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Tuesday 28 March 2017
Bethel Man Pleads Guilty to Heroin and Cocaine Distribution Charge Stemming from 2 Overdose DeathsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL MIGNANI, 51, of Bethel, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of possession with intent to distribute, and distribution of, heroin and cocaine.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 31, 2016, Bethel Police responded to a residence in Bethel on report of a possible heroin overdose and found an unresponsive 54-year-old female. The victim was pronounced deceased shortly thereafter. The investigation revealed that MIGNANI distributed heroin, fentanyl and cocaine that was consumed by the victim shortly before her death.
On December 11, 2016, members of the Bethel Police and medical personnel responded to a report of an unresponsive 25-year old female at MIGNANI’s residence. The victim was pronounced deceased. Investigators seized three empty heroin folds from the victim’s purse, and six empty heroin folds from the victim’s jacket pocket.
On December 12, 2016, investigators conducted a court-authorized search of MIGNANI’s residence and seized three plastic bags of cocaine, each of which contained approximately one gram of the drug. Investigators also seized $1,531 in cash and multiple cellphones from the residence. MIGNANI was arrested on state charges on that date.
The investigation revealed that MIGNANI distributed heroin and cocaine to the victim shortly before her death.
MIGNANI has been detained since his arrest on a federal criminal complaint on December 28, 2016.
Judge Meyer scheduled sentencing for June 20, 2017, at which time MIGNANI faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Bethel Police Department, with assistance from the States Attorney’s Office for the Judicial District of Danbury. The DEA Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Anthony Vita Pleads Guilty to Distributing Fatal Fentanyl-Laced Heroin to Pregnant WomanRead the Press Release
SYRACUSE, NEW YORK - Anthony Vita, 37, of Syracuse, New York, pled guilty today to distributing a controlled substance, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA).
Sentencing is scheduled for July 31, 2017 at 11:00 am before Senior United States District Judge Norman A. Mordue. According to the terms of the plea agreement, Vita will be sentenced to 15 years of imprisonment. He also faces a term of supervised release of between three years and life, a fine of up to $1,000,000, and a special assessment of $100.
As part of his guilty plea today, Vita admitted that on November 7, 2015, he sold seven bags of heroin laced with fentanyl to a 24-year-old woman who was five months pregnant. Before the sale, the victim told Vita that she had not used heroin in five months and asked him to provide her with a syringe. As requested, he delivered a syringe and seven bags of the heroin/fentanyl mixture. She injected the mixture and died due to acute opiate intoxication.
“Today the defendant accepted responsibility for killing a young woman by selling her heroin laced with fentanyl. Thanks to the collaborative investigation by local police, the Onondaga County Sheriff’s Department and the DEA, the defendant is being held accountable, but the victim’s family continues to endure their unimaginable loss of a 24-year-old woman who was five months pregnant and struggling to overcome her addiction. We will continue to work tirelessly with our law enforcement partners to hold drug dealers accountable for fatal overdoses,” said United States Attorney Hartunian.
DEA Special Agent in Charge James J. Hunt stated, “There is no happy ending to this investigation, but justice has been served. DEA and our law enforcement partners used every resource to identify, track and arrest the defendant, who has pled guilty and will spend the next fifteen years behind bars.”
The case was investigated by the U.S. Drug Enforcement Administration (DEA), Syracuse Resident Office (with Assistance from DEA Norfolk, Virginia Resident Office), the Onondaga County Sheriff’s Department and the Town of Camillus (New York) Police Department, and was prosecuted by Assistant U.S. Attorneys Carla Freedman and Tamara Thomson.
Another KC Man Indicted for Kidnapping Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a second Kansas City, Mo., man was indicted by a federal grand jury today on charges related to the kidnapping and murder of another man.
Raynal King, 25, and Howard R. Ross, III, also known as “Lil’ Howard” and “Shooter,” 22, both of Kansas City, were charged in a six-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces a Sept. 21, 2016, indictment and adds Ross as a defendant.
