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Friday 31 March 2017
Bridgeport Heroin Dealer Sentenced to 57 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GLEN PORTER, also known as “Kuran,” 32, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2015, the FBI’s Bridgeport State Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force initiated an investigation into several heroin distributors operating in Bridgeport. The investigation, included court-authorized wiretaps, controlled purchases of heroin and physical surveillance, revealed that Kareem Roseboro, also known as “Swiss,” was supplying distribution quantities of heroin to other individuals, including PORTER. PORTER and others sold heroin to their own customers.
Roseboro and his associates used the Stylz Barbershop, located on State Street in Bridgeport, as a hub for their narcotics distribution activity.
During the course of the investigation, investigators seized multiple “bricks” of heroin, items used in the processing and packaging of heroin, and five firearms. A brick of heroin contains 100 individual dose bags.
On June 6, 2016, a grand jury in Bridgeport returned an eight-count indictment charging PORTER, Roseboro and five other Bridgeport residents with heroin trafficking offenses. The seven defendants were arrested on June 7, 2016.
PORTER has been detained since his arrest. On November 16, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
PORTER’s criminal history includes multiple felony convictions.
Roseboro has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. The case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds and H. Gordon Hall.
Benin Man Convicted in Pennsylvania of Using Stolen IDs to File Tax Returns Seeking More Than $800,000 in RefundsRead the Press Release
A Republic of Benin man unlawfully residing in Philadelphia, Pennsylvania was convicted today in the Eastern District of Pennsylvania of conspiring to commit access device fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and evidence at trial, from February through June 2014, Abdou Koudos Adissa was engaged in a conspiracy in which stolen identities were used to file tax returns claiming refunds with the Internal Revenue Service (IRS). Co-conspirators filed tax returns fraudulently seeking more than $800,000 in refunds, which were loaded onto Green Dot prepaid debit cards and sent via Western Union to Nigeria. In order for the prepaid debit cards to accept direct deposits, they had to be registered using personal identifying information including names, social security numbers and addresses. During a search of the apartment Adissa shared with a co-conspirator, special agents found 106 Green Dot cards in Adissa’s room. Adissa registered the Green Dot cards using stolen IDs and provided his co-conspirators with the direct deposit information related to the cards so that fraudulently obtained refunds could be directed to them. to the evidence produced at trial, he called Western Union 63 times in three months to facilitate transferring these fraudulent refunds to Nigeria.
Sentencing is scheduled for June 28. Adissa faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties. Adissa is pending immigration removal proceedings.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney David J. Ignall and Trial Attorney Carl F. Brooker of the Tax Division who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Benicia Woman Pleads Guilty to Tax FraudRead the Press Release
SACRAMENTO, Calif. —Sherrell Davis, 43, of Benicia, pleaded guilty today to submitting false claims for tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from February 2011 through May 2013, Davis repeatedly engaged in tax fraud by submitting fraudulent claims for tax refunds in the names of other people to the Internal Revenue Service. The tax returns used fraudulent W-2 tax forms from purported employers that reflected false wages and false withholdings in order to generate tax refunds to which the people listed on the returns were not entitled. The refunds sought also included amounts for tax credits to which the taxpayers were not entitled, including the Earned Income Credit, the American Opportunity Credit, and the Making Work Pay Credit. Davis submitted or assisted in the presentation of fraudulent tax returns seeking a total over $350,000 in tax refunds, of which at least $210,320 were paid out by the IRS.
This case is the product of an investigation by IRS Criminal Investigation. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Davis is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Davis faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Baltimore Conspirator Sentenced to over Three Years in Federal Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Adebola Opeyemi Adeniyi, age 32, a Nigerian citizen living in Baltimore, today to 42 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in a stolen identity refund fraud (SIRF) scheme. Adeniyi admitted that the conspirators defrauded the IRS by using the personal identifying information (PII) of individual victims to obtain over $655,000 in fraudulent tax refunds. Judge Motz also entered an order requiring Adeniyi to pay restitution of $550,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, from October 17, 2013 through March 17, 2015, Adeniyi and his co-conspirators filed false tax returns, arranging for the electronic transfer of the fraudulently obtained tax refunds to prepaid debit cards. Adeniyi also obtained victims’ account information from the 2013 Target Store data breach, which he and other participants in the scheme used to re-encode the magnetic strips of payment cards in their possession. Adeniyi and other participants used the debit cards loaded with SIRF funds and the re-encoded payment cards to purchase money orders, which the conspirators cashed at check cashing businesses. Adeniyi shared the cash proceeds with other participants in the scheme. The total value of money orders purchased with SIRF funds and cashed by Adeniyi or at his direction was at least $665,635. The total value of money orders purchased with account information compromised during the Target Store data breach and cashed at Adeniyi’s direction was at least $80,500. At least $100,874 in SIRF funds were loaded onto prepaid debit cards for which co-conspirator Mayowa Towobola provided account numbers and security codes to Adeniyi and other participants in the scheme, and the total value of fraudulently obtained money orders cashed by Towobola was at least $58,524. In text messages found on Adeniyi and Towobola’s cell phones, seized during searches executed on July 21, 2015, they discuss loading a total of at least $1,237,358 in fraudulently obtained funds onto various prepaid debit cards.
Further, Adeniyi admitted that he used some of the money orders obtained from the two schemes to: purchase vehicles at auctions in Maryland, and arrange for their shipment to purchasers in Nigeria; and to engage in currency exchange transactions, exchanging U.S. currency for Nigerian currency at competitively low rates.
Co-conspirators Mayowa Olabiyi Towobola, age 26, a resident of Parkville, Maryland, and Hafis Omowonuola Oladokun, age 39, of Owings Mills, Maryland, previously pleaded guilty to their involvement in the wire fraud conspiracy and were sentenced to 33 months in prison, and two years in prison, respectively. Judge Motz also ordered Towobola to pay restitution $159,398. Adeolu Adeola Solabu, age 25, of Baltimore, also pleaded guilty and is scheduled to be sentenced on April 14, 2017, at 11:00 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, IRS-CI and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew J. Maddox and Paul E. Budlow, who are prosecuting the case.
Austin Man Sentenced to Federal Prison for Defrauding the IRS and a Title Company in Order to Facilitate a Real Estate TransactionRead the Press Release
In Austin this morning, a federal judge sentenced 32-year-old Russell Eric Spillers to 14 months in prison for providing false tax information to a title company in order to facilitate a real estate transaction, announced United States Attorney Richard Durbin, Jr., and Special Agent in Charge Ruben Florez, Treasury Inspector General for Tax Administration (TIGTA), Mid-States Field Division.
In addition to the prison term, United States District Judge Sam Sparks ordered that Spillers pay a $7,200 fine as well as $21,026.70 restitution. Judge Sparks also ordered that Spillers be placed on supervised release for a period of three years after completing his prison term.
On January 23, 2017, Spillers pleaded guilty to one count of wire fraud. In 2015, Spillers, while acting as a real estate agent, attempted to sell a house that at the time, had four federal tax liens against it. By pleading guilty, Spillers admitted to creating and emailing to a title company a fraudulent IRS Letter 4025 (Conditional Commitment to Discharge Certain Property from Federal Tax Lien). That letter, dated December 18, 2015, claimed that the IRS had agreed to accept a $1,300 payment from the sale of a property to satisfy the tax liens and allow the sale of the property to go through. Based on that fraudulent letter, the property was sold and as a result, the defendant received $21,026.70.
“TIGTA’s mission includes protecting the integrity of tax administration and the ability of the IRS to collect revenue owed to the Federal Government,” said J. Russell George, Treasury Inspector General for Tax Administration. “Those who violate the Nation’s tax laws and adversely affect tax administration by falsifying IRS documents, as in this case, must be prosecuted to the full extent of the law,” he added.
TIGTA conducted this investigation. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.
Atlanta area Brothers Sentenced for Corporate Hijacking SchemeRead the Press Release
ATLANTA - Antonio Sandridge and Rodney Sandridge have been sentenced to more than two years in federal prison for mail fraud conspiracy. The defendants, who are brothers, operated a fraud ring where they hijacked corporate identities and used them to fraudulently order over $500,000 in electronics. Both defendants were previously convicted of similar conduct in 2006.
“These defendants manipulated public records and hijacked corporate identities to order expensive electronics for themselves,” said U. S. Attorney John Horn. “Worse, they preyed on small businesses, so the losses suffered by these victims were potentially devastating.”
"The Sandridge brothers made their living by victimizing small businesses,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. sentences imposed today should be a reminder that the Secret Service, in conjunction with our law enforcement partners and the United States Attorney’s Office, will continue to arrest and prosecute criminals who repeatedly take advantage of innocent victims and companies.”
“The Atlanta Police Department strives to protect our citizens and businesses every day. We are extremely proud of the investigative work that went into building a strong case against these career criminals and the outstanding cooperation with both the U.S. Secret Service and the U.S. Attorney’s office to get a conviction,” said Erika Shields, Chief of Atlanta Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: From 2012 until February 2014, the Sandridges engaged in a scheme where they stole the identities of dormant Georgia corporations by filing new registration information for existing companies on the Georgia Secretary of State’s website, unbeknownst to the actual owners of the corporations. The false registration would list new company officers and a new corporate address, which was a virtual office space under the conspirators’ control.
After stealing the corporate identity of Georgia companies, the Sandridge brothers and co-conspirators would use fake credit applications to order laptops and other electronics from victim vendors in the names of the hijacked companies. The computer equipment was purchased on credit with payment due in the weeks following delivery, and the delivery address was a virtual office space controlled by the conspirators. When victim vendors shipped computer equipment to the virtual office space, Rodney Sandridge picked up the fraudulently ordered electronics, and Antonio Sandridge immediately sold the electronics to third-party resellers.
In total, over $540,000 in computer equipment was ordered from 16 victim companies, and the victims received little more than a couple hundred dollars, if anything, for the orders despite repeated efforts to collect payment.
In 2006, the U.S. District Court for the Northern District in Georgia sentenced the Sandridges to prison on federal conspiracy charges based on their participation in a nearly identical scheme from 2001 to 2005.
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Antonio Sandridge, 49, of Tucker, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May to two years and three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $85,736.
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Rodney Sandridge, 51, of Duluth, Georgia, was also sentenced by Judge May to three years and six months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $389,123.
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Antonio and Rodney Sandridge were convicted on these charges on November 22, 2016 and January 20, 2017, respectively, after they pleaded guilty.
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This case was investigated by the U.S. Secret Service and the Atlanta Police Department. Assistant United States Attorneys Samir Kaushal and Nathan P. Kitchens prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Anchorage Husband and Wife Sentenced for Drug Trafficking and Wire Fraud ConvictionsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that on Thursday, March 30, 2017, Arnold Wesley Flowers, II, 42, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 75 months in prison, followed by five years of supervised release, for his convictions for possession of cocaine with intent to distribute, being a felon in possession of firearms, and 12 counts of wire fraud.
Today, March 31, 2017, Flowers' wife, Miranda May Flowers, 32, of Anchorage, was also sentenced by U.S. District Court Judge Sharon L. Gleason to serve 20 months in prison, followed by three years of supervised release, for her convictions on 12 counts of wire fraud. Judge Gleason also imposed a condition of 120 hours of community work service as a condition of Mrs. Flowers’ supervised release.
On Dec. 13, 2016, a jury in U.S. District Court in Anchorage found Mr. and Mrs. Flowers guilty on 12 counts of wire fraud. The evidence established that on the night of Jan. 17, 2016, the Flowers moved several items from their home into a storage unit located at Best Storage on Tudor Road in Anchorage. These items included several big screen television sets, jewelry, designer clothing, shoes, handbags, and sunglasses, as well as video games, computers, and other electronics. On January 19, the Flowers staged a burglary at their home on Larkspur Circle and claimed the above items had been stolen in the staged burglary of their home. The Flowers held a renter's insurance policy with State Farm Insurance. On January 25, the Flowers contacted State Farm Insurance and made a formal claim for reimbursement of the replacement cost of the items they falsely claimed had been stolen on January 19.
