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Tuesday 28 March 2017
Tampa Man Sentenced to Six Years in Federal Prison for Stealing Identities from Medical PracticeRead the Press Release
Tampa, Florida– U.S. District Judge James D. Whittemore has sentenced Anthony Michael Harris (26, Tampa) to six years in federal prison for conspiracy and aggravated identity theft. He pleaded guilty on November 29, 2016.
According to court documents, Harris worked as an administrative employee at a pediatric gastroenterology practice where he had access to patient medical records that contained the personally identifiable information (“PII”) of the practice’s patients, their parents, and their guardians. Harris conspired with his co-defendants, Larry Chance Cox and Maurice Rahmaan, to steal PII from his employer so that Cox, Rahmaan, and others could use that information to apply for credit cards online and file fraudulent federal income tax returns using the victims’ identities. The conspirators further agreed to share in the proceeds of the fraud.
Investigators recovered the PII of more than 13,000 individuals that had been stolen by Harris and used by the conspirators to apply for unauthorized credit cards. They also attempted to file approximately 180 fraudulent federal income tax returns.
On January 4, 2017, Cox pleaded guilty to conspiracy and aggravated identity theft. He is scheduled to be sentenced on April 3, 2017. Rahmaan pleaded guilty to the same charges on January 24, 2017, and his sentencing hearing is set for April 10, 2017.
This case was investigated by the Tampa Police Department, the Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Suffolk Man Pleads Guilty to Child Pornography ChargesRead the Press Release
NORFOLK, Va. – Jamie Lee Sorrentino, 50, of Suffolk, pleaded guilty today to receipt of images of minors engaging in sexually explicit conduct.
According to the statement of facts filed with the plea agreement, a computer user at Sorrentino’s residence was distributing images of child pornography via peer-to-peer file sharing technology. In June 2016, the Suffolk Police Department executed a search warrant a Sorrentino’s house and seized numerous items of electronic media. After examination, a forensic specialist found over 50,000 images and videos of child pornography and child erotica. That same day, Sorrentino confessed that he was responsible for the images and videos.
Sorrentino faces a mandatory minimum of five years in prison when sentenced on September 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Thomas E. Bennett, Chief of Police, Suffolk Police Department, made the announcement after Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-42.
Stroudsburg Man Guilty of Interstate Prostitution and Drug Trafficking CrimesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Thurman Stanley, age 40, of Stroudsburg, Pennsylvania, pleaded guilty on March 27, 2017, before Senior U.S. District Court Judge James M. Munley, to three counts of transporting women in interstate commerce for purposes of prostitution and one count of trafficking in heroin, “molly,” and crack cocaine.
According to United States Attorney Bruce D. Brandler, Stanley admitted that between December 2013 and December 2015, he transported at least four women from Pennsylvania to New York, Iowa, and North Dakota for purposes of prostitution, and also provided illegal drugs to them.
Stanley faces up to 50 years in prison and nearly $2 million in fines. Judge Munley ordered a pre-sentence report to be completed. Sentencing is scheduled for June 28, 2017.
Stanley was indicted by a federal grand jury in November 2016, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, Monroe County Detectives, and police in Bismarck, North Dakota. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
The maximum penalty under federal law for each prostitution offense is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for the drug offense is 20 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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Stringer Residents Sentenced in Health Care CaseRead the Press Release
Hattiesburg, Miss. – Larry Carlton Jenkins, age 60, of Stringer, Mississippi, was sentenced on March 23, 2017 by U.S. District Judge Keith Starrett to 37 months in federal prison followed by three years of supervised release for making a false statement relating to a health care matter, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Derrick Jackson of the Health and Human Services Administration - Office of Inspector General.
Annie Elizabeth Jenkins, age 61, was sentenced to 13 months in federal prison followed by one year of supervised release for misprision of felony. Both defendants were ordered to pay restitution in the amount of $223,593.87 to the Centers for Medicaid and Medicare Services,
From November, 2009, and continuing thereafter until August, 2010, Larry Jenkins and Annie Elizabeth Jenkins owned and operated Available Medical Supplies, Inc. ("AMS"), a business which purported to provide medical equipment and compounded inhalation drugs in and around Laurel, Mississippi. AMS, as a medical provider, submitted claims for reimbursement to the Medicare program. During the time period charged, AMS, through Larry Jenkins, represented on claims that the inhalation drugs reflected on such claims for reimbursement were non-compounded inhalation drugs.
As of July 1, 2007, the Centers for Medicare/Medicaid Services revised nationwide policy regarding compounded inhalation solutions. After July 1, 2007, all compounded inhalation solutions were denied as not medically necessary for dates of service on or after July 1, 2007. AMS, after July of 2007, at the direction of Larry Jenkins, continued to compound inhalation drugs but billed Medicare for reimbursement as if they were non-compounded drugs.
Annie Elizabeth Jenkins, the compliance officer, knew of the false statements being made, failed to notify the appropriate authorities, and took affirmative action to conceal the fraudulent billing.
This case was investigated by the Health and Human Services Administration-Office of the Inspector General-Office of Investigations. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
Six Alleged MS-13 Members Indicted in Federal Court for Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury returned a second superseding indictment charging six men in connection with a conspiracy to participate in a racketeering enterprise known as the La Mara Salvatrucha, or MS-13. The indictment was returned on March 27, 2017 and charges the following defendants:
Jose Augustin Salmeron-Larios, a/k/a Joseph Morales-Martinez, Angel Salvador Gutierrez,
Yankee, and Kean, age 24, of Severn, Maryland;Noe Coreas-Mejia, a/k/a Tsunami, age 20, of Langley Park, Maryland;
Oscar Ernesto Delgado-Perez, a/k/a Indio and Complicado, age 28, of Gaithersburg, Maryland;
Juan Carlos Espinal-Rapalo, a/k/a Chiki, age 19, of Gaithersburg;Daniel Adonai Ramos-Romero, a/k/a Taylor Romero and Binga, age 20, of Gaithersburg; and
Kevin Henriquez-Chavez, a/k/a Loco and Crazy, age 22, of Washington Grove, Maryland.
All of the defendants are in custody.
The second superseding indictment 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 J. Thomas Manger of the Montgomery County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Montgomery County State’s Attorney John McCarthy.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County and Montgomery County, Maryland. MS-13 cliques often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controlla,” which translates to, “kill, steal, rape, control.”
MS-13 members and associates meet in their clique on a regular basis to discuss gang affairs and report on acts of violence committed by their members, with the goal of inciting and encouraging further violence. Any perceived indiscretions by members and associates or violations of rules are talked about at clique meetings and punishments or “violations” are issued. Violations often take the form of beatings by fellow members. More serious violations result in the issuance of a “greenlight.” A greenlight is an order and/or approval to kill.
According to the indictment, Salmeron-Larios was a member of the PVLS clique and a leader within MS-13 in Maryland. Corea-Mejia was a member and associate of the PVLS clique; Delgado-Perez was a member of the SLSW clique; and Espinal-Rapalo, Ramos-Romero and Henriquez-Chavez were members and associates of the Cabanas clique
The 11-count indictment alleges that from before 2015 through 2017, the defendants were members and associates of MS-13 who planned and committed murders, attempted murders and extortion. The defendants and other MS-13 members and associates agreed to purchase, maintain, and circulate weapons and firearms for use in criminal activity by MS-13 members. In addition, the defendants and other MS-13 members and associates received income from sources including extorting business persons, and drug distribution. Funds obtained through criminal activities were used for gang purposes such as obtaining weapons and providing support for MS-13 gang members, including those in prison in the United States and in El Salvador.
According to the indictment, on November 1, 2015, Espinal-Rapalo, Ramos-Romero, Henriquez-Chavez and another member of the Cabanas clique planned to kill a person that Espinal-Rapalo and other MS-13 members had previously robbed, because they believed the victim was associated with a rival gang. That same day, Espinal-Rapalo and Ramos-Romero lured the victim to a wooded area behind a school in Montgomery Village, where they each shot the victim, killing him.
The indictment further alleges that in November 2015, Salmeron-Larios and other MS-13 members and associates planned to kill an individual and lured that person to a location in Prince George’s County, under the guise that a female would be meeting the victim at that location. An MS-13 associate who was with Salmeron-Larios at the location attempted to kill the victim and another person on November 7, 2015. According to the indictment, on December 6, 2015, Coreas-Mejia and other MS-13 members and associates assaulted a victim as part of a disciplinary proceeding, where the victim was beaten by MS-13 members and associates while Coreas-Mejia counted. The indictment alleges that after the victim reported the assault to police, Coreas-Mejia and other MS-13 members lured the victim to a secluded area beneath an Interstate 495 overpass in the Silver Spring area, where they killed the victim. In June 2016, the indictment alleges that Delgado-Perez directed a MS-13 associate to lure a person to a wooded area in the Gaithersburg, Maryland, area of Montgomery County, where Delgado-Perez and MS-13 members and associates murdered the victim.
The indictment alleges that between January and December 2015, Coreas-Mejia and others extorted money from two victims, and from 2015 through 2016, Salmeron-Larios collected “rent” or extortion money from illegal businesses operating throughout Prince George’s County. Finally, Henriquez-Chavez is alleged to have threatened to kill a victim, and the victim’s family, if that person did not prove that they were not cooperating with law enforcement.
The defendants all face a maximum sentence of life in prison for conspiring to participate in a racketeering enterprise. Coreas-Mejia also faces life in prison for murder in aid of racketeering. All the defendants, except Delgado-Perez, also face a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering. Salmeron-Larios also faces: a maximum sentence of 10 years in prison each, for attempted murder in aid of racketeering, and for transfer of a firearm for use in a crime of violence; a mandatory 10 years in prison, consecutive to any other sentence, and up to life in prison, for using and carrying a firearm during a crime of violence; and a maximum of 20 years in prison for drug distribution conspiracy. Espinal-Rapalo and Ramos Romero each also face a maximum of 20 years in prison for conspiracy to use and carry a firearm during a crime of violence. Henriquez-Chavez also faces a sentence of 20 years in prison for witness tampering.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, Prince George’s County Police Department, Montgomery County Police Department, Prince George’s County State’s Attorney’s Office, and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Ray D. McKenzie, William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Short Hills, New Jersey, Investment Manager Admits Using Ponzi Scheme to Steal More Than $675,000Read the Press Release
NEWARK, N.J. – An investment manager with an office in Short Hills, New Jersey admitted today that he fraudulently induced investments, concealed investment losses, and diverted more than $675,000 in investor money for his own use, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Moskowitz, 48, of Short Hills, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of wire fraud.
