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10 May 2017
Harrisburg Man Indicted for Drug and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Milton Mosley, age 45, of Harrisburg, Pennsylvania, was indicted today by a federal grand jury for possession with intent to distribute crack, possession of a handgun by a convicted felon, and possession of a firearm in furtherance of drug trafficking.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Mosley was arrested by Harrisburg Police Officers on January 4, 2017, in the Allison Hill section of Harrisburg. The officers found crack on Mosley’s person and also found a .380 caliber Taurus handgun in his possession. The indictment also alleges that Mosley is a convicted felon, making it illegal for him to possess a firearm.
The matter was investigated by the Harrisburg Police Department along with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for this offense is up to life in prison, 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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Guinea Man Indicted on Conspiracy to Use Fraudulent Credit Cards and Failure to Appear in CourtRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Elhadj Barry, age 32, a resident alien originally from Guinea, was indicted on May 9, 2017, by a federal grand jury for conspiracy to use fraudulent credit cards and failure to appear in court.
According to United States Attorney Bruce D. Brandler, the indictment alleges that in or about September 2008, Barry conspired with other individuals to obtain stolen credit card numbers. Those credit card numbers were then electronically loaded onto gift cards and used to make purchases at Toys R Us in Wyomissing and multiple Walmart stores. Barry also failed to appear at a jury trial scheduled for August 31, 2009. Barry was a fugitive until he was arrested on December 1, 2016.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each offense is five years of 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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Four Texas Men Indicted on Federal Hate Crime and Conspiracy Charges for Assaults Based on Victims’ Sexual OrientationRead the Press Release
A federal grand jury returned an eighteen-count superseding indictment against Anthony Shelton, 19; Nigel Garrett, 21; Chancler Encalade, 20; and Cameron Ajiduah, 18, charging them with conspiring to cause bodily injury to persons because of the sexual orientation of those persons, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the indictment, from Jan. 17 to Feb. 7, 2017, the defendants committed home invasions in Plano, Frisco, and Aubrey, Texas. For each of the four home invasions, the defendants used Grindr, a social media dating platform for gay men, to falsely identify as a gay man and arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants assaulted the victim, restrained the victim with tape, and made derogatory statements about the victim being gay. The defendants possessed a firearm during each home invasion, and they stole the victim’s property, including his motor vehicle.
For these crimes, the defendants have been charged with conspiracy, kidnapping, carjacking and possession of a firearm in furtherance of these crimes. The hate crime counts carry a maximum statutory penalty of life in prison and a $250,000 fine.
An indictment merely establishes probable cause, and the defendants are presumed innocent unless proven guilty.
The investigation is being conducted by the ATF, the Plano Police Department and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office of the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Four Indicted in Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Tuesday returned an indictment charging four individuals with participating in a conspiracy to possess with the intent to distribute more than a kilogram of cocaine. It is alleged that the cocaine was shipped to Rhode Island from Puerto Rico via the U.S. Postal Service in small quantities in an effort to avoid detection by law enforcement.
It is alleged in court documents that a steady stream of U.S. Postal Service Priority Mail parcels containing small amounts of cocaine were shipped from San Juan, PR, to the defendants at various addresses and P.O. Boxes in several Rhode Island communities. An investigation by U.S. Postal Service Inspection Service determined that return addresses on most of the packages were actual addresses in San Juan, PR, but that the name of senders were not associated with the addresses.
Acting United States Attorney Stephen G. Dambruch and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, announce the indictment of Maritza Torres, 40, Jose Martinez, 54, and Hector Martinez-Garcia, 55, all of Providence, and Jeanlee Figueroa-Hernandez 21, of Central Falls, on charges of conspiracy to possess more than one kilogram of cocaine and possession with the intent to distribute more than one kilogram of cocaine.
The defendants, previously detained on federal criminal complaints brought as a result of the investigation of the alleged conspiracy, are currently released on $10,000 unsecured bond. Arraignment dates have not yet been scheduled by the court.
According to court documents, it is alleged that in August 2016, U.S. Postal Inspectors discovered a Priority Mail parcel at the Providence Post Office shipped from San Juan, PR, which was found to have many characteristics of a parcel containing narcotics that had been sealed and addressed in a way as to avoid detection by law enforcement. The investigation, including the use of a Cranston Police Department narcotics detection K-9, allegedly confirmed the presence of narcotics inside the package.
It is alleged in court documents that since August 2016, Postal Inspectors tracked dozens of similar packages, which arrived at the Providence Post Office, most originating from the same neighborhood in San Juan, PR, for delivery in Rhode Island. Some of the packages were addressed to PO Boxes and were claimed at the post office. Other packages were addressed for delivery at various addresses. It is alleged that most of the deliveries were retrieved or accepted by the defendants or others associated with them.
A search of Postal Service databases by Postal Service inspectors revealed that 195 Priority Mail envelopes weighing approximately one pound, shipped within a couple of weeks of each other, and shipped from the same return address in San Juan, PR, have arrived in Rhode Island.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Rhode Island State Police High Intensity Drug Trafficking Area Task Force, the Newport and Cranston Police Departments, and the DEA for their assistance in the investigation of this matter.
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Fort Wayne Man Sentenced to 170 MonthsRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Freddie L. Church, 39, of Fort Wayne, Indiana was sentenced before Chief District Court Judge Theresa Springmann for a Hobbs Act Robbery and carrying a firearm in relation to a crime of violence.
Church was sentenced to a total of 170 months imprisonment and a term of supervised release of 2 years.
According to documents in this case, law enforcement officers learned of a plot to rob a bank and were able to prevent the armed robbery from occurring. Church was a leader of a robbery crew which included three other men and a woman. The group planned to rob the Marion credit union at gunpoint and restrain employees and customers in the process, but the suspects were instead arrested.
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of the Federal Bureau of Investigation, the Indiana State Police, the Allen County Police Department, and the Fort Wayne Police Department. The task force was also assisted by the Marion Police Department and the Grant County Sheriff’s Department. This case was handled by Assistant United States Attorney Anthony W. Geller.
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Former Pacifica Bookkeeper Charged with Bank FraudRead the Press Release
SAN FRANCISCO - Krisinda Messer, aka Krisinda Garay, pleaded guilty in federal court in San Francisco today to bank fraud, announced United States Attorney Brian J. Stretch and Michael T. Batdorf, Special Agent in Charge Internal Revenue Service. The plea was accepted by the Honorable Charles R. Breyer, U.S. District Judge, in San Francisco.
In pleading guilty, Messer, 37, of Pacifica, admitted she was employed as a bookkeeper by delicatessens in San Francisco from 2007 to 2011. Beginning in May 2008, and continuing through August 2011, Messer created 130 fraudulent checks totaling $436,396.52, all but two of which she made payable to her father’s company, American Backflow Company (“ABC”). Messer acknowledged ABC was not a creditor of the delicatessens and there was no business relationship between them. Messer also admitted she forged the signature of the delicatessens’ owner on most of the checks. Additionally, in order to conceal these checks from her employers, Messer created a fake company account on QuickBooks and used the fake company to produce checks written to ABC so that they would not appear in the books. Messer also admitted she did not report the income on her federal income tax returns for 2008 through 2011, inclusive.
A federal grand jury indicted Messer on May 12, 2015. She was charged with 12 counts of bank fraud, in violation of 18 U.S.C. § 1344(2); four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1); and three counts of subscribing to false tax returns, in violation of 26 U.S.C. § 7206(1). Under today’s plea agreement, Messer pleaded guilty to one count of bank fraud and the remaining counts will be dismissed.
Messer was released on a $50,000 bond. Judge Breyer scheduled Messer’s sentencing for October 17, 2017, at 10:00 a.m. The maximum statutory penalty for the bank fraud violation is 30 years in prison and a fine of $1,000,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Former California Deputy Sheriff Convicted on Drug Trafficking and Federal Firearms OffenseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher Mark Heath, 38, a former deputy sheriff of the Yuba County Sheriff’s Office, California, was convicted of possession of a firearm in furtherance of drug trafficking, conspiracy to manufacture and distribute 100 kilograms of
marijuana, conspiracy to launder drug proceeds and an additional drug trafficking count after a two-day jury trial in Harrisburg before U.S. District Court Judge Yvette Kane. Heath engaged in a conspiracy that trafficked hundreds of pounds of marijuana between Northern California, Florida and York County, Pennsylvania.
According to United States Attorney Bruce D. Brandler, the jury returned with a verdict of guilty after less than two hours of deliberation. Following the entry of the verdict, U.S. District Court Judge Yvette Kane remanded Heath to the custody of the U.S. Marshals, at the request of the U.S. Attorney’s Office. Heath and his co-defendants, who previously pleaded guilty, participated in a conspiracy that began in approximately September 2014 and continued to January 7, 2016. During this time, Heath was a deputy sheriff in Yuba County, California, assigned as a narcotics investigator but has since resigned. Heath and his co-defendants grew marijuana on property in Oroville, CA, and shipped it through the United States Postal Service to several locations, including post office boxes in York and Lancaster, Pennsylvania, as well as to a home address in the Hanover area. Money to purchase additional marijuana was mailed from the York County, PA area to Bangor, California.
In December 2015, Heath and his co-conspirators traveled from California to York County in two vehicles, transporting 89.5 kilograms of marijuana worth just under half a million dollars. Heath’s truck contained the entire quantity of marijuana as well as a loaded Glock firearm and his deputy sheriff’s badge. When Heath and his co-conspirators arrived to deliver the marijuana in York County, they were arrested by the York County Drug Task Force and Penn Township Police Department.
Heath has additional firearms charges pending in Butte County, California.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, the York County Drug Task Force, Penn Township Police Department, the Butte County Sheriff’s Department (California), the United States Postal Inspection Service and the United States Postal Service Office of Inspector General. Assistant United States Attorneys Meredith A. Taylor and Joseph J. Terz are prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the offense of possessing a firearm in furtherance of drug trafficking is life imprisonment and includes a mandatory minimum sentence of five years imprisonment, which must be served consecutively to any other sentence imposed. The maximum penalty for conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute 100 kilograms and more of marijuana is 40 years’ imprisonment and carries a mandatory minimum sentence of five years’ imprisonment. The maximum penalty for conspiracy to commit money laundering is 20 years’ imprisonment. The count of manufacture, distribution and possession with intent to manufacture and distribute marijuana carries a maximum term of imprisonment of 20 years.
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 indicate of the potential sentence for a specific defendant.
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Florida Man Pleads Guilty to Conspiracy and Tax Offenses Stemming from Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM LIEBERMAN, 41, of Boca Raton, Florida, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiracy and tax offenses stemming from his role in a securities fraud scheme.