The Flowers valued the falsely stolen or damaged property at over $101,000. Flowers communicated this claim for loss to State Farm Insurance through multiple telephone calls and emails that originated in Alaska and were sent to claim investigators located at State Farm Insurance offices located in the Lower 48 states and Hawaii.
In a separate federal jury trial that concluded in Anchorage on Oct. 19, 2016, Mr. Flowers was found guilty of possession of cocaine with intent to distribute and for being a felon in possession of firearms. The evidence established that during a search of Flowers’ residence on March 29, 2016, Anchorage Police found 2 ounces of cocaine packaged in plastic sandwich baggies clogging a toilet in the upstairs bathroom and 4 ounces of wet and similarly packaged cocaine hidden under the lining of a trash can in the same bathroom. When Anchorage Police entered the home, Mr. Flowers was upstairs in the area near the upstairs bathroom. the master bedroom that Flowers shared with his wife and located adjacent to the bathroom where the police found cocaine, Anchorage Police discovered two safes that held a combined $28,000 in cash. Each safe also held a loaded firearm. One of the safes had the distinct odor and smell of cocaine. the top drawer of a dresser inside the bedroom, the Anchorage Police found three boxes of sandwich baggies that were similar to the baggies used to package the cocaine.
The jury also heard evidence that when Flowers was interviewed on March 29, he had $1,275 in cash in the front pocket of his pants. Mr. Flowers maintained that the cash in his pocket and his safes was from the sale of high-end watches. However, during the search of the residence the Anchorage Police did not find any watch inventory or documents that would support that Flowers was actively engaged in the sale of watches.
At Mr. Flowers’ sentencing, Judge Gleason found that the drug trafficking offense was particularly serious, given that Mr. Flowers was not selling cocaine to feed or fuel his own habit, but was selling to others to profit himself; his sole motivation was greed. She also found that it was troubling that someone would destroy the family home to perpetuate a fraudulent insurance claim, while also depriving their family members of the hidden items for months on end. Judge Gleason made specific findings that Mr. Flowers provided false statements to the Anchorage Police, to State Farm Insurance, and to the jury when he testified. She also noted that his watch sale business was a fraud, and that there was no evidence that he ever sold any watches.
At Mrs. Flowers’ sentencing, Judge Gleason noted it was particularly troubling that Mrs. Flowers had engaged in an abuse of law enforcement resources by calling the Anchorage Police Department to report a false burglary, thus instituting a meritless investigation. While responding to Mrs. Flowers’ false call, those resources were unavailable to investigate actual crimes. Judge Gleason also commented that the destruction of the family home by the Flowers and the staging of the burglary were particularly egregious, given that several young children lived in the home. Judge Gleason commented, "this is not something any child should have to go through."
Assistant U.S. Attorneys Kelly Cavanaugh and James Barkeley, and Special Assistant U.S. Attorney Erin Bennett prosecuted these cases for the United States.
Acting U.S. Attorney Schroder commends the Anchorage Police Department, the Federal Bureau of Investigation Safe Streets Task Force, the State of Alaska Division of Insurance, and the Drug Enforcement Administration, for the successful investigation and prosecution of this case.
Thursday 30 March 2017
West Springfield Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A West Springfield man was charged today in federal court in Springfield in connection with sexually exploiting a five-year-old girl.
Justin Germaine was indicted on five counts of sexual exploitation of children, eight counts of distribution of child pornography, five counts of receipt of child pornography and one count of possession of child pornography. Germaine has been in custody since he was arrested and charged in July 2016.
According to court documents, on five occasions between November 2015 and June 2016, Germaine used a five-year-old girl to engage in sexually explicit conduct for the purposes of creating child pornography. In at least one of the videos found on his cellphone, Germaine appears to be the individual sexually abusing the girl. Between March 2016 and July 2016, Germaine allegedly distributed and received electronic child pornography files. Furthermore, Germaine exchanged emails with another individual in which the two allegedly discussed having sex with children and trading child pornography. Attached to these emails were sexually provocative pictures of minor girls.
The charge of sexual exploitation of children provides for a sentence of no greater than 30 years in prison, a lifetime of supervised release and a fine of $250,000. The charges of receipt and distribution of child pornography each provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and West Springfield Police Chief Ronald Campurciani, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office is prosecuting the case.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Wellington Ringleader of Elaborate Fraud Schemes Sentenced to 11 Years in PrisonRead the Press Release
Kesner Joaseus, 47, of Wellington, Florida, was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to a total of 11 years in prison for orchestrating two elaborate fraud schemes.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Sean Scheller, Chief, Town of Lantana Police Department, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
On July 28, 2016, Joaseus pled guilty in two separate fraud cases that were consolidated for the sentencing hearing. In one case, Joaseus conspired to commit and did in fact commit mail fraud by engaging in a scheme to defraud for the purpose of obtaining money by means of false and fraudulent pretenses, in violation of Title 18, United States Code, Sections 1341 and 1349 (Case No. 16-80011-CR-Rosenberg). Joaseus was sentenced to 108 months in prison in this case.
According to court documents related to the first case, a legitimate real estate investment trust based in Georgia, RHA 2, LLC, owns dozens of properties in Palm Beach and Broward Counties that it leases out as residential single family homes. This company operates as HavenBrook Homes. From November 2014 through December 2016, defendant Joaseus used the similar company name “RHA Two, LLC,” to illegally take possession of and rent the homes lawfully owned by HavenBrook Homes by assuming the legitimate company’s identity, posting rental signs on the houses, changing the locks and then meeting with unsuspecting prospective tenants.
In addition, Joaseus and his co-defendants entered into bogus leases with a counterfeit “HavenBrook Homes” logo, and collected thousands of dollars in money orders or cash, purportedly for security deposit, first and last month’s rent for the houses. Joaseus collected purported lease payments of over $380,000 from dozens of unsuspecting tenants of houses owned by HavenBrook Homes which the defendants had no right to possess.
In a separate case, Joaseus committed aggravated identity theft and access device fraud, in violation of Title 18, United States Code, Sections 1028A and 1029(a)(2) (Case No. 16-80010-CR-Rosenberg). that case, Joaseus used the personal identifiers, including the date of birth and social security number, of numerous victims to obtain credit cards and then used the credit cards to purchase merchandise and withdraw cash at various locations in Palm Beach County and elsewhere. The merchandise included two Mercedes-Benz automobiles, with total losses of over $260,000. Joaseus was sentenced to 108 months in prison for access device fraud, in addition to a two year consecutive prison sentence on the aggravated identity theft charge. The 108-month sentences in the two cases will be served concurrently, and the two-year sentence for aggravated identity theft will be consecutive, for a total sentence of 132 months (11 years) in prison.
In a related case, defendant Frantz Felisma pled guilty to aggravated identity theft and access device fraud for providing Joaseus with the personally identifiable information that was used to commit the identity theft fraud scheme (Case No. 17-80008-CR-Middlebrooks). Felisma served as a Palm Beach County Sheriff’s Deputy and obtained the personal information from his police department issued computer.
Mr. Greenberg commended the investigative efforts of the ICE-HSI, Lantana Police Department and USPIS. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Rinku Tribuiani in the West Palm Beach U. S. Attorney’s Office.
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.
Wasilla Man Sentenced to 21 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a man from Wasilla was sentenced in federal court in Anchorage for being a felon in possession of a firearm.
Brandon Paul Schatz, 41, from Wasilla, Alaska, was sentenced by U.S. District Judge Sharon L. Gleason to 21 months in prison to be followed by three years of supervised release.
On May 23, 2016, Schatz brought a loaded Glock Model 42 semi-automatic pistol to his work at a gravel pit in Wasilla. At the time, Schatz was on felony probation with the State of Alaska for a conviction of Assault in the Third Degree.
Before imposing a sentence, Judge Gleason commented that due to his history, Mr. Schatz cannot be in possession of any firearms, and that her sentence focused on protection of the public given Mr. Schatz’s prior convictions for assault, weapons offenses, and driving under the influence.
Acting U.S. Attorney Schroder commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Alaska State Troopers for the investigation leading to the successful prosecution of this case.
U.S. Attorney’s Office and ATF Combat Gun Trafficking in Atlanta, including a spike in Thefts from Licensed Firearms DealersRead the Press Release
ATLANTA – The U.S. Attorney’s Office and the ATF continue to combat gun trafficking in Atlanta, including eight federal cases involving 32 defendants prosecuted in the past four months. In particular, ATF reported a dramatic increase in thefts of firearms from federally licensed firearms dealers in Georgia, facilitating the trafficking of these illegally obtained guns to criminals within and outside the state.
For example:
- In 2013, for example, the ATF received reports of 25 burglaries of licensed gun dealers in Georgia resulting in thefts of 338 guns.
- In 2014, the ATF received reports of 34 burglaries of licensed gun dealers in Georgia with a loss of 307 guns.
- In 2015, the ATF received reports of 33 burglaries of licensed gun dealers in Georgia resulting in thefts of 429 guns.
- In 2016, ATF investigated burglaries of 50 federally licensed firearms dealers in Georgia, with a staggering theft of more than 1,000 firearms.
“These stolen guns are trafficked all over the country as well as internationally, and are falling into the hands of convicted felons who use them to terrorize local communities,” said U.S. Attorney John Horn. “Frequently, traffickers who are prohibited from purchasing firearms enlist people with no criminal history – called “straw purchasers” – to buy the guns for them. In this way, relatives, spouses, friends, and associates of gun traffickers may find themselves ensnared in criminal conduct and facing lengthy prison sentences. The illegal trafficking of firearms fuels an entire cycle of criminal conduct that affects our entire community.”
“The primary goal of ATF’s firearms trafficking strategy is to prevent violent crime by disrupting and dismantling the firearms trafficking organizations and networks responsible for supplying violent offenders with crime guns,” said Special Agent in Charge Wayne Dixie. “Our top priority in the Atlanta Field Division of ATF is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice.”