Today’s indictment alleges that King and Ross participated in a conspiracy to kidnap a victim identified in court documents as “J.P.” on Sept. 6, 2016. According to the affidavit, King and Ross began planning to commit a robbery a couple of days earlier. They allegedly kidnapped J.P. and took his 2014 Jeep Patriot. They attempted to access the victim’s bank account with his debit card at two bank ATM locations, the indictment says. At approximately 6:12 a.m., they allegedly shot J.P. and left him lying on the roadway near 135th and Holmes in Kansas City, Mo.
In addition to the criminal conspiracy, King and Ross are charged together in one count of kidnapping resulting in death, one count of using a firearm to commit murder in relation to the kidnapping, one count of carjacking resulting in death, one count of using a firearm to commit murder in relation to the carjacking and one count of being felons in possession of a firearm. King and Ross, both having been convicted of felony crimes, allegedly possessed a Springfield Armory .45-caliber pistol.
According to an affidavit filed in support of the original criminal complaint, J.P. was last known to be driving his black Jeep Patriot from a hospital, where he had been caring for a family member, towards his home sometime between 5 a.m. and 6 a.m. that day. Shortly after leaving the hospital, J.P. called his wife and asked her for the PIN to their debit card.
There were several failed attempts to use J.P.'s debit card at different ATMs that morning. According to the affidavit, King told investigators that he and Ross began talking about where they should drop off J.P., who remained conscious after having been shot. King told investigators that J.P. attempted to jump out of the vehicle and was shot at again. King, who was driving, slowed down the vehicle after J.P. jumped out. He looked in the rear view mirror and saw J.P. lying in the street then kept driving back to his residence.
Investigators obtained surveillance video from one of the ATMs that allegedly showed King driving J.P.'s vehicle shortly after 6 a.m. J.P. was in the passenger seat of the vehicle, according to the affidavit, with his arms straight out and palms on the dashboard. An unidentified person was in the back seat. King was also seen (driving a different vehicle) in surveillance video at the 7-Eleven at 8901 Wornall Road, Kansas City, Mo., the affidavit says, where more failed attempts had been made to use the debit card at an ATM inside the store about an hour later.
King was identified and located on Sept. 8, 2016. A Kansas City, Mo., police officer conducted a traffic stop and detained King, who has remained in federal custody since his arrest.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Amarillo Woman Pleads Guilty to Mail Fraud Stemming from a $400,000 Airline Travel SchemeRead the Press Release
AMARILLO, Texas — Ai Inthavong Lopez, 37, of Amarillo, Texas, appeared in federal court this morning before U.S. District Court Judge Sidney A. Fitzwater and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Lopez faces a maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing is set for July 11, 2017.
According to plea documents, from May 2014, and continuing through November 2015, Lopez participated in a scheme involving the sale of fictitious vouchers for future airline travel.
Specifically, Lopez, and persons acting at her direction, would telephonically contact customers in the United States who were falsely informed that they could purchase a voucher for either a round-trip domestic or international flights. Lopez claimed to customers that she was Stephanie Cancino, and that she received discounts on airline tickets through her employment.
Lopez would persuade some customers of her scheme, who did not know of the fraudulent nature of the scheme, to telephonically contact other customers to purchase airline vouchers for future travel. Customers who purchased vouchers would provide personal information, such as name, email address, phone number, and credit card information to Lopez. Lopez would receive money from customers via the United States Postal Service, PayPal, wire transfers, bank transfers, and credit card payments. Lopez, at times, would use the customer’s credit card to purchase other customers’ flight tickets.
To entice customers, Lopez would contact customers about vouchers for one-day sales or special promotions. Lopez knew actual airline tickets purchased by Lopez cost significantly more than the amount a customer paid to purchase the voucher. Lopez continued to solicit customers by promising vouchers below the market rate. Lopez would often have the customers purchase their airline tickets when they were stranded and Lopez would promise to reimburse the customer for the amount they spent. Several times during the course of this scheme, Lopez provided a check to customers to reimburse them for their loss, but the check would be returned to the customer by the bank due to insufficient funds. Lopez would then stop communication with the customer.