According to court documents and statements made in court, between approximately 2010 and July 2016, LIEBERMAN conspired with others, including Christian Meissenn of Connecticut, to defraud investors through a stock “pump and dump” scheme. LIEBERMAN and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); Dolat Ventures, Inc. (stock symbol “DOLV”), and Fox Petroleum, Inc. (stock symbol “FXPT”).
At various times, LIEBERMAN served as the Chief Executive Officer, Chairman of the Board, President, Secretary, and Treasurer of Mammoth Energy Group, Inc.; the President, Chief Executive officer, and Chairman of the Board of Strategic Asset Leasing Inc.; the President, Chief Accounting Officer, Chief Executive Officer, Chief Financial Officer, Secretary, and Treasurer of Fox Petroleum, Inc.; and the Chief Executive Officer, President, Treasurer, Secretary, and Chief Financial Officer of Trilliant Exploration Corporation. In his capacity as an officer of certain of these issuing companies, LIEBERMAN, working with others, issued false and misleading press releases concerning the financial health and prospects of the companies. He also was aware that co-conspirators were making false and misleading statements to promote the sale of these securities.
As part of the scheme, LIEBERMAN arranged for attorneys, including Corey Brinson of Connecticut, to sign false and misleading opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. At times, he affixed attorneys’ signatures to the opinion letters. The opinion letters falsely certified that the attorneys had adequately reviewed corporate records and filings for the issuing companies and were satisfied with the adequacy of the companies’ public disclosures.
LIEBERMAN and his co-conspirators also conducted matched or coordinated trades of securities amongst themselves or in large blocks at predetermined prices, in order to artificially boost the trading volume of the securities, create the appearance of liquidity, and falsely drive up the share price.
After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost at least $3.5 million.
Between 2011 and 2015, LIEBERMAN earned nearly $1.2 million through this scheme. He failed to report this income to the Internal Revenue Service, evading $436,235 in federal income taxes for the 2011 through 2015 tax years.
LIEBERMAN pleaded guilty to one count of conspiracy to commit mail and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.
At sentencing, LIEBERMAN will be ordered to pay restitution to his victims, as well as back taxes, interest and penalties to the Internal Revenue Service.
A sentencing date has not been scheduled.
On November 8, 2016, Meissenn pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.
On January 20, 2017, Brinson pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Florence Man Sentenced for Defrauding Farm Assistance ProgramRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tyrone Goodrum, age 45, of Florence, has been sentenced to 46 months imprisonment for Conspiracy, a violation of 18 U.S.C. § 371. He also was ordered to pay over $146,000 in restitution to the federal government. Goodrum was convicted by a jury on November 8, 2016. United States District Judge R. Bryan Harwell of Florence presided over the case. Goodrum’s wife Roselyn was sentenced to 27 months imprisonment in February 2017.
Evidence presented at the trial established that Roselyn Goodrum was in charge of the Farm Service Agency’s (FSA) Florence office from 2006 through 2014. In February 2014, Winter Storm Pax caused extensive damage to farms in the Pee Dee. As a result, farmers could make claims to the FSA for financial assistance to clean up their land. Tyrone Goodrum conspired with his wife to file an application for payment, fraudulently representing that he was entitled to disaster benefits for a farm to which he had no connection. As a result, $18,500 in federal money was diverted to satisfy Tyrone Goodrum’s outstanding child support debt. Overall, Roselyn Goodrum filed multiple false applications and illegally obtained just over $146,000, an amount for which Tyrone Goodrum, as a co-conspirator, is also responsible.
The case was investigated by agents of the United States Department of Agriculture, Office of the Inspector General, as well as the Federal Bureau of Investigation. Assistant United States Attorney Winston Holliday, of the Columbia Office, prosecuted the case.
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that, a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville County Resident Indicted on Federal Gun Charges. Zee Zee Zelazurro, age 35, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Sections 922(g)(1) and (g)(9). The maximum penalty Zelazurro could face is a fine of $250,000.00 and/or life imprisonment. The case was investigated by agents of the Bureau of Alcohol, Tobacco and Firearms and the Greenville Police Department Vice and Narcotics Unit and is being prosecuted by Assistant United States Attorney Jamie Schoen of the Greenville office.
Pickens County Woman Indicted on Federal Gun and Drug Charges. Jennifer Lynne Jackson, age 25, of Liberty, South Carolina, was charged in a two-count indictment with possession with the intent to distribute methamphetamine, a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Jackson could face is a fine of $1,000,000.00 and/or life imprisonment. The case was investigated by agents of the Bureau of Alcohol, Tobacco and Firearms and the Anderson City Police Department and is being prosecuted by Assistant United States Attorney Jamie Schoen of the Greenville office.
Boiling Springs Man Indicted on Federal Gun Charge. Bryan Devonar Tate, age 30, of Boiling Springs, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Tate could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Spartanburg Police Department and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Simpsonville Man Indicted on Federal Gun Charge. Herbert Daniel Fitch, age 48, of Simpsonville, South Carolina, was charged in a one-count indictment with possession of firearms and ammunition by a prohibited person previously charged with a criminal domestic violence conviction, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Fitch could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Spartanburg County Sheriff’s Office and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Greenville Man and Woman Indicted on Federal Drug Charges. Theodore Vitaliy Khleborod, age 28, and Ana Milena Barrero, age 24, were charged in a three-count indictment. Count One charged the defendants with participating in a drug conspiracy to possess with the intent to distribute and to distribute U-47700, a schedule I substance, in violation of 21 U.S.C. § 846, and Barrero has been charged in Counts Two and Three with using the U.S. Mail on April 24 and 25, 2017, to facilitate a drug felony in violation of 21 U.S.C. § 843(b). The maximum penalty Khleborod and Barrero could face is a fine of $1,000,000.00 and/or imprisonment of 20 years. This case is being investigated by Special Agents with ICE-Homeland Security Investigations, the United States Postal Inspection Service, the Drug Enforcement Administration, the Greenville County Sheriff’s Office, the Greenville Police Department, and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Andy Moorman of the Greenville office is prosecuting the case.
Greenville Man Indicted on Federal Gun Charge. Courtney Eugene Harris, age 38, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Harris could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Greenville County Sheriff’s Department, and the United States Probation Office and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville office.
Greenville Man Indicted on Federal Gun Charge. Dustin Gregory Martin, age 46, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Martin could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Greenville County Sheriff’s Department and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville office.
Walhalla Man Indicted on Illegal Re-Entry into the United States. Jose Rolando Vasquez-Serrano, age 40, is charged in a one count indictment with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty he could face is a fine of $250,000.00 and/or imprisonment of 2 years. The case was investigated by agents with ICE- Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
Gaffney Man Indicted on Illegal Re-Entry into the United States. Homero Guerra-Jiminez, age 33, is charged in a one count indictment with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty he could face is a fine of $250,000.00 and/or imprisonment of 2 years. The case was investigated by agents with ICE- Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
Greenville Man Indicted on Illegal Re-Entry into the United States. Roberto Arreola-Villa, age 49, is charged in a one count indictment with illegal re-entry to the United States by a convicted felon, a violation of Title 8, United States Code, Section 1326. The maximum penalty he could face is a fine of $250,000.00 and/or imprisonment of 10 years. The case was investigated by agents with ICE- Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Max Cauthen of the Greenville Office.
Spartanburg Man Indicted on Armed Bank Robbery Charge. John Paul Snelgrove, age 47, of Spartanburg, South Carolina, was charged in a one-count indictment with armed bank robbery, a violation of Title 18, United States Code, Sections 2113(a) and 2113(d). The maximum penalty Snelgrove could face is a fine of $250,000.00 and/or imprisonment of 25 years. This case was investigated by the Federal Bureau of Investigations and the Greenville Police Department and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Simpsonville Man Indicted on Federal Gun Charge. Paul Glen Helsel, age 50, of Simpsonville, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Helsel could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Simpsonville Police Department and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Anderson Man Indicted on Federal Gun Charge. Andre Chanquil Mayfield, age 26, of Anderson, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Mayfield could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Anderson County Sheriff’s Department and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenwood Man Indicted on Federal Gun Charge. Colby Teon Brown, age 29, of Greenwood, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Brown could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Federal Bureau of Investigations and the Greenwood Police Department and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenwood Man Indicted on Federal Gun Charge. Marcus Fitzgerald Woods, JR., age 22, of Greenwood, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Woods could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Federal Bureau of Investigations and the Greenwood Police Department and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenwood Man Indicted on Federal Gun and Drug Charges. Zykius Maurice Frazier, age 29, of Greenwood, South Carolina, was charged in a three-count indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute marijuana; and, possession of a firearm in furtherance of a drug trafficking crime. The maximum penalty Frazier could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Federal Bureau of Investigations and the Greenwood Drug Enforcement Unit and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fairmont woman indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia woman was arraigned today in federal court following an indictment by a grand jury on May 2, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Heather N. Windsor, age 22, was indicted on one count of “False Statement During the Purchase of a Firearm” and one count of “Unlawful Possession of a Firearm.” The crimes are alleged to have occurred in July 2016 in Monongalia County.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Essex County, New Jersey, Man Sentenced to 46 Months in Prison for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 46 months in prison for possessing a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Brehon Widgeon, 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging him with possession of a firearm by a convicted felon. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In late June 2014 through July 10, 2014, Widgeon – who had been previously convicted of a felony in Monmouth County, New Jersey – sought to trade a handgun in his possession for either an AK-47 rifle or for a weapon that could be easily concealed on his person. On July 10, 2014, Widgeon was found in possession of a 9 mm handgun along with 18 rounds of 9 mm ammunition and five rounds of .380 caliber ammunition.
In addition to the prison term, Judge Arleo sentenced Widgeon 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, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Margaret Mahoney and Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Christopher Adams Esq., Holmdel, New Jersey
Elmira Man Sentenced to 12 Years in Prison for Crack Cocaine TraffickingRead 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 Jerold “Rocco” Walker, 40, of Elmira, NY, who was convicted of conspiracy to distribute crack cocaine, was sentenced to 12 years in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that Walker was arrested after an investigation conducted by the Elmira Police Department and the Bureau of Alcohol, Tobacco and Firearms revealed that the defendant was involved in an ongoing drug trafficking ring. Members of the drug ring sold significant amounts of crack cocaine from various locations in Elmira. Walker utilized several residences, including locations on Columbia Street, Walnut Street and West Gray Street in connection with the drug offenses.
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division, and the Elmira Police Department, under the direction of Police Chief Joseph Kane.
Eastern Connecticut Drug Trafficker Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CARLOS ALBERTO LOPEZ-ZELADA, also known as “Willi Mexico,” 40, last residing in Willimantic, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of conspiracy to distribute heroin, cocaine and cocaine base (“crack”).