Recognizing the unique threat posed to public safety by this spike in illegal firearms activity, the U.S. Attorney’s Office, in collaboration with the ATF and local law enforcement partners, has identified and prosecuted those individuals responsible for this spike in firearms offenses. The district’s recent prosecutions include the following cases and involve the following facts based on the charges and other information presented in court:
- United States v. Terry Brown, et. al.: on March 22, 2017, Brown, who led a criminal ring comprising seven defendants that stole 131 firearms from seven gun stores, was sentenced to six years, six months of imprisonment by U.S. District Judge Harold L. Murphy; the defendants’ scheme involved the trafficking of firearms stolen from federally licensed firearms dealers located across the state of Georgia, including dealers in the cities of Dalton, Tallapoosa, Warner Robbins, Athens, Thomson, Monroe, and LaGrange, Georgia; Co-defendants Jameel Drinkard, Eric Moore, and Jacquez Miller previously received sentences of imprisonment of eight years, four years, and one year, three months respectively, while the final defendants’ cases remain pending;
- United States v. Jaleel Wulu and Javaree Williams: on March 22, 2017, the defendants pleaded guilty to making false statements to purchase multiple firearms from several federally licensed firearms dealers and conspiring to do so; the men illegally purchased guns from licensed firearms dealers located in the cities of Atlanta, Sandy Springs, and Mableton, Georgia. Defendant Williams admitted to purchasing several firearms for Defendant Wulu – an aspiring Atlanta rapper known as “Trill Castro;” multiple guns purchased by the men were recovered at crime scenes in the state of Maryland;
- United States v. Jordan Brown, et. al.: on March 7, 2017, four defendants were charged with stealing 105 guns from a licensed gun dealer in Cumming, Georgia, by ramming a pickup truck through the side of the store at approximately 5:15 a.m. on December 31, 2016; an employee inside the store at the time fired a shot at the ceiling of the store in an attempt to thwart the burglary; local law enforcement officers arrested the defendants following a car chase;
- United States v. Alfred, et. al.: on March 1, 2017, a federal grand jury charged three defendants in a superseding indictment with trafficking 36 firearms from Georgia to the country of Trinidad and Tobago by using straw purchasers to illegally buy the guns and then secretly shipping the firearms aboard an international air carrier;
- United States v. Robbins, et. al.: on February 27, 2017, Robbins, one of three defendants charged with making false statements to federally licensed firearms dealers to purchase guns, pleaded guilty to this offense; the defendants’ illegal gun purchases resulted in the trafficking of 10 firearms to an individual unlawfully present in the United States; the co-defendants’ charges remain pending;
- United States v. Fisher-Bland, et. al.: on February 21, 2017, six defendants were charged with trafficking 33 firearms from Georgia to Rochester, New York, utilizing straw purchasers to make the illegal gun purchases; two of the defendants travelled from New York to Georgia to illegally purchase and transfer the firearms interstate as part of the scheme;
- United States v. Rawls: on December 20, 2016, Rawls, who illegally purchased firearms that law enforcement officers later recovered at multiple crime scenes in the states of Massachusetts and Rhode Island, pleaded guilty to making false statements to a licensed gun dealer and illegally transferring firearms to an out-of-state resident; this prosecution resulted from a collaboration by ATF field offices in Atlanta, Massachusetts, and Rhode Island; and
- United States v. Coffey, et. al.: on December 16, 2016, six defendants were charged with stealing and trafficking 129 firearms across three states – Georgia, North Carolina, and South Carolina; the defendants are alleged to have used a torch to burn a hole through a loading dock bay door of one of the guns stores to gain entry.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Industry and Security, Office of Export Enforcement, Georgia State Patrol, Atlanta Police Department, Henry County Police Department, Alpharetta Police Department, Cumming Police Department, City of Milton, Georgia, Police Department, Forsyth County Sheriff’s Office, members of the ATF-RAGE unit in and near August, Georgia, the North Carolina Police Departments of Charlotte-Mecklenburg and Rocky Mount, Rock Hill, South Carolina, Police Department, Rochester, New York, Police Department, Holly Springs Police Department, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robins Police Department, LaGrange Police Department, and the Pearl, Mississippi Police Department
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.
U.S. Attorney General Jeff Sessions Meets with Attorneys General of El Salvador, Guatemala and HondurasRead the Press Release
A Department of Justice official released the following background statement at the conclusion of Attorney General Jeff Sessions’ meeting with the Attorneys General from El Salvador, Guatemala and Honduras:
“On Thursday, March 30, 2017, Attorney General Sessions met with the Attorneys General of El Salvador, Guatemala and Honduras. The goal of the dialogue was to strengthen law enforcement cooperation against transnational criminal threats common to all our countries, such as cartels, gangs and financial crimes. Attorney General Sessions and his counterparts agreed that this meeting was an important first step and that these vital discussions would continue as a means to increasing citizen security both in Central America and the United States.”
DELEGATION
Attorney General of El Salvador, Douglas Arquimides Melendez Ruiz
Attorney General of Guatemala, Thelma Esperanza Aldana Hernandez
Attorney General of Honduras, Oscar Fernando Chinchilla BanegasAdditional information on the Justice Department's Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) may be found on OPDAT's website.
Two indicted on firearms chargesRead the Press Release
Two men were indicted on firearms charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Anthony V. Mascarella, 29, of Youngstown, was indicted on one count of being a felon in possession of a firearm and ammunition.
Terry Lee Leitch, 33, of Rootstown, was indicted on one count of possession of an unregistered firearm.
The indictment alleges that Mascarella possessed a Smith & Wesson, model SD40VE, .40 caliber pistol, and ammunition on Nov. 15, 2016, after having been convicted of domestic violence in the Mahoning County Court of Common Pleas in 2007.
Leitch on Sept. 12, 2016, possessed a New England Firearms, model Pardner SB-1, 20 gauge shotgun, modified with a barrel length of approximately 13 inches and an overall length of approximately 19.25 inches, which firearm had not been registered to him in the National Firearms Registration and Transfer Record, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer. The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Youngstown Police Department (Mascarella) and the Portage County Sheriff’s Office (Leitch).
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two previously deported aliens were indicted separately on March 29, 2017, by a federal grand jury on illegal re-entry charges.
According to United States Attorney Bruce D. Brandler, Cesar Mauricio Rodriguez-Flores, age 32, of Mexico, was previously deported from the United States to Mexico on five occasions from March 2011 through September 2016. He is alleged to have illegally re-entered the United States sometime after September 2016, and was found in the United States in York County, Pennsylvania, after eluding examination or inspection by immigration officers.
Francisco Ramirez-Zamudio, age 35, of Mexico was previously deported from the United States to Mexico on four occasions from March 2011 through April 2013. He is alleged to have illegally re-entered the United States sometime after April 2013, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
The cases were investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell prosecuted 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.
The maximum penalty under federal law for each defendant is two 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.
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Two Men Indicted in Maine for Illegally Trafficking American EelsRead the Press Release
William Sheldon, 71, of Woolwich, Maine, and Timothy Lewis, 46, of Phippsburg, Maine, were each indicted in Portland, Maine, with crimes related to illegally trafficking juvenile American eels, also known as “elvers” or “glass eels.” A seven-count indictment was returned on March 1, charging Sheldon with conspiracy to smuggle elvers and violate the Lacey Act. A two-count indictment was returned on March 29, charging Lewis with conspiracy to traffic elvers and violate the Lacey Act. Sheldon was arraigned today in U.S. District Court in Portland. An arraignment for Lewis will be scheduled in the future.
The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and Acting Director Jim Kurth of the USFWS.
These indictments were the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in these two indictments, as well as guilty pleas for eleven individuals in Maine, Virginia and South Carolina. These eleven defendants combined have admitted to illegally trafficking more than $2.75 million worth of elvers.
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern U.S., where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the U.S. can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the U.S. in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
The offense in this case is a felony under the Lacey Act, each carrying a maximum penalty of five years’ incarceration, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller of the U.S. Department of Justice’s Environment and Natural Resources Division.
Two Members of Trenton Drug Trafficking Organization Plead GuiltyRead the Press Release
TRENTON, N.J. – Two Trenton, New Jersey, men admitted their roles in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced today.
Keith Hunter, a/k/a “Meech,” 24, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. On March 29, 2017, Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod,” 23, pleaded guilty before Judge Wolfson to a separate information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of their guilty pleas, Rogers and Hunter both admitted possessing at least one firearm during the conspiracy.
In December 2016, Hunter, Rogers, and eight other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its alleged leader, Ishmael Abdullah. Hunter and Rogers are the first of the 10 defendants to plead guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Hunter, Rogers and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Rogers. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Rogers, Hunter, and other members of the Abdullah DTO maintained joint access to multiple firearms.
The conspiracy charge to which Hunter and Rogers pleaded guilty carries a mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Rogers and Hunter will be sentenced on July 10, 2017, and July 7, 2017 respectively.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Scott C. Curley; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Rogers: David R. Oakley Esq., Princeton
Hunter: Robert J. Haney Esq., Princeton
Three Plead Guilty in Multi-Million Federal Prison Sentencing Reduction Fraud SchemeRead the Press Release
This month, three defendants pled guilty in the Southern District of Florida in connection with their participation in a $4.4 million dollar federal prison sentencing scheme. The fraudulent scheme targeted federal inmates and their families in Miami-Dade County and elsewhere by promising them assistance in obtaining a Rule 35 sentencing reduction, in exchange for money. Rule 35 of the Federal Rules of Criminal Procedure allows the court, upon the government’s motion, to reduce a defendant’s sentence if the defendant is found to have provided substantial assistance in investigating or prosecuting another person. Neither the government nor the court system charges inmates or their relatives a fee for requesting a sentencing reduction when an inmate provides substantial assistance.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Robert A. Bourbon, Special Agent in Charge, Department of Justice, Office of the Inspector General (DOJ-OIG), and Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation (FBI), Houston Field Office, made the announcement.
“Sentencing reduction fraud schemes that prey on the desperation, vulnerability and trust of federal inmates and their families exploit both the victims and the justice system,” stated Acting U.S. Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office in South Florida and our federal partners across the nation will continue to target such schemes and prosecute the offenders.”
“Conning relatives of federal inmates into thinking that they must pay money for their loved ones to receive a sentence reduction that is actually based solely on how much an inmate assists the government is an outrageous way to defraud innocent victims,” said Special Agent in Charge Robert Bourbon. “Even more importantly, it runs the risk of soiling the reputation of our federal criminal justice system, which prides itself on delivering just results, regardless of an individual’s wealth or access to those in power.”
“If you are a victim, it is critical that you reach out to us,” said FBI Special Agent in Charge Perrye K. Turner. “This case highlights that justice is blind and underscores the FBI’s impartiality when investigating cases.”
Colitha Patrice Bush, 36, and Alvin James Warrick, 40, both of Beaumont, Texas, as well as Ronald Bennett Shepherd, 32, of Houston, Texas, each pled guilty to a single count of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, in connection with their participation in the multi-year fraud scheme. In addition to the Southern District of Florida matter (Case No. 16-CR-20698-JAL)), Warrick and Bush also pled guilty to one count of conspiracy to commit wire fraud in a related case originally brought in the Eastern District of Texas, and subsequently transferred to Florida (Case No. 17-CR-20194-JAL).
Bush’s sentencing for both cases is scheduled for June 7, 2017, at 3:00 p.m. before U.S. District Judge Joan A. Lenard. Warrick’s sentencing is scheduled for May 31, 2017, at 3:00 p.m., and Shepherd’s sentencing is scheduled for May 24, 2017, at 3:00 p.m., also before U.S. District Judge Joan A. Lenard. The defendants each face a statutory maximum penalty of 20 years in prison as to each count.
According to court documents, from 2009 through September 7, 2016, Warrick, Bush, Shepherd, and others held themselves out as owners and operators of Private Services, a company that reportedly worked with a network of informants and law enforcement personnel to identify and provide information and third party cooperation that could be credited to federal inmates in Rule 35 proceedings. Using aliases such as “Peter Candlewood,” “Diane Lane,” and “Diane Rice,” the defendants targeted federal inmates and their families by promising that they could provide substantial assistance services, which would be used to help secure the early release of the inmates. In return, the defendants required relatives of the federal inmates to make periodic payments via cash, check, wire, and electronic fund transfer, in order for the third party cooperation process to supposedly be conducted. Overall, more than $4.4 million was paid to the defendants by at least twenty-two victims.
As part of the scheme, Warrick and Bush also provided fake invoices and fraudulent documents allegedly showing agreements between various U.S. Attorney’s Offices, including the Eastern District of New York and the Southern District of New York, and a company affiliated with Private Services. In fact, the agreements were fake, the prosecutors’ signatures were forged, and no substantial assistance was provided on behalf of these inmates. Instead, Warrick, Bush and Shepherd simply received payments from relatives of federal inmates, and used the fraudulently obtained funds for their personal use and benefit, including the purchase of luxury automobiles, vacations, and gambling activities.
Mr. Greenberg commended the investigative efforts of the DOJ-OIG, the FBI, the Houston Police Department, and the U.S. Attorney’s Offices in the Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of Texas, and Eastern District of Virginia, who provided significant and valuable support to this joint investigation. The Southern District of Florida case is being prosecuted by Assistant United States Attorney Anne P. McNamara. The Eastern District of Texas case is being prosecuted by Assistant United States Attorney Robert L. Rawls.
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.