As a result of the scheme, Lopez’s false and fraudulent pretenses, representations, and promises fraudulently induced customers to issue monetary payments to Lopez, and for the benefit of Lopez, resulting in a total loss of approximately $401,955.06.
The Federal Bureau of Investigation and Amarillo Police Department investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Albuquerque Woman Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – Joleen Sedillo, 42, of Albuquerque, N.M., pled guilty this morning in federal court to bank robbery charges. Under the terms of her plea agreement, Sedillo will be sentenced within the range of 27 to 33 months in federal prison followed by a term of supervised release to be determined by the court.
Sedillo and co-defendants Abel Lopez, 31, and William Colbert, 38, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery charges. The criminal complaint alleges that Sedillo, Lopez and Colbert robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Sedillo, Lopez and Colbert were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
During this morning’s proceedings, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Sedillo admitted driving Lopez and Colbert to the Bank of the West branches they planned to rob. Sedillo further admitted that on July 14, 2016, she drove her co-defendants away from a branch of Bank of the West branch that Colbert attempted to rob. She also admitted concealing the clothing Colbert wore during the attempted robbery. A sentencing hearing for Sedillo has yet to be scheduled.
Lopez and Colbert have entered pleas of not guilty to the charges against them. Both remain in custody pending trial, which has yet to be scheduled. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
3 Canadians and their Company Charged with Conspiring to Sell Foreign-Made Drugs to Western Pennsylvania PharmacistsRead the Press Release
PITTSBURGH – Three Canadian residents and their company have been charged by Information in Pittsburgh with conspiring to distribute wholesale quantities of misbranded prescription drugs made for the foreign market and money laundering, Acting United States Attorney Soo C. Song announced today.
According to the Information, Tony Lee, Billy Lee and Tarn Uppal, all Vancouver, B.C. residents, operated Quantum Solutions, SRL (hereafter, Quantum), a company registered in Barbados with offices in the Vancouver, British Columbia area. Quantum purchased prescription drugs made for foreign markets and sold wholesale quantities to three pharmacists in Western Pennsylvania. Quantum purchased the drugs from suppliers located in Turkey, Great Britain and other countries. The defendants arranged for these misbranded drugs to be sent to a re-shipper in the United Kingdom (UK). The UK re-shipper was instructed to unpack the drugs, repack them in several small packages, put misleading labeling and shipping documentation on them and understate the dollar value of the contents in order to create the appearance to U.S. Customs and Border Protection that the drugs were health care products for the personal use of the addressee. The small packages were sent to Washington State and New York State re-shippers known to the U.S. Attorney, where they were once again unpacked and repacked for delivery in the United States. Wholesale quantities of these misbranded drugs intended for use in foreign markets were purchased by three pharmacists in Western Pennsylvania. The wire transfers, checks and credit card payments from the pharmacists traveled from Western Pennsylvania to Canada and Barbados. None of the re-shippers were licensed in the United States to conduct this business. None of the prescription drugs met FDA approval because they were made and labeled for use outside of the United States. The information against Quantum seeks forfeiture of $4,235,000.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The United States Food and Drug Administration-Office of Criminal Investigations and the Internal Revenue Service-Criminal Investigations conducted the investigation leading to the filing of these Informations.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Monday 27 March 2017
Waldorf Man Sentenced to Eight Years in Federal Prison for Committing Two Bank Robberies in Less Than a WeekRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Joshua Francisco Miranda, age 29, of Waldorf, Maryland, today to eight years in prison, followed by five years of supervised release, for committing two bank robberies in March 2016. Judge Chuang also entered an order requiring Miranda to pay restitution of $7,800.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on March 23 and March 29, 2016, Miranda robbed banks in Accokeek and Fort Washington, Maryland, respectively. In each robbery Miranda entered the bank and gave the teller a note demanding $5,000. The notes also threatened that Miranda had a bomb which he would detonate if the teller did not comply with his demand. Surveillance footage and witness testimony showed that in each robbery Miranda had a wire coming out of one of his shirt sleeves. Miranda stole a total of $7,800 from the two banks. At the time of these robberies, Miranda was on parole and probation for three previous state robbery convictions.
