euceda, a/k/a “Nathaniel Fuentes,” “Nathanael Ortiz,” and “Nathanael Ortiz-Fuentes,” was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about May 10, 2016, Euceda, an alien, and native and citizen of Honduras, was found in the United States after having been deported from the United States on or about June 26, 2009.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Mark B. Dubnoff.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Charleston drug dealer pleads guilty to federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Albert Bowman, Jr., 40, entered his guilty plea to distribution of heroin.
Bowman admitted that on July 5, 2016, he sold heroin to a confidential informant working with law enforcement. The controlled purchase took place inside Bowman’s residence on Russell Street in Charleston. Officers also executed a search warrant at the residence and located cash, additional drugs, and firearms. Bowman additionally admitted that he had distributed over 130 grams of heroin in the months leading up to the search warrant.
Bowman faces up to 20 years in federal prison when he is sentenced on August 14, 2017.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Haley Bunn is responsible for the prosecution. United States District Judge Thomas E. Johnston is presiding over the case.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
- Follow us on Twitter: SDWVNews
CarMax Carjacker Sentenced to 108 Months in PrisonRead the Press Release
A Fort Lauderdale resident was sentenced yesterday to 108 months in prison by United States District Judge William Zloch for violently carjacking a CarMax employee.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), Patrick Lynn, Chief, Davie Police Department, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
Defendant Joshua Maxwell 28, of Fort Lauderdale, Florida, previously pled guilty to one count of carjacking, in violation of, Title 18, United States Code, Section 2119(1).
According to the court record, on November 11, 2016, defendant Maxwell entered the CarMax dealership located in Davie, Florida pretending to be a bona fide customer, and inquired about a 2012 Dodge Charger that was on the lot. He thereafter provided a driver’s license in order to take a test drive. Upon checking Maxwell’s name in the CarMax database, the salesman learned that the defendant had previously been entered into their system and had, in fact, visited that same CarMax location one-day prior. Maxwell went on the test drive of the Charger with the salesman and as they were nearing the end of the test drive, the salesman asked the defendant to stop the car so that they could switch positions and drive the Charger back into the CarMax lot. Maxwell, while in the driver’s seat, then assaulted the salesman by repeatedly striking him on the head with a copper metal pipe that he had secreted in his pocket. The salesman attempted to escape, but Maxwell continued to beat him and ultimately stabbed him in the chest. Maxwell fled in the 2012 Dodge Charger, and left the wounded salesman in the roadway. The victim was subsequently transported to a medical trauma center with serious injuries. Ultimately, Maxwell was arrested by law enforcement and admitted to committing the carjacking.
Mr. Greenberg commended the investigative efforts of the FBI, BSO, Davie Police Department and the Plantation Police Department. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Bismarck Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bismarck, North Dakota, man convicted of Receipt of Images Depicting the Sexual Exploitation of Minors, was sentenced on May 17, 2017, by U.S. District Judge Ralph R. Erickson, in Fargo, North Dakota.
Michael David Rivera, age 30, was sentenced to 7 years in custody, 5 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and a $2,500 special assessment to the Domestic Trafficking Victims’ Fund.
Rivera was indicted by a North Dakota grand jury on October 6, 2016. The U.S. Attorney’s Office, District of South Dakota, handled prosecution of the case after the U.S. Attorney’s Office, District of North Dakota, recused itself from the matter. Rivera pled guilty on January 26, 2017.
“It is appropriate that this former federal law enforcement officer faced a federal judge in North Dakota for his offenses. This case proves that no one is above the law, including those federal officers who have previously sworn an oath to protect and serve our nation,” said Seiler. “Here, the U.S. Attorney’s Office for the District of North Dakota followed approved Department of Justice procedures to resolve any conflict or the appearance of impropriety it might have had, based upon its prior work alongside this disgraced officer. Appropriate steps were taken, as is done in every case, regardless of who the defendant is, to see that justice is done.” Seiler also commended the federal judiciary in Bismarck, which took steps to transfer the case to Fargo, since Rivera had a working relationship with courthouse employees in Bismarck.
The charge stems from the following facts:
In June 2016, Bismarck and other North Dakota state and federal law enforcement officers learned that Rivera, then a Deputy U.S. Marshal who worked at the federal courthouse in Bismarck, had been surreptitiously recording a variety of women, including juveniles, while they were in fitting rooms or in other parts of area stores. Some of the surreptitious recordings captured women and minors in various states of undress while they were in fitting rooms provided by local stores. Officers obtained search warrants to search Rivera’s Bismarck apartment, his vehicle parked at the federal courthouse in Bismarck, and his person, and to particularly look at any digital or computer media found at those locations. At his apartment, officers seized a computer that was password protected. Rivera was arrested on state charges related to the surreptitious recording of the adult and juvenile females, which were separately handled by in state court by authorities in Burleigh County, North Dakota.
Officers searched Rivera’s computer and found downloaded videos and images, including 36 or more pictures of child pornography and 52 or more videos of child pornography. A review of some of the downloaded videos, as a brief sample, included the sexual abuse of children, including toddlers and other children in the age range of 6 to 11. About 52 child pornography files, including mostly videos, were found in a user directory labeled “Michael” on Rivera’s computer.
The search also revealed artifacts in bookmarks, cache records, web history, and web visits. Some of those internet artifacts are commonly associated with child pornography and voyeur search artifacts. Internet access logs on the computer indicate some of the child pornography was received and accessed by Rivera between April 2016 and June 2016, in the District of North Dakota. The internet was used by Rivera to access visual depictions of minors engaging in sexually explicit conduct.
Rivera no longer is employed with U.S. Marshals Service.
The investigation was conducted by the Department of Homeland Security Homeland Security Investigations, Bismarck Police Department, North Dakota Crime Bureau’s Internet Crimes Against Children Task Force, and the Office of the Inspector General for the U.S. Department of Justice. Assistant U.S. Attorney Tim Maher is prosecuting the case on behalf of the U.S. Attorney General and U.S. Attorney Seiler. Based upon the request of the parties, Rivera was remanded back to state authorities to face his state court sentencing later this summer.
Attorney General Jeff Sessions Welcomes the Confirmation of Rachel Brand as Associate Attorney GeneralRead the Press Release
Attorney General Jeff Sessions today welcomed the confirmation of Rachel Brand to serve as the Department of Justice’s Associate Attorney General:
“I am pleased that the U.S. Senate has confirmed Rachel Brand to serve as Associate Attorney General, the third-ranking position in the Department of Justice. Rachel has proven herself to be a brilliant lawyer – graduating from Harvard Law School, clerking for Justice Anthony Kennedy and working in private practice, earning the respect of the entire legal community throughout her career. She is also a dedicated public servant who is strongly committed to upholding the rule of law and our Constitution, and she knows this Department well, having previously served with distinction as the Assistant Attorney General for the Office of Legal Policy. I know the entire Department of Justice joins me in congratulating her, and we look forward to her assuming her critical role in the Department. The Associate Attorney General has supervision over a number of key divisions: Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, Tax Division, Office of Justice Programs, Community Oriented Policing Services (COPS), Community Relations Service, Office of Dispute Resolution, Office on Violence Against Women, Office of Information Policy, Executive Office for U.S. Trustees, Foreign Claims Settlement Commission, and the Servicemembers and Veterans Initiative.”
Athol Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – An Athol man pleaded guilty today in federal court in Worcester to possession of child pornography.
Arthur Cummings, 49, pleaded guilty before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for July 11, 2017.
On March 10, 2016, federal agents executed a search warrant at Cummings’ residence based upon an investigation into individuals who use anonymizing software to traffic in child pornography on the “dark web,” a part of the internet accessible only by special software allowing users to remain anonymous. A forensic review of a laptop seized from Cummings’ home revealed the presence of more than 10 videos and more than 100 images of child pornography.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Athol Police Chief Russel Kleber, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.
Anchorage Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced yesterday in federal court for possession of child pornography and failure to register as a sex offender.
Andrew Weed, 48, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason, to 10 years in prison. Judge Gleason sentenced Weed to a combined sentence of 10 years imprisonment, and lifetime Supervised Release for his convictions on crimes of Child Sexual Exploitation-Possession of Child Pornography, and Failure to Register as a Sex Offender.
According to Assistant U.S. Attorney Audrey J. Renschen, Weed was previously convicted in Anchorage federal court in 2004, as a sex offender. At that time, Weed was convicted of 18 federal child sexual exploitation crimes, including advertising, transporting, and possessing child pornography. Weed was again caught with child pornography in 2016 that he downloaded at work, and saved at his residence.
FBI Special Agents and APD law enforcement searched Weed’s residence on May 31, 2016, pursuant to a federal search warrant, and found over 106,000 images of child pornography on his computer. After briefly talking to law enforcement that day, outside his residence, Weed fled Anchorage, and thereafter failed to report to work with his employer, and failed to return to his residence. Under federal law, sex offenders are required to notify the State of Alaska Sex Offender Registry within 24 hours of any change of address. Despite knowing about that requirement, Weed failed to report where he moved after leaving his Anchorage residence.
The U.S. Marshals Service (USMS) located Weed in Valdez, Alaska, more than two months later. Deputy Marshals arrested him on Aug. 2, 2016, on a federal warrant for failing to update his sex offender registration as required under federal and state law. Weed was then subsequently indicted on child pornography charges, and remained incarcerated after his arrest through his sentencing.
At the sentencing hearing, Judge Gleason noted that Weed’s child pornography crime was a serious one, with a huge amount of images involved [more than 106,000 images].
This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood (PSC) initiative – launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with federal, state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov or call the United States Attorney’s Office for the District of Alaska.
Acting U.S. Attorney Schroder commends the FBI, APD, and the USMS for their investigation of this case.
Anchorage Insurance Sales Woman Sentenced on Charges of Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Anchorage woman has been sentenced to 54 months on one count of Bank Fraud and one count of Aggravated Identity Theft.
Kara Hayden, Jr., 50, of Anchorage, was sentenced by U.S. District Court Judge Sharon L. Gleason.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, from at least October 2014 to December 2015, Hayden applied for seventeen credit cards using the names, social security numbers, and dates of birth of nine different victims without their knowledge or authorization. Several of the victims had purchased veteran’s funeral benefits from Hayden. Hayden then used their personal information obtained during that process to fraudulently apply for credit cards. Hayden obtained approximately $14,500 in cash and retail goods prior to the discovery of her scheme.
A pleading filed with the court indicated that Hayden had also worked as an agent selling identity theft protection for nine years and was uniquely aware of the adverse consequences associated with identity theft. See Hayden’s LinkedIn profile below:
Judge Gleason noted that the defendant’s crimes were particularly serious because she targeted veterans who have served our country.
Acting U.S. Attorney Bryan Schroder commends the U.S. Postal Inspection Service, assisted by the Alaska State Insurance Division, for the investigation in this case.
83 “Bloods” Gang Members Indicted on Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Eighty-three alleged leaders and members of the “United Blood Nation” (UBN or Bloods) have been indicted on federal racketeering conspiracy charges and charges related to murder, attempted murder, violent assault, narcotics distribution, firearms possession and Hobbs Act robbery. A number of defendants are also charged with bank fraud, wire fraud and aggravated identity theft related to financial crimes. A federal grand jury returned the sealed indictment on May 16, 2017, which was unsealed today following this morning’s arrests.
In a coordinated operation, more than 600 federal, state and local law enforcement officers executed the arrest warrants this morning in Charlotte, Cleveland County, and eastern North Carolina. Arrests were also made in Florida, South Carolina, New York, and Virginia. Of the 83 defendants charged, ten are not in custody.