According to court documents and statements made in court, in October 2015, the DEA, Willimantic Police Department and Connecticut State Police initiated an investigation into a Willimantic-based narcotics trafficking ring after several overdoses in the region. The investigation, which included the use of confidential informants, physical surveillance, controlled purchases of drugs and court authorized wiretaps on five cellular telephones utilized by the co-conspirators, revealed that Jose Miranda, also known as “Omar,” of the Bronx, New York, was supplying large quantities of heroin and cocaine to LOPEZ-ZELADA and Persio Hernandez of North Windham. LOPEZ-ZELADA converted a portion of the cocaine he received into crack cocaine. LOPEZ-ZELADA and Hernandez, with the help of other co-conspirators, then distributed heroin, cocaine and crack cocaine in the Willimantic area.
The investigation further revealed that LOPEZ-ZELADA utilized a garage unit located on Willimantic Road in Chaplin as a stash location and point of distribution for narcotics.
Miranda was arrested on June 23, 2016, after he was intercepted threatening to shoot a co-conspirator who refused to pay him for a quantity of heroin that Miranda had provided to the individual on consignment.
LOPEZ-ZELADA and Hernandez were arrested on July 6, 2016.
LOPEZ-ZELADA, a citizen of El Salvador, has been detained since his arrest. When he is sentenced, he faces a maximum term of imprisonment of 20 years. He also faces immigration proceedings when he is released from prison.
Miranda and Hernandez have pleaded guilty, await sentencing and are detained.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and David Nelson.
Eagle Butte Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Distribution of a Controlled Substance was sentenced on April 24, 2017, by U.S. District Judge Roberto A. Lange.
Ebony Hope Justyne Cook, age 20, was sentenced to 8 months in custody, followed by 3 years of supervised release, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Cook was indicted by a federal grand jury on October 12, 2016. She pled guilty on February 7, 2017.
On July 22, 2016, in Eagle Butte, Cook knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, to another person.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Cook was immediately turned over to the custody of the U.S. Marshals Service.
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Eagle Butte Man Sentenced for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of two counts of Distribution of a Controlled Substance was sentenced on April 24, 2017, by U.S. District Judge Roberto A. Lange.
Whitney Vaughn Marrowbone, age 22, was sentenced to 7 months in custody and 3 years of supervised release on each count, to run concurrently, a fine of $500, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Marrowbone was indicted by a federal grand jury on October 12, 2016. He pled guilty on February 6, 2017.
On July 8 and 11, 2016, Marrowbone, knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, in Eagle Butte.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service.
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Eagle Butte Man Found Not Guilty of Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man was acquitted of Aggravated Sexual Abuse of a Child as a result of a federal jury trial in Pierre, South Dakota, beginning on May 3, 2017, and concluding on May 5, 2017.
Lawrence Oakie, age 35, was indicted by a federal grand jury on April 13, 2016.
The charge stemmed from an alleged incident that occurred in August 2015, near Rosebud, South Dakota.
The investigation was conducted by the Federal Bureau of Investigation. The U.S. Attorney’s Office prosecuted the case.
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Dupree Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, woman convicted of two counts of Distribution of a Controlled Substance was sentenced on April 24, 2017, by U.S. District Judge Roberto A. Lange.
Skyla Rae Alyce Dupris a/k/a Skyla Dupree, age 25, was sentenced to 6 months in custody and 3 years of supervised release on each count, to run concurrently, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Dupris was indicted by a federal grand jury on December 14, 2016. She pled guilty on February 7, 2017.
On June 23, 2016 and July 21, 2016, in Eagle Butte, Dupris knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, to other persons.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Dupris was immediately turned over to the custody of the U.S. Marshals Service.
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Dover Man Fined for Illegally Possessing Protected BirdsRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley today announced that Jeremiah S. Loui, 31, of Dover, New Hampshire was fined $1000 for the illegal possession of birds of prey protected by the Migratory Bird Treaty Act (MBTA) and other federal laws.
According to court documents and statements made during prior proceedings in the case, Loui bought and resold a taxidermied Accipiter gentilis, commonly known as a Northern Goshawk, on the Internet. He also sold or possessed 14 other taxidermied birds of prey protected under either the MBTA or a similar wildlife statute, the Wild Bird Conservation Act. Finally, Loui made false statements to a law enforcement officer investigating his offenses.
Birds of prey, including the Northern Goshawk, play an important role in ecosystems here in the United States and across the globe. “The U.S. Attorney’s Office is committed to working with our law enforcement partners to combat illegal conduct that promotes the taking of -- or trafficking in -- protected wildlife.” said Acting U.S. Attorney Farley.
Loui previously pleaded guilty to violating the MBTA. As part of a plea agreement, Loui agreed to forfeit any interest he has in any of the fifteen protected birds.
This matter was investigated by the U.S. Fish and Wildlife Service with valuable support from the U.S. Postal Inspection Service. Assistant United States Attorney Bill Morse prosecuted the case.
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Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation.
Luis Moreno-Tejeda, 39, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 24 months in prison, to be served consecutively with a sentence imposed by the Suffolk Superior Court in September 2016, and three years of supervised release. He will be subject to deportation upon completion of his sentence.
In 2002, Moreno-Tejeda was convicted of bribery, and determined to be unlawfully present in the United States. Upon completion of his 12-month sentence, he was deported. In 2005, Moreno-Tejeda, using the alias Ricardo Rodriguez, was convicted of cocaine distribution in Suffolk Superior Court. Moreno-Tejeda received a sentence of 48-60 months in prison, but due to altered fingerprints, law enforcement was unable to determine his legal identity at the time, which would have revealed his prior conviction and immigration status.
In September 2016, Moreno-Tejeda was convicted of heroin distribution in Suffolk Superior Court and sentenced to 30 months in prison, which will be served consecutively with his federal prison sentence.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Criminal Division prosecuted the case.
District Man Sentenced to 47 Months in Prison for Federal Gun ChargeRead the Press Release
WASHINGTON - Antoine Miller, 35, of Washington, D.C., was sentenced today to 47 months in prison for a federal weapons offense following his arrest last year by a gun recovery team from the Metropolitan Police Department (MPD), announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Miller was found guilty on February 2, 2017, in the U.S. District Court for the District of Columbia of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The verdict followed a bench trial before the Honorable Ketanji Brown Jackson. In an earlier case, Miller was sentenced in 2004 to a prison term of 11 years and eight months, to be followed by three years of supervised release, following his conviction of drug and weapons offenses.
Following his prison term in the current case, Miller will be placed on two years of supervised release. In a separate proceeding, he also faces revocation of his probation in the earlier case.
According to the government’s evidence, on March 31, 2016, at approximately 9:50 pm, members of the MPD Narcotics and Special Investigation Division – Gun Recovery Unit were driving and operating a gray Ford Explorer. While the officers traveled northbound in the 4600 block of Livingston Road SE, they observed Miller walking with another person southbound on the sidewalk. The officers slowed the vehicle, greeted the two males, identified themselves as police, and asked if they had any guns on them. Miller immediately stated “no,” and turned around so that his back was facing the officers. He then lifted the back of his puffy vest jacket, deliberately not showing the officers the front of his waistband.
As Miller did this, the other male continued to walk, keeping his head down, and at this time walking faster and ahead of the defendant. Seeing these actions from both individuals, the officers exited their vehicle to talk to the two men. One officer approached Miller and again calmly asked the defendant, “Hey, man can I talk to you?”, whereupon Miller stopped walking and turned and faced the officer. Subsequently, he turned and faced the officer and stated, “I told you I have! I been telling you I have one! You can have it! Just take it! Just take it! You can have it!” Moreover, a passing pedestrian called out, “You good slim?,” at which time the defendant replied, “They got me with a gun and all that.” The firearm was identified as a Smith and Wesson .40 caliber loaded with 9 rounds of ammunition.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the actions of those who worked on the case from the Metropolitan Police Department. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias. Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Veronica Jennings and Emory V. Cole, who investigated and prosecuted the case.
Developer Pleads Guilty to Bank Fraud in Connection with Carbondale Apartment ComplexRead the Press Release
Yesterday afternoon, Christopher E. Creek, 56, of Champaign, IL, pled guilty to a charge of bank fraud in federal court in Benton, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The charge arose from Creek’s participation as a developer for the construction of an apartment complex in Carbondale, IL, known as the Pointe at SIU.
In pleading guilty yesterday, Creek admitted that he submitted fraudulent requests for draws of construction loan funds to the banks that financed the project. Specifically, Creek admitted that he submitted documents to the banks that falsely stated that the framing for the project had been provided by a company called "Southern Framing," and that the foundation work had been done by a company called "Solid as a Rock." Both Southern Framing and Solid as a Rock were fictitious entities that Creek created. Creek deposited the checks that were payable to Southern Framing and Solid as a Rock into bank accounts that he controlled. He then used those funds for his own purposes, including paying subcontractors and materials suppliers from prior jobs to whom he still owed money.
Creek’s sentencing hearing is scheduled for August 9, 2017, at 10:00 a.m., at the federal courthouse in Benton, Illinois. The crime of bank fraud is punishable by up to 30 years of imprisonment, a fine of up to $1,000,000, not more than five years of supervised release, and
restitution.
The investigation was conducted by agents from the Springfield Division, Marion, Illinois, Resident Agency, of the Federal Bureau of Investigation ("FBI"). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Convicted Felon Charged for Dealing Firearms and Heroin from La Jolla HomeRead the Press Release
Assistant U. S. Attorney Matthew Sutton (619) 546-8941
NEWS RELEASE SUMMARY – May 10, 2017
SAN DIEGO – Convicted felon Paul Joseph Holdy was arrested this morning and charged with multiple federal drug- and gun-related offenses after a long-term investigation revealed that he was allegedly trafficking heroin and firearms from his La Jolla residence.
As alleged in the complaint and search warrants unsealed today, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation began the investigation in the summer of 2016. Undercover agents conducted multiple controlled purchases of firearms and narcotics from Holdy, some of which Holdy manufactured himself from unfinished lower receivers. In total, law enforcement purchased 19 firearms, including short-barrel machine guns, assault rifles, and handguns, along with multiple silencers from Holdy.
Due to his prior felony conviction for possession of a controlled substance for sale, Holdy is prohibited from possessing a firearm or ammunition under federal law. ATF records showed that Holdy lacked a Federal Firearms License, which would allow him to engage in the business of importing, manufacturing, or dealing in firearms.