United States Attorney Rod J. Rosenstein commended the FBI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas M. Sullivan, who prosecuted the case.
VR Labs Principals Charged with Scheme to Defraud Lee County of Millions in Grant Program FundsRead the Press Release
Fort Myers, FL – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Kay F. Gow (66, Naples), Robert T. Gow (75, Naples), and John G. Williams, Jr. (65, Virginia Beach, VA) with conspiracy to commit wire fraud and money laundering, wire fraud, and illegal monetary transactions. If convicted on all counts, the Gows each face a maximum penalty of 45 years in federal prison, and Williams faces a maximum penalty of 25 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit over $5.1 million, that is alleged to be traceable proceeds of the offenses. All three individuals will make their initial appearances today at 3:00 p.m. before United States Magistrate Judge Carol Mirando.
According to the indictment, , the Gows owned and controlled multiple entities, including HerbalScience Group, LLC and HerbalScience Singapore Pte, Ltd. In 2010, the Gows formed VR Laboratories, LLC to apply for a $5 million grant from Lee County through the Financial Incentives for Recruiting Strategic Targets (“FIRST”) program, which consisted of taxpayer funds set aside by the county to bring economic development projects to the Ft. Myers area. In seeking the award, the Gows made numerous false and fraudulent representations to various individuals and government entities about their financial success and that of HerbalScience and VR Labs, including that VR Labs was poised to become a leading global formulator and manufacturer of botanical pharmaceuticals. Ultimately, Lee County awarded VR Labs $5 million in FIRST incentive program funds to build a manufacturing facility that the Gows had claimed would bring hundreds of high-paying jobs and economic growth to Lee County.Once VR Labs executed an agreement with Lee County, Williams, a long-time friend of the Gows, registered a fictitious name, “Williams Specialty Bottling Equipment,” with the Florida Secretary of State. The Gows then represented that Williams would provide the bottling line for the manufacturing facility when he had no such experience or expertise. Williams used false and fraudulent invoices for work and services allegedly performed on the bottling line to make demands for payment and, once paid, kicked back a substantial portion of the funds to VR Labs and the Gows. The Gows then used Williams’s false and fraudulent invoices to justify requests to Lee County for the payment of the grant money. Once VR Labs received the grant funds, the Gows fraudulently transferred those funds to entities they owned and controlled, and ultimately to themselves, by disguising the transfers as fees, salaries, expenses, and other items. They also tried to conceal the source of the kickbacks through the creation of fictitious entities and documents. Ultimately, Lee County disbursed approximately $4.7 million in FIRST incentive grant funds to VR Labs, but the manufacturing facility was never completed or operational.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.
Two Sentenced in Robbery at Bank in Stilwell, Kan.Read the Press Release
KANSAS CITY, KAN. – Jacob L. Smith, 19, Kansas City, Kan., was sentenced Monday to 300 months in federal prison for a bank robbery in which he shot at law enforcement officers during a high-speed chase, U.S. Attorney Tom Beall said. Co-defendant Danille Morris, 27, Kansas City, Kan., whose 19-month child was with her in the getaway car, was sentenced to 200 months.
Smith pleaded guilty to one count of bank robbery and one count of brandishing a firearm. Morris pleaded guilty to one count of bank robbery, one count of brandishing a firearm and one count of unlawfully possessing a firearm following a felony conviction.
In his plea, Smith admitted that on March 9, 2016, he and co-defendant Gary Jordan, 40, Kansas City, Kan., brandished handguns when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. They held tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car.
During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers six times from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, Morris and her 19-month-old child were in the car.
Beall commended all the agencies that assisted in the investigation including the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley.