Three Indicted on Drug and Firearms ChargesRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced a variety of drug and firearms charges in a 12 count Indictment. Named in the indictment are: Keith Miller, of Albion, Indiana; Brock Shellman, of Albion, Indiana and; Derek Jordan, of Wolcottville, Indiana.
The indictment alleges that Miller and Shellman were involved in a conspiracy to possess a large amount of methamphetamine intended for distribution, as well as the attempt to possess a large amount of methamphetamine with the intent to distribute. The indictment also alleges several instances of methamphetamine trafficking by Miller, firearms offenses by Keith Miller and Derek Jordan, and that Keith Miller was using his residence to engage in narcotics trafficking.
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This indictment results from a long- term multi-agency investigation conducted by the Drug Enforcement Administration Task Force in Fort Wayne, which includes personnel from the Drug Enforcement Administration, the Noble County Sheriff’s Department, the Steuben County Sheriff’s Department, and the Fort Wayne Police Department. Also participating in this investigation was the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Staten Island Man Pleads Guilty in Manhattan Federal Court to Defrauding Investors of over $2 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that EDWARD J. SERVIDER, a/k/a “Nick Halden,” pled guilty to defrauding approximately 100 investors of over $2.4 million through his firm EJS Capital Management, LLC. SERVIDER pled guilty to one count of conspiracy to commit commodities fraud before U.S. District Judge Jed S. Rakoff.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Edward Servider lured investors into his scheme by falsely telling them he had achieved high annual rates of return through his Forex trading. In fact, he never made a single trade or achieved any returns for any of his nearly 100 investor-clients. Instead, he used his investors’ money to pay for personal luxuries like hotels, cars, and an engagement ring. I want to thank the FBI for their great work in putting a stop to this fraud.”
According to allegations contained in the Complaint and the Indictment filed against SERVIDER and statements made in related court filings and proceedings:
In March 2013, SERVIDER set up a retail foreign currency exchange (“Forex”) trading firm, called EJS Capital Management, LLC (“EJS”), in Brooklyn. SERVIDER and his business partner (“CC-1”) ran EJS from March 2013 through July 2014. EJS employed salespeople (“cold callers”) who made unsolicited telephone calls to prospective investors. SERVIDER and the EJS cold callers told prospective investors that their funds would be used to trade in Forex transactions, and provided them with a “performance report” that falsely claimed that between 2010 and 2013, EJS had achieved gross annual returns for its investors of approximately 18 percent, 22 percent, 49 percent, and 77 percent (the “EJS Performance Report”). In truth, EJS had never conducted any trading or achieved any returns for its investors. To sustain the fraud, SERVIDER directed EJS employees to send account statements to the EJS investors, falsely showing positive returns on their investments.
In fact, instead of using the investor funds to execute Forex trading, the majority of the moneys was misappropriated and used to pay SERVIDER and CC-1’s personal expenses and purported business expenses for EJS. For example, SERVIDER used investor funds to purchase an engagement ring, to lease a BMW vehicle for his girlfriend, and to pay for hotel rooms, rental cars, and parking tickets.
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SERVIDER, 29, pled guilty to one count of conspiracy to commit commodities fraud, which carries a maximum term of five years in prison and a maximum fine of the greatest of $250,000, twice the gross gain from the offense, or twice the gross loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
SERVIDER’s sentencing is scheduled for July 27, 2017, at 4:00 p.m.
Mr. Kim praised the work of the FBI, and thanked the U.S. Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Soldier of Violent Bloods Street Gang Admits Racketeering ConspiracyRead the Press Release
Plea Calls for 22-Year Prison Sentence
NEWARK, N.J. – A soldier of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved attempted murder and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Laquan Reed, 27, a/k/a “Drama,” of Montclair, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups, called “sets,” that operate in specific geographic locations. Sex Money Murder is the set that operates primarily in Essex County, New Jersey. Reed, a ranking member in Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He admitted that he conspired with set members to murder a rival gang member on Aug. 3, 2011, identified in the indictment as “Victim 6.” Reed admitted he and others engaged in a shootout in an effort to kill the rival gang member in and around Newark. Reed also admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
The plea agreement requires Reed to be sentenced to 22 years in prison and five years of supervised release. Sentencing is scheduled for July 10, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Mary Toscano, Chief, Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division, and Dara Govan of the Criminal Division in Newark.
Defense counsel: James Patton Esq., Livingston, New Jersey
Shreveport woman sentenced to 46 months in prison for cocaine distribution conspiracyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport woman was sentenced Monday to 46 months in prison for her role in a cocaine and methamphetamine distribution operation in Caddo, Bossier, DeSoto and Red River parishes.
Linda G. Brown, 61, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to possess with intent to distribute cocaine. She was also sentenced to three years of supervised release. According to the guilty plea, the defendant along with co-defendants Shawn F. Swift, 36; Ricky R. Swift, 64; and Jarvis Randle, 29, all of Shreveport, conspired to distribute cocaine, methamphetamine and cocaine base from January of 2013 to October of 2014 in Caddo, Bossier, DeSoto and Red River parishes. Agents conducted controlled buys and monitored communications between the defendants as they planned and sold illegal drugs. Shawn Swift operated the drug sales with the other defendants out of the family home in Shreveport, and they distributed them to the surrounding areas.
They also forfeited 39 weapons seized during the investigation of this case and more than $360,000. Of that total, $89,700 was seized during a traffic stop on September 21, 2014; $237,753 was seized from the home of Ricky Swift and Linda Brown on October 21, 2014; and $40,457 was seized from the home of Shawn Swift on October 21, 2014.
Randle, pleaded guilty to the conspiracy charge on April 27, 2015; Ricky Swift pleaded guilty on June 1, 2015 to one count of laundering monetary instruments; and Shawn Swift, pleaded guilty on June 2, 2015 to the conspiracy charge and one count of possession of firearms in furtherance of drug trafficking.
Randle was sentenced on September 8, 2015 to 57 months in prison and three years of supervised release; Shawn Swift was sentenced on March 17, 2016 to 180 months and 10 years of supervised release; Rickey Swift was sentenced on April 6, 2016 to 13 months in prison and two years of supervised release.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Not So Swift.” The FBI, ATF, DEA, Louisiana State Police, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office and Red River Parish Sheriff’s Office conducted the investigation. The OCDETF program 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.
Assistant U.S. Attorneys James G. Cowles Jr. and Allison D. Bushnell prosecuted the case.
Serial Armed Robber Sentenced to 184 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas, Texas, man, Dequindrick Alexander, 22, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 184 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexander pleaded guilty in February 2016 to two counts of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of a crime of violence. He has been in custody since his arrest in September 2014.
According to documents filed in the case, on June 29, 2014, Alexander entered Foot Locker, located at 655 West Illinois Avenue, Dallas, Texas, removed a .380 caliber Thunder Chief pistol
from a shoe box, pointed the gun at the employee and demanded money. Alexander took $209 in cash and two shoes from a display case as he exited the store.
On June 30, 2014, Alexander entered 7-Eleven, located at 835 Ninth Street, Dallas, Texas, pointed a gun at a store employee, as well as customers of 7-Eleven, and demanded money. Alexander took $146.72 in cash as well as cigarettes. Prior to the robbery of 7-Eleven located on Ninth Street, Alexander entered 7-Eleven, located at 2223 South Beckley Avenue, Dallas, Texas,
pointed a gun at a store employee and demanded money. Alexander took an unspecified amount of cash from the store and $220 in cash and property from a 7-Eleven customer, without her consent.
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Kate Rumsey prosecuted.# # #
Sentencings for March 23 - March 28, 2017Read the Press Release
Marvin Wayne Magnan, 63, of Ethete, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 28, 2017, on two counts of aggravated sexual abuse; six counts of abusive sexual contact; two counts of sexual abuse of a minor; one count of sexual abuse; and one count of simple assault. Magnan was arrested in Ethete, Wyoming. He received 108 years of imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a special assessment of $1,125.00. This case was investigated by the Federal Bureau of Investigation.
Daniel Lee Evans, 35, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, for possession with intent to distribute methamphetamine. Evans was arrested in Casper, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Lance Sterling Addison, 36, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, for failure to register as a sex offender. Addison was arrested in Riverton, Wyoming. He received 24 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Mitchell Wayne Mosqueda, 24, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, for assault with a dangerous weapon with intent to do bodily harm. Mosqueda was arrested in Riverton, Wyoming. He received 15 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $5,298.12 in restitution. This case was investigated by the Federal Bureau of Investigation.
Gerald Paul Headley, Jr., a/k/a Percy Headley, 43, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, on two counts of abusive sexual contact. Headley was arrested in Lander, Wyoming. He received 180 months of imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a $200.00 special assessment and $1,194.80 in restitution. This case was investigated by the Federal Bureau of Investigation.
Jonathan Marino Guerrero-Santana, 25, of Snellville, Georgia, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 27, 2017, for use of unauthorized access devices to obtain $1,000 or more and aiding and abetting. Guerrero-Santana was arrested in Laramie, Wyoming. He received four years of probation and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Laramie Police Department, the Federal Bureau of Investigation and the U.S. Secret Service.
Donald Mullen, 28, of Miles City, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 24, 2017, for possession of child pornography. Mullen was arrested in Gillette, Wyoming. He received 120 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Joel Rodriguez, 29, of Lafayette, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 24, 2017, for possession with intent to distribute methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Rodriguez was arrested in Casper, Wyoming. He received 144 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment and $280.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Kyle Steven Hebert, 46, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl of March 23, 2017, for possession of child pornography. Hebert was arrested in Casper, Wyoming. He received a 120 months of imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $100.00 special assessment and $2,500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Schenectady Woman Sentenced to 37 Months for Lottery ScamRead the Press Release
ALBANY, NEW YORK – Kimberly Powell, age 38, of Schenectady, New York, was sentenced today to serve 37 months in prison for her participation in a Jamaica-based lottery scam that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
United States District Judge Mae A. D’Agostino also sentenced Powell to a 3-year term of supervised release, to begin once she completes her prison term.
As part of her August 3, 2016 guilty plea to mail fraud charges, Powell admitted to working with her husband Jeragh Powell, and others, to mail false lottery prize notifications to mostly elderly people located throughout the United States. The fraudulent prize notification letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes,” and “shipping and handling,” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to people in the United States.
Kimberly Powell and her husband Jeragh Powell, age 26 and a citizen of Jamaica, received more than $65,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Jeragh Powell was prosecuted and also pled guilty to mail fraud. On January 31, 2017, Judge D’Agostino sentenced him to 41 months in prison.
This case was investigated by the USPIS, Homeland Security Investigations (HSI), and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Santa Rosa Man Pleads Guilty to Role in North Bay Drug Distribution and Money Laundering ConspiracyRead the Press Release
SAN FRANCISCO – Eutimio Reyna-Ceron (a/k/a “Tony,” a/k/a “Gordo,” a/k/a “Little Tony”) pleaded guilty in federal court in San Francisco yesterday to charges of conspiracy to distribute heroin and methamphetamine, distribution of heroin, and money laundering, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. Reyna-Ceron’s plea was accepted by the Honorable Vince Chhabria, U.S. District Judge, in San Francisco and represents the twelfth guilty plea accepted by the court in this 20-defendant drug conspiracy case.
In pleading guilty, Reyna-Ceron, 29, of Santa Rosa, Calif., admitted that he and others operated a drug distribution ring in Santa Rosa, and that they distributed an average of a half-kilogram of heroin per week over a period of at least seven months. Reyna-Ceron admitted that, at any given time, he had three couriers working for him delivering drugs, and that he and his couriers sold drugs in quantities ranging from a gram to multiple ounces at a time. The defendant also admitted to laundering the proceeds of those transactions, which amounted to between $2,500 and $3,000 per day.