During the arrest today, investigators executed three search warrants and seized one additional machine gun and two gallons of suspected GHB. Holdy is scheduled to be arraigned before U.S. Magistrate Judge David H. Bartick at 10:30 a.m. tomorrow.
“Illegally manufacturing and brokering the sale of guns and drugs on the streets of San Diego poses a tremendous danger to our community,” said Acting U.S. Attorney Alana W. Robinson. “Prosecuting firearms offenses is a top priority for the U.S. Attorney’s Office, and we will continue our efforts to disrupt the availability of illegal guns in our city.”
“Firearms traffickers are responsible for the crimes committed with the guns they provide to felons and gang members,” said ATF Los Angeles Field Division Special Agent in Charge Eric Harden. “Felons cannot skirt the system by manufacturing and selling untraceable firearms from unfinished lower receivers. ATF will use its resources to strategically target and identify these criminals and interrupt the illegal flow of firearms to those who are prohibited from possessing firearms under the law.”
“Illegal firearms and narcotics trafficking cannot be tolerated on our streets,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI will continue to identify, disrupt and dismantle these traffickers in order to keep our communities safe.”
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case No: 17MJ1397-DHB
Name
Age
Hometown
Paul Joseph Holdy
39
La Jolla, CA
SUMMARY OF CHARGES
Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1)
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Sec. 922(g)(1)
Dealing in Firearms Without a License, in violation of Title 18, U.S.C. Secs. 922(a)(1)(A), 923(a), 924(a)(1)(D)
Maximum Penalties:
For drug charges: Twenty years in prison and a $1 million fine.
For firearms charges: Ten years in prison and a $250,000 fine.
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Colombian National Sentenced to Prison for Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Guillermo Pardo (53) to two years and one day in federal prison for aggravated identity theft and passport fraud. He pleaded guilty on February 15, 2017.
According to court documents, on January 22, 2015, Pardo made a false statement in an application for a passport. Specifically, he claimed to be a United States citizen and used information belonging to a real United States citizen to do so. In reality, Pardo was a citizen and national of Colombia (South America) and was ordered to be deported from the United States in 1986, after a felony drug conviction.
This case was investigated by the U.S. Department of State - Diplomatic Security Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Emily C.L. Chang and Special Assistant United States Attorney Christina R. Downes.
Citizen of Togo Sentenced for Passport FraudRead the Press Release
ALBANY, NEW YORK –Koffi Roudolphe Sewoul, age 40, and a citizen of Togo, was sentenced today to time served (7 months in jail) for misusing a United States passport in an attempt to enter the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Steve Bronson, Acting Port Director, United States Customs and Border Protection.
On October 15, 2016, Sewoul attempted to enter the United States at the Champlain Port of Entry using his brother’s United States passport. Upon questioning, Sewoul admitted the passport belonged to his brother. An examination of airline itineraries showed Sewoul successfully used the passport to travel from Lome, Togo, to Accra, Ghana, on October 12, 2016, and then from Ghana to Brussels, Belgium, to Montreal, Quebec, on October 13.
Following his sentencing, Sewoul was transferred to the custody of the Department of Homeland Security, which will place Sewoul into removal proceedings.
This case was investigated by United States Customs and Border Protection and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Chicago Scrap Iron Refining Company and Its President Plead Guilty to Criminal Tax Violations for Concealing $11.6 Million from IRSRead the Press Release
CHICAGO — A Chicago-based scrap iron refining business and its president admitted in federal court today that they concealed from the Internal Revenue Service more than $11.6 million in cash wages paid to employees.
ACME REFINING CO., which does business as Acme Refining Scrap Iron & Metal Co., and its president, LAURENCE C. BARON, each pleaded guilty to impairing and impeding the IRS. Acme and Baron admitted in plea agreements that from 2009 to 2013 they paid cash wages of more than $11.6 million to at least 50 employees, but failed to report the payments to the IRS. Acme and Baron also acknowledged that they willfully failed to withhold for the government the required amounts for FICA taxes and Medicare.
As part of their plea agreements, Baron and Acme agreed to pay restitution of $5,878,327 to the IRS and the state of Illinois, with Acme paying $4,545,243 and Baron paying $1,333,084.
The guilty pleas were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Impairing and impeding the IRS is punishable by up to three years in prison. Baron, 70, of Burr Ridge, also pleaded guilty to a separate count of willfully filing a false individual income tax return, which carries the same maximum penalty. U.S. District Judge Harry D. Leinenweber set sentencing for Sept. 14, 2017.
The cases against Acme and Baron are part an ongoing federal investigation of cash transactions in the Chicago-area scrap metal industry that has resulted in several previous convictions.
According to the plea agreements, Baron directed Acme employees to issue multiple vouchers for cash payments due to suppliers that exceeded $10,000, using nominee or fictitious payees as the purported seller. Between 2009 and 2013 the company and Baron obtained approximately $152 million in cash from two currency exchanges, then used the money to pay 85 separate scrap metal suppliers in order to assist those suppliers in underreporting their income and taxes.
Acme – at the direction of Baron – also spent at least $1.6 million to fund construction of a personal residence in Wisconsin that had no business-related purpose, the plea agreements state. The company falsely recorded this expenditure as “cost of goods sold,” in order to reduce Acme’s tax liability and conceal the payment on behalf of its corporate officers. The bogus records included phony invoices that fraudulently identified the payments as purchases of scrap steel.
Baron also admitted filing false individual income tax returns for tax years 2011 and 2012. The fraudulent returns resulted in a total federal and state tax loss of approximately $208,875, the plea agreement states.
The government is represented by Assistant U.S. Attorney Patrick King.
Cheektowaga Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jason Yelder, 35, of Cheektowaga, NY, pleaded guilty to conspiracy to possess with intent to distribute five grams or more of methamphetamine before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on March 20, 2016, Yelder was arrested for driving with a suspended license. The defendant’s vehicle was searched by Hamburg Police and more than 23 grams of methamphetamine, a digital scale, and large amounts of U.S. currency were seized. Yelder was advised of his rights, waived his rights, and admitted to police that he was going to sell the methamphetamine to another co-conspirator.
The plea is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett; the Amherst Police Department, under the direction of Chief John Askey; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 14, 2017, at 10:00 a.m. before Judge Vilardo.
Central Ohio Group Charged with Running Identity Theft RingRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged five individuals in an identity theft ring that allegedly used victims’ information to obtain and use new and existing in-store lines of credit at well-known retailers in an indictment returned here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Columbus Police Chief Kim Jacobs, Jason Hayden, Acting Special Agent in Charge, United States Secret Service and other members of the Southern Ohio Financial Crimes Task Force announced the indictment.
Kwame E. McCauley, 35, of Canal Winchester, Ohio; Deangelo D. Simms, 26, of Reynoldsburg, Ohio; Shirley M. Dillen, 43, of Westerville, Ohio; Julie E. Ring, 38, of Columbus, Ohio and Robert S. Tingler, 32, of Columbus, Ohio were each charged with conspiracy to commit wire fraud. McCauley, the alleged leader of the ring, is also charged with 20 counts of wire fraud and two counts of aggravated identity theft. The other four co-defendants each face various charges of wire fraud and aggravated identity theft, as well.
The 24-count indictment alleges that from January 2014 until January 2016 the group bought store merchandise after fraudulently obtaining new and using existing credit from retail stores. McCauley allegedly obtained victims’ social security numbers and dates of birth. Afterwards, he ran their credit history reports from websites like creditkarma.com.
According to the indictment, McCauley provided false identification cards containing the victims’ information but actually bearing photographs of the co-defendants who were “shoppers.” The group would travel to various clothing and electronics retail stores in the Southern District of Ohio and elsewhere, including Indiana and Pennsylvania. Examples of the stores include Best Buy, Elder Beerman, Buckle, Menard’s, Meijer and Cabela’s.
The group would allegedly review the victims’ credit history reports and personal information prior to arrival at the retail stores so the defendants could answer any qualifying questions that the stores used to screen credit applicants. The group is alleged to have opened new and used existing lines of credit on approximately 80 separate occasions causing $150,000 of loss from the retailers.
Conspiracy to commit wire fraud and wire fraud are each crimes punishable by up to 20 years in prison in this case. Aggravated identity theft carries a mandatory term of imprisonment of two years for each count.
Defendants were arrested today by Task Force agents.
U.S. Attorney Glassman commended the investigation of this case by the IRS-CI, Columbus Police and other members of the Southern Ohio Financial Crimes Task Force, as well as Assistant United States Attorney Jonathan J.C. Grey, who is prosecuting the case.
An indictment merely contains allegations, and a defendant is presumed innocent unless proven guilty in a court of law.
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California Man Sentenced to Eight Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Gary Murl Beck, age 54, of Fallbrook, California, was sentenced today to 100 months in federal prison to run concurrent with any sentence in the state of California followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Chief Judge P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on September 29, 2015, Eureka Springs Police Department arrested co-conspirator, Jeffrey Vanroy, in Eureka Springs for possession of methamphetamine. The suspected substance was sent to the Arkansas State Crime Lab where it was determined to be 52 grams of actual methamphetamine. Agents discovered during the investigation that the methamphetamine had originally been sent by FedEx to co-conspirator, Stephen Carufel, at his residence in Eureka Springs. Vanroy who was living with Carufel at the time took the package when it was delivered knowing it contained methamphetamine. Police were able to recover the FedEx packaging and found the sender listed as Gary Backe from Fallbrook, California; Gary Beck had used the name Gary Backe as an alias. California law enforcement identified the sender of the FedEx as Gary Murl Beck from Fallsbrook, California. They discovered 12 packages had been sent from Beck to Carufel between January 2015 to September 2015. Agents executed a search warrant on Beck’s residence on October 6, 2015 where they found over one pound of methamphetamine along with the receipt for one of the packages that Beck had shipped to Carufel. Agents retrieved messages between Beck and Carufel from Beck’s cell phone wherein they discussed what day and time the methamphetamine would arrive in Eureka Springs and how the payment for the methamphetamine was to be sent. A search warrant executed on Carufel’s residence produced MoneyGram receipts, cancelled personal checks, and wire transfers made out to Beck for the methamphetamine for the time period between April 2014 and October 2015. Beck was indicted by a federal grand jury on August 9, 2016 and pleaded guilty on October 25, 2016.
Co-conspirator Stephen Carufel pleaded guilty to Aiding and Abetting Money Laundering and Possession with Intent to Distribute Methamphetamine on June 7, 2016. He was sentenced to 78 months in federal prison on October 27, 2016.
Co-conspirator Jeffrey Vanroy pleaded guilty to Aiding and Abetting Possession with Intent to Distribute Methamphetamine on June 9, 2016 and was sentenced to 100 months in federal prison on November 9, 2016.