Two Sentenced in Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Audry Lane, a/k/a “Spud,” 29 and Alvin Lane, a/k/a “Spank,” 32, have been sentenced for their roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Audry Lane, appeared before U.S. District Judge Reed C. O’Connor this morning and was sentenced to 280 months in federal prison and a lifetime of supervised release. He pleaded guilty to one count of conspiracy to engage in sex trafficking of children in November 2016.
Alvin Lane, appeared before U.S. District Judge Reed C. O’Connor last week and was sentenced to 166 months in federal prison. He also pleaded guilty to one count of conspiracy to engage in sex trafficking of children in October 2016.
Both defendants will be required to register as a sex offender.
According to documents filed in the case, in November 2015, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) learned that a 16-year-old runaway, Jane Doe 1, was being trafficked by a group of people in Fort Worth, Texas; that group included the defendants. The investigation revealed that from approximately October 1, 2013, through April 16, 2016, the members of this group facilitated the commercial sex acts of several minor and adult females.
Audry Lane and Alvin Lane, along with co-conspirators Diwone Nobles, Deon Bonner, Chad Johnson, Katelyn Ward and Stanley Johnson, acted as pimps for the girls and women they trafficked. They instructed them on how much to charge and they kept proceeds from transactions. They also provided the girls and women with condoms, cellular phones and hotel rooms. Some of the member of the group bought and sold the girls and women they were trafficking amongst themselves.
To locate commercial sex customers, Nobles, Bonner, Chad Johnson, Stanley Johnson, Katelyn Ward, Audry Lane and Alvin Lane facilitated the placement of advertisements on various commercial websites, including Backpage.com. In many instances, rather than placing the Backpage.com advertisement themselves, co-conspirators and sisters Serrah Arnold and/or Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
For instance, on approximately June 1, 2013, 17-year-old Jane Doe 4 was introduced to Audry Lane, Serrah and Jessica Arnold, and Alvin Lane by a family friend of the Arnolds, co-defendant Katelyn Ward. Ward asked the Lanes and Arnolds to teach Jane Doe 4 how to engage in commercial sex acts. Serrah and Jessica Arnold explained to Jane Doe 4 about Backpage.com and how to talk to commercial sex customers. Ward, along with Audry Lane, and later Alvin Lane, acted as Jane Doe 4’s pimp at various times between 2013 and 2015. Audry Lane knew she was 17 when he began facilitating her commercial sex acts, and he kept the proceeds she earned. Various members of the group posted Jane Doe 4 on Backpage.com and facilitated her commercial sex acts.
On approximately October 10, 2015, friends Deon Bonner and Stanley Johnson met 17-year-old Jane Doe 2 and her 16-year-old friend Jane Doe 1 in Fort Worth. They took the girls to a motel on Meacham Street in Fort Worth. Shortly thereafter, Stanley Johnson told Jane Doe 2 that he wanted her to engage in commercial sex acts, and he sought help from Audry Lane and Alvin Lane to post commercial sex ads for her on Backpage.com. Stanley Johnson told Jane Doe 2 how much to charge and he bought condoms for her; he also kept the money she made from engaging in commercial sex acts.
According to documents filed in the case, one adult, female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, and Serrah Arnold. While that victim worked at Audry Lane’s direction, he would have Serrah Arnold, his “bottom girl,” supervise the victim and take the money she received. Nobles, Johnson and Lane all used force, fraud and/or coercion to cause the victim to engage in commercial sex acts.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Fort Worth Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Rochester Man Sentenced to Life in Prison Plus Five Years for Murder and Narcotics and Firearms OffensesRead 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 Damion Colabatistto, 40, of Rochester, NY, having been convicted following a jury trial of murder, conspiracy to distribute cocaine, crack cocaine, and heroin, and the use of firearms in furtherance of a drug conspiracy, was sentenced to life in prison plus five years by Chief U.S. District Judge Frank P. Geraci. Jr.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that on July 26, 2009, Colabatistto, and his former brother-in-law and friend, Angelo Ocasio, went to 137 Cameron Street looking to kill a rival drug dealer with whom Colabatistto and another co-conspirator had fought the night before. When they arrived at the house, Colabatistto and Ocasio shot and killed Meosha Harmon when she came to the upstairs window of the residence. The two mistakenly believed that Ms. Harmon was the rival drug dealer.