In a separate legal proceeding, the N.J. Bureau of Securities today ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.
According to documents filed in this case and statements made in court:
Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.
Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.
The count of wire fraud to which Moskowitz pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 5, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Acting Bureau Chief Amy Kopleton, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defenders, Newark
Russian Citizen Pleads Guilty for Involvement in Global Botnet ConspiracyRead the Press Release
A Russian citizen pleaded guilty today for his participation in a criminal enterprise that installed and exploited malicious computer software (malware) on tens of thousands of computer servers throughout the world to generate millions of dollars in fraudulent payments.
Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota and Assistant Director Scott Smith of the FBI’s Cyber Division made the announcement.
Maxim Senakh, 41, of Velikii Novgorod, Russia, pleaded guilty today to conspiracy to violate the Computer Fraud and Abuse Act and to commit wire fraud before U.S. District Judge Patrick J. Schlitz of the District of Minnesota. Sentencing is set for Aug. 3, 2017. Senakh was indicted on Jan. 13, 2015, and was subsequently arrested by Finnish authorities, who extradited him to the United States.
According to admissions made in connection with the plea agreement, the malware, which is known as Ebury, harvested log-on credentials from infected computer servers, allowing Senakh and his co-conspirators to create and operate a botnet comprising tens of thousands of infected servers throughout the world, including thousands in the United States. Senakh and his co-conspirators used the Ebury botnet to generate and redirect internet traffic in furtherance of various click-fraud and spam e-mail schemes, which fraudulently generated millions of dollars in revenue. As part of the plea, Senakh admitted that he supported the criminal enterprise by creating accounts with domain registrars which helped build the Ebury botnet infrastructure and personally profited from traffic generated by the Ebury botnet.
The FBI Minneapolis Field Office is investigating the case. Senior Counsels Aaron Cooper and Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kevin Ueland of the District of Minnesota are prosecuting this case. The Department of Justice extends its thanks to the government of Finland, the Bundeskriminalamt (BKA), CERT-Bund and the cyber security firm ESET. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Russian Citizen Pleads Guilty for Involvement in Global Botnet ConspiracyRead the Press Release
WASHINGTON – A Russian citizen pleaded guilty today for his participation in a criminal enterprise that installed and exploited malicious computer software (malware) on tens of thousands of computer servers throughout the world to generate millions of dollars in fraudulent payments.
Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota and Assistant Director Scott Smith of the FBI’s Cyber Division made the announcement.
MAXIM SENAKH, 41, of Velikii Novgorod, Russia, pleaded guilty today to conspiracy to violate the Computer Fraud and Abuse Act and to commit wire fraud before U.S. District Judge Patrick J. Schlitz of the District of Minnesota. Sentencing is set for August 3, 2017. SENAKH was indicted on January 13, 2015, and was subsequently arrested by Finnish authorities, who extradited him to the United States.
According to admissions made in connection with the plea agreement, the malware, which is known as Ebury, harvested log-on credentials from infected computer servers, allowing SENAKH and his co-conspirators to create and operate a botnet comprising tens of thousands of infected servers throughout the world, including thousands in the United States. SENAKH and his co-conspirators used the Ebury botnet to generate and redirect internet traffic in furtherance of various click-fraud and spam e-mail schemes, which fraudulently generated millions of dollars in revenue. As part of the plea, SENAKH admitted that he supported the criminal enterprise by creating accounts with domain registrars which helped build the Ebury botnet infrastructure and personally profited from traffic generated by the Ebury botnet.
The FBI Minneapolis Field Office is investigating the case. Senior Counsels Aaron Cooper and Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kevin Ueland of the District of Minnesota are prosecuting this case. The Department of Justice extends its thanks to the government of Finland, the Bundeskriminalamt (BKA), CERT-Bund and the cyber security firm ESET. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Defendant Information:
Maxim Senakh, 41
Velikii Novgorod, Russia
Convicted:
- Conspiracy to Violate the Computer Fraud and Abuse Act, and to Commit Wire Fraud, 1 count
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Romanian Man Pleads Guilty to Participating in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man pleaded guilty today to one count of conspiracy to commit bank and wire fraud for his participation in an international scheme involving fraudulent advertisements on online marketplaces that induced victims to send approximately $873,000 to conspirators for the purchase of various items that were not actually available for purchase, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Vlad Diaconu, 36, of Bucharest, Romania, pleaded guilty before U.S. District Judge Marvin E. Aspen of the Northern District of Illinois, who sits by designation in the Middle District of Tennessee. Diaconu was indicted in the Middle District of Tennessee in June 2015 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. Diaconu was extradited from Romania to the Middle District of Tennessee in August 2016.
In connection with his guilty plea, Diaconu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by members of the conspiracy, including Diaconu, who used false identities and fraudulent documents, including counterfeit passports. Specifically, twelve victims sent a total of $184,900 to accounts that were opened by Diaconu under the belief that they were purchasing the advertised vehicles, and other victims sent additional funds to bank accounts opened by co-conspirators. Diaconu and his co-conspirators subsequently sent the bulk of the victims’ funds to co-conspirators located overseas.
The FBI and the Tennessee Bureau of Investigation investigated the case. Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee prosecuted the case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Romanian Man Pleads Guilty to Participating in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
Vlad Diaconu, 36, of Bucharest, Romania, pleaded guilty today in U.S. District Court in Nashville, to one count of conspiracy to commit bank and wire fraud, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division. Diaconu pleaded guilty for his participation in an international scheme involving fraudulent advertisments on online marketplaces that induced victims to send approximately $873,000 to conspirators for the purchase of various items that were not actually available for purchase.
Diaconu was indicted in the Middle District of Tennessee in June 2015 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. Diaconu was extradited from Romania to the Middle District of Tennessee in August 2016.
In connection with his guilty plea, Diaconu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by members of the conspiracy, including Diaconu, who used false identities and fraudulent documents, including counterfeit passports. Specifically, twelve victims sent a total of $184,900 to accounts that were opened by Diaconu under the belief that they were purchasing the advertised vehicles, and other victims sent additional funds to bank accounts opened by co-conspirators. Diaconu and his co-conspirators subsequently sent the bulk of the victims’ funds to co-conspirators located overseas.
The FBI and the Tennessee Bureau of Investigation investigated the case. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and prosecuted the case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Rochester Man Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Woodbury, 27, of Rochester, NY, pleaded guilty to possession of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that on February 14, 2016, an FBI Agent, while working in an undercover capacity, downloaded two video files containing child pornography. Those videos included naked, prepubescent girls. The undercover agent also found several other video files utilizing the same IP address. Subsequent investigation traced the IP address to a residence at which the defendant was then living on Patrician Drive in Rochester.
On September 17, 2016, an FBI Task Force Officer (TFO), while working in an undercover capacity, also downloaded two video files containing child pornography. Those videos contained a naked, prepubescent girl and a naked, prepubescent boy engaged in sexual activity with adult men. The videos were traced to an IP address at an apartment on Spanish Trail in Rochester. When interviewed, the residents of the apartment denied any involvement with child pornography. An analysis of a tablet and laptop computer in the apartment found no indication of child pornography. Further investigation determined that the defendant, who was “pretty tech savvy,” also resided in the apartment complex on Spanish Trail.
Agents met with Woodbury who admitted that he utilized the internet at the Patrician Drive residence to download child pornography while living there in February of 2016. The defendant also admitted that he accessed his neighbor’s wireless internet to download child pornography at his current residence on Spanish Trail. An analysis of Woodbury’s cellular telephone revealed multiple videos containing prepubescent children involved in sexual activity.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for June 27, 2017, at 9:15 a.m. before Judge Siragusa.
Riverside County Man Sentenced to 20 Years in Federal Prison for Leading Bank Heist Crew that Cut through Roofs to Penetrate VaultsRead the Press Release
LOS ANGELES – A Banning man who led a group of burglars that conducted a 10-year-long series of heists targeting Southland banks by cutting through rooftops has been sentenced to 20 years in federal prison for participating in two burglaries.
Alceu Johnny Andreis, 48, of Banning, received the 240-month sentence yesterday afternoon from United States District Judge Dale S. Fischer.
In addition to the prison term, Judge Fischer ordered Andreis to pay $12,082,403 in restitution to two financial institutions, their insurance carriers and numerous safe deposit box customers.
Following a jury trial in December, Andreis was convicted of two counts of bank burglary in relation to thefts from an East West Bank branch in Rowland Heights in 2011 and a BBCN Bank branch in Diamond Bar in 2012. Andreis was sentenced to the statutory maximum sentence of 10 years for each of the burglaries.
The evidence presented at trial showed that Andreis led a crew of rooftop bank burglars for at least a decade. Andreis and his crew burglarized the victim banks after detailed and thorough planning, which included “casing” the banks, learning about the bank’s security systems, and conducting numerous “dry runs” of the heists. Prior to the actual burglaries, they cut holes in the roofs of the banks and resealed them so as not to arouse suspicion.
During the burglaries, members of the team wiped down their equipment to ensure no DNA or fingerprints were left behind, communicated via walkie-talkies, disabled the banks’ security systems, re-opened the pre-cut rooftop holes, jackhammered holes into the banks’ thick concrete vaults and rappelled down into the vaults.
Once they had access to the vaults, the burglars opened dozens of safe deposit boxes to steal cash, jewelry, coins and other valuables inside, and they took the cash inside the vaults.
During the planning and actual burglaries, Andreis and his crew had a lookout person to warn of potential witnesses or law enforcement.
Andreis “ensured that his burglary crew worked out together, drug-tested, wore identical clothing and shoes, cleaned the tools, planned the burglaries together, and evenly split the burglary proceeds,” prosecutors noted in a sentencing memorandum filed with the court.
Andreis was one of four defendants convicted in relation to the bank burglaries. The other three defendants pleaded guilty, and two have been sentenced, receiving prison terms of up to 10 years. One more defendant is pending sentencing before Judge Fischer.
In 2014, in another case involving the attempted burglary of a Citibank branch in Diamond Bar, Judge Fischer sentenced Andreis to 51 months in prison for conspiracy and attempted burglary. The 20-year sentence issued yesterday will run consecutive to the 51-month sentence.
Andreis and his co-defendants were arrested while attempting to burglarize the Citibank branch.