On July 19, 2017, Reyna-Ceron was charged in a 33-count Superseding Indictment along with 19 other defendants. For his part in the conspiracy, Reyna-Ceron was charged with one count of conspiracy to distribute and possess with intent to distribute heroin and methamphetamine, in violation of 21 U.S.C. § 846; seven counts of distribution and possession with intent to distribute heroin, in violation of 21 U.S.C. § 841; one count of distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841; one count of conspiracy to launder drug proceeds, in violation of 18 U.S.C. § 1956(h); and ten counts of international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(B). Pursuant to yesterday’s plea agreement, Reyna-Ceron pleaded guilty to one count each of conspiracy to distribute heroin and methamphetamine, distribution of heroin, and money laundering.
Judge Chhabria has scheduled Reyna-Ceron’s sentencing for June 27, 2017, at 10:30 a.m., in San Francisco. As part of his plea, Reyna-Ceron agreed to a forfeiture money judgment of $1,080,000, which he agreed was an approximation of the amount of proceeds his distribution network received during the period of the conspiracy. The statutory minimum prison term for the violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B), as charged in count one of the superseding indictment, is 10 years’ imprisonment; the statutory maximum for the charge is life in prison. The maximum statutory penalties for the distribution and money laundering to which Reyna-Ceron has pleaded guilty is 20 years in prison. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Eleven of Reyna-Ceron’s co-defendants have pleaded guilty to certain crimes related to the drug distribution and money laundering conspiracy. Reyna-Ceron’s brother, Marcelino Reyna-Ceron, pleaded guilty to conspiracy to distribute drugs and conspiracy to launder proceeds charges. Reyna-Ceron’s brother-in-law, Raymundo Doval Duran, pleaded guilty to illegal use of a communications facility in connection with the drug operation. In addition, Reyna-Ceron’s niece, Elizabeth Reyna-Rodriguez, and two nephews, Marcelino Reyna-Rodriguez and Eutimio Reyna-Rodriguez, pleaded guilty to money laundering charges, and his niece’s husband, Ramon Medina, pleaded guilty to drug charges. None of these co-defendants has been sentenced. Sentencing hearings for these defendants will take place in August and September of 2017.
This case was the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. In this case, the United States Attorney’s Office, the Sonoma County District Attorney’s Office, the Drug Enforcement Administration, the Santa Rosa Police Department, and the Internal Revenue Service, worked together, with assistance from other federal and state agencies, including the Petaluma Police Department, to investigate and prosecute the offenders.
San Francisco-Based Drug Trafficker Sentenced to over 13 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Herman Keese, 57, of San Francisco, was sentenced on Thursday to 13 years and eight months in prison by U.S. District Judge Troy L. Nunley, United States Attorney Phillip A. Talbert announced today. Keese pleaded guilty to drug trafficking and money laundering charges on August 25, 2016.
According to court documents, between April 2007 and March 1, 2012, Keese distributed methamphetamine and PCP from San Francisco to Sacramento and to the East Coast. Keese also engaged in a conspiracy to launder the proceeds of the drug trafficking enterprise using a 97-cent store he owned in San Francisco.
“Today’s sentencing of Herman Keese should send a clear message to would-be criminals—you will be caught and prosecuted to the full extent of the law,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Together with our partners at the U.S. Attorney’s Office, DEA, and ATF, we will hold those engaged in similar conduct fully accountable.”
According to the plea agreement, one of the methods Keese used to launder drug proceeds involved having his associates deposit money in various banks across the East Coast, which would later be withdrawn at various banks in California, some in the Eastern District of California (EDCA). On numerous occasions, Keese spoke with the undercover agents regarding a means to move his drug proceeds from the East Coast to California. He indicated that he needed a method by which he could move $150,000 per week from Philadelphia to California.
On May 11, 2011, Keese directed his associates to deposit $20,000 into a Philadelphia bank. The $20,000 was then withdrawn from a bank in Sacramento and transported to San Francisco. Keese also received a bulk cash shipment of $42,000 concealed in a stereo tuner.
Further analysis of Keese’s financial records revealed that between 2007 and October 2011, between $2 million and $3 million was deposited in various bank accounts while the reported income for the 97-cent store was approximately $355,742 for the same time period.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Drug Enforcement Administration, the California Highway Patrol, the Sacramento Police Department, and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Heiko P. Coppola and Kevin Khasigian prosecuted the case.
The investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Roswell Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Charles Nunez, 47, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction. Nunez also was ordered to forfeit $70,000 in drug proceeds and five firearms to the United States.
Nunez was arrested on March 12, 2016, on a criminal complaint charging him with possessing methamphetamine with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm in Chaves County, N.M. According to the complaint, on March 12, 2016, the Chaves County Metro Narcotics Task Force executed search warrants on Nunez, his residence and his vehicle, and seized approximately five pounds of methamphetamine, firearms, a large amount of cash, drug paraphernalia, and a police radio scanner.
On Oct. 17, 2016, Nunez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Nunez admitted that on March 12, 2016, agents seized five pounds of methamphetamine and several firearms from his residence.
This case was investigated by the Roswell office of the FBI and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Readout of Today's Meeting Between Attorney General Sessions and the Jewish Community Centers and JCC Association of North AmericaRead the Press Release
The Attorney General, today, had a positive and productive conversation with the Jewish Community Centers and JCC Association of North America. The Department of Justice will not tolerate hate crimes against Jewish communities or the targeting of any community in this country on the basis of their religious beliefs. JCCs continue to have strong partnerships with local and federal law enforcement and the Attorney General commends them for their responsiveness, efficiency, calm and competence in the face of those who would threaten these institutions and the millions of Americans who walk through their doors.
Queens Resident Pleads Guilty to Federal Ecstacy Trafficking ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PHILLIP STEWART, 46, a citizen of Jamaica residing in Queens, N.Y., pleaded guilty yesterday in New Haven federal court to one count of conspiracy to distribute, and to possess with intent to distribute, MDA and MDMA.
MDA (Methylenedioxyamphetamine) is an analogue of MDMA (Methylenedioxymethamphetamine), and they are both commonly known as “ecstasy”.
According to court documents and statements made in court, STEWART conspired with Collin Fletcher and others to sell ecstasy to customers in Connecticut, New York and elsewhere. On October 27, 2016, and again on November 1, 2016, investigators made two controlled purchases of ecstasy from Fletcher.
STEWART and Fletcher were arrested on November 18, 2016, after they attempted to sell approximately 10,000 capsules of ecstasy to an undercover officer. The capsules had a combined weight of approximately 923 grams of MDA.
STEWART is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 30, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.
Fletcher, a citizen of Jamaica last residing in Bridgeport, pleaded guilty to the same charge on February 14, 2017, and awaits sentencing. He has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi Perry.
Owner of One of the Largest Commercial Fishing Businesses in U.S. Pleads to Falsifying Records & Smuggling Proceeds AbroadRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the United States pleaded guilty today in U.S. District Court in Boston to operating a long-running scheme through which he submitted falsified records to the federal government to evade federal fishing quotas. He then smuggled a portion of the proceeds to Portugal.
Carlos Rafael, 65, of Dartmouth, pleaded guilty today to one count of conspiring to commit offenses against the United States, 23 counts of false labeling and fish identification, two counts of falsifying federal records, one count of bulk cash smuggling, and one count of tax evasion.
Rafael, owner of Carlos Seafood, Inc. based in New Bedford, Mass., owned 32 fishing vessels through independent corporate shells and 44 permits, which amounted to one of the largest commercial fishing businesses in the United States. He was initially arrested and charged in February 2016. U.S. District Court Judge William G. Young scheduled sentencing for June 27, 2017.
“Mr. Rafael’s scheme not only compromised delicate fish populations, but also profited on the backs of his hard-working crews,” said Acting United States Attorney William D. Weinreb. “Mr. Rafael knew he was breaking the law by falsifying records, evading taxes and smuggling ill-gotten profits to Portugal. Without Mr. Rafael and his scheme, New England fishermen who work hard for honest pay can now enjoy a more level playing field.”
“The fraud perpetrated by Mr. Rafael was motivated by greed, at the expense of the delicate ecosystem of the North Atlantic ocean,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “Mr. Rafael not only evaded federal income taxes on bags of cash, but smuggled some of the cash to Portugal. IRS-Criminal Investigation is proud of our undercover program and the unique perspectives, skill set and resources we can bring to a case of this magnitude. I commend the entire investigative team for their incredibly hard work in exposing this massive financial and natural resource fraud.”
“As the Nation’s federal maritime law enforcement agency, the Coast Guard has a critical role in enforcing federal fisheries regulations to protect our precious marine resources, promote sustainable fish stocks, and ensure a level playing field for all the honest fishermen,” said Rear Admiral Steven D. Poulin, Commander, First Coast Guard District. “I am proud of the Coast Guard’s partnership with the NOAA Office of Law Enforcement, the IRS Criminal Investigation Division, and the U.S. Attorney's Office to help bring these illegal operations to a halt.”
“NOAA is committed to ensuring a level playing field for honest fishermen,” said Samuel Rauch, Acting Assistant Administrator for NOAA Fisheries. “Those who cheat the American taxpayers and their fellow fishermen will be found out, investigated, and brought to justice.”
The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying Carlos Seafood. From 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species.
During that period, Rafael misreported to NOAA approximately 782,812 pounds of fish, telling NOAA that the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael sold much of the fish to a wholesale business in New York City in exchange for bags of cash. During meetings with the undercover agents, Rafael said that in his most recent dealings with the New York buyer he received $668,000 in cash. Rafael smuggled at least some of that cash out of the United States to his native Portugal, hiding it there to evade federal taxation on that revenue.
The charges of conspiracy and tax evasion provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Twenty-three of the charges of falsifying records submitted to the federal government carry the same potential sentence, while two counts, brought under a different statute, provide for a sentence of no greater than 20 years in prison and a fine of $250,000. The charge of bulk cash smuggling provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb; IRS-CI SAC Garland; Rear Admiral Poulin; and Acting Assistant Administrator Rauch made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
One Individual Charged with Making False Statements in A Reverse Mortgage Loan ApplicationRead the Press Release
SAN JUAN, P.R – On March 29, 2017, a federal grand jury in the District of Puerto Rico returned a one count indictment charging Tommy Rudy Habibe-Arias with making false statements in an application for a Home Equity Conversion Mortgage loan (commonly known as a “Reverse Mortgage”), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The U.S. Department Housing & Urban Development- Office of Inspector General (HUD-OIG) is conducting the investigation.
According to the indictment, from on or about September 2009 until on or about November 2009, defendant Tommy Rudy Habibe-Arias knowingly made or caused to be made material false statements to a mortgage lending institution named Master Mortgage Corporation, for the purpose of influencing the Federal Housing Administration (FHA) to insure a Reverse Mortgage loan. Specifically, the false and fraudulent information indicated that said property was the defendant’s principal residence, when at no time since September of 2009, or at any other time, the defendant occupied the property as his “primary residence.” The defendant procured $203,605.55 from a Home Equity Conversion Mortgage loan, which he received illegally.
“Mortgage fraud is a serious issue that affects not just financial institutions but ordinary citizens who may have invested in such financial institutions or who hope to purchase, sell or refinance a home by honestly setting forth their finances,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Mortgage lenders provide capital so people can purchase homes, not enrich themselves illegally.”
“The FHA reverse mortgage program enables elderly people to withdraw some of their home's equity to give them greater financial security and allow them to afford to stay in their home,” said Nadine Gurley, HUD-OIG’s Special Agent-in-Charge for the Atlanta Region. “However, the public needs to be aware that to be eligible for these reverse loans, homeowners must be at least 62 years of age or older; own the property outright or have paid down a considerable amount; and must occupy the property as a principal residence. Our agency encourages anyone with information about waste, fraud or abuse against this program to confidentially report it by calling our San Juan Field Office at (787) 766-5868 or via e-mail at [email protected] ”
If convicted, the defendant faces a possible penalty of 30 years in prison and/or a fine of $1,000,000. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Scott H. Anderson.