Angelo Ocasio, was also convicted following a jury trial in connection with the shooting of Meosha Harmon and of the underlying drug trafficking conspiracy. Ocasio was also sentenced to life in prison.
During Colabatistto’s trial, the government’s evidence established that one of the two guns used to murder Meosha Harmon was also used to murder Jose Troche on January 14, 2010, outside his house at 510 Augustine Street in Rochester. Jose Troche was a member of the drug distribution conspiracy along with Colabatistto and Ocasio. The drug conspiracy was headed by James Kendrick and his brother Pablo “Paul” Plaza. Troche was murdered because Kendrick and Plaza feared that Troche would cooperate against Kendrick in an ongoing narcotics prosecution. Colabatistto participated in the planning of the Troche murder and was the getaway driver when Paul Plaza shot Troche on the morning of January 14, 2010.
The drug conspiracy to which Colabatistto and Ocasio belonged was led by Kendrick and Plaza, and it was a large, long-term, and very violent drug distribution group. The group committed multiple beatings, shootings, and murders to protect their drug operations and to retaliate against those who posed a danger to the conspiracy, including disloyal workers and rival drug dealers.
James Kendrick and Paul Plaza were tried in a separate, seven-week trial and were each found guilty of the drug trafficking conspiracy and of several firearms offenses, including offenses relating to the murder of Jose Troche. Kendrick and Plaza were also found guilty of the murder of Francisco Santos in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, NY. James Kendrick was also found guilty of the murder of Ryan Cooper in the spring of 1999. Cooper’s remains have never been found. Like Jose Troche, both Santos and Cooper (who was a cousin of Kendrick’s and Plaza’s) were murdered because Kendrick and Plaza believed they were disloyal members of the conspiracy who had cooperated with the police or were planning to do so.
Paul Plaza and James Kendrick have also been sentenced to life in prison.
Damion Colabatistto’s conviction is the culmination of an investigation that commenced in 2010. As a result of the investigation and resulting prosecutions, four murders (Francisco Santos in 1998, Ryan Cooper in 1999, Meosha Harmon in 2009 and Jose Troche in 2010) have been solved and the responsible murderers have been brought to justice. Altogether, 11 co-conspirators have been convicted in connection with the underlying drug distribution conspiracy and/or illegal firearms possession, and murders committed in furtherance of the conspiracy.
The conviction of Colabatistto and of his co-conspirators is the result 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 Rochester Police Department, under the direction of Chief Michael Ciminelli.Roanoke Woman Sentenced on Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – A Roanoke woman, who conspired with others to distribute cocaine, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Tiana Short, 21, of Roanoke, previously pled guilty to one count of conspiracy to distribute cocaine. Today in District Court, Short was sentenced to 44 months in federal prison.
Previously, co-conspirators in the case, Marvis Maurice Johnson was sentenced to 112 months in federal prison. Terrance Donald Jackson was sentenced to 151 months in prison and Lashantae Shunmore Keeling was sentenced to 20 months in prison.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke County Police Department. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Raleigh Man Sentenced for Conspiracy to Export Defense Articles (Firearms)Read the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge W. Earl Britt sentenced ALHAJI BOYE, 46, of Raleigh to 9 months of imprisonment followed by 3 years of supervised release.
BOYE pled guilty on October 31, 2016 to Conspiracy to Export Defense Articles (Firearms) from the United States from January 1, 2014 to June 21, 2016.
In 2012, with the intention of bringing political and social change to The Gambia, Gambian-American citizens and others joined a conspiracy entitled, The Gambia Freedom League. The group hoped to take over the country, gain support from internal allies, and bring about regime change. The primary goal was to overthrow the Gambian President Yahya Jammeh who had been in control of Gambia since his own nonviolent coup in 1994 and whose rule had been marred by accusations of years of human rights violations.