Judge Fischer yesterday issued an order that forfeited from Andreis two Mercedes-Benz automobiles and four Ducati motorcycles that he had purchased with cash obtained during the two burglaries.
The case against Andreis and his crew was investigated by the Los Angeles County Sheriff’s Department, which received substantial assistance from the Federal Bureau of Investigation.
This matter was prosecuted by Assistant United States Attorney Joanna M. Curtis of the Violent and Organized Crime Section and Assistant United States Attorney Christen A. Sproule of the Asset Forfeiture Section.
Pocasset Man Sentenced to Three Months for Theft in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that NAAMAN JOE MCCOY, age 27, of Pocasset, Oklahoma, was sentenced to 3 months imprisonment and 2 years of supervised release for THEFT IN INDIAN COUNTRY, in violation of Title 18, United States Code, Sections 661 and 1152.
The Indictment alleged that on or about September 13, 2016, in the Eastern District of Oklahoma, within Indian country, as defined in 18 U.S.C. § 1151, the defendant, an Indian, did take and carry away, with the intent to steal and purloin, the personal property of a non-Indian, with a value exceeding $1,000.00.
The charge arose from an investigation by the Choctaw Tribal police and the Federal Bureau of Investigation.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Special Assistant United States Attorney Shelly Harrison represented the United States.
Philadelphia Man Charged with Child PornographyRead the Press Release
James Horton, 25, of Philadelphia, Pennsylvania was charged today in a three-count Indictment accessing or attempting to access depictions of sexually explicit conduct involving minors, and receiving and distributing or attempting to receive or distribute child pornography announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 50 years incarceration, 5 years to lifetime supervised release, and $1,000,000 in fines.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Reseda Medical Clinic Sentenced to over Four Years in Federal Prison for Healthcare Scam and Tax FraudRead the Press Release
LOS ANGELES – The office manager and part-owner of a Reseda medical clinic has been sentenced to 51 months in federal prison for his role in a healthcare fraud scheme that generated millions of dollars – money that was not reported on his federal income tax returns.
Michael Huynh, 67, of Northridge, was sentenced yesterday by United States District Judge Otis D. Wright II. In addition to the prison term, Judge Wright ordered Huynh to pay just over $1.9 million in restitution to the victim insurance companies and back taxes – estimated to be nearly $950,000 – to the Internal Revenue Service.
Following a seven-day trial in September 2016, Huynh was found guilty of one count of conspiracy to commit healthcare fraud and 11 counts of filing false tax returns.
The evidence introduced at trial showed that between January 2004 and November 2009 Huynh and a pharmacist participated in a healthcare fraud scheme that billed private insurance plans for prescription medication that was never dispensed to insured patients.
Huyhn provided co-conspirator Farhad N. Dany Sharim with bogus prescriptions purportedly for patients of the medial clinic who were insured by healthcare benefit programs. Sharim, a co-owner of Century Discount Pharmacy in Reseda, then submitted false and fraudulent bills for prescription drugs that had not been dispensed to the patients. As a result, Sharim’s pharmacy received substantial payments from various health care benefit programs to which it was not entitled, and Sharim paid Huyhn more than $1.1 million.
In addition to the healthcare fraud scheme, Huynh filed false federal tax returns for tax years 2007 through 2011 that underreported the medical clinic’s gross receipts and sales by more than $1.6 million.
Sharim, 57, of Sherman Oaks, previously pleaded guilty to conspiracy to commit healthcare fraud and will be sentenced by Judge Wright on May 1.
The Federal Bureau of Investigation, IRS Criminal Investigation and the Office of Personnel Management’s Office of Inspector General investigated the case.
The case was brought by the Medicare Fraud Strike Force, which is supervised by the United States Attorney’s Office and the Department of Justice’s Fraud Section. Assistant United States Attorney Steven Arkow of the Major Frauds Section and Trial Attorney Alexis Gregorian of the Fraud Section prosecuted the case.
Owner of Car Dealership Sentenced to 37 Months in Prison for Laundering Drug and Tax Fraud ProceedsRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Raymond L. Rodriguez, Jr. (52, Tampa) to three years and one month in federal prison for money laundering. As part of his sentence, the Court also entered a money judgment in the amount of $1,751,648, which are the proceeds traceable to the offense.
Rodriguez pleaded guilty on September 21, 2015.
According to court documents, Rodriguez owned and operated Rodriguez Auto Wholesale. Between 2009 and 2013, he sold 87 vehicles for a total of $1,751,648 to individuals who paid him with proceeds from the sale of illegal narcotics and/or stolen identity refund fraud (SIRF) offenses. Rodriguez knew the funds had been illegally derived and agreed to disguise the large cash transactions from the government in a number of ways. First, he agreed to accept large cash payments for vehicles without filing Forms 8300 with the Internal Revenue Service, as required by law. He also agreed to place vehicles in the names of straw buyers so that law enforcement and other governmental entities would not be aware of the true owners of the cars or the illegal proceeds used to purchase them. Rodriguez further promised purchasers that he would keep a lien on certain vehicles, despite receiving payment in full, so that in the event those vehicles were seized by law enforcement authorities, Rodriguez could reclaim possession and return the seized cars to the purchasers or their family members.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service, with assistance from the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Oakland Man Pleads Guilty to Role in Conspiracy to Manufacture Counterfeit DrugsRead the Press Release
OAKLAND – Antoine King pleaded guilty today to his role in a conspiracy to manufacture counterfeit Xanax pills and to launder the proceeds gained by the illegal scheme, announced United States Attorney Brian J. Stretch; Drug Enforcement Administration Special Agent in Charge John J. Martin; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf; and U.S. Food and Drug Administration Office of Criminal Investigations Special Agent in Charge Lisa L. Malinowski. The Honorable Jeffrey S. White, U.S. District Judge, accepted the plea.
According to the guilty plea, King, 27, of Oakland, Calif., admitted that from October 6, 2014 through December 12, 2015, he was involved in a conspiracy with his co-defendant David Beckford and others to manufacture and distribute pills that were designed to resemble Xanax® pills as nearly as possible. King admitted that he knew his co-defendants and others obtained the components and equipment to manufacture the counterfeit Xanax pills from foreign sources. King further admitted that from October 6, 2014, through December 12, 2015, he sold counterfeit Xanax pills that were created as part of the operation.
On May 12, 2016, a federal grand jury returned a 33-count indictment charging King and four co-defendants, David Beckford, Stephan Florida, Isaiah Clayton, and Beau Sankene, with numerous crimes related to the conspiracy. For his role, King was charged with one count of conspiracy to manufacture, distribute, and possess with intent to distribute a controlled substance, in violation of 21 U.S.C. § 846; one count of conspiracy to commit international money laundering, in violation of 18 U.S.C. § 1956(h); four counts of international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(A); and one count of trafficking in a counterfeit drug, in violation of 18 U.S.C. § 2320(a)(4). Pursuant to today’s plea agreement, King pleaded guilty to violating one count each of 21 U.S.C. § 846, 18 U.S.C. § 1956(h), and 18 U.S.C. § 2320(a)(4). The maximum statutory sentence for a violation of 21 U.S.C. § 846 is 5 years, the maximum statutory sentence for a violation of 18 U.S.C. § 1956(h) is 20 years, and the maximum statutory sentence for a violation of 18 U.S.C. § 2320(a)(4) is 10 years. However, any sentence following conviction 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.
On February 9, 2017, Judge White sentenced David Beckford, 28, of Oakland, Calif., to serve 123 months in prison to be followed by a three-year period of supervised release for his role in the scheme. Judge White also ordered forfeiture of currency, firearms, ammunition, and custom jewelry. Co-defendants Stephan Florida, 27, of San Francisco, Calif., and Isaiah Clayton, 24, of Oakland, Calif., were sentenced to 14 months’ imprisonment and 36 months’ probation, respectively, for their roles in the scheme. Beau Sankene of Oakland, Calif., has pleaded guilty to crimes related to her roles in the conspiracy. A date for Sankene’s sentencing has not yet been scheduled.
Assistant U.S. Attorneys Sheila Armbrust and Marc Wolf are prosecuting the case with the assistance of Ana Guerra and Yanira Osorio. The prosecution is the result of an investigation by the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, and U.S. Food and Drug Administration Office of Criminal Investigations.
North Country Felon Sentenced for Weapons PossessionRead the Press Release
SYRACUSE, NEW YORK –James L. Archer, Sr., age 52, of Au Sable Forks, New York, was sentenced today to 46 months in prison for possessing firearms and ammunition as a felon.
The announcement was made by United States Attorney Richard S. Hartunian; United States Marshal David McNulty of the Northern District of New York; Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Clinton County Sheriff David Favro.
On August 22, 2016, members of the United States Marshals Service, ATF, and Clinton County Sheriff’s Department executed a search warrant at Archer’s residence in Ausable Forks and found 8 firearms and approximately 1,757 rounds of ammunition hidden on the property. As a result of felony sex abuse convictions, Archer was prohibited from possessing the firearms and ammunition.
Senior United States District Judge Norman A. Mordue also ordered Archer to serve 3 years of post-imprisonment supervised release.
This case was investigated by the United States Marshals Service, ATF, and the Clinton County Sherriff’s Department, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
New York Man Sentenced for Making False Statements in Connection with A Federal Sex Trafficking InvestigationRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Michael Manswell (30, Bronx, NY) to 3 years and 10 months in federal prison for making a false statement. He pleaded guilty on December 9, 2016.
According to court documents, on March 7, 2016, agents from the Federal Bureau of Investigation and the Florida Department of Law Enforcement interviewed Manswell as part of an investigation involving sex trafficking. During the interview, Manswell stated that he was friends with a particular minor, but falsely denied any type of relationship with that minor. He further stated that they had not had intimate sexual contact of any kind within the past two years. These statements were false, as Manswell and the minor had frequently engaged in sexual contact during that time, including intimate sexual relations while the minor was under the age of 18.
This case was investigated by the FBI and the FDLE. It was prosecuted by Assistant United States Attorney Ashley Washington and former Deputy Chief Assistant United States Attorney Mac D. Heavener.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nashville General Sessions Judge Charged with Attempting to Obstruct Justice Through Bribery and Witness TamperingRead the Press Release
Cason “Casey” Moreland, 59, of Nashville, Tenn., was charged today in a federal criminal complaint with attempting to obstruct justice through bribery and witness tampering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Michael Gavin, Special Agent in Charge of the Memphis Division of the FBI. Moreland is a General Sessions Court Judge in Davidson County, Tennessee.