Ohio Native Pleads Guilty to Coercing Minors to Engage in Sexual Activity and Produce Child Pornography Through “Internet Sextortion”Read the Press Release
Today, an Ohio native living in Port St. Lucie, Florida pled guilty to using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) made the announcement.
Richard Eugene Fye, III, 24, of Ohio, pleaded guilty to Counts 1 to 4 in the Indictment charging: Use Of Means of Interstate Commerce to Persuade, Induce, Entice, or Coerce a Minor to Engage in Illegal Sexual Activity, in violation of Title 18, United States Code, Section 2422(b); Production of Material Containing Visual Depictions of Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2251(a) & (e); Receiving Material Containing Visual Depictions of Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(2)&(b)(2); and Possession of Material Containing Visual Depictions of Sexual Exploitation of Minors (including those under age of 12), in violation of Title 18, United States Code, Sections 2252(a)(4)(B) & (b)(2). The defendant faces mandatory terms of incarceration and a possible statutory sentence of life imprisonment. The defendant also faces up to a lifetime of supervised release and must register as a sex offender. The defendant’s sentencing hearing is scheduled for June 8, 2017 at 10:00 a.m. before Judge Donald M. Middlebrooks in West Palm Beach.
According to a stipulated factual basis filed in this case, in December 2016, a 15-year-old female in Michigan made a complaint about online coercion. The victim stated an unknown subject, who identified himself as “MARCO”, a 14 year old male from Port St. Lucie, contacted her using a social networking application. “MARCO” convinced her to send him nude photographs using her cell phone. “MARCO” then threatened that if the minor female did not also send nude videos of herself, he would send the photographs to her friends and family. Fearing that the pictures would be disseminated the minor female sent “MARCO” the requested videos.
During the course of the investigation, law enforcement learned that “MARCO” was in fact defendant Richard Eugene Fye III.
On January 31, 2017, members of HSI executed a federal search warrant at a location where Fye was living and working and recovered the defendant’s cellular telephone and laptop. The electronic devices contained nude images of the victim, a profile of 14 year old “MARCO” (which included a picture of a teenage male), and over 200 suspected child pornography videos, including images of prepubescent minors under 12 years of age, sado-masochism, and bondage.
Law enforcement also discovered a number of videos and chats involving other minor girls that Fye met online and persuaded, induced, enticed, and/or coerced to produce sexually explicit images and send him via the internet. During a number of these chats, Fye distributed child pornography to minors, in order to illustrate the sexual acts the defendant wanted them to perform in the requested videos.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Mr. Greenberg commended the investigative efforts of ICE-HSI and the Washtenaw County Sheriff’s Office in Michigan. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Oceanside Man Indicted in Multi-Million-Dollar Fraud SchemeRead the Press Release
A six-count indictment was unsealed this morning in federal court in Central Islip, New York, charging John Quadrino, the owner/operator of Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading, Inc. (collectively referred to as the “Gold Purchasing Companies”). The defendant is charged with wire fraud and wire fraud conspiracy for orchestrating a Ponzi scheme over the course of more than five years utilizing the Gold Purchasing Companies. The defendant will be arraigned at the federal courthouse in Central Islip this afternoon before United States Magistrate Judge Arlene R. Lindsay.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office, and Madeline Singas, Nassau County District Attorney.
As set forth in the indictment, the charges against the defendant stem from a multi-year investigation by the United States Attorney’s Office, the FBI and the Nassau County District Attorney’s Office (“NCDAO”). The investigation revealed that the defendant represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. The defendant asked investors to invest large sums of money for fixed periods of time in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Contrary to the representations made by the defendant to investors, the defendant never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, he systematically engaged in a classic Ponzi scheme over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, more than 80 investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $6.3 million. The defendant used investor capital to, among other things, issue checks to himself and to pay for his personal gambling expenses.
“As alleged, the defendant deceived investors with the promise of purchases of gold and other valuables and guaranteed returns, leading to his own enrichment and victim losses of over $6 million,” stated Acting United States Attorney Rohde. “We will not permit such conduct to go unanswered.” Ms. Rohde expressed her appreciation to the FBI and NCDAO for their assistance during the course of this multi-year investigation.
“As alleged, rather than carrying out his plan as promised, Quadrino dangled a shiny prospect in front of his victims while funneling their money into a scheme to defraud others and enrich himself,” said FBI Assistant Director-in-Charge Sweeney, Jr. “People know there's risk involved in investing, but they shouldn't have to start out with the odds stacked against them. Along with our partners, we remind the public how seriously we take offenses of this nature.”
“This defendant is accused of pilfering the savings of dozens of innocent investors by promising them great returns, but instead he allegedly gambled their money away,” DA Singas said. “Fortunately, working with our law enforcement partners at the Eastern District of the U.S. Attorney’s Office and the FBI, we were able to end this alleged Ponzi scheme before more investors were victimized.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the offense, the defendant faces a maximum sentence of 20 years’ imprisonment per count.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
The Defendant:
JOHN QUADRINO
Age: 51
Oceanside, New York
E.D.N.Y. Docket No. 17-CR-153 (DRH)
Navajo Man from Farmington Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Thomas J. Yazzie, Jr., 52, an enrolled member of the Navajo Nation from Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.
Yazzie was arrested on Feb. 7, 2017, on an indictment charging him with involuntary manslaughter. According to the indictment, Yazzie killed the victim with his vehicle while driving under the influence of alcohol on the Navajo Indian Reservation in San Juan County, N.M., on May 10, 2016.
During today’s proceedings, Yazzie pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Yazzie acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
At sentencing, Yazzie faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Michael D. Murphy.
NYC Human Resources Administration Employee Charged with Inside Scheme to Steal Public BenefitsRead the Press Release
A complaint was unsealed today in United States District Court for the Eastern District of New York charging Mahalia Abraham, an employee of New York City Human Resources Administration’s Office of Research and Program Monitoring, and William Hopkins, with stealing approximately $59,000 in benefits earmarked for the Supplemental Nutrition Assistance Program (“SNAP”) and Temporary Aid to Needy Families Program (“TANF”), which are funded by federal tax dollars. The defendants will be arraigned this afternoon at the federal courthouse in Brooklyn this afternoon before United States Magistrate Judge Vera M. Scanlon.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”).
As set forth in the complaint and other publicly filed documents, the charges against the defendants stem from an investigation that began when one SNAP recipient noticed $56 worth of benefits had been withdrawn from her SNAP electronic benefits transfer card (“EBT”) without her permission. The investigation revealed that Abraham had accessed more than 100 SNAP and TANF recipients’ files to check their account balances and access their EBT account numbers as well as the names, dates of birth, and social security numbers of the intended recipients. Abraham passed this information on to her boyfriend, Hopkins, who used this information to change the PIN numbers on their victims’ cards. Hopkins then keyed in the victims’ EBT card numbers and new PIN numbers at Rite Aid stores throughout Brooklyn in order to withdraw cash and purchase baby formula, which he sold to bodegas for cash. In total, the defendants Abraham and Hopkins stole approximately $53,000 in SNAP benefits and $6,000 in TANF benefits.
“As alleged, the defendants used Mahalia Abraham’s position as an HRA employee to access the personal information of public assistance recipients, and to steal tens of thousands of dollars earmarked for needy New Yorkers,” stated Acting United States Attorney Rohde. “This type of behavior directly contradicts what it means to be a public servant and will not be tolerated.” Ms. Rohde expressed her appreciation to DOI’s Office of the Inspector General for its assistance during the course of this year-long investigation.
“This case began with a complaint from a recipient who noticed $56 in SNAP benefits missing from her account and ultimately led DOI to uncover tens of thousands of dollars in fraud, according to the charges. Though this defendant and her associate stole government funds, their victims were vulnerable New Yorkers – like one recipient left to stand on soup kitchen lines while his benefits were diverted to feed their greed. DOI’s report released today details how this fraud was committed, and the steps that HRA should take to ensure these funds are safeguarded for the people who need them. DOI thanks the United States Attorney’s Office for the Eastern District of New York for its partnership on this investigation and HRA for its continued cooperation to enact meaningful reforms to tackle fraud,” stated DOI Commissioner Peters.
In conjunction with today’s arrests, DOI issued a report detailing the investigation’s findings and providing recommendations to HRA and other government entities aimed at safeguarding public assistance recipients’ personal data. A copy of the Report can be found at the following link: http://www1.nyc.gov/site/doi/newsroom/public-reports.page
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the offense, the defendants face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Kaitlin T. Farrell is in charge of the prosecution.
The Defendants:
MAHALIA ABRAHAM
Age: 38
Brooklyn, New York
WILLIAM HOPKINS
Age: 41
Brooklyn, New York
E.D.N.Y. Docket No. 17-MJ-282
Michigan City Man Sentenced to 78 Months ImprisonmentRead the Press Release
SOUTH BEND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Lonnie Lewis, Jr., 22, of Michigan City, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio after entering a guilty plea for being a felon in possession of a firearm.
Lewis was sentenced to 78 months’ imprisonment and 2 year supervised release.
According to documents filed in this case, on September 9, 2016, police attempted to perform a traffic stop on Lewis. Instead of submitting, Lewis fled in a vehicle at speeds approaching 100 miles per hour. While fleeing, Lewis tossed a loaded gun and drugs out of the window. Police arrested the defendant after his car hit a tree. After being arrested, Lewis tried to enlist others to retrieve his gun and drugs from the route of pursuit. In August of 2015 Lewis was convicted of dealing cocaine, a level 4 felony offense in LaPorte Superior Court.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department. This case was being handled by Assistant United States Attorney Joel Gabrielse.
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Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
UTICA, NEW YORK – Gilberto Trevizo-Molina, age 46, a citizen of Mexico, was sentenced today to time served (50 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Trevizo-Molina admitted that he unlawfully returned to the United States after he was removed to Mexico on May 29, 2007.
On February 8, 2017, Trevizo-Molina was arrested by Border Patrol agents, who encountered him as a passenger in a vehicle that stopped at a Border Patrol checkpoint on New York State Route 30. He was residing in Charlotte, North Carolina, at the time of his arrest.
Following his sentencing by United States District Judge David N. Hurd, Trevizo-Molina was remanded to the custody of the Department of Homeland Security, which will place Trevizo-Molina into removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Mescalero Apache Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Glen Joel Lester, 39, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 24 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Lester was one of 34 individuals charged in Dec. 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Lester was arrested on Dec. 15, 2015, on an indictment charging him with two counts of methamphetamine distribution. On March 11, 2016, Lester pled guilty to both counts of the indictment and admitting selling methamphetamine to an undercover law enforcement agent on two occasions. The first drug sale took place on Aug. 19, 2015, in Mescalero, and involved the sale of $500 worth of methamphetamine. The second drug sale took place in Mescalero on Sept. 10, 2015, and involved the sale of $1,500 worth of methamphetamine.
Seventeen of the 18 federal defendants have entered guilty pleas. The remaining federal defendant has entered a not guilty plea. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Member of Bloods Gang Sentenced to 101 Months in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, Justin Smith, a Bloods gang member, was sentenced to 101 months imprisonment by United States District Judge I. Leo Glasser for his role in leading an illegal drug distribution operation in Brooklyn and carrying multiple firearms to further his drug distribution activities.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Justin Smith, a gang member and convicted drug dealer who regularly kept and carried illegal firearms to protect his criminal organization, used an apartment in Wyckoff Gardens as a base of operations to sell crack and heroin, putting the residents of that community at great risk. This office, together with its law enforcement partners, will work tirelessly to address this type of dangerous conduct,” stated Acting United States Attorney Rohde. Ms. Rohde extended her grateful appreciation to the FBI and thanked the New York City Police Department (NYPD) for their assistance on the investigation.