Homeland Security Investigations assisted the Eureka Springs Police Department in the investigation of this case. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Buffalo Man Sentenced in 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 Elias Figueroa, 47, of Buffalo, NY, who was convicted of possession with intent to distribute more than 100 grams of heroin, was sentenced to 78 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash. Figueroa was arrested along with co-defendants Julio Sanchez and Tomas Figueroa. Two other defendants, Steven Martinez and Jeffrey Coleman, were also arrested that day. All five defendants have been convicted; Elias Figueroa is the third to be sentenced.
Charges against two other individuals, who were also arrested that day and are alleged to have been part of a heroin distribution conspiracy that was bringing heroin to Buffalo from New York City, remain pending.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Brooklyn Man Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
An Indictment[1] was unsealed today charging Bright Ogodo, 42, of Brooklyn, New York, with one counts of bank fraud and two counts of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that Ogodo recruited other persons, referred to as “runners,” to pose as TD Bank customers by using false drivers’ licenses supplied by Ogodo and means of identification of the TD Bank customers, including their names, social security numbers, and dates of birth. The Indictment alleges that Ogodo drove the runners to TD Bank branches in the Philadelphia area, as well as in New York, New Jersey, Connecticut, and Delaware, gave the runners the false drivers’ licenses and other means of identification, and instructed them how to access the TD Bank customers’ accounts. The Indictment alleges that the runners, and defendant Ogodo himself, deposited large-dollar counterfeit checks and small amounts of cash and money orders into the bank accounts, thereby learning the account numbers (if they were not already known) and also as a way of being able to know the exact date, location, and amount of the last deposit into the account, which co-schemers then used to set up on-line access to the accounts. The Indictment alleges that runners posing as the true account holders obtained new ATM cards tied to the TD Bank customers’ checking accounts, and then one or more co-schemers, including defendant Ogodo himself, began to deplete the funds in that checking account by using the newly-obtained ATM cards to withdraw cash and purchase merchandise and money orders. The Indictment alleges that one or more co-schemers often transferred funds from the TD Bank customers’ existing home equity lines of credit (HELOC) into the checking accounts that were tied to the ATM cards in the possession of defendant Ogodo and other co-schemers, which allowed defendant Ogodo and other co-schemers to obtain over $579,000 from the TD Bank accounts. The Indictment further alleges that defendant Ogodo and his co-schemers intended to cause TD Bank to sustain more than $785,000 in losses, as that is the amount of counterfeit checks and HELOC and other transfers made into the checking accounts tied to the ATM cards in the co-schemers’ possession.
Ogodo faces a maximum sentence of 34 years’ imprisonment, including a mandatory minimum two-year term of imprisonment, a five-year period of supervised release, a $1,500,000 fine, and a $300 special assessment and restitution of $597,107.
The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Barling Man Sentenced to 15 Years in Federal Prison for Firearms ViolationRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jason Lee Pyles, age 44 of Barling, Arkansas, was sentenced today to 180 months in federal prison and three years of supervised release on one count of Knowingly Possessing a Firearm After a Felony Conviction. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Jason Lee Pyles was convicted in Sebastian County Circuit Court in May 1995 of Possession of Methamphetamine with Intent to Deliver, a class Y felony. He was sentenced to 10 years in the Arkansas Department of Corrections, and because of that conviction, he is prohibited from possessing a firearm.
On or about April 25, 2016, Barling Police Department assisted Arkansas Probation and Parole in a compliance check at Pyle’s residence in Barling. He was not at home but his mother showed law enforcement the bedroom that he lived in. Officers searched the bedroom and found a .380 caliber pistol, a .22 caliber revolver, and a .38 caliber revolver in an unlocked rifle box.
Pyles was indicted by a federal grand jury in August 2016 and pleaded guilty in November 2016.
This is another case prosecuted as a part of the Department of Justice’s Project Safe Neighborhoods Initiative, which is aimed at reducing gun and gang violence, deterring illegal possession of firearms and improving the safety of residents in the Western District of Arkansas. Participants in the initiative include federal, state and local law enforcement agencies.
This case was investigated by Barling Police Department, Arkansas Probation and Parole and Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Bank Officers and Bank Customer Charged with Wire Fraud and Making a False Loan ApplicationRead the Press Release
ROCKFORD — Two bank officers and a bank customer were charged Tuesday by a federal grand jury in Rockford with fraud and falsifying statements to the Small Business Administration, an agency of the United States.
RYAN COLE, 45, of Garland, Tex., JAMES GRABER, 57, of Rockton, Ill., and KRISTIN KING, 44, of South Beloit, Ill., were charged with wire fraud in connection with a loan application made to the SBA. Cole was also charged with two counts of making false statements to the SBA on a loan application. Graber and King were each charged with one count of making false statements to the SBA on a loan application.
As charged in the indictment, the SBA provides financial assistance to small businesses, in part, through loan guarantees to local banks. If the SBA approves a loan, it guarantees the lender that if the borrower defaults the SBA will repay part of the loan, thereby transferring the risk of borrower non-payment from the bank to the SBA, up to the amount of the guaranty. The local bank must disclose to the SBA whether the loan will reduce the exposure of the bank, disclose if the loan will be used to repay a debt already due to the bank, and disclose any relationships between the small business, its associates, and the lender.
According to the indictment, SunLee Development owned a commercial building at 4001 North Perryville Rd., in Loves Park, Ill. SunLee had three loans totaling more than $3 million at a local bank where Graber was employed as a Vice President and King was employed as a Vice President and Government Guaranteed Lending Specialist. Cole, a member of SunLee, was a guarantor of the three loans in the event of a default. SunLee was constantly behind on making its loan payments to the bank because tenants at 4001 North Perryville were not paying their rent.
The indictment alleges that Cole organized a group of the tenants at 4001 North Perryville to apply for an SBA guaranteed loan and to purchase the building from SunLee. The group of tenants and Cole became known as the Perryville Investment Group. The indictment alleges that on March 16, 2012, Cole, Graber and King submitted a $3,980,000 loan application to the SBA for the Perryville Investment Group that contained false statements and concealed material facts. Shortly after closing, the Perryville Investment Group had trouble making payments on the SBA loan and ultimately defaulted on the SBA loan.
Each count of wire fraud and making false statements and concealing material facts to the SBA carries a maximum penalty of up to 30 years in prison, a fine of up to $1 million, and restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Graber and King are scheduled to appear for arraignment on May 12, 2017, at 2:00 p.m. in federal court in Rockford, before U.S. Magistrate Iain D. Johnston. Cole’s arraignment date has yet to be set.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed to be innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Lawrence Valett, Associate Inspector General of Investigations for the Federal Reserve Board - Office of Inspector General; and Talmadge Gaylor, Special Agent-in-Charge of the Central Regional Office of the SBA - Office of Inspector General.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Augusta Woman Pleads Guilty to Stealing MailRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Amanda K. Wentzell, 26, of Augusta, Maine, pleaded guilty today in U.S. District Court to stealing mail while being a U.S. Postal Service (USPS) employee.
According to court documents, in February 2016, the defendant began working as a retail clerk the post office in Temple, Maine. In July 2016, a Temple resident complained that his son had not received a prepaid debit card sent to him by U.S. mail. Investigation revealed that the defendant activated the debit card and used it to make two purchases totaling the $100 value of the debit card, she had been “rifling” mail, and between about April and August 2016, she took and opened several pieces of mail that were being processed by the post office. On August 9, 2016, the defendant resigned her USPS position.
Wentzell faces up to five years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Franklin County Sheriff’s Office and the USPS, Office of Inspector General.
Albuquerque Man Charged in 13-Count Dog Fighting IndictmentRead the Press Release
ALBUQUERQUE – A federal grand jury in Albuquerque, N.M., returned an indictment yesterday afternoon charging Albuquerque resident Robert Arellano, 63, with 13 counts of violating the animal fighting prohibitions of the federal Animal Welfare Act, announced James D. Tierney, Acting U.S. Attorney for the District of New Mexico, and Jeffrey H. Wood, Acting Assistant Attorney General for the Department of Justice’s Environment and Natural Resources Division.
Arellano had previously been arrested and indicted on additional charges in the District of New Jersey pertaining to his alleged involvement in a multi-state dog fighting network. Those charges alleged criminal acts related to transporting, delivering, buying, selling, and receiving pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.
The charges returned yesterday in the District of New Mexico pertain to fighting dogs allegedly kept by Arellano at his residence in Albuquerque. Those dogs were seized by federal authorities when Arellano was arrested last June.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.” To date, 85 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. Under federal law, an animal fighting venture means “any event, in or affecting interstate or foreign commerce, that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment.”
This part of Operation Grand Champion was investigated by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge Dax Roberson; and the FBI, under the direction of Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Letitia Simms and Paul Mysliwiec of the District of New Mexico, and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
An indictment is an allegation based upon a finding of probable cause by a grand jury. A defendant is presumed innocent unless and until convicted.
If convicted, the defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.
Arellano Indictment
9 May 2017
Wernersville Man Pleads Guilty to Bank Robberies in York, Lebanon, and Berks CountiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Pelker, age 27, of Wernersville, Pennsylvania, pled guilty on May 8, 2017, before United States District Judge John E. Jones, III, to three counts of armed bank robbery, use of a firearm in relation to a crime of violence, and possession of a firearm by a felon.
According to U.S. Attorney Bruce D. Brandler, Pelker pled guilty to charges related to the armed bank robberies of the BB&T Bank in East Prospect, Pennsylvania on April 24, 2015; the National Penn Bank in Oley, Pennsylvania on May 19, 2015; and, the M&T Bank in Lebanon, Pennsylvania on April 5, 2016. The guilty plea was made pursuant to a plea agreement, subject to the approval of the court, that specified that Pelker will receive a 25-year term of imprisonment when he is sentenced.
Pelker is the eighth and final defendant to plead guilty in relation to these robberies:
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Andrew Ishman, age 31, Wrightsville, pled guilty to the East Prospect bank robbery on October 3, 2016;
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Ryan Miller, a/k/a “Otis,” age 25, Robinson Township, pled guilty to the East Prospect and Oley Bank robberies on April 24, 2015 and December 6, 2016;
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Keith Pelker, age 28, Wernersville, pled guilty to the Lebanon bank robbery on October 3, 2016;
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Shannon Gadzouris, age 24, Shillington, pled guilty to the Lebanon bank robbery on October 3, 2016;
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Kelsie Bair, age 28, and Lindsey School, age 27, both of Lebanon, pled guilty to accessory after the fact after they disposed of the weapon used in the Lebanon bank robbery off a pier in Ocean City, New Jersey. The weapon was ultimately recovered by the FBI scuba diving team; and
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William Papoutsis, Pelker’s uncle, age 35, of Reading, pled guilty to obstruction of justice in relation to these robberies.