“This morning’s arrests are the result of a joint law enforcement investigation targeting alleged leaders and members of the Nine Trey Gangsters faction of the UBN. These defendants participated in a racketeering conspiracy, committing multiple violent crimes, including at least six murders and five attempted murders in North Carolina. Today’s law enforcement action delivered a serious blow to the leadership structure throughout the ranks of this criminal organization. And this is only the beginning. The investigation and prosecution of violent gangs is a priority for this office. Our goal is to curb the influence of violent street gangs, to protect the people of this district from gangsters’ criminal activity and to restore our neighborhoods as places where all citizens can live and prosper,” said Jill Westmoreland Rose, United States Attorney for the Western District of North Carolina.
"The murders, the assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities. Innocent families should not suffer because of the violent actions of others. Anyone who tries to fill the criminal void left by today’s arrests should know, the FBI and our law enforcement partners will come after you next,” said John Strong, the Special Agent in Charge of the FBI in North Carolina.
“These arrests and collaborative efforts are important in helping to curb the criminal influence and gang activities not only in our communities, but also behind prison walls,” said Secretary Erik A. Hooks of the North Carolina Department of Public Safety. “Gang activity drives a great deal of criminal enterprise, and it takes a cooperative law enforcement effort and a sharing of intelligence across agencies to fight it.”
“The Charlotte-Mecklenburg Police Department will continue to work tirelessly to protect our community. These arrests send a clear message to violent offenders that our neighborhoods will not be a safe haven for their illegal activities,” said Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
“This investigation is a great example of collaboration between agencies to fight the type of crime that is causing the senseless killing of our young people and destroying families in our communities. The statement made today is simple - violent crime and gang activity will not be tolerated in our communities. We will work with our law enforcement partners to ensure that our citizens are able to live, work and play in the safest environment possible,” said Chief Jeff Ledford of the Shelby Police Department.
“Today’s arrests will have a significant impact in Shelby and Cleveland County. The Cleveland County Sheriff’s Office will continue to work hand-in-hand with our law enforcement partners to tackle violent gang activity. But, we all have to do more to prevent young men and women from joining street gangs. Gangs are not just a law enforcement problem, they are a community problem. And prevention is key. We need our faith, civic, and community leaders to join forces with us and help law enforcement combat the gang problem that plagues our communities,” said Sheriff Alan Norman with the Cleveland County Sheriff’s Office.
"We value the partnerships with all of our local, state, and federal partners. The success of this investigation is a result of sharing resources and working together,” said Chief Robert Helton of the Gastonia Police Department.
As alleged in the indictment, the Bloods were formed in the 1970s in Los Angeles, California, when a group of seven individual street gangs united to form a larger unit. The gang quickly spread to surrounding areas, eventually expanding its influence across the United States. In 1993, a single Bloods entity, the UBN, was created on the east side of Rikers Island Prison. Membership of the UBN is estimated to be between 7,000-15,000 members along the east coast, with ultimate authority for gang decisions still maintained in New York and members currently incarcerated in the New York prison system. The various Bloods’ gangs or “Hoods,” which unified under the UBN, kept their original names. The “Nine Trey Gangsters” is one of the original factions of the UBN, with a large gang presence in North Carolina.
The indictment alleges that the gang is governed by 31 rules known as “The 31.” These rules were written by UBN’s founders and are strictly enforced. In addition, the gang maintains a strict hierarchy or chain of command, with each gang member assigned to a specific rank with specific duties and responsibilities. A typical structure for the Nine Trey Gangsters includes the leader of the hood, referred to as the “Godfather,” followed by ranked “Generals,” down through unranked members called “Soldiers” or “Scraps.” Additionally, within the UBN, some females hold unique positions of authority, including that of a “First Lady,” who is often responsible for record keeping, covert communications, and distribution of gang records.
The indictment alleges that UBN members represent their gang affiliation with common tattoos, graffiti markings, language, and communication codes, and are identified by wearing the color red. Gang members are also expected to pay gang dues, which are used to support the enterprise, to finance the gang’s criminal activity, and as gifts of respect to incarcerated high-ranking members.
According to allegations contained in the indictment, beginning by at least 2009 to present, the defendants were leaders and members of the UBN’s Nine Trey Gangsters. As alleged members of the criminal organization, they engaged in a pattern of racketeering activity, including, but not limited to, murder, attempted murder, assault with a deadly weapon, robbery, narcotics distribution and firearms possession. Additionally, the indictment alleges that certain defendants engaged in the racketeering acts of bank fraud and wire fraud. As alleged in the indictment, the defendants committed these crimes to generate proceeds to pay gang dues, to maintain membership with the gang, to discipline other gang members, and to be promoted within the leadership structure of the gang.
According to allegations contained in the 69-count indictment, the defendants communicated regularly with each other and other UBN members to discuss gang business, including the enforcement of gang rules; disciplinary action of UBN members; the identities and punishment of individuals cooperating with law enforcement; the collection of gang dues; and to plan future crimes. The indictment further alleges that the defendants maintained and circulated a collection of firearms, including assault rifles, for the use in criminal activity by gang members.
Over the course of the investigation, agents and officers seized, among other evidence: 36 firearms and ammunition, cocaine, crack cocaine, heroin, marijuana, MDMA, prescription pills and other narcotics and drug paraphernalia, counterfeit checks, credit cards and gift cards, and credit card making devices.
The 83 defendants charged with one count of Racketeering Influenced Corrupt Organization (RICO) conspiracy are:
-
Sherman Devante Addison, a/k/a “Ace,” 22, of Shelby.
-
Aaron Demitri Alexander, a/k/a “A Dawg,” 24, of Charlotte.
-
Montraya Antwain Atkinson, a/k/a “Hardbody,” 30, of Raleigh, N.C.
-
Freddrec Deandre Banks, a/k/a “Drec/Banga,” 21, of Shelby.
-
James Baxton, a/k/a “Frank White,” 43, incarcerated in New York.
-
Bradley Beauchamp, 29, of Fort Lauderdale, Florida.
-
Destinee Danyell Blakeney, a/k/a “Lady Rude,” 22, of Morven, N.C.
-
Antonio Dontre Brooks, a/k/a “Montana,” 24, of Shelby.
-
Antarious Qaushard Byers, a/k/a “Bang,” 23, of Shelby.
-
Renaldo Rodregus Camp, a/k/a “Rodeo/Drop,” 39, of Shelby.
-
Shakira Monique Campbell, a/k/a “Lady Rage,” 23, of Charlotte.
-
Adrian Nayron Coker, a/k/a “Gotti,” 27, of Gastonia, N.C.
-
Brandon Khalil Covington, a/k/a “Blokka,” 24, of Charlotte.
-
Alex Levi Cox, a/k/a “Quick,” 26, of Myrtle Beach, S.C.
-
Marquel Michael Cunningham, 20, incarcerated in North Carolina.
-
Richard Diaz, a/k/a “Damu,” 32, of Charlotte.
-
James Walter Dowdle, a/k/a “Staxx,” 24, incarcerated in North Carolina.
-
John Paul Durant, a/k/a “JP/Glock/Gudda,” 28, of Shelby.
-
Cynthia Gilmore, a/k/a “Cynthia Young/Lady Bynt,” 41, of Raleigh.
-
Shamon Movair Goins, a/k/a “Rugie,” 26, incarcerated in North Carolina.
-
Pedro Gutierrez, a/k/a “Magoo/Light/Inferno,” 44, incarcerated in New York.
-
Jalen Raekwon Hackney, a/k/a “Menace,” 19, incarcerated in North Carolina.
-
Christopher Dentre Hamrick, a/k/a “Red Dot,” 27, incarcerated in North Carolina.
-
Lavaughn Antonio Hanton, a/k/a “Killem/Billy-D,” 33, incarcerated in North Carolina.
-
Anthony Oneil Harrison, a/k/a “Ant,” 20, of Charlotte.
-
Bianca Kiashie Harrison, a/k/a “Lady Gunz,” 27, of Raleigh.
-
Quincy Delone Haynes, a/k/a “Black Montana,” 38, Shelby.
-
Delonte Maurice Hicks, a/k/a “BBB Shooter/Black,” 28, of Morven.
-
Jasmin Reikeem Hicks, a/k/a “Rude,” 26, of Morven.
-
Bobby Earl Hines, a/k/a “Swahili,” 34, incarcerated in North Carolina.
-
Raheam Shumar Hopper, a/k/a “Bone,” 23, of Shelby.
-
Wesley Javon Howze, a/k/a “Drama,” 21, incarcerated in North Carolina.
-
Donl Lequintin Hunsucker, a/k/a “Remy,” 31, of Charlotte.
-
Dricko Dashon Huskey, a/k/a “Drizzy,” 25, incarcerated in North Carolina.
-
Muhammad John Jackson, a/k/a “Picasso,” 32, of Charlotte.
-
Terrence Thomas Johnsom, a/k/a “Sypher,” 40, of Shelby.
-
Joe Tarpeh Johnson, a/k/a “JR/Big Pusha/Kutthroat,” 26, of Charlotte.
-
Latif Nakia Antoine Johnson, a/k/a “Billy Solo,” 23, of Charlotte, N.C.
-
Tonney Horatio Kerbay, a/k/a “Rich Tonney,” 29, of Charlotte.
-
Rashad Monte King, a/k/a “Billy Kilo Montana,” 25, of Charlotte.
-
Barrington Audley Lattibeaudiere, a/k/a “Bandana/Bobby Seale,” 30, of North Lauderdale, Florida.
-
Juan Cruz Leon, a/k/a “Jefe,” 21, of Charlotte.
-
Renaire Roshique Lewis, Jr., a/k/a “Banz/Esco,” 22, incarcerated in North Carolina.
-
Lamonte Kentrell Lloyd, a/k/a “Murda Mo/Moo,” 23, incarcerated in North Carolina.
-
David Matthew Lowe, a/k/a “Gucci,” 26, of Shelby.
-
Charles Kenyon Lytle, a/k/a “Kam,” 39, of Charlotte.
-
Terry Lavon Maddox, a/k/a “Turbo,” 26, of Shelby.
-
Bradon Theodore Manning, a/k/a “Billy B,” 28, of Columbia, S.C.
-
Travis Cordell McClain, a/k/a “Fridaay Daa Thuurteenth,” 25, of Charlotte.
-
Robert Allen McClinton, a/k/a “Trigga,” 27, incarcerated in North Carolina.
-
Isaac Nabah MckIntosh, a/k/a “Mac,” 26, of Charlotte.
-
D’Angelo De’Mara McNeil, a/k/a “Dutch,” 26, of Charlotte.
-
Christopher Lashon Miller, a/k/a “Dro,” 23, incarcerated in North Carolina.
-
Johnny Thomas Mitchell, a/k/a “Joker,” 37, of Shelby.
-
Christopher O’Brien Moore, a/k/a “Ratchet,” 22, incarcerated in North Carolina.
-
Myquan Lamar Nelson, a/k/a “Dripz,” 26, of Charlotte.
-
Thomas Oliver, a/k/a “T.O., Recon,” 31, incarcerated in North Carolina.
-
Kolawole Olalekan Omotosho, a/k/a “Rugged Red,” 19, of Jacksonville, N.C.
-
James Bradin Pegues, 30, of Charlotte.
-
Deshawn Deonta Peterkin, a/k/a “Proo,” 28, of Morven.
-
Laquida Shuntae Poston, a/k/a “Lady Recon,” 25, incarcerated in North Carolina.
-
Austin Demontry Potts, a/k/a “Big Tek, B-Tek,” 23, of Charlotte.
-
Tyquan Ramont Powell, a/k/a “Savage,” 22, incarcerated in North Carolina.
-
Omar Lionel Reed, a/k/a “Omega,” 38, incarcerated in New Mexico.
-
Omari Rosero, a/k/a “Uno B,” 40, incarcerated in New York.