The defendant was sentenced following his conviction after a guilty plea on October 28, 2016 to multiple counts of illegal drug distribution and firearm offenses, including possession of a firearm in furtherance of drug trafficking. Between September 2013 and April 2015, the defendant conspired to possess and distribute illegal narcotics in and around two New York City Housing Authority (NYCHA) housing developments known as the Gowanus Houses and Wyckoff Gardens, located in the Boerum Hill neighborhood in Brooklyn, New York.
On or about June 18, 2014, NYPD officers entered Smith’s stash house at 185 Nevins Street in Brooklyn, and discovered him with illegal drugs, ammunition, and a firearm. The officers recovered: 80 plastic bags containing crack cocaine, 51 glassine envelopes containing heroin and two containing a mixture of heroin and cocaine, 1,250 small plastic bags used to package crack cocaine for distribution, 212 empty glassine envelopes used to package heroin for distribution, $1,018 in cash, and a digital kitchen scale used to weigh narcotics. Additionally, they recovered nine rounds of .45 caliber ammunition, a box containing 31 rounds of 9mm ammunition, and a stolen black 9mm caliber semiautomatic handgun. The evidence also established that the defendant possessed crack and heroin, as well as firearms, on multiple other occasions in and around Brooklyn.
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorneys Craig R. Heeren and Michael P. Robotti are in charge of the prosecution.
The Defendant:
JUSTIN SMITH
Age: 23
Brooklyn, New YorkE.D.N.Y Docket No. 15-CR-466 (ILG)
Maryland Rap Star Known as “Big Flock” Sentenced to Federal Prison on Gun and Drug Charges After Publishing “Letter to the World”Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Charles Ulysses Bowman-Bey, a/k/a “Big Flock,” age 24, of Upper Marlboro, Maryland, today to 45 months in prison, followed by three years of supervised release for being a felon in possession of firearms and possession with intent to distribute Alprazolam.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Charles Bowman-Bey realized too late that ‘the streets don’t love anybody,’ as he wrote in his letter to the world, apologizing for his life of crime and his music videos glorifying drug dealing and gang violence,” said U.S. Attorney Rod J. Rosenstein. “His letter should be required reading for young drug dealers.”
According to his plea agreement, on October 19, 2016, law enforcement executed a search warrant at Bowman-Bey’s residence and recovered: a loaded 5.7x28mm semiautomatic handgun, equipped with a laser sight; a .40 caliber semiautomatic handgun; a .380 caliber semiautomatic handgun; rounds of ammunition of various calibers; a loaded drum-style extended magazine; a .40 caliber extended magazine; $5,561 in cash; 94 tablets of Alprazolam, as well as some ground-up Alprazolam; and a digital scale.
Bowman-Bey admitted that he possessed the Alprazolam to distribute to others and that the $5,561 in cash was the proceeds of his drug dealing. Bowman-Bey also admitted possessing the firearms in furtherance of his drug trafficking, as well as for protection. Bowman-Bey had a previous felony conviction and was prohibited from possessing firearms and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Thomas J. Sullivan, who prosecuted the case.
Maryland Pimp Pleads Guilty to Being a Felon in Possession of Firearms and to Enticing and Coercing Women to Travel to Engage in ProstitutionRead the Press Release
Baltimore, Maryland – Jason David Young, a/k/a Bird, J Bird, and Chris, age 33, of New Carrollton, Maryland, pleaded guilty today to illegal possession of firearms and to enticing and coercing women to travel across state lines to engage in prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Gary Gardner of the Howard County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks .
According to his plea agreement, from September 2013 through October 2015, Young was a pimp and used physical, mental and emotional abuse and threats in order to cause women to engage in commercial sex acts for his financial benefit. Young admitted that he transported the women across state lines to engage in prostitution. In January 2015, Young drove two women to Tennessee to engage in commercial sex acts. Young rented hotel rooms and several online advertisements were posted to recruit customers. Both women were arrested for prostitution following an undercover operation executed by the Knox County Sheriff’s Office.
On at least two occasion on 2014, Young was stopped by police and a gun was found in the car. On each occasion, the woman traveling with Young claimed that the gun was hers. One of the women later admitted to police that Young had given her the firearm, and that he routinely possessed firearms. She stated that Young had the women take responsibility for the firearms if discovered by police. One of the guns, a 9mm handgun recovered on December 15, 2014, was stolen.
On February 12, 2015, the Prince George’s County Police Department arrested Young for a parole violation. Young was outside of a local business that was owned by a friend. The owner consented to a search of the business and officers recovered a bag belonging to Young. The owner also told police that he had seen Young with firearms, and when the owner saw police outside the shop, he hid the firearms above the ceiling tiles so Young wouldn’t get in trouble. Investigators recovered the two .45 caliber handguns from the ceiling. Both handguns had been stolen.
Investigation showed that all three of the stolen handguns had been taken from a prostitution customer, a gun collector who kept a gun safe on the same floor of his house as the master bedroom. Young had gone to the house once with two of the women he trafficked, and the gun safe was not fully locked and closed. Women who worked for Young twice stole firearms from the customer and provided them to Young. A total of five firearms were stolen from the customer’s home.
Young took photos of the five firearms using his cell phone and sent them to other individuals. The photos of the guns were taken inside the apartment Young provided to the women in exchange for Young collecting the proceeds of their commercial sex acts. Young controlled all of the women’s money and movements, threatening to beat them if they did not comply with his instructions. Young’s cell phone contained images of the injuries resulting from a severe beating he inflicted on one of the women. In addition, Young provided the women with narcotics and withheld narcotics from addicted women in order to exert control over them.
Young and the government have agreed that if the Court accepts the plea agreement Young will be sentenced to 20 years in prison, followed by five years of supervised release. U.S. District Judge George L. Russell III has scheduled Young’s sentencing for June 16, 2017, at 2:00 p.m. Young has been detained since his arrest in October 19, 2015.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, Howard County, Prince George’s County and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office and Prince William County (VA) Police Department for their assistance and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who are prosecuting the case.
Luna County Woman Sentenced to Thirteen Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Veronica Valenzuela, 41, of Columbus, N.M., was sentenced today in federal court in Las Cruces, N.M., to 156 months in prison followed by five years of supervised release for her methamphetamine trafficking conviction.
Valenzuela was arrested in Feb. 2015, on a criminal complaint alleging conspiracy and methamphetamine trafficking charges. The criminal complaint charged Valenzuela and others with committing the crimes between Oct. 9, 2014 and Dec. 12, 2014 in Luna County, N.M. According to the criminal complaint, Valenzuela and other individuals sold quantities of methamphetamine to undercover Homeland Security Investigations (HSI) agents on the following dates: 27 grams on Oct. 9, 2014; 27.5 grams on Oct. 17, 2014; and 104.89 grams on Nov. 4, 2014.
On April 24, 2016, Valenzuela pled guilty to a felony information charging her with participation in a methamphetamine trafficking conspiracy. In entering the guilty plea, Valenzuela admitted that on Nov. 4, 2014, she conspired with others to distribute 104.89 grams of methamphetamine to an undercover law enforcement agent. Valenzuela further admitted that on Dec. 11, 2014, she conspired with others to distribute 231.05 grams of methamphetamine to an undercover law enforcement agent.
This case was investigated by the Deming office of HSI and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Local, State, and Federal Law Enforcement Partner with the Community to Launch Greenville Safe NeighborhoodsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that the U.S. Attorney’s Office has partnered with the Greenville Police Department, along with the Greenville County Sheriff’s Office, the Thirteenth Circuit Solicitor’s Office, the South Carolina Department of Probation, Parole & Pardon Services, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), and New Mind Health and Care, Inc., in a local, state, and federal violence reduction initiative, a collaboration dubbed, “Greenville Safe Neighborhoods.” The first meeting with the stakeholders, partners, as well as the first eight participating individuals, all of whom are currently on state probation, was held on Monday evening (March 27).
Greenville Safe Neighborhoods is a unified, proactive police and community collaboration that engages, educates and empowers repeat serious offenders to obtain assistance, change behavior, make healthy life choices or suffer consequences of unified police/prosecutorial focus and priority. Predicated on the work of Professor David M. Kennedy of the John Jay College of Criminal Justice in New York, this focused-deterrence model aligns intervention and prosecutorial resources to create an appropriate mix of legal and ethical pressure to change offender behavior, reduce recidivism and severity, and reduce victimization. The Greenville Police Department has been working with its core partners for several months in planning, developing and resourcing the pilot program.
The U.S. Attorney’s Office serves as a partner in similar iterations across the state, to include Aiken Safe Communities, Hartsville Safe Communities, Ceasefire Columbia, and most recently, Home Front--the focused-deterrence model focusing on domestic violence in Spartanburg County.
The Greenville Safe Neighborhoods initiative identifies participants based upon their present and past criminal conduct. Participants attend a meeting with local, state and federal law enforcement officials and prosecutors as well as with service providers, family and affected community members. In the meeting, participants have meaningful access to a host of services or contacts to help them address physical or psychological needs.
GPD Chief Ken Miller, who anchored the first meeting on Monday evening, brought the program’s core partners together to make this initiative a reality. “The Greenville Police Department is committed to working with our community and our program participants and stakeholders to keep our streets and neighborhoods safe.”
During the meeting, the participants observed the unified commitment to this effort between law enforcement and the community. The goal the stakeholders hope to achieve is engaging a participant to address his or her needs, make meaningful strides, and avoid re-offending, thereby making the Greenville community safer. Also underscored during the meeting--the commitment between all levels of law enforcement and prosecution. Should a participant disregard this opportunity and re-offend, new offenses will be identified in “real time” and they will be brought to justice swiftly--in state court or federal court.
Solicitor Walt Wilkins has dedicated prosecutors to this effort and will be working closely with federal prosecutors in the U.S. Attorney’s Office. “We are excited about this partnership and the promise that Greenville Safe Neighborhoods holds for effective communication between the community and local, state, and federal law enforcement.”
U.S. Attorney Drake thanked Chief Miller, Solicitor Wilkins, and the other agencies for their leadership and for bringing the stakeholders together. “These young South Carolinians have some important choices to make in terms of changing their path in life. The resources and community commitment are there.”
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Lincoln Mother and Son Convicted of Conspiracy to Distribute Misbranded Substances, Drug Paraphernalia, and Related Financial CrimesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Tuesday, March 28, 2017, co-defendants Allen E. Peithman, Jr., Sharon A. Elder, and their corporations, Cornerstone Plaza, Inc., and AEP Properties, L.L.C., were each convicted of at least one crime after a three-week-long jury trial. Peithman, his mother, Elder, and their respective corporations operated two “head shops” in Lincoln. They operated Dirt Cheap between October of 2013 and August of 2015, and Island Smokes between September of 2014 and April of 2015. In April of 2015, a number of drug overdoses were attributed to the sale of “potpourri” in Lincoln. Island Smokes was selling “potpourri,” also known as “K2” during that time. This led to the execution of a search warrant in April of 2015 during which over 500 packets of “potpourri” and hundreds of pieces of drug paraphernalia were seized. In August of 2015, a search warrant was served at Dirt Cheap, and additional drug paraphernalia was seized.
Peithman was convicted of conspiracy to distribute drug paraphernalia; investment of drug proceeds; conspiracy to distribute misbranded substances; conspiracy to commit mail fraud; conspiracy to structure financial transactions; and commission of an offense while on supervised release. Peithman’s corporation, AEP Properties, L.L.C., was also convicted of the conspiracy to structure. Elder and her corporation, Cornerstone Plaza, Inc., were convicted of conspiracy to distribute drug paraphernalia; investment of drug proceeds; conspiracy to distribute misbranded substances; conspiracy to commit mail fraud; and conspiracy to structure.