The conspiracy included directives for certain individuals to purchase firearms, others to ship them to The Gambia in 55-gallon barrels concealed among secondhand clothing, and others to travel and physically engage in the coup itself. BOYE’S role was to purchase firearms and ammunition.
On December 30, 2014, members of the armed conspiracy attempted to violently breach the door of the State House in Gambia. The attempt failed and many of the conspirators died as a result of the ensuing gun battle. Following the assault, the Gambian military recovered at least 35 firearms, assault gear, vehicles, and 55-gallon barrels.
On December 31, 2014, a member of The Gambia Freedom League returned to the United States and was interviewed by the Federal Bureau of Investigation (FBI). With the information received from the interview, the FBI initiated their investigation. The Investigation revealed bank records displaying that on August 25, 2014, $7,000 had been wired to BOYE in Raleigh. On August 26, 2014, BOYE had purchased two AK-47 style assault rifles, as well as 7,000 rounds of ammunition, and 98 AK-47 magazines. On September 5, 2014, BOYE also purchased four Diamondback rifles.
In early 2015, following the failed coup, FBI agents traveled to The Gambia, inventoried, and photographed the 35 firearms seized by the Gambian government. Five of those firearms matched serial numbers on the firearms purchased by BOYE.
President Jammeh was ultimately defeated in a 2016 democratic election. He initially conceded defeat, but then refused to recognize the results; however, on January 21, 2017, Jammeh relented to the external pressures applied by the United Nations and the African Union and he departed the country.
This criminal investigation of this case was conducted by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jason Kellhofer prosecuted the case on behalf of the government.
Putnam County felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was sentenced today to a year and a half in federal prison for a gun charge, announced United States Attorney Carol Casto. Troy Walter Simpson, 39, of Liberty, previously pleaded guilty to being a felon in possession of a firearm.
On December 15, 2014, law enforcement went to interview Simpson at his residence located at 198 Fisher Ridge Road in Liberty. Law enforcement had received a report that Simpson had multiple firearms in his residence. When officers spoke with Simpson, he admitted having the guns and gave permission to enter his residence to retrieve them. Officers subsequently located and seized a Marlin Model 30AS, .30-30 caliber rifle and a Harrington & Richardson, Topper Model shotgun. Simpson was prohibited from possessing any firearm under federal law because of a 2007 felony conviction in Putnam County Circuit Court for conspiracy to distribute marijuana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Putnam County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Postal Service Employee Indicted After Faking Cancer in Order to Work from Home and Claim Hundreds of Hours of Sick LeaveRead the Press Release
DENVER – Caroline Zarate Boyle, age 59, of Highlands Ranch, Colorado, was indicted last week for using a forged writing to defraud the United States, Acting U.S. Attorney Bob Troyer and U.S. Postal Service Office of Inspector General Special Agent in Charge (USPS OIG) Scott Pierce announced. Boyle was indicted by a federal grand jury on March 16, 2017, and appeared before a federal magistrate judge last Friday morning (March 24, 2017) for arraignment. Earlier she was advised of her rights and the charges pending against her. She was then released on bond.
Boyle, a U.S. Postal Service employee, appeared before a Magistrate Judge in U.S. District Court earlier this month in response to a summons on a complaint alleging that she faked having cancer in order to claim over 100 days of sick leave and be allowed to work from home. She effectuated this fraud by forging several doctor notes regarding her alleged treatment and e-mailing them to her supervisor. However, employees from the offices of the doctors involved told special agents from the United States Postal Service, Office of Inspector General that the notes were fake and Boyle had never received treatment there. Some of the notes had inaccurate information, including misspellings of the name of the doctor she was allegedly seeing.
“The U.S. Postal Service Office of Inspector General is excellent at rooting out fraud and conducting thorough, righteous investigations,” said Acting U.S. Attorney Bob Troyer. “Thanks to them, Americans don’t have to tolerate this kind of cheating.”