-
Porsha Talina Rosero, a/k/a “Porsha Talina Gowdy/Lady Uno B,” 34, of Syracuse, New York.
-
Kenneth Marquise Ruff, a/k/a “Red Hot,” 26, of Shelby.
-
Rashad Sattar, 20, of Fort Lauderdale.
-
Alandus Montrell Smith, a/k/a “Kadafia,” 27, incarcerated in North Carolina.
-
Anthony Bernard Smith, a/k/a “Redd Lion,” 24, incarcerated in North Carolina.
-
Denzel Lamont Spikes, a/k/a “Dinki/Dino,” 24, incarcerated in North Carolina.
-
Isaiah Devon Stallworth, a/k/a “Zay/Juice,” 25, of Charlotte.
-
Cedric Lexander Surratt, a/k/a “Hollywood/5-Star,” 29, of Charlotte.
-
Peatrez Lamar Teaste, a/k/a “P-Wheezy,” 24, of Myrtle Beach.
-
Jhad Elijah Thorbourne, a/k/a “Flight,” 23, of Charlotte.
-
Lavon Christopher Turner, a/k/a “Hungry,” 27, Charlotte.
-
Jesse James Watkins, a/k/a “Showtime,” 33, of Charlotte.
-
Quintez Lamar Watkins, a/k/a “Bandana,” 27, incarcerated in North Carolina.
-
David Earl Watson, a/k/a “Gunz,” 31, of Jacksonville.
-
Twylain Stanley Wilson, a/k/a “5 Alive,” 24, incarcerated in North Carolina.
-
Ronald Anthony Wofford, 27, of Charlotte.
-
Jonathan Wray, a/k/a “Jon Jon/Yungin,” 26, incarcerated in North Carolina.
-
Patrick Devon Wray, a/k/a “Ike, Murda,” 28, of Shelby.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until they are proven guilty beyond a reasonable doubt in a court of law.
The indictment is the result of a joint investigative effort by the Federal Bureau of Investigation (FBI); the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the United States Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Internal Revenue Service; the United States Postal Inspection Service; the United States Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
U.S. Attorney Rose thanked each of the above law enforcement agencies that took part in the arrests today, along with FBI Albany; FBI Atlanta; FBI Columbia; FBI Knoxville; FBI Miami; FBI Norfolk; FBI Richmond; FBI Washington Field Office; the United States Marshals Service; the North Carolina State Bureau of Investigation; and the Anson County Sheriff’s Office. They also acknowledged the United States Attorney’s Offices in the Eastern District of North Carolina, the United States Attorney’s Office in the Southern District of Florida, and the Broward County Sheriff’s Office in Florida for their invaluable assistance in this case.
Assistant U.S. Attorneys Elizabeth Greene and Matthew Warren of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
-
17 May 2017
Young Alien Smuggler Who Injured Several People in High-Speed Chase Sent to PrisonRead the Press Release
LAREDO, Texas – A Rio Bravo man has been ordered to federal prison after he led police on a high-speed chase in a vehicle loaded with several illegal aliens before crashing into another vehicle and causing serious injuries to several Laredo residents, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge of Immigration and Customs Enforcement's Homeland Security Investigations (HSI) San Antonio Field Office. Jovanni Rodarte, 20, pleaded guilty Dec. 8, 2016, admitting to conspiring to transport unlawful aliens and causing serious bodily injury.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Rodarte to 97 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard that Rodarte has been involved in gang violence while incarcerated and has had multiple encounters with law enforcement as a result of smuggling aliens. The government also described the incredible injuries that Rodarte inflicted on multiple innocent people. The court also heard from a victim’s wife who described the tremendous pain her husband has endured since the crash and the toll the crash has taken on her entire family. In handing down the sentence, Judge Marmolejo noted that she would be “entirely justified” in imposing the maximum under law. She added that despite given multiple opportunities, Rodarte had done nothing good with his life, but had instead immeasurably impacted multiple innocent peoples’ lives, including a mother and her son. Rodarte was also ordered to pay $192,997.20 in restitution to the victims.
"HSI is dedicated to working closely with all of our law enforcement partners to effectively in identify, arrest and prosecute individuals involved in exploiting people,” said Folden. "Criminals who illegally smuggle people into and throughout the country place personal profit ahead of public safety. For this reason, HSI will continue to utilize its broad authorities to dismantle human smuggling organizations."
On Oct. 5, 2016, Rodarte was transporting two illegal aliens when a Webb County Sheriff’s Officer attempted to affect a traffic stop. Instead of pulling over, Rodarte led several officers on a chase through the El Cenizo neighborhood of Laredo. During the chase, Rodarte drove more than 100 miles-per-hour in the residential area.
He crashed into a school fence and into a vehicle containing three Laredo residents, including a mother and son who were returning from a medical appointment. Law enforcement performed first-aid at the scene, but several of the vehicles’ occupants needed to be air-lifted to hospitals in Laredo and San Antonio. The three occupants in the vehicle Rodarte struck all sustained serious injuries that will require years of ongoing treatment.
One of the aliens was thrown from the vehicle Rodarte was driving and also sustained injuries. Rodarte, however, avoided any serious injuries from the crash.
He has been and remains in federal custody.
HSI conducted the investigation with the assistance of the U.S. Border Patrol. Assistant U.S. Attorney Chris Howard is prosecuting the case.
Wisconsin Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Baraboo, Wisconsin, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
James Nault-Hart, age 29, was indicted on December 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 15, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 12, 2016, and October 5, 2016, Nault-Hart, who previously had been convicted of Sexual Assault of a Child, knowingly failed to register and update his registration with the Sex Offender Registration and Notification Act.
The charge is merely an accusation and Nault-Hart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Nault-Hart was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Westerville Man Sentenced for Million Dollar Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – Mark Preston French, 42, of Westerville, Ohio was sentenced in U.S. District Court today to serve three months in prison and ordered to pay nearly $112,000 for defrauding an elderly client in a precious metals investment fraud.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the sentence imposed today by U.S. District Chief Judge Edmund A. Sargus, Jr.
French pleaded guilty in January 2016 to one count of wire fraud. According to court documents, French worked as a stockbroker between 1998 and 2013 and began investing in precious metals in 2008. An elderly woman from Greenville, Pa., who believed French was an investment advisor, was his client between 2000 and 2012.
In 2009, French advised his elderly client to open joint checking and savings accounts with him so he could purchase and sell precious metals on her behalf. French instructed his client to reinvest other securities she held by depositing funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase gold and silver from Tulving Company in Newport Beach, Calif. but also embezzled $111,848.73 from the joint accounts.
In September 2012, the elderly client told French she wanted physical possession of her gold and silver, which French was storing in his Westerville home. Instead, French sold a majority of the precious metals back to Tulving Company, returning approximately $1 million back to his client but keeping part of the proceeds for himself. He also kept 11,942 ounces of silver purchased with his client’s funds, which was valued at more than $400,000.
U.S. Attorney Glassman commended the investigation by the FBI, as well as Deputy Criminal Chief Brenda Shoemaker, who represented the United States in this case.
# # #
West Haven Man Pleads Guilty to Illegally Distributing XanaxRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CLARENCE BELL, also known as “Solo,” 21, of West Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of Xanax, a Schedule IV controlled substance.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, at approximately 6:10 a.m. on May 24, 2016, the West Haven Police Department and emergency medical personnel responded to a residence in West Haven on report of a sudden death of a 20-year-old male. Upon arrival, the initial responding patrol units determined that the death was suspicious in nature and appeared to be drug related. The investigation, which includes witness interviews and analysis of phone records and surveillance cameras, has revealed that at approximately 10:00 p.m. on May 23, 2016, the victim purchased a quantity of Xanax pills from BELL. The victim them crushed approximately three of pills and snorted the powder.
The victim’s autopsy report states the official cause of death as acute intoxication due to the combined effects of heroin, alprazolam (Xanax) and cocaine.
BELL was arrested on a federal criminal complaint on September 26, 2016.
Judge Underhill scheduled sentencing for August 11, 2017, at which time BELL faces a maximum term of imprisonment of five years.
BELL is released on a $25,000 bond.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the DEA’s New Haven Tactical Diversion Squad and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
United States Attorney's Office Honors Federal, State and Local Law Enforcement Personnel for Exceptional ServiceRead the Press Release
BOSTON – Acting United States Attorney William D. Weinreb recognized 129 officials from federal, state, and local law enforcement agencies yesterday at the annual Law Enforcement Awards Ceremony.
“It is an all too infrequent occasion that we thank those who keep us safe and pursue justice,” Acting U.S. Attorney Weinreb told the honorees. “There is no doubt that this work can be difficult, and at times, it may seem thankless – the late nights, the time away from family, and the stress that compounds with each passing year. Working in public safety is an inescapable calling...it requires a certain character, unshakable commitment and a level of motivation possessed by few.”
The event, held at the Federal Reserve Bank in Boston, highlighted 23 federal cases from 2016. The individuals who contributed to the success of the cases were recognized for bravery, outstanding collaboration, investigative achievement, investigative excellence, and victim assistance. Assistant U.S. Attorneys who prosecuted the cases and nominated the honorees, lauded them for their commitment to public service before presenting them with commemorative plaques.
The category of Investigative Excellence recognized individuals whose actions led to the arrest of a dangerous subject or the exposure of a significant criminal conspiracy. The following cases and agencies were honored:
Drug Enforcement Investigations, District of Massachusetts
Recipient: U.S. Postal Inspection ServiceOperation Opiate Express
Recipient: Massachusetts State Police
The category of Bravery is reserved for those whose actions showed such concern for others that the recipient’s own safety was in jeopardy while assisting the victim of a federal crime or in the apprehension of a suspect of a federal investigation. The following case and agency was honored:
U.S. v. James Morales
Recipient: Massachusetts State Police
The category of Outstanding Collaborative Investigation Award recognized investigators from a multi-agency collaboration whose exceptional efforts to overcome significant challenges led to a successful conclusion. Recipients in one case also received the Victim Service Award for extraordinary assistance to victims of a federal crime.
United States ex rel. Lokosky v. Accelarent Inc.
Recipients: Defense Criminal Investigative Service; Federal Bureau of Investigation; U.S. Department of Veterans Affairs, Office of Inspector General; U.S. Food and Drug Administration, Office of Criminal Investigations; U.S. Health and Human Services, Office of Inspector General
United States v. Matthew Clem
Recipients: Federal Bureau of Investigation; Homeland Security Investigations; Massachusetts State Police; Worcester County District Attorney’s Office; Worcester Police Department (Recipients also received the Victim Service Award)
United States v. David E. Gorski
Recipients: Defense Contract Audit Agency, Investigative Support Division; General Services Administration, Office of Inspector General; Naval Criminal Investigative Service; U.S. Army Criminal Investigation Command; U.S. Department of Veteran Affairs, Office of Inspector General; U.S. Small Business Administration, Office of Inspector General
United States v. Gilvan Monteiro, et al.
Recipients: Brockton Police Department; Federal Bureau of Investigation; Massachusetts State Police Detective Unit, Plymouth County District Attorney’s Office; Massachusetts State Police Gang Unit; Massachusetts State Police Troop D Community Action Team; New England HIDTA
United States v. Andrew Gordon
Recipients: Bureau of Alcohol, Tobacco, Firearms and Explosives; Massachusetts State Police; Middlesex District Attorney’s Office; Middlesex Sheriff’s Office
The category of Investigative Achievement Award recognized those who substantially contributed to the mission of the U.S. Attorney’s Office and the Department of Justice. Several agency representatives also received a Victim Service Award for extraordinary assistance to victims of a federal crime.