Assistant Special Agent in Charge of the FBI, Matthew Espenshade, joined acting U.S. Attorney Smith in announcing the charges at a Noon news conference.
“The allegations set forth in the indictment set forth egregious abuses of power by a judge sitting here in Nashville,” said Acting U.S. Attorney Smith. “Such an abuse of power undermines the credibility of and destroys the public’s trust in the court system and strikes at the very essence of our judicial branch of government. Public corruption remains one of the highest priorities of the U.S. Attorney’s Office and the FBI and officials who engage in such behavior will always be thoroughly investigated and vigorously prosecuted.”
According to the complaint, on January 25, 2017, the FBI opened a criminal investigation into whether Moreland and others violated federal anti-corruption statutes, by soliciting, accepting and extorting things of value, including sexual favors and other things, from persons with whom he had close personal relationships, in return for performing official acts that benefitted those persons and their associates
The criminal complaint alleges that Moreland in fact became aware of the FBI’s investigation on February 1, 2017, when agents attempted to interview him. By that time, local media outlets had reported alleged misconduct by Moreland, including having sexual relationships with individuals, in exchange for judicial favors. These reports continued to appear in the news on a regular basis, with new allegations reported in several subsequent news reports that outlined Moreland’s relationship with Person 1. The complaint alleges that Moreland knew that Person 1 was a material witness in this investigation and that Person 1 had made statements implicating Moreland’s criminal conduct.
The complaint further alleges that beginning on or about March 1, 2017, Moreland took steps to obstruct and interfere with the federal investigation by attempting to pay Person 1 to sign an affidavit recanting prior statements about Moreland. Specifically, the complaint alleges that Moreland met with a person identified as CS-1 and devised a scheme to pay several thousand dollars to Person 1 in exchange for changing her statements about Moreland. Moreland also told CS-1 of his desire to have drugs planted on Person 1 and then orchestrate a traffic stop where the drugs would be found and Person 1 would be arrested and her credibility destroyed. Moreland later provided CS-1 with a partial tag number for Person 1’s vehicle to further the scheme.
This scheme to obstruct the investigation continued and the complaint outlines actions Moreland took to conceal his involvement, including having CS-1 purchase a burner phone in a fictitious name, to be used by Moreland when contacting CS-1. The complaint also alleges that Moreland instructed CS-1 to use another person as an intermediary when dealing with Person 1.
The complaint also alleges that on March 11, 2017, Moreland gave CS-1 an affidavit, written as though Person 1 authored it. Moreland provided CS-1 with $5100 cash and took steps to insure that his fingerprints would not be on the affidavit. Moreland also told CS-1 to get Person 1 “liquored up real good” before mentioning the affidavit. During subsequent conversations with Moreland later in the evening, CS-1 told Moreland that he had met with Person 1 and that she had flagged various portions of the affidavit that were inaccurate, but that she would agree to sign it “as-is” for an additional $1,000. Moreland agreed, and provided CS-1 with an extra $1,000 in cash later that evening.
Finally, the complaint alleges subsequent meetings and conversations between Moreland and CS-1, where further discussion of the affidavit and planning of the scheme to plant drugs on Person 1 occurred.
“The court and criminal justice system function justly only if the public has confidence in their independence and impartiality. Abuses of power like the one charged in this case erode that confidence,” said Acting Assistant Attorney General Blanco. “Our prosecutors and law enforcement partners work diligently every day to root out corruption like that charged and to ensure the public can trust our public institutions.”
“Public corruption of this nature threatens the public's confidence in our judicial system and the administration of justice,” said Matthew Espenshade, Assistant Special Agent in Charge of the FBI in Nashville.” This is why public corruption is the FBI's top criminal investigative priority. The FBI and our partner law enforcement agencies will not allow these behaviors to shake the foundations of our society.”
Moreland was arrested this morning by FBI agents and is currently in custody. He is expected to make an initial appearance before a U.S. Magistrate later this afternoon.
If convicted, Moreland faces up to 20 years’ in prison.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender and Trial Attorney Lauren Bell, of the Public Integrity Section of the Department of Justice.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Mexican Citizen Charged with Immigration ViolationRead the Press Release
PITTSBURGH - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Samuel Quib-Chub, age 28, of Mexico, as the sole defendant.
According to the indictment, on or about January 24, 2017, Quib-Chub was found in Penn Hills, Pennsylvania, after having unlawfully re-entered the United States following removal on four previous occasions.
The law provides for a maximum total sentence of two (2) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Member of DeCavalcante Crime Family Sentenced to 10 Years in Prison for Use of Interstate Facility to Commit MurderRead the Press Release
NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra was sentenced today to 120 months in prison for using a telephone to plan the murder of an organized crime rival, Acting U.S. Attorney William E. Fitzpatrick announced.
Charles Stango, 73, of Henderson, Nevada, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stango was arrested on April 14, 2015, as part of a sweep of DeCavalcante crime family members that operated in New Jersey and elsewhere. The DeCavalcante crime family was part of a nationwide criminal organization known variously as the “Mafia” and “La Cosa Nostra,” which operated through entities called “families.” The DeCavalcante family engaged in numerous criminal activities, including conspiracy to commit murder, distribution of controlled substances, prostitution, extortion, and other crimes of violence.
Stango admitted today that he used the telephone to plan the murder of a crime family rival (identified in court papers as “Victim 1”). Based on tape-recorded evidence uncovered during the investigation, Stango believed that Victim 1 had falsely held himself out to be a “made man” within the family structure. Stango refused to recognize Victim 1’s alleged new status. Stango also believed that Victim 1 had intentionally insulted a high-ranking family member, which Stango felt deserved the ultimate punishment. He offered up to $50,000 to two assassins to carry out the order. The two assassins were, in fact, undercover FBI agents. Law enforcement officials closed down the investigation to ensure Victim 1’s safety, and he was never harmed.
Six of Stango’s co-defendants, including his son, Anthony Stango, have pleaded guilty to various crimes – including distribution of significant amounts of cocaine and attempting to set up a prostitution business – to enrich the crew members and the crime family.
In addition to the prison term, Judge Walls sentenced Stango to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Acting Director Lee C. Seglem, with the investigation leading to today’s sentencing. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Media Advisory: Press Conference in Orlando on WednesdayRead the Press Release
LAW ENFORCEMENT AGENCIES TO ANNOUNCE PRISON SENTENCES IMPOSED FOR DRUG TRAFFICKERS
WHO: Acting United States Attorney W. Stephen Muldrow
Orange County Sheriff Jerry L. Demings
Assistant Special Agent in Charge Ronald Hopper, Federal Bureau of Investigation
Chad Holth, Group Supervisor, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Director Ron Stucker, Metropolitan Bureau of Investigation
WHAT: Press conference to announce the sentences imposed for individuals involved in
drug trafficking and firearms offenses.
WHEN: WEDNESDAY, March 29, 2017 at 10:30 A.M. EST
WHERE: Orange County Sheriff’s Office
Mel Martinez Auditorium
2500 West Colonial Drive
Orlando, Florida
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license).
Media may begin arriving at 10:00 A.M.
Please RSVP to [email protected] by 9:00 a.m. on Wednesday, March 29, 2017.
Maryland MS-13 Member Pleads Guilty to Federal Charges of Conspiracy and Attempted Murder in Aid of RacketeeringRead the Press Release
Greenbelt, Maryland – Celvin Eulice Ramos-Meija, a/k/a “Cadejo,” age 21, of Columbia, Maryland, pleaded guilty today to conspiracy and attempted murder in aid of racketeering related to his membership in La Mara Salvatrucha, or MS-13.
The guilty plea announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to the plea agreement, from at least 2012 until at least 2016, Ramos-Mejia was a member and associate of the Sailors Locos Salvatrucha Westside (“SLSW,” or “Sailors”) clique of MS-13. In order to maintain and increase his position in MS-13, Ramos-Mejia admitted that he and other members and associates of MS-13 conspired to murder a victim that Ramos-Mejia and his co-conspirators had identified as a “chavala.”
Specifically, on June 6, 2016, Ramos-Mejia and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia made an MS-13 sign in the face of the victim, and then he and his co-conspirators began to attack the victim. Ramos-Mejia was armed with a knife and stabbed the victim during the attack. The victim survived the attack but sustained multiple stab wounds and injuries including lacerations to his abdomen, liver, and diaphragm. The victim was hospitalized for ten days as a result of the attack.
Ramos-Mejia faces a maximum sentence of 10 years in prison each for the conspiracy, and for attempted murder in aid of racketeering. U.S. District Judge Peter J. Messitte has scheduled sentencing for June 22, 2017, at 9:30 a.m.
United States Attorney Rod J. Rosenstein and Acting Assistant Attorney General Kenneth A. Blanco commended HSI Baltimore, the Greenbelt and Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein and Mr. Blanco thanked Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan, and Trial Attorney Francesca Liquori of the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case.
MS-13 Member Pleads Guilty to Conspiring to Commit Murder in Aid of RacketeeringRead the Press Release
A Columbia, Maryland, man pleaded guilty today to his participation in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including his participation in an attempted murder.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
Celvin Eulice Ramos-Meija, aka Cadejo, 21, Ramos-Mejia pleaded guilty before U.S. District Judge Peter J. Messitte in the District of Maryland to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering. Ramos-Mejia had been detained on related Maryland state charges since June 2016. Sentencing is set for June 22, 2017.
MS-13 is a national and international gang that was formed and is headquartered in El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick, Maryland. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement, Ramos-Mejia admitted that for the purpose of maintaining and increasing his position in MS-13, he conspired with other MS-13 members to murder a victim that he and his co-conspirators had identified as a “chavala.”
Specifically, the Ramos-Mejia admitted that on June 6, 2016, he and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. The defendant made an MS-13 sign in the face of the victim, and then he and his co-conspirators began to attack the victim. The victim survived the attack, but sustained multiple stab wounds and injuries, including lacerations to his abdomen, liver and diaphragm. The victim was hospitalized for 10 days as a result of the attack.
HSI Baltimore, the Greenbelt Police Department, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case.
Lawrence, Massachusetts Man Sentenced to 57 Months in Federal Prison for Conspiring to Distribute Multiple Kilograms of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE –Acting United States Attorney John J. Farley announced today that Felix Portes, age 57, of Lawrence, Massachusetts was sentenced to serve 57 months in federal prison for conspiracy to distribute heroin.