All defendants are awaiting sentencing.
The investigation was conducted by the Federal Bureau of Investigation Capital City Violent Crimes Task Force, the Pennsylvania State Police, the South Lebanon Township Police Department, the U.S. Marshals Fugitive Task Force, and the Lebanon and York County District Attorney’s Offices. The Capital City Violent Crimes Task Force consists of representatives from the FBI’s Harrisburg Field Office and the Harrisburg Police Department. Assistant U.S. Attorneys Scott R. Ford and Daryl Bloom are prosecuting the case.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the offenses is life imprisonment, a term of supervised release following imprisonment, and a $1,250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Former Executives of Foreign Defense Contractor Plead Guilty to Fraud in International Navy Corruption ScandalRead the Press Release
Two former executives of a foreign defense contractor pleaded guilty in federal court today for participating in a conspiracy to submit bogus bids, claims and invoices to the U.S. Navy in an effort to steal tens of millions of dollars as part of a years-long corruption and fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) and Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Neil Peterson, 39, and Linda Raja, 44, both Singaporean nationals, each pleaded guilty to one count of conspiracy to defraud the United States with respect to claims. Both defendants were arrested by authorities in Singapore at the request of the U.S. government and were extradited on Oct. 28, 2016. Sentencing for Peterson and Raja is set before the Honorable Janis L. Sammartino of the Southern District of California on Aug. 11, 2017.
Peterson and Raja worked for Singapore-based Glenn Defense Marine Asia (GDMA). Peterson served as the Vice President for Global Operations, and Raja served as General Manager for Singapore, Australia and the Pacific Isles. According to their pleas, Peterson and Raja conspired with Leonard Glenn Francis, the owner of GDMA, to defraud the U.S. Navy in order to financially benefit GDMA.
As part of their pleas, Peterson and Raja admitted that they and other members of GDMA’s management team created and submitted fraudulent bids. These bids were either entirely or partially fictitious. This ensured that GDMA’s quote would be selected by the U.S. Navy as the supposed lowest bidder. As a result, GDMA could control and inflate the prices charged to the U.S. Navy without engaging in any competitive bidding, as required.
Additionally, Peterson, Raja admitted that they and others knowingly created fictitious port authorities with fraudulently inflated tariff rates and approved the presentation of these fraudulent documents to the U.S. Navy. As a result, GDMA charged inflated prices to the U.S. Navy, rather than what GDMA actually paid to the port authorities. For example, in October 2012, Peterson and other members of GDMA’s core management team directed that false documents and inflated invoices be presented to the U.S. Navy for the U.S.S. Bonhomme Richard’s visit to Kota Kinabalu, Malaysia. The full amount billed to the U.S. Navy for this visit was $1,232,858, of which approximately $877,413 was fraudulently inflated.
Peterson and Raja admitted that the U.S. Navy suffered losses exceeding $34.8 million in total, as a result of the scheme.
Twenty U.S. Navy officials have been charged so far in the fraud and bribery investigation. Additionally, to date, five GDMA executives have been charged and pleaded guilty: (1) Alex Wisidagama, (2) Francis, (3) Edmund Aruffo, (4) Peterson and (5) Raja. Wisidagama was sentenced on March 18, 2016, to 63 months in prison and was ordered to pay $34.8 million in restitution to the U.S. Navy. Francis and Aruffo await sentencing.
A criminal complaint is merely an accusation, and the accused is presumed innocent unless proven guilty in a court of law.
The DCIS, NCIS and the Defense Contract Audit Agency are investigating this matter. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Two Convicted of Racketeering Offenses Related to Criminal Activities of Florencia 13 Street Gang Receive Lengthy Prison TermsRead the Press Release
LOS ANGELES – Two key operatives of the Florencia 13 street gang who were convicted of racketeering and narcotics offenses following a trial last year have each been sentenced to over a decade in federal prison.
Giselle Casado, also known as “Guera,” 33, of Downey, was sentenced yesterday to 121 months in prison for being a “secretary” to the gang’s “shot-caller,” which allowed her to play an inside role in the gang’s illegal operations.
The evidence presented at last year’s trial showed that Casado relayed gang-related messages, controlled illicit monies, and assisted drug trafficking activities.
A second person found guilty last year by a federal jury – Jose Sanchez, also known as “Trouble” and “Troll,” 41, of Huntington Park – was sentenced last month to 238 months in federal prison. Sanchez, a longtime F13 member, was sentenced on April 17 for his role in the gang’s racketeering activities, as well as related drug trafficking and firearm offenses.
Casado and Sanchez were sentenced by United States District Judge Beverly Reid O’Connell, who presided over a four-week trial that culminated last July with a jury returning guilty verdicts on charges of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiracy to distribute narcotics. Sanchez also was found guilty of possessing a firearm in furtherance of a drug trafficking crime for possessing a handgun at a “casita” – one of the illegal gambling establishments run by the gang.
The evidence presented at trial showed that Sanchez was one of the F13’s “soldiers,” who were required to engage in drug trafficking and violent acts on behalf of the gang. Sanchez served as armed security to protect illegal narcotics sales at several casitas. He also sold drugs both at the casitas and from his residence in Huntington Park. When she sentenced Sanchez last month, Judge O’Connell described Sanchez as having “consistently led a life of crime.”
The jury that convicted Casado and Sanchez also returned guilty verdicts against two other F13 members who were charged in a federal racketeering indictment in August 2013. The indictment named 30 members and associates of the F13 Gang. With the four convictions last summer, a total of 25 defendants have been convicted in the case (one charged defendant died, and the other four remain fugitives).
The other two defendants found guilty at trial last summer are scheduled to be sentenced by Judge O’Connell on June 5. Jose Dorado, 35, and Tannous Fazah, 27, both of Huntington Park, were also found guilty of the RICO and drug trafficking conspiracies, with the latter offense based on F13’s street sales of illegal narcotics and smuggling of drugs into the Los Angeles County jail system.
During the trial, prosecutors argued that Dorado and Fazah were also “soldiers” who, among other things, participated in the murder of a junior member of the F13 Gang. At sentencing, Dorado and Fazah are each facing a maximum sentence of life without parole in federal prison.
The investigation into Florencia 13 was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Los Angeles County Sheriff’s Department; the California Department of Corrections and Rehabilitation; the Huntington Park Police Department; and the Los Angeles Police Department.
The case is being prosecuted by Assistant United States Attorneys Terrence P. Mann of the Santa Ana Branch Office, Sheila Nagaraj of the Public Corruption and Civil Rights Section, and Victoria A. Degtyareva of the General Crimes Section.
Topeka Man Pleads Guilty to Lying to Investigators Before Deadly StandoffRead the Press Release
TOPEKA, KAN. B A Topeka man pleaded guilty Tuesday to lying to investigators in a 2016 interview during a search for fugitive Orlando J. Collins, U.S. Attorney Tom Beall said today.
Quentin Kirk Lawton, 37, pleaded guilty to one count of making a false statement. In his plea, he admitted that on April 23, 2016, he visited Collins in a room at the Country Club Motel at 3732 S.W. Topeka Boulevard. Lawton left the motel shortly before a standoff between Collins and federal agents. When the FBI questioned Lawton about Collins’ whereabouts, Lawton denied he had been to the motel and seen Collins. In fact, Lawton was captured on video surveillance entering and leaving Collins’ room shortly before members of a federal task force attempted to arrest Collins.
When members of a task force tried to take Collins into custody he shot two U.S. Marshals and an FBI agent. A fire ignited from inside Collins’ room during the gunfight and spread throughout the motel. After the fire, Collins’ body was found in the motel room.
Sentencing is set for Aug. 14. Both parties have agreed to recommend a sentence of 42 months in federal prison. Beall commended the U.S. Marshals Service investigated and Assistant U.S. Attorney Jared Maag for their work on the case.
Sullivan County Man Convicted in White Plains Federal Court of 2015 Robbery and Murder in Swan LakeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JEFFREY HERRING, 27, was convicted today of robbing and murdering Michael Northcote on October 12, 2015, in Swan Lake, New York, as well as racketeering charges in connection with his membership in the Askari, a Bloods gang. The jury convicted HERRING on all five counts in the controlling indictment following a two-week trial before U.S. District Judge Kenneth M. Karas.
Acting U.S. Attorney Joon H. Kim stated: “Jeffrey Herring, as a member of the Bloods gang Askari, carried out a violent home-invasion robbery with fellow gang members and senselessly murdered Michael Northcote. Today, a unanimous jury convicted him of racketeering and murder, holding him accountable for his brutal crimes. We want to thank our law enforcement partners – federal, state, and local – for their outstanding work on this case. We are particularly grateful to Sullivan County District Attorney James Farrell for his extraordinary partnership with our Office on this and so many other cases. We hope the jury’s verdict brings some comfort and justice to the family of the victim of Herring’s crimes.”
According to court papers and evidence admitted at trial:
From 2014 to May 2016, JEFFREY HERRING was a member of the Askari in Sullivan County. The Askari is a subset of the Bloods gang that engaged in, among other things, robberies, shootings, and drug dealing. On October 12, 2015, HERRING and several other individuals, including other Askari members, carried out a home-invasion robbery of Michael Northcote, a marijuana dealer, at 177 Cohen & Cohen Road, Swan Lake, New York. In the course of that robbery, HERRING shot and killed Northcote.
For these activities, HERRING was convicted of one count of conspiracy to commit robbery, which carries a maximum sentence of 20 years; one count of robbery, which carries a maximum sentence of 20 years; one count of murder through the use of a firearm, which carries a mandatory minimum sentence of 10 years, to be served consecutively to any other sentence, and a maximum sentence of life; conspiring to violate the racketeering laws, which carries a maximum sentence of 20 years; and felony murder in aid of racketeering, which carries a mandatory minimum sentence of life imprison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HERRING is scheduled to be sentenced on November 16, 2017, before Judge Karas.
Acting U.S. Attorney Kim praised the Sullivan County District Attorney, the FBI, the New York State Police, the Sullivan County Sheriff’s Office, the Village of Monticello Police Department, and the Village of Liberty Police Department for their outstanding work in this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Gerber, Lauren Schorr, and Maurene Comey are in charge of the prosecution.
Steamboat Man Sentenced to 120 Months for Voluntary ManslaughterRead the Press Release
PHOENIX – On May 9, 2017, D’Juan Manuel Pizarro, 27, of Steamboat, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 120 months in federal prison, followed by three years of supervised release. Pizarro had previously pleaded guilty to voluntary manslaughter.