United States v. Ygoa Almonte-Baez
Recipient: Drug Enforcement Administration
United States v. Robert Fitzpatrick
Recipient: Office of the Inspector General, U.S. Department of Justice
United States v. Tyrell Gorham, et al.
Recipients: Arlington Police Department; Boston Police Department; Federal Bureau of Investigation; Massachusetts State Police; Revere Police Department; Woburn Police Department
Victim Service Award Recipients: Federal Bureau of Investigation
United States v. Amit Kanodia
Recipient: Federal Bureau of Investigation; U.S. Securities and Exchange Commission, Office of Litigation Economics, Division of Economic and Risk Analysis
United States v. Vida Causey
Recipients: Internal Revenue Service, Criminal Investigation; U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch; U.S. Department of Agriculture, Office of Inspector General; U.S. Food and Drug Administration, Office of Criminal Investigation
United States v. Sihai Cheng and U.S. v. Qiang Hu
Recipients: Federal Bureau of Investigation; Homeland Security Investigations; U.S. Department of Commerce, Office of Export Enforcement
Drug Diversion Settlements - Drug Enforcement Administration
Recipient: Drug Enforcement Administration
United States v. James Merrill
Recipient: Homeland Security Investigations (Recipients also received the Victim Service Award)
United States v. Elmer Reyes
Recipients: Chelsea Police Department; Federal Bureau of Investigation
United States v. Gary Sampson
Recipient: Massachusetts State Police (Recipients also received the Victim Service Award)
United States v. Patria Zuniga, et al.
Recipient: Homeland Security Investigations (Recipient also received the Victim Service Award)
United States v. Baljit Singh Rehal, et al.
Recipient: Federal Bureau of Investigations
United States v. R. David Cohen
Recipient: Internal Revenue Service, Criminal Investigation
United States v. Raymond Jeffreys, et al.
Recipients: Boston Police Department; Federal Bureau of Investigation; Homeland Security Investigations; Suffolk County District Attorney’s Office (All recipients also received the Victim Service Award)
United States v. Edward Tutunjian
Recipients: Internal Revenue Service; Boston Police Department; Cambridge Police Department; Homeland Security Investigations; Internal Revenue Service, Criminal Investigation; U.S. Department of Labor, Employee Benefits Security Administration; U.S. Department of Labor, Office of Inspector General; U.S. Department of Labor, Wage and Hour Division; U.S. Housing and Urban Development, Office of the Inspector General
The category of Exceptional Contribution to a Federal Investigation recognized those whose actions significantly impacted law enforcement’s ability to arrest, apprehend, and prosecute a subject of a federal investigation; rescue and respond to victims; develop cooperating witnesses; or identify critical intelligence.
United States v. James Merrill
Recipients: Federal Bureau of Investigation
Under Agreement with United States and State of Texas, Vopak to Reduce Hazardous Air Pollution at Chemical Storage Facility in Deer Park, TexasRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the Texas Commission on Environmental Quality today announced an agreement with Vopak Terminal Deer Park Inc. and Vopak Logistics Services USA, Inc., that will improve air quality in the Houston area by strengthening air pollution controls and compliance with federal and state clean air laws at Vopak’s chemical storage terminal and wastewater treatment facility in Deer Park, Texas.
“Today’s settlement reflects the Justice Department’s commitment to protecting clean air for the American people in partnership with the states,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The settlement will bring Vopak into compliance with federal and state clean air laws and will result in improved air quality for the residents of Harris County. We are proud to have partnered with Texas on this important result.”
“This agreement means cleaner air for Houston and will improve Vopak’s compliance with important federal and state laws,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “EPA is committed to working with state partners like Texas to achieve and ensure monitoring of compliance with environmental laws.”
Under today’s agreement, which resolves alleged Clean Air Act violations at the Deer Park facility, Vopak will install state-of-the-art air pollution controls at the facility’s wastewater treatment system, and will use infrared cameras to detect harmful air pollution from the facility’s chemical storage tanks that would otherwise be invisible to the naked eye. The company will also hire a third party auditor to improve how Vopak manages waste and evaluate its compliance with the agreement.
When fully operational, these measures will significantly cut emissions of volatile organic compounds (VOCs) and hazardous air pollutants at Vopak’s bulk chemical storage terminal and wastewater treatment facility.
Vopak’s Deer Park facility is in Harris County, Texas, an area that is classified as non-attainment for ozone.
EPA, the Justice Department and the State of Texas alleged that Vopak failed to comply with Clean Air Act requirements to properly manage equipment, which resulted in excess emissions of acetone, benzene, styrene and VOCs at an on-site wastewater treatment system. The federal government and Texas also alleged that Vopak failed to operate flares and chemical storage tanks in accordance with good air pollution practices, as required by state and federal law.
Ground level ozone is not emitted directly into the air, but is created by chemical reactions between oxides of nitrogen (NOx) and VOCs in the presence of sunlight. Emissions from industrial facilities and electric utilities, motor vehicle exhaust, gasoline vapors and chemical solvents are some of the major sources of NOx and VOCs. Excessive levels of VOCs, hazardous air pollutants, and ozone can cause harmful effects to public health, particularly children and the elderly, including eye, nose and throat irritation, headaches, loss of coordination, nausea and damage to liver, kidney and the central nervous system.
As part of today’s agreement, Vopak will also pay a civil penalty of $2.5 million, split between the U.S. and the State of Texas.
Today’s agreement, a consent decree formalizing the settlement, was lodged with the U.S. District Court in the Southern District of Texas and is subject to a 30-day public comment period and final court approval. Information on how to comment on the consent decree will be available in the Federal Register and on the Department of Justice’s website:www.justice.gov/enrd/consent-decrees.
For more information on this settlement or for a copy of the consent decree, visit www.epa.gov/enforcement/vopak-north-america-inc-clean-air-act-settlement-agreement
U.S. Navy Admiral Sentenced to Prison for Lying to Federal Investigators about His Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
U.S. Navy Rear Admiral Robert Gilbeau was sentenced today to 18 months in prison for lying to investigators to conceal his illicit 20-year relationship with Leonard Glenn Francis, the owner of Glenn Defense Marine Asia (GDMA), the foreign defense contractor at the center of a major bribery and fraud scandal.
Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Acting Director Dermot O’Reilly of the Department of Defense’s (DOD) Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
On June 9, 2016, Gilbeau, 56, pleaded guilty to one count of making false statements and was sentenced before U.S. District Judge Janis L. Sammartino of the Southern District of California. Gilbeau is the highest-ranking U.S. Navy officer to be sentenced in the investigation so far.
In connection with his plea, Gilbeau admitted that he lied when he told agents from DCIS and NCIS that he had never received any gifts from Francis. Gilbeau also admitted that he lied when he told investigators that he “always paid for half of the dinner” when he and Francis met about three times a year. Gilbeau further admitted that when he became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, he destroyed documents and deleted computer files. Francis previously pleaded guilty to plying scores of other U.S. Navy officials with gifts such as luxury travel, meals, cash, electronics, parties and prostitutes.
By way of background, GDMA provided ship husbanding services such as trash and sewage removal, food, water, security and fuel to U.S. Navy ships. As stated in his plea agreement, in 2003 and 2004, Gilbeau was the supply officer on the USS Nimitz, where he was responsible for procuring all goods and services necessary for operation of the ship. He later served as head of the Tsunami Relief Crisis Action Team in Singapore, heading the Navy’s logistics response to the Southeast Asia tsunami in December 2004, and in June 2005, Gilbeau was assigned to the office of the Chief of Naval Operations as the head of aviation material support, establishing policies and requirements for budgeting and acquisitions for the Navy’s air forces, according to the plea agreement. In August 2010, after he was promoted to admiral, Gilbeau assumed command of the Defense Contract Management Agency International, where he was responsible for the global administration of DOD’s most critical contracts performed outside the United States, according to admissions made in connection with his plea.
Twenty current and former Navy officials have been charged so far in the fraud and bribery investigation. Of the 20 Navy officials, 10 have pleaded guilty, and 10 cases are pending. Five GDMA executives and the GDMA corporation have pleaded guilty.
The DCIS, NCIS and the DCAA are investigating this case. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Navy Admiral Sentenced for Lying to Feds about his Relationship with Foreign Defense Contractor in Massive Navy Bribery and Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – May 17, 2017
SAN DIEGO – The first active-duty U.S. Navy Admiral ever convicted of a federal crime was sentenced today to 18 months in prison for lying to investigators to conceal his illicit 20-year relationship with Leonard Glenn Francis, the foreign defense contractor at the center of a colossal bribery and fraud scandal.
U.S. Navy Rear Admiral Robert Gilbeau pleaded guilty to one count of making false statements on June 9, 2016, admitting that he lied when he told federal agents that he had never received any gifts from Francis, owner of Singapore-based Glenn Defense Marine Asia. The company provided ship husbanding services such as trash and sewage removal, food, water, security and fuel to U.S. Navy ships.
According to the government’s sentencing memo, Gilbeau did indeed receive many expensive gifts plus cash from Francis since 1997. The long history between the two men involved many late nights of partying at nightclubs and karaoke bars, fine dining, luxury hotels and prostitutes – all paid for by Francis. For his part, Gilbeau signed off on inflated GDMA invoices which grossly overbilled the Navy.
When the massive corruption and fraud were discovered, Gilbeau repeatedly lied to investigators from Defense Criminal Investigative Service and Naval Criminal Investigative Service about his relationship with Francis. When Gilbeau became aware that Francis and others had been arrested in connection with the fraud and bribery offenses in September 2013, Gilbeau destroyed documents and deleted computer files. And he continued to lie.
During the sentencing hearing, U.S. District Judge Janis L. Sammartino noted that Gilbeau’s reaction to the arrests was “a systematic destruction of records.” “You did everything possible to hide and conceal your relationship with Leonard Francis and in the process you tried to thwart the investigation...You violated the law. You dishonored your shipmates, the Navy and the United States of America.”
Gilbeau, who is free on bond, was ordered to report to the custody of the Bureau of Prisons on June 23, 2017.
“This is the first time our nation will incarcerate a Navy Admiral for a federal crime committed during the course of his official duty, and it is truly a somber day,” said Acting U.S. Attorney Alana W. Robinson. “When tempted by parties and prostitutes, one of our most respected leaders chose karaoke over character, and cover-up over confession, and in doing so he forever tarnished the reputation of a revered institution.”
“Today's sentencing of Rear Admiral Robert Gilbeau closes a sad chapter on a naval flag officer's career tarnished by dishonorable behavior such as lying, destroying evidence and concealing the acceptance of gifts and gratuities from a defense contractor," said Dermot F. O'Reilly, Director, Defense Criminal Investigative Service. “As this investigation has shown, no one is above the law, regardless of rank or status, and they will be held accountable just as anyone else who has benefitted from this criminal scheme. The sentencing of Admiral Gilbeau continues the tireless efforts and commitment of DCIS, the Naval Criminal Investigative Service, and the Department of Justice to investigate and prosecute any individual who places at risk the safety and security of our armed forces personnel.”
“NCIS, in concert with our partner agencies, remains resolved to follow the evidence wherever it may lead in the ongoing investigation into Glenn Defense Marine Asia and NCIS will seek to hold accountable anyone, regardless of rank, who tries to hamper the investigation by lying or obstructing justice in any manner,” said NCIS Director Andrew Traver.
According to the government sentencing memo, Gilbeau first met Francis when Gilbeau served aboard the USS Boxer in 1997. During a multi-day port visit to Bali, Indonesia, Francis plied Gilbeau and another U.S. Navy officer with hotel rooms, dinners and the services of prostitutes.
In 2003, when the pair became reacquainted, Gilbeau was serving on the USS Nimitz. He again accepted hotel rooms, lavish dinners and prostitutes from Francis on several occasions.