Court documents and statements in court showed that after a lengthy investigation, law enforcement officers arrested Portes and Jonathan Cruz-Marte on March 12, 2015, after they arrived at the Rockingham Mall in Salem to sell approximately two kilograms of heroin to an individual assisting in the investigation. The investigation determined that Portes and Cruz Marte were part of a larger Lawrence-based drug trafficking organization that, over the course of several years, supplied Keene-based drug traffickers with large quantities of heroin for redistribution in and around the Keene area.
Portes previously pleaded guilty on January 15, 2016. Cruz Marte pleaded guilty on November 23, 2016, and is scheduled to be sentenced on April 11, 2017.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the heroin and fentanyl epidemic in New Hampshire by continuing to target the drug trafficking organizations that are responsible for bringing large quantities of these deadly drugs into New Hampshire. I commend the cooperative efforts that led to this significant prosecution,” said Acting United States Attorney John J. Farley.
After serving his 57-month prison sentence, Portes will be on supervised release for a period of three years.
The investigation was conducted by the following agencies: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Lafayette man sentenced to 41 months in prison for possessing a firearm after felony convictionRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Lafayette man was sentenced to 41 months in prison for possessing a pistol and ammunition after being convicted of a felony.
Damion Hamilton, 32, of Lafayette, was sentenced by U.S. District Judge Donald E. Walter on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. Hamilton was found guilty after a three-day trial that ended on October 13, 2016. Evidence admitted at trial showed that on January 19, 2016 a traffic stop was conducted on the vehicle Hamilton was driving. A search of the vehicle was conducted, and a gun safe was found on the back seat. The safe contained an FNS-40 .40 caliber pistol and ammunition. Hamilton’s DNA and fingerprints were found on the loaded magazine.
This investigation and prosecution is part of Project Safe Neighborhoods, a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and Lafayette Police Department investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Kelly P. Uebinger prosecuted the case.
Jury Convicts Carrollton Woman of $185,000 Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Carrollton, Mo., woman was convicted in federal court today of a $185,000 bank fraud scheme.
Carol Joyce Noble, 65, of Carrollton, was found guilty of two counts of bank fraud contained in an Aug. 27, 2014, federal indictment.
Evidence introduced during the trial indicated that Noble defrauded Central Trust Bank in Jefferson City, Mo., in September 2011 as part of a scheme to obtain a fraudulent $185,000 loan in order to purchase a convenience store in Stover, Mo.
As part of the scheme, Noble caused the fraudulent appraisal of her Gravois Mills, Mo., residential property in order to obtain the loan. Noble changed the physical address of the residence to an adjacent residence by altering the last digit of the house number, unbeknownst to the neighbor. Noble met the appraiser at her neighbor’s home and misrepresented to the appraiser that it was her own. The appraiser then appraised the wrong home at a value $100,000 higher than the true value of Noble’s property. Noble was found guilty of two counts of bank fraud related to the fraudulent appraisal.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about two hours before returning the guilty verdicts to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, March 27, 2017.
Under federal statutes, Noble is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lauren Kummerer. It was investigated by the FBI.
Iraqi Refugees Arrested and Charged with Immigration FraudRead the Press Release
ALEXANDRIA, Va. – Two Iraqi refugees living in Northern Virginia were arrested this morning and charged along with another individual with immigration fraud.
The defendants arrested this morning are Yousif Al Mashhandani (“Yousif”), 35, of Vienna, and Adil Hasan, 38, of Burke, who are full biological brothers. The third individual charged is Enas Ibrahim, 32, also of Burke, who is the wife of Hasan. Each are charged with attempting to obtain naturalization contrary to law. The defendants will have their initial appearance today in front of Magistrate Judge Ivan D. Davis at 2 p.m. at the federal courthouse in Alexandria.
According to the affidavit in support of the criminal complaint, on Nov. 1, 2004, a United States citizen, identified as R.H., was kidnapped in Iraq and held with other hostages for months in horrible conditions in an underground bunker. After a raid in 2005 freed the hostages, authorities detained Majid Al Mashhadani (“Majid”), who is a full biological brother of Yousif and Adil Hasan, and he admitted his complicity in the kidnapping of R.H.
According to the affidavit in support of the criminal complaint, Yousif was admitted into the United States as a refugee in 2008. In May 2013, Yousif resided in Vienna and applied for naturalization as a United States citizen. In connection with Yousif’s applications for citizenship, his fingerprints were taken. According to an FBI fingerprint specialist, analysis conducted in November 2013 determined that Yousif’s fingerprints match those found on a document at the underground bunker where forces rescued R.H. and others in Iraq in 2005.
According to the affidavit in support of the criminal complaint, Yousif, Hasan, and Ibrahim are lawful permanent residents and have applied to naturalize and become United States citizens. On various applications and forms throughout their respective immigration processes, each has provided and extensive list of family members and information of their respective family trees; however, none ever listed any reference to Majid.
According to the affidavit in support of the criminal complaint, on March 4, 2016, FBI agents interviewed Yousif, Hasan and Ibrahim. When FBI agents asked Yousif why he failed to include reference to Majid on the family tree form, Yousif said he omitted reference to Majid because, when he was a refugee, he was told by others applying for refugee status that he would not be allowed into the United States if any immediate family members had a criminal background. Hasan admitted to FBI agents that Majid was his brother, and Hasan and Ibrahim each admitted they discussed not including Majid’s name on their applications for refugee status because their connection to Majid might delay their ability to gain such status.
According to the affidavit in support of the criminal complaint, to justify his application for refugee status, Yousif reported that in 2006, while working as an anti-corruption investigator for the Iraqi Commission on Public Integrity in Iraq, he started receiving threats from a Shiite militia known as the "Al Mahdi Militia," in order to coerce Yousif to drop a particular corruption investigation. Yousif said that in May 2006 Adil was kidnapped by the Al Mahdi Militia, and only released after Yousif arranged to drop the investigation in question and helped pay a large ransom. Yousif said that after Adil was released, he reopened the corruption investigation, only to flee to Jordon in October 2006 after his parents’ house was burned down.
According to the affidavit in support of the criminal complaint, to justify his application for refugee status, Hasan provided sworn testimony that, in 2006, he had been kidnapped and tortured by members of the Al Mahdi Army and held for nearly a month. Hasan said he was released upon the payment of a ransom of $20,000. In an interview by FBI agents in April 2016, Hasan said he was threatened in Iraq on two occasions, but made no mention of being kidnapped, held hostage, and tortured for nearly a month. In a subsequent interview in October 2016, FBI agents confronted Hasan about the discrepancy in his stories and Hasan admitted to making false statements and creating his persecution story.
Each defendant faces a maximum penalty of 10 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, Acting Deputy Attorney General and U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement. The FBI’s Joint Terrorism Task Force, which includes ICE/HSI and U.S. Citizenship and Immigration Services, investigated the case. Assistant U.S. Attorneys Gordon D. Kromberg and Colleen E. Garcia are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-mj-143.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Iraqi Refugees Arrested and Charged with Immigration FraudRead the Press Release
Yousif Al Mashhandani (“Yousif”), 35, of Vienna, Virginia, and Adil Hasan, 38, of Burke, Virginia, who are full biological brothers, were arrested this morning. The third individual charged is Enas Ibrahim, 32, also of Burke, who is the wife of Hasan. Each are charged with attempting to obtain naturalization contrary to law. The defendants will have their initial appearance today in front of Magistrate Judge Ivan D. Davis at 2 p.m. at the federal courthouse in Alexandria, Virginia.
Acting Deputy Attorney General and U.S. Attorney for the Eastern District of Virginia Dana J. Boente, Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
According to the affidavit in support of the criminal complaint, on Nov. 1, 2004, a U.S. citizen, identified as R.H., was kidnapped and held with other hostages for months in horrible conditions in an underground bunker. After a raid in 2005 freed the hostages, Majid Al Mashhadani (“Majid”), who is a full biological brother of Yousif and Hasan, was detained and admitted his complicity in the kidnapping of R.H.
According to the affidavit in support of the criminal complaint, Yousif was admitted into the U.S. as a refugee in 2008. In May 2013, Yousif resided in Vienna and applied for naturalization as a U.S. citizen. In connection with Yousif’s applications for citizenship, his fingerprints were taken. According to an FBI fingerprint specialist, analysis conducted in November 2013 determined that Yousif’s fingerprints match those found on a document at the underground bunker where forces rescued R.H. and others in Iraq in 2005.
According to the affidavit in support of the criminal complaint, Yousif, Hasan and Ibrahim are lawful permanent residents and have applied to naturalize and become U.S. citizens. On various applications and forms throughout their respective immigration processes, each has provided an extensive list of family members and information of their respective family trees; however, none listed any reference to Majid.
According to the affidavit in support of the criminal complaint, on March 4, 2016, FBI agents interviewed Yousif, Hasan and Ibrahim. When FBI agents asked Yousif why he failed to include reference to Majid on the family tree form, Yousif said he omitted reference to Majid because, when he was a refugee, he was told by others applying for refugee status that he would not be allowed into the U.S. if any immediate family members had a criminal background. Hasan admitted to FBI agents that Majid was his brother. Hasan and Ibrahim each admitted they discussed not including Majid’s name on their applications for refugee status because their connection to Majid might delay their ability to gain such status.
According to the affidavit in support of the criminal complaint, to justify his application for refugee status, Yousif reported that in 2006, while working as an anti-corruption investigator for the Iraqi Commission on Public Integrity in Iraq, he started receiving threats from a Shiite militia known as the "Al Mahdi Militia," in order to coerce Yousif to drop a particular corruption investigation. Yousif said that in May 2006, Hasan was kidnapped by the Al Mahdi Militia, and was released only after Yousif arranged to drop the investigation in question and helped pay a large ransom. Yousif said that after Hasan was released, he reopened the corruption investigation, only to flee to Jordon in October 2006 after his parents’ house was burned down.
According to the affidavit in support of the criminal complaint, to justify his application for refugee status, Hasan provided sworn testimony that, in 2006, he had been kidnapped and tortured by members of the Al Mahdi Army and held for nearly a month. Hasan said he was released upon the payment of a ransom of $20,000. In an interview by FBI agents in April 2016, Hasan said he was threatened in Iraq on two occasions, but made no mention of being kidnapped, held hostage and tortured for nearly a month. In a subsequent interview in October 2016, FBI agents confronted Hasan about the discrepancy in his stories and Hasan admitted to making false statements and creating his persecution story.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court. Each defendant faces a maximum penalty of 10 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force, which includes ICE/HSI and U.S. Citizenship and Immigration Services, investigated the case. Assistant U.S. Attorneys Gordon Kromberg and Collen Garcia for the Eastern District of Virginia are prosecuting the case.