After the verdict was returned, additional evidence was presented, and the jury was instructed with respect to consideration of forfeiture allegations seeking forfeiture of real estate, cars, bank accounts, and products used in the above-listed crimes. On March 29, 2017, the jury returned a verdict forfeiting the business checking account for Cornerstone Plaza, Inc., as well as all the misbranded drugs and drug paraphernalia seized from the businesses. The Indictment also included an allegation that a money judgment should be entered against the defendants, and that matter is set for hearing on April 24, 2017.
The conspiracy to commit mail fraud charge carries a possible penalty of up to 20 years in prison. Investment of drug proceeds and conspiracy to commit structuring each carry possible penalties of up to 10 years in prison. Conspiracy to distribute drug paraphernalia and conspiracy to distribute misbranded drugs each carry penalties of up to three years in prison. The crime of committing a felony while on supervised release for which Peithman was convicted carries a possible sentence of up to 10 years consecutive to any other sentence. The corporations face fines of up to $1,000,000 on the structuring conviction. Sentencing for all defendants is scheduled for June 20, 2017.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Food and Drug Administration, Homeland Security Investigations, and the Nebraska State Patrol. In response to the verdict, Special Agent in Charge William Conway, FDA Office of Criminal Investigations, Chicago Field Office, said,
“Drugs that are produced and distributed outside the FDA’s oversight put consumers at risk of being harmed. We will continue to work with our law enforcement partners to prevent such drugs from reaching the market and to bring to justice those who endanger American consumers by circumventing FDA's regulatory process."
Leaders of Clandestine Marijuana Grow House Organization Sentenced to Federal PrisonRead the Press Release
HOUSTON – The three leaders of a Houston area indoor marijuana grow house organization have been sentenced to lengthy prison terms, announced Acting United States Attorney Abe Martinez. Quang Nguyen, 50, pleaded guilty Aug. 15, 2016, while Phuc Tran, 44, and his wife, Thuy Tran, 44, pleaded guilty in July and October 2016, respectfully. All resided in Houston.
Today, U.S. District Judge Alfred H. Bennett handed Nguyen a sentence of 120 month in federal prison. Judge Bennett sentenced Phuc and Thuy Tran last week to respective terms of 87 and 72 months.
These three were held accountable as leaders of their respective clandestine marijuana grow cells working together to further the manufacture and distribution of high-grade hydroponic marijuana in a total of eight grow houses located in Houston area suburbs. The grow houses were identified during a year-long investigation into the organization, which began in March 2014. The investigation ultimately resulted in the seizure of more than 2600 thriving marijuana plants and approximately 80 pounds of harvested hydroponic marijuana buds from six of the grow houses over the course of five days in April 2015.
A pound of hydroponic marijuana sells in the Houston area for approximately $2500 per pound.
A total of nine defendants were charged in the case, most of whom were taken into custody as authorities executed search warrants at two of the six grow houses and found them engaged in harvesting mature marijuana plants. All nine eventually pleaded guilty for their respective roles to conspiracy to possess with intent to distribute 1000 or more marijuana plants. The other six defendants occupied roles in the conspiracy as marijuana grow house tenders, grow house owners and/or occasional harvest help personnel and were sentenced previously to terms ranging from 22 months to 37 months in federal prison.
Nguyen and the Trans have been and will remain will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is the result of a multi-agency Organized Crime Drug Enforcement Task Force investigation dubbed Operation Green House Effect conducted by the Drug Enforcement Administration, Fort Bend County Sheriff’s Office Narcotics Task Force, Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorney Nancy G. Herrera prosecuted the case.
Leader of Violent Robbery Crew Sentenced to 57 Years for Targeting Suburban Cell Phone StoresRead the Press Release
CHICAGO — A federal judge today sentenced a Park Forest man to 57 years in prison for leading a crew of armed robbers that targeted cell phone stores in the Chicago suburbs.
ERIC CURTIS recruited several individuals to join the crew and armed them with firearms to carry out the robberies. The crew stole hundreds of cell phones while terrorizing store employees and customers at gunpoint. After the robberies, Curtis helped to sell the phones and divide the profits among the thieves.
The robberies occurred in 2013 in cell phone stores in Addison, Norridge, Deerfield and Woodridge.
A jury last year convicted Curtis, 32, on one count of conspiracy to commit robbery, three counts of robbery, one count of being a felon in possession of a firearm, and three counts of using a firearm in a crime of violence. U.S. District Judge Charles P. Kocoras imposed the sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. Police departments from Chicago, Woodridge, Deerfield, Joliet, Norridge, Addison and East Peoria provided substantial assistance in the investigation.
“The defendant’s crew terrorized dozens of victims during their crime spree and these victims will likely suffer from the trauma the defendant and his crew caused them for at least as long as any sentence this Court imposes on the defendant,” Assistant U.S. Attorneys Christopher V. Parente and Allison A. Ray argued in the government’s sentencing memorandum. “The defendant’s repeated reckless actions during this crime spree endangered the lives of many everyday citizens who were out on a shopping trip, or just showing up for work trying to earn an honest living.”
Evidence at trial revealed that Curtis’ crew conducted takeover-style robberies. Crew members would enter a store, brandish firearms and order employees and customers to the back of the store at gunpoint. The robbers would take as many cell phones as they could stuff into their duffel bags.
Seven other members of the crew previously pleaded guilty. The prior convictions include another top leader, ERIC ROGERS of Hazel Crest. Rogers stated in a plea agreement that the crew also robbed cell phone stores in Joliet and downstate East Peoria, as well as a store in La Porte, Ind. Eric Rogers is awaiting sentencing.
Lea County Woman Sentenced to Fifteen Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Kyla Lashawn Norby, 28, of Hobbs, N.M., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M., to 15 years in prison followed by 15 years of supervised release for her conviction on a production of child pornography charge. Norby will be required to register as a sex offender when she completes her prison sentence. Norby also was ordered to pay $210,012.00 in restitution to the victim of her criminal conduct.
Norby’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, and Lea County Undersheriff Tom Dunford.
Norby was arrested on Jan. 8, 2016, on a criminal complaint alleging that she produced and distributed child pornography between May 2015 and Dec. 2015, in Lea County, N.M. According to the criminal complaint, the investigation into Norby was initiated after Homeland Security Investigations (HSI) agents from Laredo, Tex., arrested a man in Odessa, Tex., who revealed that Norby made a two-year old child sexually available to him. A search of the man’s smartphone revealed photos of Norby, including images consistent with child pornography, that Norby sent to the man from her smartphone.
On June 22, 2016, Norby pled guilty to a felony information charging her with production of child pornography. In her plea agreement, Norby admitted that on Oct. 25, 2015, she used a smartphone to take a sexually explicit photograph of a toddler with the intention of sharing the photograph with an individual in Texas.
This case was investigated by the Las Cruces office of HSI and the Lea Country Sheriff’s Office, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, with assistance from HSI in Laredo, Texas. The case was prosecuted by Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Law Enforcement Authorities Arrest 10 Members and Associates of 18th Street Gang on Federal Narcotics and Weapons ChargesRead the Press Release
LOS ANGELES – Federal and local authorities have arrested 10 members and associates of the 18th Street gang, primarily on federal narcotics charges.
In a sweep that began Tuesday evening and continued into Wednesday, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), as well as deputies with the Los Angeles County Sheriff’s Department and officers with the Los Angeles Police Department, took the eight defendants into custody. One defendant was arrested in Honolulu, and another in Indianapolis.
Three other people who face federal charges were already in local custody, and law enforcement continues to search for five more defendants.
The arrests are the culmination of an HSI-led investigation that began in December 2014. The investigation focused on the distribution and sale of methamphetamine and unlicensed sales of firearms.
During the course of the investigation, authorities seized approximately four kilograms of methamphetamine and 14 firearms, including five assault rifles. The investigation led to six indictments that charge a total of 18 defendants.
Among those arrested yesterday are Giovanny Ochoa, also known as “Sporty” and “Speedy,” 26, of Hawthorne, and Aveline Villalba, also known as “Gordo” and “Fatboy,” 36, of South Los Angeles, who are charged in an indictment with selling approximately one-quarter pound of methamphetamine in the fall of 2016 to an undercover operative. Ochoa is additionally charged in relation to another quarter-pound sale, as well as transactions involving one-ounce quantities of meth. If they are convicted of conspiracy and narcotics-distribution charges, Ochoa and Villalba each would face a mandatory minimum sentence of 10 years in federal prison and could be sentenced to as much as life.
Ochoa, Villalba and the other six defendants arrested in the Los Angeles area have been arraigned in United States District Court. All eight pleaded not guilty and were ordered held without bond pending trial.
The two defendants arrested in other districts have also been ordered held without bond and are expected to be transported to Los Angeles in the coming weeks.
The six cases are being prosecuted by Assistant United States Attorneys Joshua Mausner, Jennifer Weinhold and Damaris M. Diaz, and Special Assistant United States Attorney Stacey Fernandez, all of the General Crimes Section.
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jose Angel Sanchez, 35, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Sanchez will be sentenced to ten years in prison followed by a term of supervised release to be determined by the court.
Sanchez was arrested on Dec. 2, 2016, on a criminal complaint charging him with possessing approximately 229.5 grams of methamphetamine with intent to distribute in Dona Ana County, N.M. According to the complaint, Sanchez committed the crime while on supervised release from a prior federal drug trafficking conviction.
During today’s proceedings, Sanchez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Sanchez admitted that on Dec. 2, 2016, he possessed more than 50 grams of methamphetamine, which he intended to sell to other people. Sanchez also admitted that he was on supervised release from a prior conviction when he committed the offense on Dec. 2, 2016, and that he was prohibited from committing crimes as a condition of his supervised release.
Sanchez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
Knott County Man Receives Four Consecutive Life Sentences for Drug Trafficking and Aggravated Sexual Abuse of ChildrenRead the Press Release
PIKEVILLE, Ky. —A federal judge has sentenced a Knott County man to four consecutive life sentences for sexually abusing young children whose parents were part of his drug trafficking operations.
On Wednesday, U.S. District Judge Amul Thapar sentenced Freddie Kennedy, Jr., on one count of conspiracy to distribute oxycodone; seven counts of crossing a state line with the intent to engage in a sex act with a minor under the age of 12; and, ten counts of transporting a minor under the age of 18 across state lines with the intent to engage in criminal sexual activity.
Because parole is not an option under federal law, Kennedy must serve entirety of his life sentence. In February of this year, a jury convicted Kennedy of these offenses following a two-day trial.
The evidence at trial established that from April 2013 to June 2015, Kennedy organized a drug conspiracy in which several others traveled to out-of-state pain clinics to illegally obtain prescription drugs. In exchange for funding these trips, Kennedy received a portion of the drugs, which he distributed to other local dealers and drug users in the Knott and Perry County areas. Kennedy’s conspiracy was responsible for the distribution of thousands of oxycodone pills.
Evidence also established that, beginning sometime around October of 2013, Kennedy had sexual contact with four separate minor victims on multiple occasions, three of whom were under the age of the 10 at the time he abused them. Kennedy gained access to these victims because their parents were members of the conspiracy or drug addicts to whom he supplied oxycodone pills. In short, Kennedy would offer to watch the minor children while their parents were traveling to out-of-state pain clinics for him, or at home using drugs.
According to the evidence, while baby-sitting for the children, Kennedy intentionally groomed these minor victims by buying them expensive presents, as well as taking them to the movies, out to eat, and shopping as a way to win their trust.
While some of the abuse occurred at Kennedy’s residences in Perry and Knott Counties, much of it occurred on three separate out-of-state trips that Kennedy took with the minor children. Specifically, Kennedy took the victims for overnight stays at hotel/casino in located in Indiana. The minors stayed in a room with Kennedy, who was the only adult. On each of these occasions, Kennedy engaged in sexual acts with the minor victims.
Carlton Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA); Richard W. Sanders, Commissioner, Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by the DEA and KSP. Assistant U.S. Attorney W. Samuel Dotson prosecuted this case on behalf of the federal government.