After several of these escapades, Gilbeau personally approved GDMA invoices which inflated the charges to the U.S. Navy. In one instance, Gilbeau signed an invoice for the removal of wastewater from the ship during the port visit to Singapore in October 2003. Based on Gilbeau’s signature, the Navy paid for the highest per-day volumes of wastewater removal in the history of the USS Nimitz. In return, evidence in the investigation suggests GDMA kicked back $40,000 cash to Gilbeau. Gilbeau denies this allegation.
Francis also had contact with Gilbeau in 2005, when Gilbeau returned to Singapore to coordinate the U.S. Navy’s tsunami relief efforts. Gilbeau, who called himself “Tsunami Bob,” partied with Francis on three or four occasions, typically with an expensive dinner, followed by Brix Nightclub and Tiananmen Karaoke Bar.
According to other information received and reviewed as part of the investigation, on several occasions, Francis paid for hotel rooms and provided Gilbeau other things of value, during his stint in Singapore in 2005. According to interview statements and corroborating documents, Francis and Gilbeau again dined and caroused together in December 2010. On this occasion, Francis, Gilbeau - who had been promoted in the interim to Rear Admiral - and Gilbeau’s flag aide, dined at the Mezza9 Restaurant in the Hyatt Hotel in Singapore. After returning his flag aide to her hotel after dinner, Gilbeau rejoined Francis to continue the party at Brix Nightclub and the after party at Tiananmen Karaoke Bar.
To cap the evening, Francis drove Gilbeau and two prostitutes from Vietnam back to Gilbeau’s hotel. The next day, Francis emailed Gilbeau inquiring of the evening’s conclusion. Francis wrote: “How was the after action from the 1st night? Require AAR (After Action Report) Sir.” Gilbeau replied, “Very nice…. BZ.” “BZ” is a Navy term meaning “Bravo Zulu,” which means “well done.”
According to the sentencing memo, things started to unravel for Gilbeau in September 2012, when he became aware that Francis and GDMA were under investigation by NCIS for various fraud and public corruption offenses.
On November 27, 2012, Gilbeau submitted to his command a Foreign Contact Questionnaire, wherein he disclosed a September 26, 2012 contact with Francis, and in which he willfully, falsely stated “No” in answer to the question: “Have you ever received any gifts from [Leonard G. Francis]?”
In a subsequent voluntary interview by NCIS agents on February 20, 2013, Gilbeau stated that he and Francis met about three times a year but that defendant “always pa[id] for his half of the dinner.” That statement, too, was false: Francis paid for dinners, hotel rooms, and prostitutes for Gilbeau on many occasions.
According to the sentencing memo, after the arrests of Francis and others in 2013, Gilbeau, while serving in Afghanistan, became paranoid and erratic. He asked for direction on how to wipe clean his electronic devices; he refused to meet with others unless they removed the batteries from their cell phones; he removed his aides’ access to his U.S. Navy email accounts; and he destroyed and/or deleted certain paper records and computer files. Gilbeau was charged in June of 2016.
Twenty current and former Navy officials have been charged so far in the fraud and bribery investigation; 10 have pleaded guilty and 10 cases are pending. In addition, five GDMA executives and GDMA the corporation have pleaded guilty.
In his remarks at today’s hearing, Assistant U.S. Attorney Mark Pletcher told the court:
“Today, Your Honor, is a solemn and tragic day, for Bob Gilbeau, his family and friends, but also for the United States Navy, and our nation…Beyond the tragedy, today is also a day of great importance, as one of finality for Mr. Gilbeau; one of healing for the U.S. Navy; and more broadly, it is one of great importance for our constitutional democracy. We the People consent to be governed. We live by the Rule of Law, applicable to all regardless of rank, stature or privilege. In our Country, no one is above the law.”
The Defense Criminal Investigative Service, Naval Criminal Investigative Service and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 16CR1313-JLS
U.S. Navy Rear Admiral Robert Gilbeau Age 56 San Diego, CA
SUMMARY OF CHARGES
False Statements, in violation of 18 U.S.C. § 1001
Maximum Penalty: Five years in prison
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
U.S. Attorney’s Office Announces “Be Here for Kids” Child Safety Event in PhoenixRead the Press Release
U.S. ATTORNEY’S OFFICE ANNOUNCES
“BE HERE FOR KIDS”
CHILD SAFETY EVENT IN PHOENIX
PHOENIX- The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the ‘Be Here for Kids’ event on Thursday, May 25th, 2017 at the Desert Ridge Marketplace in Phoenix. The event will take place from 10:00 a.m. to 2:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the ‘Be Here for Kids’ campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life.
This year’s event is being presented in partnership with the Arizona Attorney General’s Office, the U.S. Marshals Service, Maricopa County Victim Services, Phoenix Police Department, Department of Homeland Security, Mothers Against Drunk Drivers, BOLO Cop, Camelback Daylight #75, the Federal Bureau of Investigation, and Red Means Stop Traffic Safety Alliance.
The Phoenix Police Department will be providing an armored vehicle from the bomb squad and officers from its motorcycle unit. The U.S. Marshals Service will be introducing its Marshal dog (Joy). Maricopa Victim Services will be introducing its court dog. Digital child identification kits will be provided free of charge to children who attend.
For more information on NCMEC, visit www.missingkids.com. For more information about the Be Here for Kids campaign, visit www.missingkids.com/behereforkids. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2017-044_Be Here for Kids_Phx
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.
Two Minneapolis Men Sentenced for Violent Armed Robbery of A Minneapolis Convenience StoreRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of STEPHON TREAVON REGGS, 22, to 197 months in prison and JOSHUA REGGS, 20, to 120 months in prison for the armed robbery of a convenience store in south Minneapolis. Both defendants entered guilty pleas and were sentenced on May 16, 2017, before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn. A third defendant, JERROD NAJEE WILLIAMS, 29, was also charged in connection with the robbery. WILLIAMS pleaded guilty on June 6, 2016, and is awaiting sentencing.
According to the defendant’s guilty plea and documents filed in court, on January 6, 2016, STEPHON REGGS, JOSHUA REGGS and JERROD WILLIAMS entered a convenience store in south Minneapolis, Minn. STEPHON REGGS and WILLIAMS were armed with semi-automatic pistols. WILLIAMS demanded from the store employee money from the cash register, to which the store employee complied, giving the defendants approximately $2,000. During the robbery, STEPHON REGGS pistol-whipped the employee, causing a serious injury that required stitches. When the employee fled the store on foot, STEPHON REGGS followed the employee and discharged the semi-automatic pistol he was carrying. All three defendants then fled the scene in a stolen vehicle and WILLIAMS crashed it into a parked car. When police tried to arrest them, all three defendants attempted to flee on foot and had to be physically subdued by police officers.
This is the result of an investigation by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney David Steinkamp prosecuted this case.
Defendant Information:
STEPHON TREAVON REGGS, 22
St. Paul, Minn.
Convicted:
-
Hobbs Act robbery, 1 count
- Discharging a firearm during and in relation to a crime of violence, 1 count
Sentenced:
-
197 months in federal prison
-
Five years supervised release
JOSHUA REGGS, 20
Minneapolis, Minn.
Convicted:
-
Hobbs Act robbery, 1 count
- Using, carrying and discharging a firearm during and in relation to a crime of violence, 1 count
Sentenced:
-
120 months in federal prison
- Five years supervised release
JERROD NAJEE WILLIAMS, 29
Minneapolis, Minn.
Convicted:
-
Hobbs Act robbery, 1 count
-
Using, carrying and discharging a firearm during and in relation to a crime of violence, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
-
Two Men Indicted for String of Armed RobberiesRead the Press Release
RICHMOND, Va. – A federal grand jury returned an indictment yesterday charging two men with committing six armed robberies of commercial businesses in the Richmond area.
According to the indictment, Antonio Lamont Jones, Jr., 19, of Chesterfield, and Derrick Orlando Ramsey, Jr., 27, of Petersburg, committed the following armed robberies in and around Richmond:
Date
Location
June 30, 2016
7-Eleven located at 5549 Belmont Road in Chesterfield
July 11, 2016
Sunoco located at 961 Temple Avenue in Colonial Heights
July 11, 2016
7-Eleven located at 3301 Oaklawn Boulevard in Hopewell
July 21, 2016
7-Eleven located at 12120 Harrowgate Road in Chesterfield
July 29, 2016
7-Eleven located at 121 Turner Road in Chesterfield
August 10, 2016
7-Eleven located at 10121 Chester Road in Chesterfield
Jones and Ramsey are each charged with one count of conspiracy; six counts of robbery affecting commerce; and two counts of using, carrying, and possessing a firearm in furtherance of a crime of violence. Jones is also charged with one count of possession of a firearm by a drug user.
Jones faces a maximum sentence of 162 years in prison if convicted and Ramsey faces a maximum sentence of 152 years if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and John K. Lenkart, Acting Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
This case was investigated by the FBI Richmond Division in partnership with the Henrico County Police Division, the Chesterfield County Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as part of the FBI Richmond Central Virginia Violent Crimes Task Force.
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. 3:17-cr-61.
Trio Charged with Conspiracy to Distribute HeroinRead the Press Release
Cesar Jaime Ayala, 37, of Mission, Texas; Eugene Harwood, 57, of Greenbrier, Arkansas; Victor Gutierrez, 55, of Philadelphia, Pennsylvania; and Marcos Callejas-Nava, 35, of Marietta, South Carolina, were charged today by Indictment with one count each of conspiracy to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin, possession with intent to distribute 1 kilogram or more of heroin within 1000 feet of a school, and aiding and abetting, announced Acting United States Attorney Louis D. Lappen. In addition, Victor Gutierrez was also charged with one count of maintaining a drug-involved premises.
If convicted the defendants face a maximum possible sentence of lifetime imprisonment, lifetime supervised release, $30,000,000 fine, and $300 special assessment. For count 4, Gutierrez faces an additional maximum sentence of 20 years’ imprisonment, $500,000 fine, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration, the Montgomery County Narcotics Enforcement Team, and the Montgomery County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jennifer B. Jordan.
Three Mexican nationals indicted for reentry of removed alienRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury indicted three Mexican nationals on charges they reentered the country illegally, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Bonifacio Zarate-Flores, age 27, was indicted on one count of “Reentry of Removed Alien.” Zarate-Flores was removed from the United States in 2015 and 2016. He was then allegedly found in Berkeley County on April 18, 2017.
Eusebio Paulino Lopez-Lopez, age 28, was indicted on one count of “Reentry of a Removed Alien.” Lopez-Lopez was removed from the United States in 2008. He was allegedly found in Berkeley County on April 8, 2017.
Regino Castro-Sanchez, age 45, was indicted on one count of “Reentry of a Removed Alien” and one count of “Fraud and Misuse of Visas, Permits, and Other Documents.” Castro-Sanchez was removed from the United States in 2003. He was allegedly found in Berkeley County on April 19, 2017.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the Zarate-Flores and Castro-Sanchez cases on behalf of the government. Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the Lopez-Lopez case on behalf of the government. The United States Department of Homeland Security Immigrations & Customs Enforcement investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Defendants sentenced for stealing over $4.3 Million in U.S. Government FundsRead the Press Release
ATLANTA - Prentice L. Johnson, Renina Letricia Wortham, a/k/a Renina Simmons-Wortham, and Enobahkare Malik Peterson have each been sentenced to two years, four months in federal prison for theft of government funds associated with the theft of a multi-million dollar U.S. Treasury check.
“The defendants wrongly assumed no one would miss a multi-million dollar U.S. Treasury check that was not made out to them,” said U.S. Attorney John Horn. “Quick work by federal agents stopped their attempts to negotiate the check before the defendants were able to abscond with millions in taxpayer funds.”