2017 03 28 Mashhadani AffidavitInmate at FCI-Berlin Sentenced for Possessing WeaponRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Jean Morales-Rivera was sentenced to 12 months and one day in federal prison after pleading guilty to possessing a prohibited object while an inmate at FCI-Berlin. The object was a homemade weapon, commonly referred to as a “shank,” made out of plastic sharpened to a point at one end with gauze wrapped around one the other end to serve as a handle or grip.
According to the facts set forth in the plea agreement and statements made at the sentencing hearing, Morales-Rivera removed an article from his waist band and threw it in a trash receptacle at the prison. A correctional officer saw Morales-Rivera throw the object into the receptacle and retrieved the weapon.
Morales-Rivera is presently serving a 93-month sentence for carjacking and using a firearm during a crime of violence. The sentence imposed by the court today is consecutive to the sentence Morales-Rivera is now serving.
The case was investigated by the staff at the Federal Bureau of Prisons at FCI-Berlin. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
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Independence Man Pleads Guilty to Providing Meth to Distribute in St. JosephRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to supplying at least five kilograms of methamphetamine to two co-conspirators to distribute in St. Joseph, Mo.
Gregory Scott Huggins, II, 31, of Independence, pleaded guilty before U.S. District Judge Beth Phillips to participating in a conspiracy to distribute methamphetamine from Jan. 1 to Sept. 10, 2015.
Co-defendants Russell Wayne Helton, 36, and Tisha Anne Woods, 32, both of St. Joseph, have also pleaded guilty to their roles in the drug-trafficking conspiracy. Woods was sentenced on Aug. 11, 2016, to four years and nine months in federal prison without parole. Helton, who also pleaded guilty to using firearms in furtherance of the drug-trafficking conspiracy, awaits sentencing.
By pleading guilty today, Huggins admitted that he supplied methamphetamine to Helton and Woods, who distributed in the St. Joseph area. Conspirators distributed a total of at least five kilograms of methamphetamine during the conspiracy.
The investigation began on Sept. 10, 2015, when law enforcement officers took Helton into custody on a parole violation warrant. Helton was in possession of a Raven Arms .25-caliber handgun. Investigators searched his vehicle and found plastic baggies that contained methamphetamine. Another baggie, containing approximately 40 grams of methamphetamine, was taken from the passenger in Helton’s vehicle, who received it from Helton and was supposed to sell it for $1,400.
Helton told investigators he had been purchasing multiple-ounce quantities of methamphetamine every day for the past three weeks. Helton said he paid $800 per ounce for the methamphetamine and that he purchased $3,000-$7,000 worth of methamphetamine (approximately 3.5 kilograms) at a time.
Woods told officers she had been making trips to Independence with Helton at least three times a week to pick up methamphetamine from Huggins. Woods made at least 16 trips with Helton and picked up an estimated total of over five kilograms methamphetamine from Huggins. She admitted that the distribution of more than 1.5 kilograms of methamphetamine could be associated with her.
Under federal statutes, Huggins is subject to a sentence of up to 20 years in federal prison without parole. Helton is subject to a sentence of up to 20 years in federal prison without parole for the drug-trafficking conspiracy, plus a mandatory minimum sentence of five years in federal prison without parole for the firearm, which must be served consecutively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force and the Drug Enforcement Administration.
Independence Man Indicted for Meth After High-Speed ChaseRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for possessing methamphetamine to distribute, following a high-speed pursuit and foot chase by Independence police officers.
George S. Schrand, Jr., 35, of Independence, was charged in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Schrand on March 13, 2017.
Today’s indictment alleges that Schrand was in possession of methamphetamine with the intent to distribute on March 13, 2017.
According to an affidavit filed in support of the original criminal complaint, an Independence police officer saw Schrand, who was driving a 1996 Ford Mustang, rev his engine and accelerate in a careless manner from the intersection of East Golf Avenue and Home Street. The officer activated the emergency equipment of his patrol vehicle and attempted to initiate a traffic stop, but Schrand refused to stop and a high-speed chase ensued.
During the chase, the affidavit says, Schrand’s vehicle reached speeds of 80-to-90 miles-per-hour throughout residential areas and on city thoroughfares. Schrand traveled into oncoming traffic and nearly collided with another vehicle before eventually being disabled by police stop sticks in Kansas City, Mo. Schrand then fled on foot with officers in pursuit. Schrand eluded officers during the pursuit by jumping over a fence near 18th Street and Bennington in Kansas City, Mo. An Independence K-9 officer discovered Schrand hiding beneath a vehicle that was parked behind a residence in the 1900 block of South Ewing Street in Kansas City, Mo.
A black backpack that Schrand dropped near the fence he jumped over was opened and searched. According to the affidavit, officers found four plastic baggies that contained a total of approximately 338 grams of methamphetamine, drug paraphernalia and eight tablets of Alprazolam (generic Valium). Officers searched Schrand during his arrest and found $20,950 and a plastic baggie that contained approximately 4.4 grams of methamphetamine.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the Independence, Mo., Police Department.
Framingham Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Framingham man pleaded guilty today in U.S. District Court in Boston to robbing two banks in Framingham.
Jalonni Tucker a/k/a Jalonni Shabazz, 36, pleaded guilty to two counts of unarmed bank robbery and is scheduled to be sentenced on July 5, 2017.
On June 21, 2016, an individual entered a branch of TD Bank in Framingham and placed a demand note on the teller’s counter indicating a robbery. The teller handed the robber cash, and the individual exited the bank. The bank’s surveillance cameras captured images of the individual, and surveillance cameras on neighboring businesses captured images of the individual driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
On July 13, 2016, an individual entered a branch of Citizens Bank in Framingham and committed a similar robbery. The bank’s exterior surveillance cameras captured images of the individual driving away in a white/silver Chrysler SUV with distinctive chrome wheels.
During the course of the investigation, law enforcement determined that the Chrysler SUV belonged to a Framingham resident and that Tucker was married to the registered owner of the vehicle. Tucker’s picture matched the surveillance camera images of the robbery suspect. On July 15, 2016, Tucker was arrested at his Framingham home.
The charging statue provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 on each robbery charge. 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, Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division and Framingham Police Chief Kenneth Ferguson made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit.
Four Plead Guilty in Marijuana Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Damarcus Hennings, 25; Shaquata Hennings, 30; Shahana Beaver, 25; and Janice Humphrey, 28, all of Buffalo, N.Y., pleaded guilty for their involvement in a marijuana and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. Demarcus Hennings, Shaquata Hennings, and Shahana Beaver each pleaded guilty to conspiracy to possess with intent to distribute marijuana and face a maximum possible sentence of five years in prison. Demarcus and Shaquata Hennings also each pleaded guilty to additional crimes. Specifically, Demarcus also pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison and a maximum of life, which must be served consecutive to any sentence imposed on his drug conviction. While Shaquata also pleaded guilty to conspiracy to commit money laundering, a crime for which she faces up to 20 years in prison. Finally, Janice Humphrey pleaded guilty to maintaining a drug involved premises, which carries a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between April 2015, and September 2015, the defendants conspired to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Charges are pending against two other defendants in this case, Dashawn Abrams and Arthur Clark. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The guilty pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Defendants Beaver and Humphrey are scheduled to be sentenced on July 11, 2017, before Judge Wolford. Sentencing for Damarcus Hennings and Shaquata Hennings will be scheduled at a later date.
Former Texas Congressman and Associate Indicted for Multi-Year Fraud SchemeRead the Press Release
HOUSTON - A former U.S. Congressman and one of his associates were indicted today for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations. Some of the funds were used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates. Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement along with Assistant Director in Charge Andrew W. Vale of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI), Houston Field Office.
Former U.S. Representative Stephen E. Stockman, 60, of Clear Lake, and the former director of special projects in Stockman’s congressional office, Jason Posey, 46, formerly of the Houston area, were charged in a 28-count superseding indictment with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering. Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds, while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation. Thomas Dodd, a former special assistant in Stockman’s congressional office, pleaded guilty to his involvement in the scheme on March 20, 2017.
According to the superseding indictment, from May 2010 to October 2014, Stockman solicited approximately $1,250,000 in donations based on false pretenses. Specifically, the indictment alleges that in 2010, Stockman diverted a significant portion of $285,000 donated to charitable causes to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The indictment further alleges that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.
Shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd allegedly used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman allegedly used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
The superseding indictment further alleges that in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a mass-mailing project attacking Stockman’s opponent. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses, according to the charges.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Texas Congressman and Associate Indicted for Multi-Year Fraud SchemeRead the Press Release
A former U.S. Congressman and one of his associates were indicted today for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations. Some of the funds were allegedly used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Assistant Director in Charge Andrew W. Vale of the FBI's Washington Field Office and Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (CI) Houston Field Office made the announcement.
Former U.S. Representative Stephen E. Stockman, 60, of Clear Lake, Texas, and the former director of special projects in Stockman’s congressional office, Jason Posey, 46, formerly of the Houston, Texas, area, were charged in a 28-count superseding indictment with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering. Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds, while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation. Thomas Dodd, a former special assistant in Stockman’s congressional office, pleaded guilty to his involvement in the scheme on March 20, 2017.
According to the superseding indictment, from May 2010 to October 2014, Stockman solicited approximately $1,250,000 in donations based on false pretenses. Specifically, the indictment alleges that in 2010, Stockman diverted a significant portion of $285,000 donated to charitable causes to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The indictment further alleges that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign.Shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd allegedly used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman allegedly used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.
The superseding indictment further alleges that, in connection with Stockman’s Senate campaign, Posey used a nonprofit entity to secure a $450,571 donation in order to fund a mass-mailing project attacking Stockman’s opponent. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses, according to the charges.
The charges and allegations contained in the superseding indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI and IRS-CI conducted the investigation. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.
Former St. Peters Mayor Pleads Guilty to Federal Fraud ChargesRead the Press Release
St. Louis, MO – Shawn Brown pled guilty to one charge of mail fraud. Brown appeared today before United States District Judge Ronnie L. White. Sentencing is set for June 29, 2017.