On June 4, 2016, Pizarro stabbed the victim, also an enrolled member of the Navajo Nation, to death. The incident occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8148-DGC
RELEASE NUMBER: 2017-042_Pizarro
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Singapore Executives Plead Guilty to Fraud in International Navy Corruption Scandal; Admit Bilking U.S. Navy of MillionsRead the Press Release
Assistant U. S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – May 9, 2017
SAN DIEGO – Neil Peterson and Linda Raja, former executives of foreign defense contractor Glenn Defense Marine Asia (GDMA), pleaded guilty in federal court today to fraud charges, admitting that they conspired to submit bogus bids, claims and invoices to the U.S. Navy in an effort to win contracts and overcharge the Navy by tens of millions of dollars as part of a years-long corruption and fraud scheme.
Peterson, 39, and Raja, 44, both of Singapore, worked as chief deputies for foreign defense contractor Leonard Glenn Francis to fill the coffers of their company, Glenn Defense Marine Asia (GDMA), at the expense of the U.S. Navy. Peterson served as the Vice President for Global Operations for GDMA and Raja served as GDMA’s General Manager for Singapore, Australia, and the Pacific Isles.
Both defendants were arrested by authorities in Singapore at the request of the U.S. government and were extradited on Oct. 28, 2016. Sentencing for Peterson and Raja is set before U.S. District Judge Janis L. Sammartino on August 11, 2017 at 9 a.m.
According to Peterson’s and Raja’s plea agreements, they and other members of GDMA’s management team created and submitted fraudulent bids that were either entirely fictitious, contained falsified prices supposedly from actual businesses, or fraudulently stated that the business shown on the letterhead could not provide the items or services requested. In this manner, Peterson and Raja and other members of GDMA's core management team could ensure that GDMA's quote would be selected by the U.S. Navy as the supposed low bidder. GDMA could thus control and inflate the prices charged to the U.S. Navy without any true, competitive bidding, as required.
Peterson and Raja admitted that they and other members of the GDMA management team knowingly created and approved fictitious Port Authorities with fraudulently inflated Port Tariff Rates, and approved the presentation of such fraudulent documents to the U.S. Navy. GDMA thus charged inflated prices to the U.S. Navy, rather than what GDMA actually paid to the bona fide Port Authorities.
For example, for the visit of the U.S.S. Bonhomme Richard visit to Kota Kinabalu, Malaysia, in or about October 2012, under the direction of Peterson and other members of GDMA's core management team, false
documents and inflated invoices were presented to the U.S. Navy. The full amount billed to the U.S. Navy for this visit was $1,232,858, of which approximately $877,413 was fraudulently inflated.
Peterson and Raja admitted that losses to the United States Navy exceeded $34,800,000.
Twenty Navy officials have been charged so far in the fraud and bribery investigation.
In addition, five GDMA executives – Neil Peterson and Linda Raja as well as Francis, Alex Wisidagama, Ed Aruffo, – have been charged All five have pleaded guilty.Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing;
The Defense Criminal Investigative Service, Naval Criminal Investigative Service and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANTS Case Number: 14-CR-3703-JLS
Neil Peterson Age: 39 Singapore
Linda Raja Age: 44 Singapore
SUMMARY OF CHARGES
Conspiracy to Defraud the United States with Respect to Claims, in violation of 18 U.S.C. § 286
Maximum Penalty: 10 years in prison, a $250,000 fine.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Santa Ana Man Arrested on Federal Charges of Illegally Selling Feathers from Bald Eagles and Other Protected Migratory BirdsRead the Press Release
LOS ANGELES – A Santa Ana man was arrested today by special agents with the United States Fish and Wildlife Service after he was charged with unlawfully selling feathers from a bald eagle and other protected migratory birds.
Tyler Rene Vela, 27, was arrested this morning without incident pursuant to a criminal complaint filed last week. Vela is scheduled to make his initial appearance this afternoon in United States District Court.
The complaint filed last Wednesday outlines an undercover investigation conducted by agents from the Fish and Wildlife Service to identify individuals who illegally traffic in eagles, red-tail hawks and other protected bird species.
Following a series of undercover Facebook messages, Vela sold “bustles” made from feathers taken from red-tail hawks, turkey vultures and bald eagles, according to the complaint. A bustle is a string of either hawk or eagle feathers attached to a backboard and worn on the back during Native American dance exhibitions. In 2015 2016, Vela allegedly negotiated prices, accepted payments and mailed the bustles to undercover agents.
Southern California is home to a variety of protected native and migratory bird species. Protected wildlife species are generally identified as threatened or endangered and are in need of protection to ensure the viability of the population.
Federal wildlife statutes are in place to protect migratory birds, red-tail hawks and other birds of prey, generally prohibiting the sale and trafficking of their parts. The use of the internet and social media platforms to sell protected bird species – or any other threatened or endangered wildlife – creates a market, increases demand and ultimately leads to the decimation of these vulnerable populations.
The complaint charges Vela with misdemeanor offenses of selling subadult bald eagle feathers and the parts of other protected migratory birds, including a red-tailed hawk. If convicted of violating the Bald and Golden Eagle Protection Act, Vela faces a statutory maximum sentence of one year in federal prison. If convicted of violating the Migratory Bird Treaty Act, he faces a statutory maximum of six months in federal prison.
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.
The case against Vela is being investigated by the United States Fish and Wildlife Service, Office of Law Enforcement.
The case is being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
Sales Rep for North Alabama Compounding Pharmacy Charged in $13 M Insurance ConspiracyRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a sales representative for a Haleyville, Ala.,-based compounding pharmacy with conspiracy in a multi-faceted scheme to generate prescriptions and defraud Blue Cross Blue Shield of Alabama and one of its prescription drug administrators out of over $13 million in one year. Acting U.S. Attorney Robert O. Posey, Federal Bureau of Investigation Special Agent in Charge Roger Stanton, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, and Defense Criminal Investigative Service Special Agent in Charge John F. Khin announced the charges.
The U.S. Attorney’s Office filed a four-count information in U.S. District Court charging ROBIN GARY LOWRY, 49, of Columbus, Miss., with conspiring between October 2014 and November 2015 to defraud BCBS of Alabama and Prime Therapeutics, the entity that processed prescription drug reimbursement claims for BCBSAL. The information also charges Lowry with three counts of health care fraud for submitting fraudulent claims for payment to BCBSAL.
In conjunction with the charges, prosecutors also filed a plea agreement with Lowry.
Lowry worked for Northside Pharmacy, which did business as Global Compounding Pharmacy. Global’s compounding and shipping facility was in Haleyville. The pharmacy did all of its prescription processing, billing and customer service at its “call center” in Clearwater, Fla.
In May 2015, Prime notified Global that it was terminating the compounding pharmacy from its network, effective Sept. 4, 2015. Also in May 2015, two Global employees became listed owners of Carrollton Pharmacy, which does business as The Prescription Shop in Haleyville. After the Sept. 4 date, Global began compounding and shipping its drugs from other pharmacies, including TPS, which in 2015 was a Prime network pharmacy contracted with BCBSAL.
Prime paid claims of more than $13 million to Global and TPS in 2015, according to Lowry’s plea agreement. Global and TPS billed more than $13 million. Lowry’s plea agreement holds her accountable for between $250,000 and $550,000 of the fraudulent claims and seeks to have her forfeit $272,405 as proceeds of illegal activity.
According to the information and plea agreement, there was a conspiracy among Lowry and others at Global to generate prescriptions, particularly high-reimbursement prescriptions. To increase profits, Global targeted products covered by BCBSAL, which was its employee insurance provider.
Global paid Lowry an annual salary, plus a monthly commission for each prescription she obtained.
The court documents describe the conspiracy as follows:
Global recruited close relatives of doctors and other prescribers as sales representatives. It also encouraged employees to work, typically without pay, at prescribers’ offices where they were to review patient files in order to recommend and encourage use of Global's products.
Global also frequently instructed its employees to obtain high-reimbursing, but medically unnecessary prescriptions for Global products for themselves and their family members, and waived co-pays for these products. A July 2015 email from a Global sales executive to other pharmacy employees encouraged every sales representative and district manager to get a prescription “for themselves and every eligible family member” for SilaPak, a high-reimbursing “topical skin repair complex.”
“So far we have 15 reps and one [district manager] who have gotten at least one in. If we get everyone in the week that would be around 45-50 depending on the family. At 50 that is $220,000 in revenue and we need it,” the email said.
Lowry obtained prescriptions from a prescriber with whom she had a close familial relationship, and who sometimes issued the prescriptions to people without talking to or having a doctor-patient relationship with them. Lowry also frequently forged prescriptions from her relative, according to the charges and her plea agreement.
In July 2015, Lowry sent Global a forged SilaPak prescription for the three-year-old child of a Global employee, even though Global’s own marketing materials warned that the SilaPak cream was not to be used for children. Global filled the prescription and mailed a refill of it for the child to Santa Rosa Beach, Fla., in August 2015.
The maximum punishment for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine.
FBI, USPIS, HHS-OIG and DCIS investigated the case, which Assistant U.S. Attorneys Chinelo Dike-Minor and Nicole Grosnoff are prosecuting.
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Queens, New York Man Charged with Supplying over 1 Kilogram of Heroin for Distribution in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Second Superseding Indictment charging Javier Pallamps-Fernandez, aka “Javi,” of Queens, New York with drug distribution charges. Specifically, the indictment alleges that Pallamps-Fernandez conspired with Christopher Nazer of Milton to distribute over a kilogram of heroin in Vermont from approximately 2012 to May of 2016.
In Court documents, the United States alleges that during the conspiracy, Pallamps-Fernandez, Nazer, and others trafficked heroin from New York City to the Burlington area, through the use of vehicles with hidden compartments. On May 9, 2016, law enforcement seized an Audi station wagon registered to Nazer that contained over 1 kilogram of heroin in a hidden compartment. The United States alleges that Pallamps-Fernandez was the source of that heroin.
On May 9, 2017, Javier Pallamps-Fernandez appeared before United States Magistrate Judge John M. Conroy for his arraignment, and was ordered detained pending trial.
The United States Attorney emphasizes that the charges contained in the Second Superseding Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Pallamps-Fernandez is convicted, he faces a mandatory minimum sentence of twenty years, and a maximum possible term of imprisonment of life.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Pallamps-Fernandez is represented by Barry Goldberg, Esq. of New York, New York. The investigation was conducted by the Burlington Police Department and the Drug Enforcement Administration, with assistance from the Milton Police Department.
Pittsburgh Man Charged with Distributing FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jacob Palaski, 26, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about July 9, 2016, Palaski distributed and possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Peters Township Police Department and the Drug Enforcement Administration 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.