“TIGTA and its law-enforcement partners will investigate individuals who attempt to steal the revenue generated by the American taxpayer, and will do everything within their power to ensure that those involved are prosecuted to the fullest extent of the law,” said Special Agent in Charge Ruben Florez of TIGTA’s Atlanta Field Division. “TIGTA would like to thank the U.S. Secret Service and IRS Criminal Investigations for their assistance in this case.”
“The United States Secret Service and our law enforcement partners will continue to take an aggressive approach to arrest individuals who violate their positions of trust in an attempt to illegally enrich themselves,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “This sentencing should be a warning to other like-minded criminals and their conspirators that stealing from the American people will not go unpunished.”
“Individuals who attempt to commit refund fraud and theft with this degree of dishonesty and deceit will face consequences for their actions,” stated James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to do our part in protecting the sanctity and integrity of the tax system.”
“The collaborative investigative efforts prevented these criminals from further exploiting and causing considerable financial damage and inconvenience to the victim,” said David M. McGinnis, U.S. Postal Inspector in Charge of the Charlotte Division. “U.S. Postal Inspectors are charged with defending the nation’s mail system and will pursue those who insist on defrauding unwitting victims in furtherance of their deceptive schemes.”
According to U.S Attorney Horn, the charges and other information presented in court: Johnson, who worked as a payroll manager at a private company, stole a U.S. Treasury check in the amount of $4,368,869.30 that he found at his employer in late August 2016. The check was a refund check from the IRS, made out to Johnson’s employer. Shortly before stealing the check, Johnson became aware that his employer was laying him off. The employer had not notified Johnson of the layoff, but he saw that his upcoming paycheck contained payment for unused vacation time, which gave away the fact that he was about to lose his job.
After stealing the $4.3 million check, Johnson asked Wortham, who is his half-sister, to help him negotiate it. Wortham, in turn, recruited Peterson to help her negotiate the check. Because the check was so large, Peterson contacted two associates for assistance, rather than trying to negotiate it himself. At the time, Peterson had no idea that the associates, through counsel, were then engaged in negotiations with federal authorities to resolve unrelated federal criminal charges. In turn, counsel contacted federal law enforcement.
Federal agents confirmed with the U.S. Treasury that the check was genuine, and then acted quickly to stop payment on the check and prevent any losses to the U.S. Treasury. Agents also orchestrated a series of undercover operations in order to identify those responsible. The cooperators had identified Peterson to agents, but the identity of the person he recieved the check from was still a mystery.
In an interview with the CEO of the company that was the payee on the check, agents learned: 1) that Johnson was a recently terminated employee of the company; 2) that Johnson had learned of his impending layoff before the company notified him; and 3) that Johnson would have had physical access to the check.
On October 27, 2016, federal agents supervised the cooperators as they met with Peterson and Wortham at a restaurant. For security reasons, Wortham did not bring the check to the meeting. Wortham introduced herself as “Nina,” and explained that she worked as a chef at a catering business. Using this information in a series of public records searches, agents positively identified her as Wortham within a few minutes. Wortham told the cooperators that she had obtained the check from a family member, and that the cooperators, Wortham, and her family member would share the proceeds of the check. Wortham also claimed at the meeting that there were approximately 22 additional checks, with the $4.3 million check being the smallest. Later, in a confession made after her arrest, Wortham admitted that there was only one check, and that she made up the story about having 22 additional checks in order to give her coconspirators a reason not to steal from her.
The next day, on October 28, 2016, federal agents again supervised one of the cooperators as he met with Wortham at a coffee shop. Wortham explained that she felt good about the plan the cooperators had explained to her for cashing the check. Wortham handed over the check to the cooperator, who promised to “get the deal rolling,” and follow up with her after 7-10 days with debit cards for a new bank account with the funds from the check in it.
Based on Wortham’s claim that the check had come from a relative, agents performed intensive public record searches to identify her family members, taking special notice of any who had a connection with the company to which the check was made. Through analysis of public records, agents learned that Wortham and Johnson had both lived with and had close associations with the same woman, who later turned out to be their mother. Later, in her confession, Wortham confirmed that Johnson had been the relative she referred to in the undercover meeting, and that he was the source of the check.
On Friday, November 10, 2016, the cooperator had one last undercover meeting with Wortham, ostensibly to provide her with the checkbook and debit cards to the new account, which had purportedly been funded with the stolen IRS check. However, agents had already sworn out criminal complaints against, and obtained arrest warrants for, all 3 defendants. Wortham was arrested at the November 10, 2016 meeting, and Johnson and Peterson turned themselves in shortly thereafter, after learning of their warrants.
The three defendants were sentenced by U.S. District Judge Timothy H. Batten as follows:
-
-
Prentice L. Johnson, 54, of Lawrenceville, Georgia, was sentenced to two years, four months in prison to be followed by 3 years of supervised release. Johnson pleaded guilty on January 30, 2017, pursuant to a plea agreement.
-
-
-
Renina Letricia Wortham, a/k/a Renina Simmons-Wortham, 39, of Lithonia, Georgia was sentenced to two years, four months in prison to be followed by three years of supervised release. Wortham pleaded guilty on January 30, 2017, pursuant to a plea agreement.
-
-
-
Enobahkare Malik Peterson, 41, of Atlanta, Georgia was sentenced to two years, four months in prison to be followed by three years of supervised release. Peterson pleaded guilty on January 26, 2017, pursuant to a plea agreement.
-
Citizens who have information about stolen or fraudulently obtained federal funds are encouraged to report their tips to the Treasury Inspector General for Tax Administration hotline at (800) 366-4486, or online at .
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, U.S. Secret Service, Internal Revenue Service Criminal Investigation, and U.S. Postal Inspection Service, with assistance from the United States Treasury, Office of Inspector General.
Assistant United States Attorney Alana R. Black prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
-
Tennessee Man Sentenced to 120 Months in Prison for Possessing over 67 Pounds of MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On May 15, 2017, Juan Beteme Amezquita, age 42, of Murfreesboro, Tennessee, was sentenced by Senior United States District Court Judge James E. Gritzner to 120 months in prison for possession with intent to distribute over 67 pounds of methamphetamine, announced United States Attorney Kevin E. VanderSchel. Beteme will be required to serve three years of supervised release following his imprisonment.
The charge resulted from an investigation stemming from a traffic stop that occurred in Council Bluffs, Iowa. Methamphetamine was found in a trailer pulled by Beteme, and concealed in a newly purchased freezer and wrapped in plastic. Beteme admitted to picking up the methamphetamine in Los Angeles, California, and intended on delivering the methamphetamine to Minnesota.
The Southwest Iowa Narcotics Enforcement Task Force, the Pottawattamie County Sheriff’s Office, and the Pottawattamie County Attorney’s Office conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Task Force Investigation Targets Leadership of MS-13, including Former Top ‘Shot-Caller’ of L.A. Faction, a Dozen ‘Shot-Callers’ who Supervised Cliques and Three Members Accused of MurderRead the Press Release
LOS ANGELES – Capping a nearly three-year investigation, federal, state and local law enforcement authorities this morning took into custody a total of 21 members and associates of Mara Salvatrucha, a transnational criminal street gang commonly called MS-13 that was formed in Los Angeles about 30 years ago.
Those arrested today by members of the Los Angeles Metropolitan Task Force on Violent Gangs (LAMTFVG) are among 44 defendants who face federal charges, including the former head of the entire gang in Los Angeles and 12 senior leaders of the gang, who led a majority of the gang’s cliques in the Los Angeles region. These dozen high-ranking gang members had formed a de facto leadership council for the gang – a committee that was needed because no one person was willing to take on the top role in the wake of ongoing scrutiny by law enforcement.
A racketeering indictment charges three MS-13 members for murders they committed in connection with the gang’s activities. These murders were solved as a result of the LAMTFVG investigation and its partnership with LAPD Olympic Division Homicide detectives.
Carlos Alfredo Cardoza Lopez, also known as “Little Boy,” 23, faces a violent crime in aid of racketeering (VICAR) murder charge for allegedly fatally shooting an innocent bystander who was confronted on August 15, 2015 inside the gang-controlled Little San Salvador Nightclub and Restaurant on North Western Avenue. A friend of the murder victim was also stabbed during the attack.
Two other MS-13 members – Samuel Alexander Paredes Rivas, also known as “Blacky,” 39, and Joffri Molina, also known as “Espia,” 24 – are also charged with VICAR murder. Rivas is accused of murdering a man on August 30, 2015 at a strip mall in Pacoima. Molina is accused of murdering a man on September 27, 2015 on a street in North Hollywood.
Lopez, Rivas and Molina are eligible for the death penalty if found guilty of the murder offenses. Prosecutors will decide whether to seek the death penalty at a later date.
“This gang is responsible for murders – both of rival gangsters and innocent bystanders – as well as drug dealing and extortion in many communities in the Los Angeles area,” said Acting United States Attorney Sandra R. Brown. “With thousands of members here in the Southland, the gang’s power is widespread – power which it maintains with severe acts of violence. Today’s charges and arrests, however, will deal a critical blow to the top leadership of this criminal organization and will significantly improve safety in neighborhoods across this region.”
“This case has targeted the leadership and most violent actors of the MS-13 street gang in Los Angeles, as well as MS-13’s links to the Mexican Mafia,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This operation will have a significant impact on this violent gang and their overall ability to maintain control over law-abiding citizens.”
“This operation is a powerful example of the significant impact partnerships play in law enforcement,” said Los Angeles Police Chief Charlie Beck. “The successful arrest of these individuals was only possible because a wide range of agencies collaborated with each other, based on information gleaned from countless investigation hours and tips provided by people who could trust our police officers, regardless of their immigration status.”
At the center of today’s takedown is a 41-count racketeering indictment that charges 34 members and associates of MS-13. The indictment, which alleges violations of the federal Racketeer Influence and Corrupt Organizations (RICO) Act, outlines the gang’s organizational structure, its affiliation with the Mexican Mafia prison gang, and its strict set of rules and punishment. The 127-page indictment describes how MS-13 uses violence and intimidation in an effort to maintain its power and control narcotics trafficking.
The lead defendant in the RICO indictment is Jose Balmore Romero, also known as “Porky,” 43, who in 2013 and 2014 was the overall shot-caller for MS-13 Los Angeles. The indictment alleges that, as the leader of the gang, Balmore oversaw MS-13’s drug trafficking activities, coordinated the collection of extortionate “taxes” and “rent,” some of which was then distributed to Mexican Mafia members who oversaw MS-13. Balmore also allegedly conducted and attended gang meetings, where he disseminated orders, including authorizing the “jumping in” of new members and the assault of members who were in bad standing. Balmore has been in local custody since February 2015, when the LAMTFVG arrested him for ordering a gang-related murder.
In addition to narcotics trafficking and violent crimes, members of MS-13 also allegedly engaged in a wide range of criminal conduct that includes the extortion of street-level drug dealers and innocent business owners who were threatened with death if they did not make payments to the gang. The gang also operates illegal after-hours clubs where it generates profits from gambling and illegal narcotics and alcohol sales.
“This gang uses coercion and intimidation while inflicting horrific violence in the neighborhoods where they operate,” said ATF Los Angeles Field Division Special Agent in Charge Eric Harden. “Today is a great win for justice and a heavy message to the community. Law enforcement will combine their resources and all our areas of expertise to cripple these organizations. We will win, they will lose.”
In addition to the 34-defendant RICO indictment, prosecutors have filed a drug-trafficking indictment against five other gang members who were associated with the Mexican Mafia. These defendants are charged with conspiracy to distribute controlled substances, as well as various narcotics and firearms offenses.
Two other MS-13 members have also been charged separately with narcotics and firearms offenses.