According to court documents, at some time in 2008, Shawn Brown (“Brown”) contacted M.S. to discuss purchasing Midwest Environmental, a company that focused on mold and asbestos removal, air duct cleaning and other property clean up. Brown and M.S. agreed that Brown would run the day to day operation of the company. Brown’s responsibility included making bids, accepting and depositing payments and paying various operating expenses.
From 2008 until April 2014, Brown spoke with M.S. monthly and informed him generally of the company’s financial well-being. In April 2014, Brown began suffering from a health issue and was unable to work for a period of time. In Brown’s absence, M.S. reviewed NUTECH’s financials. Upon review, M.S. discovered numerous charges on the company’s bank account statements for purchases made by Brown for his personal use and benefit from April 2011 through May 2014.
It was determined that Brown stole $65,054 of NUTECH’s money for his own personal use and benefit.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
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Former Commercial Supply Company Employee Charged with Fraud, Corruption, and Giving False TestimonyRead the Press Release
NEWARK, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey company that sold commercial and industrial products to numerous public and private entities, was charged today with defrauding Bayway Lumber customers and knowingly making false statements before a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 43, of South River, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of corruptly giving valuable items to agents of entities receiving federal funds, and one count of providing false testimony to a federal grand jury. He was arrested this morning by federal agents and is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment:
From 2011 through 2013, Martignetti allegedly conspired with others to defraud certain customers by fraudulently billing them for free items given to the customers’ employees and by fraudulently providing lower-quality products than what was actually purchased.
Martignetti gave a variety of valuable items to employees of Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, President and partial owner of Bayway Lumber, Martignetti overbilled those customer entities to recover the gifts’ costs and generate additional revenue. Dattilo even kept a running tally of how much Martignetti and others fraudulently billed those customer entities – which many at Bayway Lumber referred to as the “Bank” – to ensure that Bayway Lumber recovered the full cost of the free items.
Martignetti also participated in a product substitution fraud in which Bayway Lumber supplied lower quality products than what was actually ordered and paid for. When Consolidated Edison Company of New York Inc. (ConEdison) ordered plywood that was graded to meet certain specifications, Martignetti, at Dattilo’s instruction, routinely sent lower grade or ungraded plywood, all while still charging ConEdison for the higher quality plywood.
While appearing as a witness under oath before a federal grand jury in March 2013, Martignetti falsely testified that he had never given free Bayway Lumber items to City of Elizabeth employees and that Elizabeth was never charged for items that were for the employees’ personal use.
The conspiracy to commit wire fraud count carries a maximum potential penalty of 20 years in prison. Each charge of corruptly giving valuable items to agents of federally-funded entities carries a maximum potential penalty of 10 years in prison. The knowingly making false statements before a grand jury count carries a maximum penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced to 48 months in prison and ordered to pay restitution of $708,386 in July 2016.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Inspector General Thomas Howard; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s arrest. He also thanked the Department of Education Office of Inspector General, under the direction of Special Agent in Charge Brian Hickey, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Deputy Chief Barbara R. Llanes of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Michael A. Armstrong Esq., Willingboro
Former Atlantic County, New Jersey, Man Charged with Smuggling and Dispensing Misbranded DrugsRead the Press Release
CAMDEN, N.J. – A former Atlantic County, New Jersey, man charged in connection with a scheme to smuggle misbranded drugs into the country and dispense drugs without a valid prescription will make his initial court appearance today, Acting U.S. Attorney William E. Fitzpatrick announced.
Merwin Marc Snyder, 64, formerly of Egg Harbor Township, New Jersey, is charged by indictment with one count of conspiracy, three counts of smuggling of misbranded drugs, one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. He will then be arraigned before U.S. District Judge Noel L. Hillman.
Snyder was located in China’s Jiangsu Sheng Province earlier in the month and deported back to the United States to face the pending charges. He was indicted by a federal grand jury in Camden on Dec. 9, 2015.
According to documents filed in this case and statements made in court:
The U.S. Food and Drug Administration (FDA) is responsible for protecting the health and safety of the American public by enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.
Between May 7, 2010, through July 25, 2013, Snyder allegedly received by mail from India various parcels that were accompanied by incomplete or misleading U.S. Customs declarations. The parcels contained prescription drugs, including unapproved generics that contained the active ingredients in the popular brand-name drugs Viagra, Cialis, and Levitra, as well as unapproved Mifepristone and Misoprostol. Snyder then repackaged these wholesale quantities of drugs into smaller amounts and dispensed them to consumers. Snyder did not seek FDA approval to market these drugs nor was he licensed as a pharmacist in the State of New Jersey or otherwise authorized to prescribe or dispense prescription drugs. The parcels Snyder shipped through the U.S. Postal Service contained misbranded drugs that did not bear the FDA-approved labeling.
Snyder allegedly caused to be shipped 27 parcels addressed to him in Egg Harbor that contained more than 25,000 tablets of unapproved generic drugs containing Tadalifil (active ingredient in Cialis) and 28,000 tablets of Sildenafil Citrate (active ingredient in Viagra).
The conspiracy count carries a maximum potential penalty of up to five years in prison. The three counts of smuggling each carry a carry a maximum potential penalty of up to 20 years in prison; one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce each carry a maximum potential penalty of up to three years in prison. All counts carry a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, New Jersey; special agents of the Food and Drug Administration, under the direction of Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to the indictment.
The government is represented by Special Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Lisa Lewis Esq., Camden
Five Admit Robbing the Amarillo Education Credit UnionRead the Press Release
AMARILLO, Texas — Five defendants appeared in federal court and admitted robbing the Education Credit Union in Amarillo, Texas on September 23, 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Leonard Jovon Coulter, 29, and Raul Garcia, 28, each pleaded guilty to one count of credit union robbery, and one count of using and carrying a firearm during and in relation to a crime of violence. The robbery count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The firearms offense carries a mandatory seven-year penalty and a $250,000 fine. Sentencing for Coulter and Garcia is set for July 11, 2017.
Richard Charles Cunningham, Jr., 39, and Desire Valverde, 23, also each pleaded guilty to one count of credit union robbery. Sentencing for Cunningham is set for July 10, 2017. Sentencing for Valverde is set for July 11, 2017.
Keli Edwards, 35, pleaded guilty to one count of misprision of a felony. This count carries a maximum statutory penalty of 3 years in federal prison and a $250,000 fine. Sentencing for Edwards is also set for July 10, 2017.
According to the plea documents, on September 23, 2016, Coulter and Cunningham Jr. entered the Education Credit Union located at 1801 FM 2381, Amarillo, Texas. Coulter approached the teller counter, pointed a firearm at the teller, and told the teller to give him all her money in the drawer. Coulter told the teller to not do or push anything or he would shoot her. The teller told Coulter the drawers were locked. Coulter jumped the counter, pressed the firearm in the teller’s back, and told the teller to hurry. Coulter got money out of the teller’s drawer, and then he demanded access to the vault. The teller stated she could not access the vault.
The manager was then ordered to come and open the vault. After Coulter took the money from the vault, the tellers and manager were ordered to the ground. Coulter and Cunningham exited the Credit Union with approximately $60,067.
The Federal Bureau of Investigation (FBI) and Potter County Sheriff’s office investigated the robbery. Agents learned through their investigation that Garcia was a get-a-way driver and planned this robbery with Coulter and Cunningham. Later, agents stopped Garcia in his pickup and located $5,020 in United States Currency packaged in Education Credit Union bank bands. Agents also recovered two firearms in Garcia’s vehicle, including the firearm Coulter used during the robbery.
Agents conducted a search warrant on Garcia’s residence. Agents located a backpack that had $23,890 in United States Currency, and some of the bills were packaged with Education Credit Union bank bands.
Later, FBI agents learned that Garcia and Coulter were involved in another Education Credit Union Robbery on May 25, 2016. Agents learned through their investigation that Valverde, an employee of Education Credit Union at the time, helped Garcia plan both robberies by providing Garcia information of how and when to commit each robbery. FBI agents discovered that Valverde was in contact with Garcia by phone during each robbery. On May 25, 2016, Valverde was working as a teller and gave Coulter money from her drawer. Garcia paid Valverde a portion of the money taken from the Education Credit Union robbery on May 25, 2016, for her help.
According to plea documents filed in Edwards’ case, Edwards was Coulter’s girlfriend and was watching out for law enforcement on September 23, 2016, when Coulter and Cunningham entered the Credit Union to commit the robbery. Edwards drove Cunningham away from the Credit Union after the robbery to Garcia’s vehicle. Cunningham, Coulter, and Garcia met at Edwards’ residence prior to the robbery and discussed committing the robbery.
The FBI, Amarillo Police Department, the Potter County District Attorney’s Office and the Potter County Sheriff’s Department investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Federal Judge in Del Rio Sentences Man to 6 1/2 Years Imprisonment for Firearms Smuggling OperationRead the Press Release
In Del Rio today, United States District Judge Alia Moses sentenced 49–year-old ringleader Eduardo Hinojosa (aka “Lalo”), a U.S. Citizen residing in Piedras Negras, Mexico, to 78 months in federal prison for attempting to smuggle firearms and an assortment of ammunition from the U.S. into Mexico announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison term, Judge Moses ordered Hinojosa to pay a $3,000 fine and to be placed on supervised release for a period of three years after completing his prison term.
On September 21, 2016, a federal jury convicted Hinojosa of four counts of aiding and abetting the smuggling of goods from the U.S. and one count of providing a firearm to a prohibited person. Evidence presented at trial revealed that Hinojosa and three Mexican citizens residing in Piedras Negras were involved in a firearms smuggling scheme for profit. Prior to jury selection, Hinojosa’s co-defendants 43-year-old Carlos Mendoza-Hernandez (aka “Pepo”) and 26–year-old Gily Ajin-Cordova pleaded guilty to one count of possession of a firearm by a prohibited person; and, 25-year-old Elizabeth Cervantes-Mateos pleaded guilty to one count of aiding and abetting the smuggling of goods from the U.S. All three were sentenced to one year in federal prison.
According to testimony and court records, on April 7, 2015, investigators observed Hinojosa loading ammunition and firearms into a vehicle at an Eagle Pass business owned by Mendoza’s family. Authorities subsequently seized a .243 caliber rifle, a 12-gauge shotgun and approximately 1,000 rounds of ammunition in various calibers from inside that vehicle. At the time of the seizure, authorities arrested the vehicle’s occupants--Cervantes and Ajin. Agents later observed defendants Hinojosa and Mendez unloading boxes into a storage facility in Eagle Pass. Subsequently, authorities arrested Hinojosa and Mendez and a consensual search of that storage facility revealed approximately 750 rounds of shotgun shells. Testimony also revealed that the defendants were aware that the firearms and ammunition were ultimately destined for Mexico and that the defendants were aware that it is unlawful to export those items without a license.