Philadelphia District Attorney Rufus Seth Williams Indicted on Additional Fraud ChargesRead the Press Release
PHILADELPHIA – Philadelphia District Attorney Rufus Seth Williams was indicted today on additional fraud charges stemming from his alleged use of political action committee (PAC) funds and official government vehicles for his personal benefit, Acting New Jersey U.S. Attorney William E. Fitzpatrick announced.
Williams, 50, of Philadelphia, is now charged in a superseding indictment with 11 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law (the “Travel Act counts”), two counts of Hobbs Act extortion under color of official right, two counts of honest services wire fraud, 12 counts of wire fraud and two counts of mail fraud.
Williams was originally charged in a 23-count indictment on March 21, 2017. The superseding indictment now contains 29 counts, including Counts 22 to 29 regarding Williams’ use of PAC funds and official vehicles.
The Fraud Involving PAC Funds Friends of Seth Williams, a/k/a “The Committee to Elect Seth Williams,” was a political action committee that accepted contributions from individuals to support Williams’ campaigns for public office. Under applicable law, the PAC funds could only be used in relation to political campaigns.
According to the superseding indictment, from August 2010 through August 2016, Williams allegedly defrauded the PAC by using its funds for personal expenditures, which he concealed by providing false or incomplete reports to the Commonwealth of Pennsylvania and to the City of Philadelphia.
For instance, between August 2010 and September 2010, the PAC disbursed two checks to a political consultant totaling approximately $4,136.59. The memo line on these checks falsely stated, “Political Consulting.” Within days of the political consultant receiving the PAC checks, Williams obtained checks from the political consultant’s account and deposited them into his own bank account. In total, Williams received approximately $4,036.59 of the approximately $4,136.59 that the political consultant received from the PAC between August 2010 and September 2010. Williams used these funds for personal expenses.
In addition, from October 2011 through April 2015, Williams incurred expenses at a social club for his personal benefit, including dinner parties, lodging, and family events, none of which were incurred in connection with any election. Williams used the PAC’s debit card to pay for these expenses, including charges of $677.98 for a New Year’s Eve celebration at the social club on Dec. 31, 2013 for Williams and his girlfriend; $195.50 for a facial and massage in January 2014; $777.19 for an April 10, 2014 birthday dinner that Williams held for his girlfriend; $491.50 for a massage, facial, gift card, and fitness classes in January 2015; approximately $2,674.41 for an April 10, 2015 birthday dinner that Williams held for his girlfriend; and approximately $211.50 for massages in May 2015.
From January 2013 through May 2015, Williams incurred expenses at a health club for his own personal benefit, including massages, facials, and clothing, none of which were incurred in connection with any election. Williams also used the PAC’s debit card to pay for these expenses, including charges for massages of $222.50 in January 2013, $209 in July 2013, $251.50 in September 2013, and $90 in November 2013.
The Fraud Involving Official Government Vehicles Williams also allegedly engaged in a scheme to use official vehicles – which were provided by the City of Philadelphia and a federal narcotics law enforcement program – for his personal benefit.
Some of those vehicles were obtained through grants provided by the High Intensity Drug Trafficking Area (HIDTA) program. The purpose of the HIDTA program was to reduce illegal drug trafficking and drug production in the United States by, among other things, facilitating cooperation among federal, state, and local law enforcement agencies. The HIDTA program provided resources and funding to enhance and promote regional drug control strategies within defined geographic areas. Each geographic area designated as a HIDTA was governed by an Executive Board comprised of federal, state, and local law enforcement agencies.
Williams was a member of the Executive Board for the HIDTA of Philadelphia and Camden, New Jersey. The District Attorney’s Office (DAO) assigned HIDTA vehicles to detectives in its Dangerous Drug Offender Unit (DDOU), which often conducted narcotics investigations with federal and state HIDTA partners. Vehicles owned or leased by these agencies could not be used for personal purposes.According to the superseding indictment, Williams repeatedly used city and HIDTA vehicles for his personal use during non-working hours, including weeknights and weekends. Williams directed his security detail to leave a city or HIDTA vehicle at his home every weeknight, so that he would have access to it during all non-working hours. Williams used the vehicles to transport himself, family members, friends and other non-employees on non-DAO business, including personal trips outside of Philadelphia.
During the scheme, Williams had full-time access to city or HIDTA vehicles for nearly all of his personal vehicular needs and personally incurred almost no expenses related to the use of a personal vehicle for years, including costs of purchasing, leasing, or renting a vehicle, or paying for insurance, fuel, and maintenance.
In addition, Williams’ acquisition and use of the HIDTA vehicles, including a Nissan Armada SUV and two Chevrolet Tahoe SUVs, reduced the number of vehicles available to members of the DAO’s DDOU for undercover operations, surveillance, and other aspects of narcotics investigations.
Bribes Involving Business Owners and Fraud on a Nursing Home and Family Friends
Williams remains charged with the same three schemes that were detailed in the March 21, 2017 indictment:
• From July 2010 through May 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #1,” in which Williams, while serving as the Philadelphia District Attorney, accepted trips, money, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #1.
• From March 2012 through July 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #2,” in which Williams accepted airline tickets, money, an automobile, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #2.
• From February 2012 through November 2013, Williams allegedly diverted a relative’s pension and Social Security payments to pay for his own personal expenses instead of applying them to the relative’s nursing home costs. In addition, after accepting $10,000 from friends of his relative intended to cover expenses for the relative’s nursing home care, Williams spent the money on his personal expenses instead.
The 29-count superseding indictment presents some alterations to the original counts, without changing the substance of the above allegations. Williams was arraigned on March 22, 2017, and entered a plea of not guilty. The trial is presently set for May 31, 2017.
Each of the Travel Act counts is punishable by a maximum potential penalty of five years in prison. The Hobbs Act extortion under color of official right and the wire and mail fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. The indictment also seeks forfeiture of a total of approximately $64,878.22, representing the sum of approximately $33,765.52 worth of bribe proceeds and approximately $31,112.70 worth of fraud proceeds.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Thomas F. Burke Esq., Philadelphia.
Pasadena Man Sentenced to 9 Years in Federal Prison for Distributing Child Pornography over Peer-to-Peer Computer NetworkRead the Press Release
LOS ANGELES – A Pasadena resident has been sentenced to nine years in federal prison for distributing child pornography over a peer-to-peer file-sharing network.
Michael Brian Perry, 38, was sentenced on Monday by United States District Judge Otis D. Wright II.
Perry pleaded guilty on February 15 to one count of distribution of child pornography. In a plea agreement filed in court, Perry admitted that in October 2014 he “used peer-to-peer software on his computer hard drive to knowingly share with other peer-to-peer users files that defendant knew contained visual depictions of minors engaged in sexually explicit conduct.”
When authorities searched Perry’s residence in November 2014, they recovered computer equipment that contained at least 697 images of child pornography and at least 457 videos of child pornography, some of which depicted children under the age of 12 being used for sexual acts and some of which portrayed sadistic or masochistic sexual conduct against the minor victims.
Once he completes his prison term, Perry will be on supervised release for 20 years and will be required to register as a sex offender.
The case against Perry was brought as part of Operation “Wide Net,” an investigation conducted by the Los Angeles Internet Crimes Against Children (ICAC) Task Force. ICAC includes special agents with the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Postal Inspection Service, who work in conjunction with local law enforcement partners, including the Los Angeles Police Department and the Los Angeles Sheriff’s Department.
The case against Perry was prosecuted by Assistant United States Attorney
Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Oncology Therapy Center in High Desert Pays $3 Million to Resolve Allegations of Providing Radiation Treatments without Doctor PresentRead the Press Release
LOS ANGELES – A Lancaster-based radiation therapy center has paid $3 million to resolve allegations that it submitted fraudulent bills over a nearly 10-year period to three government-run healthcare programs for unsupervised radiation oncology services.
Valley Tumor Medical Group paid $2,865,693 to the United States and $134,307 to the State of California on April 13 to resolve allegations in a “whistleblower” lawsuit that it submitted fraudulent bills to the Medicare, Medi-Cal and TRICARE programs.
The civil action, United States ex rel. Shindler v. Valley Tumor Medical Group, et al., CV 15-2249, was unsealed and dismissed on April 20 by United States District Judge R. Gary Klausner. The government learned of the unsealing late yesterday.
From January 3, 2006 through November 13, 2015, Valley Tumor’s radiation therapists allegedly administered radiation oncology treatments at Valley Tumor’s Ridgecrest location to beneficiaries of the three government healthcare programs when no doctor was on-site at the center, which is required by federal regulations. Valley Tumor closed its Ridgecrest location in early 2016.
Valley Tumor was named in a federal “whistleblower” lawsuit filed in 2015 that alleged the company and its doctor-owners knowingly submitted false claims to the Medicare, Medi-Cal and TRICARE programs. The lawsuit was brought by a former Valley Tumor employee under the qui tam – or whistleblower – provisions of the False Claims Act, which allows private citizens to bring suit on behalf of the government and share in any recovery. The whistleblower, Jared Shindler, received $555,000 from the settlement.
Valley Tumor did not admit liability in settling the lawsuit.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The settlement was finalized by Assistant United States Attorney Linda A. Kontos of the Civil Fraud Section.
Ohkay Owingeh Man from Santa Fe Pleads Guilty to Federal Kidnapping ChargeRead the Press Release
ALBUQUERQUE – Earl Adams, 53, and enrolled member of the Ohkay Owingeh Pueblo who resides in Santa Fe, N.M., pled guilty today in federal court in Albuquerque, N.M., to a kidnapping charge. The plea agreement recommends that Adams be sentenced to 11 years of imprisonment followed by a term of supervised release to be determined by the court.
Adams was arrested on March 2, 2017, on an indictment charging him with assault resulting in serious bodily injury and kidnapping. According to the indictment, Adams committed the offenses on March 1 and 2, 2016, on the Ohkay Owingeh Pueblo in Rio Arriba County, N.M.
During today’s proceedings, Adams pled guilty to the kidnapping charge. In entering the guilty plea, Adams admitted seizing and confining the victim in a residence on March 1, 2016, because the victim refused to take him to the store to purchase alcohol. Adams assaulted the victim by punching and kicking her, dragging her around the residence by her hair, and binding her hands and feet with zip ties. As a result of the assault, the victim suffered a black eye, a nasal fracture and a forearm fracture, both of which required surgery, injuries the hand and wrist, which required physical therapy, and loose front teeth. Adams admitted that he did not release the victim until March 2, 2016, when police arrived at the residence.
Adams remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Ohkay Owingeh Tribal Police Department. Special Assistant U.S. Attorney Lucy Solimon is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.