One defendant charged in this sweep is named in a case filed under seal because he was a juvenile at the time of the alleged offenses.
Prosecutors this morning are filing criminal complaints in federal court against two additional defendants who were arrested this morning, one of whom is a shot-caller of an MS-13 clique who is currently on supervised release after being convicted in a prior racketeering case.
“The relationship between drugs, violent crimes, and street gangs isn’t new to DEA – the illicit drug market serves as the life-blood of street gang operations,” said DEA Special Agent in Charge David J. Downing. “The DEA and Southern California Drug Task Force are committed to disrupting the flow of drugs into our communities and mitigating the associated violence these gangs perpetuate.”
During this morning’s operation, authorities arrested a total of 21 federal defendants. Out of the 44 defendants facing federal charges, 20 were already in custody and three are considered to be fugitives.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Those taken into custody today are expected to be arraigned on the charges against them this afternoon in United States District Court. The defendants who are currently in custody will be brought into federal court to face the charges at a later date.
The investigation into MS-13 was conducted by the Los Angeles Metropolitan Task Force on Violent Gangs and was led by the Federal Bureau of Investigation and the Los Angeles Police Department.
The LAMTFVG includes personnel from the Drug Enforcement Administration’s Southern California Drug Task Force pursuant to the High Intensity Drug Trafficking Area (HIDTA) program; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Los Angeles County Sheriff’s Department; U.S. Customs and Border Protection; and the California Department of Corrections and Rehabilitation. U.S. Immigration and Customs Enforcement and the United States Bureau of Prisons participated in the investigation.
Other agencies provided substantial assistance during the investigation, including the Los Angeles Regional Criminal Information Clearinghouse (LA CLEAR), the Los Angeles City Attorney's Office, the Los Angeles County Probation Department, and the Los Angeles County Department of Children and Family Services.
The prosecution of the RICO case and the related federal cases is being handled by Assistant United States Attorneys Joanna Curtis and Jeff Chemerinsky of the Violent and Organized Crime Section.
Tahlequah Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SAMUEL NOLAN DOTY, age 47, of Tahlequah, Oklahoma, pled guilty to POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2), punishable by 10 to 20 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that between on or about April 17, 2014, and on or about August 24, 2016, in the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Cherokee County Sheriff’s Office, the United States Marshal’s Service, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Two Convenient Store Managers Plead Guilty to Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – Manager Larry White, Sr. of Stop-n-Go Fish Market, Sikeston, MO, and his daughter Erica White, manager of Stop-N-Go Mini Mart store pled guilty to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Each admitted with their pleas that they illegally redeemed up to $549,000 in SNAP benefits between December 2010 and March 2014 by exchanging SNAP benefits for cash and illegible items.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT), for the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Larry White, Sr., 63, and Erica White, 35, both of Sikeston, MO, pled guilty to multiple felony counts of unauthorized use of SNAP benefits and conspiracy. Both appeared today before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2017.
The conspiracy count carries a maximum penalty of five years in prison and/or fines up to $250,000 and SNAP fraud carries a maximum penalty of five years in prison and/or fines up to $10,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety and the New Madrid County Sheriff’s Office. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
Stratford Man Charged with Distributing Heroin Involved in Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RAYMOND J. GORDON, also known as “X-RAY,” 30, of Stratford, was arrested today on a federal criminal complaint charging him with distributing heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
After his arrest, GORDON appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on December 10, 2016, Stratford Police and emergency medical personnel responded to a Stratford residence after receiving a report of an unresponsive 22-year-old female. The female, who was in her bedroom, was pronounced deceased. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. Investigators also seized the victim’s cellphone. The investigation revealed that the victim purchased heroin from GORDON shortly before she died.
The complaint charges GORDON with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Statement of U.S. Attorney Deirdre M. Daly in Recognition of National Police WeekRead the Press Release
As the United States Attorney for the District of Connecticut, I have the honor of working closely with federal, state and local law enforcement officers on a daily basis. I am deeply appreciative of the professionalism, dedication and quiet courage these brave men and women continually demonstrate under demanding and often dangerous circumstances. Put simply, we would be lost without the goodwill and hard work of our police officers.
Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others. According to the National Law Enforcement Officers Memorial Fund, 143 police officers died in the line of duty last year – the highest figure since 2011, when 178 officers died. Officer deaths peaked in 1930, when 307 were killed. Since the mid-1970s, the number of officer deaths has hovered below 200 every year. The exception was in 2001, when 243 died – 72 of whom were killed in the 9/11 terrorist attacks, the most in any single incident in U.S. history. So far this year, 44 officers have died in the line of duty nationwide. Gun-related incidents have long been the leading cause of officer deaths. Over the last 10 years, 537 of the more than 1,500 officers who died in the line of duty were shot to death. Almost 400 died in car crashes, and 270 died as a result of job-related illness.
Here in Connecticut, I see firsthand how the men and women of law enforcement fulfill their sworn duty to uphold justice. I am grateful that National Police Week gives us a moment to pause to honor these brave public servants and to reflect on their commitment and valor. I hope that you will join me in thanking police officers everywhere for their service and for all that they do for all of us.
St. Charles, Republic Women Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a St. Charles, Mo., woman and a Republic, Mo., woman were sentenced in federal court today for their roles in a conspiracy to distribute large quantities of methamphetamine.
Cheryl D. Paluczak, 50, of St. Charles, and Heather L. Courtois, 33, of Republic, were sentenced by U.S. District Judge M. Douglas Harpool. Paluczak was sentenced to 11 years in federal prison without parole. Courtois was sentenced to four years in federal prison without parole.
Both Paluczak and Courtois pleaded guilty to their roles in the drug-trafficking conspiracy that lasted from June 1, 2013, to Nov. 29, 2014. Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply. The investigation resulted in the indictment of 27 co-defendants.
Paluczak admitted that she obtained approximately one pound of methamphetamine from co-defendant Kenna Harmon, 37, of Republic. Paluczak intended to transport the methamphetamine to the St. Louis, Mo., area for distribution. This methamphetamine, however, was seized by law enforcement officers during a traffic stop on Oct. 15, 2014.
Kenna Harmon has pleaded guilty to being a leader, along with her husband, Daniel Harmon, in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm. In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine.
Courtois admitted that she started getting methamphetamine from Kenna Harmon in August 2014. Courtois received ounce amounts of methamphetamine, for which she paid approximately $1,200 to $1,400 per ounce. In order to distribute the large amount of methamphetamine that she was responsible for selling, Kenna Harmon stored methamphetamine in several residences in Greene and Polk Counties, and directed several individuals to assist in maintaining those residences, including Courtois. Courtois rented a residence in Republic and provided it to Harmon, who stayed at the residence and used it in the storage and distribution of methamphetamine.
Law enforcement officers executed a search warrant at the Republic residence on Nov. 27, 2014, and found 5.5 pounds (2.49 kilograms) of methamphetamine, a loaded firearm and $20,000.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Southbridge Man Charged with Intent to Distribute OxycodoneRead the Press Release
BOSTON - Hector Espola, 30, was charged today in federal court in Worcester with possession of oxycodone with intent to distribute.
According to court documents, Espola allegedly sold 300 oxycodone pills on two occasions in July and August 2016 to an individual cooperating with federal investigators.
On Feb. 17, 2017, Espola was arrested in Massachusetts on a federal arrest warrant as he returned from New York City. Upon his arrest, agents found Espola in possession of 300 oxycodone pills.
The charge of possession with intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seaford Heroin Dealer Pleads GuiltyRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware announced today that defendant Bob Bennett pled guilty today to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
According to facts disclosed at the change of plea hearing, Bennett—a 35-year-0ld Seaford resident—was a heroin dealer in Seaford who was known to possess and provide firearms to his sub-distributors in order to further his drug dealing.
On November 4, 2016, ATF and the Seaford Police Department executed a search warrant on Bennett’s home and car in Seaford. The search revealed a loaded, .40-caliber firearm in the same room as two safes, the contents of which included 3,250 individual bags of heroin stamped “Donald Trump.” Nearby, officers found an additional 109 bags of heroin, stamped “Donald Trump” or “Ferrari,” as well as a total of $2,418 in cash. Agents recovered a number of other items in the house.
“This plea reflects the outstanding, cooperative work of Seaford Police and the ATF,” Acting United States Attorney David C. Weiss said. “From Seaford to Wilmington, our state is not immune to the heroin epidemic afflicting the nation. This case shows we will use the tools at our disposal—federal, state, and local—to bring justice to those responsible.”
“Armed narcotics traffickers pose a significant risk to the citizens in Seaford and throughout Delaware,” said Daniel L. Board Jr., the Special Agent in Charge for the ATF Baltimore Field Division. “But the mission of the ATF is unwavering. We will continue to fight violent crime by targeting, investigating and partnering in the prosecution of those who seek to reduce the quality of life in our communities.”
A sentencing hearing has been scheduled by the District Court for September 14, 2017 at 2:00p.m. At sentencing, Bennett faces a mandatory minimum sentence of five years, to be served consecutively to any other sentence, for possessing and using a firearm in furtherance of a drug trafficking crime.
This case was investigated by the ATF and Seaford Police. Assistant United States Attorneys Alexander S. Mackler and Lesley F. Wolf prosecuted the case.
Schenectady Man Sentenced to 10 Years for Crack DistributionRead the Press Release
ALBANY, NEW YORK – Jayquan Tomer, age 25, of Schenectady, New York, was sentenced today to 10 years in prison for conspiring to distribute crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Lawrence E. Kahn also imposed an 8-year term of supervised release, to begin after Tomer’s release from prison, and ordered him to forfeit $3,000 in proceeds from his crimes.
As part of his plea, Tomer admitted that he conspired with others to distribute and did distribute a total of 43 grams of crack cocaine to another person in Schenectady on three occasions in August 2013.
This case was investigated by the FBI and its Capital District Safe Streets Task Force, and was prosecuted by Assistant U.S. Attorney Sean O’Dowd.
Rapid City Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Involuntary Manslaughter was sentenced on May 12, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Roger Janis, age 47, was sentenced to 60 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Janis was charged on June 14, 2016, and pleaded guilty on September 9, 2016. The conviction stems from Janis, while under the influence of alcohol, running over a five-year-old child with his pickup at Pine Ridge, causing the boy’s death.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Janis was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on May 12, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Martin Garreau, age 23, was sentenced to 4 months of imprisonment and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Garreau was charged on November 16, 2016, and pleaded guilty on February 3, 2017. The conviction stems from Garreau leaving Community Alternatives of the Black Hills, where he was serving part of his federal prison sentence, without permission and failing to return.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.
Prison Inmate Pleads Guilty to Threatening to Kill President of the United StatesRead the Press Release
BOSTON – A former inmate at Old Colony Correctional Center in Bridgewater, Mass., pleaded guilty today in federal court in Boston to threatening to kill the President of the United States.
Alex Hernandez, 32, of Worcester, currently serving time on state charges at MCI-Shirley, pleaded guilty to one count of threatening to kill and inflict bodily harm upon the President of the United States. U.S. District Court Judge Indira Talwani scheduled sentencing for July 24, 2017.
In March 2015, federal agents learned that Hernandez, imprisoned at the time at Old Colony Correctional Center, told another inmate who was working as a cooperating witness in the investigation, that he was upset about the way his people were being treated and wanted to kill the President. Hernandez expressed an interest in obtaining false travel documents so he could flee the country after his attack.
Based on these statements, agents decided to introduce Hernandez to an undercover agent posing as an embassy contact who could assist Hernandez with obtaining false travel documents.