The case was investigated by Homeland Security Investigations with assistance from U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms and Explosives; and, the Maverick County Sheriff’s Office. Assistant U.S. Attorneys Lewis Thomas and Dan Lee prosecuted this case on behalf of the Government.
Essex County, New Jersey, Man Admits Defrauding Investors Out of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man today admitted fraudulently using over $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Esposito, 45, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of wire fraud.
According to the documents filed in this case and statements made in court:
From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito admitted that he told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.
In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito admitted that he used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 20, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
Deutsche Bank’s London Subsidiary Sentenced for Manipulation of LIBORRead the Press Release
DB Group Services (UK) Limited (DBGS), a wholly owned subsidiary of Deutsche Bank AG (Deutsche Bank), was sentenced today for its role in manipulating London Interbank Offered Rates (LIBOR) for U.S. Dollar and several other currencies. LIBOR is a leading benchmark used in financial products and transactions around the world.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.
DBGS was sentenced by U.S. District Judge Stefan R. Underhill of the District of Connecticut. DBGS pleaded guilty on April 23, 2015, to one count of wire fraud for its role in manipulating LIBOR benchmark interest rates. DBGS signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $150 million fine, which the court accepted in imposing today’s sentence. In addition, Deutsche Bank, the Frankfurt, Germany-based parent company of DBGS, entered into a deferred prosecution agreement (DPA) with the Justice Department requiring Deutsche Bank to pay an additional $625 million criminal penalty, to admit and accept responsibility for its misconduct and to continue cooperating with the Justice Department in its ongoing investigation. The DPA also requires Deutsche Bank to retain a corporate monitor for three years.
Together with approximately $1.744 billion in regulatory penalties and disgorgement – $800 million as a result of a Commodity Futures Trading Commission (CFTC) action, $600 million as a result of a New York Department of Financial Services (DFS) action and $344 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of penalties to approximately $2.519 billion.
According to the plea agreement, from at least 2003 through early 2010, numerous Deutsche Bank derivatives traders – whose compensation was directly connected to their success in trading financial products tied to LIBOR – engaged in efforts, many times in conjunction with other banks, to move these benchmark rates in a direction favorable to their trading positions. Specifically, the derivatives traders requested that LIBOR submitters at Deutsche Bank and other banks submit contributions favorable to trading positions, rather than the accurate rates that complied with the definition of LIBOR. Through these schemes, Deutsche Bank defrauded counterparties who were unaware of the manipulation. Deutsche Bank admitted that its fraudulent LIBOR submissions did, in fact, affect the resulting LIBOR fix on multiple occasions.
The FBI’s Washington Field Office is conducting the investigation. Trial Attorneys Alison Anderson and Richard Powers of the Criminal Division’s Fraud Section and Trial Attorney Michael Koenig of the Antitrust Division are prosecuting the case. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the Justice Department and, along with the FCA, has played a major role in the investigation. The Justice Department is also grateful for the Securities and Exchange Commission’s significant role in the LIBOR investigation, as well as the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.
Convicted Felon Sentenced on Drug and Firearm ChargesRead the Press Release
BOSTON – A Southbridge man was sentenced today in U.S. District Court in Worcester in connection with being a felon in possession of a firearm, distributing drugs and attempted money laundering.
Alehandros Medina, 25, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. In October 2016, Medina pleaded guilty to distribution of cocaine, ketamine, MDMA (commonly referred to as ecstasy) and Methylone; being a felon in possession of a firearm; and attempted money laundering.
On several occasions between November 2014 and October 2015, Medina sold cocaine, MDMA, Methylone, and ketamine to an undercover federal agent, while on state probation for multiple charges of possession with intent to distribute controlled substances.
In August 2015, Medina traveled to Oregon and was stopped by police who confiscated approximately $22,000 from Medina that he intended to use to purchase marijuana. In October 2015, federal agents arrested Medina in Southbridge as he was delivering cocaine to an undercover agent. Later that day, agents seized cocaine and a loaded .38 caliber revolver from Medina’s residence.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Convicted Felon Sentenced to More Than Six Years for Possessing Firearms and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Vaughn Matthews (25, St. Petersburg) to six years and six months in federal prison for possessing firearms in furtherance of a drug trafficking crime and for possessing firearms and ammunition as a convicted felon. He pleaded guilty on December 22, 2016.
According to court documents, law enforcement officers executed a search warrant at Matthews’s residence on March 23, 2016. During the search, officers recovered over 20 pounds of marijuana, 3 firearms, more than 50 rounds of assorted ammunition, and over $86,000 in cash. Further investigation revealed that Matthews had been working with individuals in California and had trafficked at least 50 packages of marijuana into Florida via the mail. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the St. Petersburg Police Department, and the U.S. Postal Service. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Christiansburg Pair Plead Guilty to Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Christiansburg residents pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke to Federal Drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Timothy Wayne Radford, 49 and Melissa Dawn Lytton, 45, each pled guilty yesterday to conspiracy charges. Radford pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Lytton pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine.
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Ashley B. Neese, Radford and Lytton admitted today to being involved in a conspiracy to distribute methamphetamine since at least late 2015 and continuing through March 2016.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Floyd County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Burlington Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Burlington man pleaded guilty yesterday in U.S. District Court in Boston to trafficking three women for sex and threatening them with violence.
“Sex trafficking is a deplorable crime which steals the dignity of young, vulnerable victims,” said Acting U.S. Attorney William D. Weinreb. “Individuals who seek to profit from the trafficking and abuse of others, and to enforce their will with violence, have no place walking the streets and preying on victims.”
“Barry Davis’ victims can never regain what was taken from them when they were forced into a life of sexual slavery,” said Special Agent in Charge Matthew Etre of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Boston. “But they can perhaps take some small comfort in knowing Davis is facing a significant sentence for his crimes. HSI has a long history of victim-centric support and will continue to provide victim assistance to these women. Further, HSI is proud of the work we’ve jointly accomplished in this matter with our law enforcement partners across New England.”
“I want to commend the work of the Boston Police Human Trafficking Unit and all the law enforcement agencies involved with this case,” said Boston Police Commissioner William Evans. “Together we are committed to ending the sexual exploitation of vulnerable young women who are victimized by predators like this defendant. Prostitution is not a victimless crime. We will continue to target those who engage in this type of criminal behavior.”
“The United States Marshals Service is dedicated to assisting our law enforcement partners with bringing violent offenders like Barry Davis to justice,” said U.S. Marshal John Gibbons for the District of Massachusetts. “We remain committed to doing our part to support victims of these heinous crimes.”
Barry Davis, 38, pleaded guilty to three counts of sex trafficking by force, fraud, and coercion and three counts of interstate transportation with intent to engage in prostitution. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for August 8, 2017.
In April 2015, Davis met a young woman at a driving instructing class and enticed her to leave with him by promising to take care of her and provide a steady supply of heroin. Davis drove her to New Jersey, rented a hotel room, posted an advertisement for sex with her online, and took the money she made having sex with men who responded to the ad. Davis used heroin to coerce the woman, and punched her in the head and threatened her with further harm if she did not follow his rules and prostitute for him.
In August 2015, Davis perpetrated a similar scheme after he picked up two young women from a heroin detox center and drove them to Connecticut. There, he rented a hotel room, posted online advertisements for sex with the women, and took the money they made having sex with men who responded to the ads. Davis used heroin to coerce the women to prostitute for him. Davis also hit one of the women for breaking one of his prostitution rules and threatened to beat the other woman if she did not make enough money prostituting for him.
Each charge of sex trafficking by force, fraud, and coercion provides for a mandatory minimum sentence of 15 years and up to a lifetime in prison, five years of supervised release, and a fine of $250,000. Each charge of interstate transportation of an individual with the intent to engage in prostitution provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. If the Court accepts the plea agreement, Davis will be sentenced to between 15 and 20 years in prison. 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, HSI SAC Etre, Boston Police Commissioner Evans, and U.S. Marshal Gibbons, made the announcement today. Assistance was provided by the Boston Police Department’s Human Trafficking Unit and the Lawrence, Salem, Burlington, Milford (Conn.), and Franklin Township (NJ) Police Departments. Assistant U.S. Attorneys Leah Foley and Kelly Lawrence of Weinreb’s Civil Rights Enforcement Team are prosecuting the case.
Buffalo Man Pleads Guilty in Connection with Drug Trafficking Ring Linked to A Mexican Drug CartelRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bryant Hudson pleaded guilty to structuring transactions before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 10 years in prison and a $500,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that the defendant was charged in an indictment along with six others in connection with a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of the Los Angeles, California area. The organization shipped drug packages to various states including New York, New Jersey, Illinois, and Colorado.
Hudson assisted in the depositing of drug proceeds in accounts at Bank of America branches in the Buffalo area in order to move the proceeds from Buffalo to California and avoid detection. The money was deposited in amounts just under $10,000, a practice known as structuring. Deposits of $10,000 or more require the bank to report the transaction. There were also deposits in bank branches across the country made by other defendants. The total amount of money deposited in this fashion reached more than $10,000,000. Local deposits totaled over $1,000,000 and involved at least 120 transactions.
Hudson is the first to be convicted in this case. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California.
Sentencing is scheduled for July 11, 2017, at 10:00 a.m. before Judge Wolford.
Bixby and Glenpool Men Sentenced to 60 Months for ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GARRETT LEE RAYNOR, age 19, of Bixby, Oklahoma, and JOSHUA SCOTT COPPEDGE, age 19, of Glenpool, Oklahoma, were each sentenced to 60 months imprisonment and 1 year of supervised release for one count of ARSON, in violation of Title 18, United States Code, Sections 844(f)(1) and 2.
The Indictment alleged that on or about August 23, 2016, within the Eastern District of Oklahoma, the defendants, maliciously damaged, destroyed, and attempted to damage and destroy, by means of fire, a 2010 Bluebird school bus, owned by the Twin Hills School District, an institution receiving Federal financial assistance.
The charges arose from an investigation by the Okmulgee County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. COPPEDGE will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served. RAYNOR will remain in an in-patient treatment facility until April 27, 2017, and then will report to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.