On Dec. 22 2015 and Feb. 12, 2016, the undercover agent met with Hernandez at Old Colony Correctional Center. During the first meeting, Hernandez stated that he wanted to attack, “the house with the big people there.” The agent inquired whether Hernandez meant the White House, and Hernandez said he did. When asked for additional details about his plan, Hernandez explained, “there is always a head. He’s the one who’s always in charge. So if you attack the head, everything will go down a little bit.” He also stated that he was studying how to make explosives that could be placed around government buildings to “create chaos.” During the second meeting with the undercover agent, Hernandez discussed the motivation for his planned attacks – telling the agent that his brothers are “fighting to uphold the laws and structure of the caliphate in the Middle East” and that “this government . . . is painting it like they are the bad guys[.]” Hernandez also explained that he wanted to target the President because “he’s the one that gives the orders[.]”
The charging statute provides a sentence of no greater than five 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service's Boston Field Office; and Thomas Turco, Commissioner of the Massachusetts Department of Correction, made the announcement today. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Criminal Division is prosecuting the case.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gustavo Mulato, age 25, of Mexico, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Mulato was previously deported from the United States to Mexico in April 2012, and twice in July 2012. He is alleged to have illegally re-entered the United States sometime after July 2012, and was found in the United States in Schuylkill County, Pennsylvania after eluding examination or inspection by immigration officers. In March 2012, he was convicted in the Luzerne County Court of Common Pleas of resisting arrest, an offense which subjects him to enhanced penalties in the current case.
The case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Because of Mulato’s previous conviction, under federal law he faces a maximum penalty for this offense of ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Postal Carrier Charged with Stealing Toys R Us Gift Card from MailRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of mail by a postal employee, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Julie L. Bowser, 47, of Tarentum, Pennsylvania, as the sole defendant.
According to the indictment, Julie L. Bowser was an employee of the United States Postal Service at the time she stole a $75.00 Toys R Us gift card from an item that was to be conveyed by mail.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The United States Postal Service – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner and Employee of Tax Preparation Business Charged with Filing Fraudulent Returns and Claiming over $3,000,000 in RefundsRead the Press Release
An owner of a tax preparation business and his employee are charged with filing hundreds of fraudulent returns and claiming over $3,000,000 in fraudulent refunds.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
In an indictment unsealed today, Corry E. Pearson, of Riviera Beach, and Stephane Cindy Anor, a/k/a “Stephanie Anor,” of West Palm Beach, are charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Pearson is also charged with money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1957.
According to allegations contained in the indictment, defendant Pearson owned Tax King, Inc., a tax preparation business, where defendant Anor was an employee. For tax years 2012 and 2013, Pearson and Anor electronically filed at least 862 fraudulent federal income tax returns. In some cases, the defendants stole other people’s identities and filed Federal income tax returns in the victims’ names, collecting the refunds for themselves. The defendants also filed returns that inflated the taxpayers’ refunds. In some cases, the filed returns falsely reported that money had been withheld from taxpayers’ wages and gambling winnings. In others, the defendants filed returns falsely claiming education credits to which the taxpayers were not entitled. In total, the returns filed by the defendants claimed at least $3,747,125 in fraudulent refunds. Pearson also engaged in financial transactions with the proceeds of the fraud, some of which were designed to disguise his control over the illicit refunds.
If convicted, the defendants face maximum possible statutory sentences of 20 years' incarceration for the conspiracy to commit wire fraud, 20 years' incarceration on each count of wire fraud, and a mandatory sentence of 2 years' incarceration on each count of aggravated identity theft. In addition, Pearson faces maximum possible statutory sentences of 20 years’ incarceration on each count of money laundering in violation of Section 1956 and 10 years’ incarceration on each count of Section 1957.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at http://www.usdoj.gov/usao/fls
Owner Sentenced to More than 27 Years in Prison for Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Two owners of sober homes and alcohol and drug addiction treatment centers were sentenced to 27 and 3 years in prison, respectively, for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, George L. Dorsett, Assistant Inspector General for Investigations, Amtrak Office of Inspector General, Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
After hearing victim impact statements from a number of parents whose children suffered fatal and non-fatal overdoses, U.S. District Judge Donald M. Middlebrooks sentenced Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, to 330 months in prison, to be followed by 5 years of supervised release. Chatman was also ordered to register as a sex offender. He had previously pled guilty to conspiracy to commit health care fraud in violation of Title 18, United States Code, Section 1349; conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h); and conspiracy to commit sex trafficking, in violation of Title 18, United States Code, Section 1594(c). His wife, Laura Chatman, 44, of Boynton Beach, was sentenced by Judge Middlebrooks to 36 months in prison, to be followed by 3 years of supervised release, after having pled guilty to two counts of making a false statement related to a health care matter, in violation of Title18, United States Code, Section 1035(a)(1).
“Kenneth Chatman will spend the next 27 years in prison for orchestrating an egregious fraud scheme that denied addicts and their families the legitimate treatment and supportive services they desperately needed,” stated Acting U.S. Attorney Benjamin G. Greenberg. “Instead of helping his patients to achieve sobriety, Chatman exploited the vulnerable victims to satisfy his personal greed. He provided drugs to addicts, solicited and accepted kickbacks and bribes, and used his position of power to sexually exploit his patients. The U.S. Attorney’s Office and our law enforcement partners will continue to shut down and hold accountable the unscrupulous sober home owners, treatment facility providers and medical labs that carry out fraudulent and abusive treatment practices.”
“Kenneth Chatman took advantage of persons with serious addiction problems to satisfy his greed. He exploited people who were vulnerable and weak,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Instead of providing a safe and sober living environment, Chatman gave his patients illegal drugs, fraudulent insurance bills and demanded they engage in illegal prostitution under duress. The FBI and our partners are serving notice to sober home operators, treatment facility owners and medical professionals who choose to engage in these types of fraud schemes, you will be investigated and criminally prosecuted to the fullest extent of the law.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “This is an appalling case of pure greed where these defendants tore families apart and put patients’ health and safety at risk. As the Chatmans were living a lavish lifestyle funded by their fraud scheme, patients suffering from addiction were utilized as mere pawns in a master plan to defraud insurance companies. IRS-CI will continue to provide our expertise in conducting financial analysis in money laundering cases to combat the huge healthcare fraud compliance issue facing South Florida.”
“Sober homes are meant to be a place of refuge for those recovering from addiction, but some of these facilities are anything but a sanctuary,” said Chief Financial Officer Jeff Atwater. “Many do nothing more than siphon residents’ insurance benefits until there’s nothing left to be paid, only to return the newly-recovering back to the streets. I am proud of the collaborative state, local, and federal efforts to hold the line on this crime, and I hope this sentencing sends a shockwave to others who may be engaging in similar behavior.”
"It's shameful and disgusting that a treatment home, which should be a place of healing and recovery, could be so badly corrupted as a vehicle for fraud.” said Regional Director for the Department of Labor’s Employee Benefits Security Administration Isabel Colon. “We are gratified to be part of the effort of so many state and federal agencies to put a stop to this sort of criminal activity.”
"Our office, in partnership with our fellow investigative agencies, will continue to uncompromisingly investigate and bring to justice the people who perpetrate these criminal acts," said Amtrak Inspector General Tom Howard. "Their actions take advantage of a vulnerable population that is seeking treatment. Our office will remain vigilant in protecting Amtrak employees, retirees, and their dependents, and ensuring that our health care dollars are not wasted on these fraudulent providers."
According to court documents, defendant Kenneth Chatman established a series of sober homes, including Stay’n Alive, Inc., Total Recovery Sober Living LLC, and several other multi-bed residences operating as sober homes in Palm Beach and Broward Counties. These sober home facilities were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. Kenneth Chatman conspired with others to obtain patients who would receive ineffective and medically unnecessary substance abuse treatment and testing that could be billed to the patients’ insurance in order to enrich Chatman and the members of the conspiracy.
To achieve this goal, defendant Kenneth Chatman paid kickbacks and bribes to other sober home owners for referring their residents to Reflections Treatment Center LLC in Margate, Florida and Journey to Recovery LLC in Lake Worth, Florida for treatment, and disguised these kickbacks and bribes as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” The co-defendants met with Kenneth Chatman on a weekly basis to collect their kickbacks and bribes, which were based on the number of insured patients that received treatment each week.
To obtain residents for the sober homes, defendant Kenneth Chatman and others involved in the conspiracy provided kickbacks and bribes, including free or reduced rent, gift cards, and controlled substances to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing, and Kenneth Chatman marketed his treatment facilities as places where patients could continue to use controlled substances while receiving “treatment.”
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities, thereby hiding the fact that Kenneth Chatman, a convicted felon who was prohibited from owning and operating treatment centers, managed all aspects of these facilities including the hiring and firing of personnel; admitting and discharging patients and making financial decisions.
Defendant Laura Chatman appeared at Reflections and Journey for audits and inspections by DCF and other accrediting agencies to make it seem that she was the sole owner and officer of the companies. Defendant Laura Chatman also filed corporate documents and opened bank accounts in the name of Reflections and Journey to allow co-defendant Kenneth Chatman access to deposit proceeds from the health care fraud scheme and to conduct transactions meant to promote the scheme. .
Defendant Kenneth Chatman dictated which patients were admitted and discharged and the type and frequency of different types of lab testing that would be performed based on the kickbacks and bribes that he was receiving from different clinical laboratories rather than based upon the individual patients’ needs. Kenneth Chatman dictated that confirmatory urine drug testing; duplicative saliva drug testing, DNA and allergy testing occur regardless of whether patients complained of allergies. These tests were medically unnecessary and not used to direct the treatment of patients. Many of the test results were never reviewed and new samples were submitted before older tests were received and reviewed. In some instances when a patient’s insurance benefits were about to run out, Kenneth Chatman would provide controlled substances to the patient so that the patient would have a positive drug test. Kenneth Chatman would then inform the patient’s insurance provider that the patient had “relapsed” so that additional treatment benefits would be approved and Chatman could continue billing services.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth Chatman and other co-conspirators recruited, enticed, harbored, transported, provided, obtained, and maintained some female patients into performing commercial sex acts. The defendant provided housing for the female patients, who would be made to perform sex acts in exchange for money that would then have to be paid to defendant Kenneth Chatman as “rent.” The commercial sex activity occurred at some of the sober homes controlled by the defendant or at hotels and motels. Kenneth Chatman provided condoms and advertised and caused the advertisement of the commercial sexual activity. Kenneth Chatman and other co-conspirators provided controlled substances to these addicted patients to induce them to perform sexual acts.
Kenneth Chatman also used intimidation tactics and threats of legal process, including evicting the patients from his sober homes to maintain their compliance. These patients were not required to attend treatment at Reflections or provide bodily fluid samples for testing but he submitted and caused the submission of claims to the patients’ Insurance Plans for substance abuse treatment and testing that they did not receive.
Kenneth Chatman further maintained control over patients who attended Reflections and Journey by threats and confiscating their belongings, car keys, telephones, medications, and food stamps, in order to maintain the ability to continue billing their Insurance Plans.
The proceeds of the health care fraud scheme were deposited into bank accounts that Kenneth Chatman and co-defendant Laura Chatman opened at Wells Fargo Bank in the name of Reflections and Journey. Kenneth Chatman and the co-conspirators agreed to use the proceeds to promote the ongoing fraud scheme including the making of kickback and bribe payments in the form of checks to sober home owners. These checks were for the referral of insured clients to Reflections for treatment and often noted that they were for “case management.” Kenneth Chatman, Laura Chatman and their co-conspirators also made payments to the medical directors, clinical directors, employees and others to continue their involvement with the fraud. Monies from these accounts were also used to pay kickbacks and bribes to patients, including providing prescription and illicit drugs to patients and potential patients.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-Office of Inspector General, DOL-EBSA, NICB, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and Office of Personnel Management, Office of Inspector General. This case was prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at http://www.usdoj.gov/usao/fls