Scott Pierce, USPS OIG Special Agent in Charge, Contract Fraud Investigations Division, said, “The American public expects employees of the U.S. Postal Service to be honest and forthright in their professional endeavors. For employees who choose otherwise, OIG special agents aggressively investigate allegations of criminal misconduct. In this instance, an employee fabricated medical documentation and other reports indicating she was being treated for a devastating disease, all of which were untrue. Fortunately, the actions of this employee are not indicative of the vast majority of U.S. Postal Service personnel who are dedicated, hard-working public servants.”
Boyle has been charged with a one count of presenting a forged writing to the United States with the intent to defraud. This charge carries a penalty of up to ten years in federal prison and up to a $250,000 fine.
This case is being investigated by the U.S. Postal Service’s Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Dan Burrows.
The charges contained in the complaint and indictment are allegations, and the defendant is presumed innocent until proven guilty.
Pair of Federal Inmates Sentenced for Possessing Prohibited ObjectsRead the Press Release
Abingdon, VIRGINIA – In separate hearings today, two inmates at United States Penitentiary at Lee County, Virginia in Jonesville received additional prison time for possessing prohibited objects inside the prison, Acting United States Attorney Rick A. Mountcastle announced.
Stanley Curtis Gillom, 31, previously pled guilty to one count of being an inmate of a federal prison in possession of a prohibited object, specifically marijuana. Today he was sentenced to 36 months of additional prison time.
In a separate hearing, Victor Lebron, 40, who previously pled guilty to being an inmate of a federal prison in possession of a prohibited object, specifically Suboxone film, was sentence to an additional 36 months of prison time.
The investigation of the case was conducted by the United States Bureau of Prisons and the Bristol office of the Federal Bureau of Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Pahrump Man Sentenced to Six Years for $35 Million Penny Stock Fraud SchemeRead the Press Release
Las Vegas, Nev. – One of the members involved in a penny stock fraud conspiracy that defrauded investors of over $35 million was sentenced today to 72 months in prison, announced Acting U.S. Attorney Steven W. Myhre.
Jeffrey Turino, 60, of Pahrump, was charged in an indictment with conspiracy to commit securities fraud and securities fraud in connection with a penny stock fraud scheme.
On Aug. 22, 2016, Turino pleaded guilty to conspiracy to commit securities fraud. According to the plea agreement, beginning in about 1997 continuing until about March 2010, Turino conspired with others to fraudulently issue, offer, and sell stock issued by corporate shells which they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc. and Grand Entertainment and Music, Inc. Additionally, Turino and conspirators engaged in deceptive practices and issued misleading press releases to promote these companies and to give the impression that they were actively engaged in the importation and sale of products, when in truth, the companies were hollow shells that did not engage in regular or substantial business activities, did not produce any goods, services, or profits, and did not commercially import products as promoted in their news releases. According to the plea agreement, Turino and his conspirators fraudulently induced investors to purchase billions of unregistered shares of stock in the companies, which the conspirators had deceptively issued without requisite restrictions and disclosures. Although these penny stocks typically traded for less than one cent per share, the billions of shares of stock that the conspirators offered and sold in the public market yielded proceeds of more than $35 million, which was divided and distributed among Turino and the other conspirators.
In addition to the prison incarceration, U.S. District Judge Jennifer Dorsey sentenced Turino to five years of supervised release and ordered him to pay $35 million in restitution.
The case was investigated by the FBI and IRS-Criminal Investigation; and prosecuted by Assistant U.S. Attorney Kathryn Newman.
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Owner of Florida Telecommunications Company and His Co-Conspirator Sentenced to Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
A federal court in West Palm Beach, Florida, today sentenced the owner and operator of a Florida-based telecommunications company to 75 months in prison and his co-conspirator, a resident of Bronx, New York to 36 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 50, the owner and operator of Arymyx Inc., earlier pleaded guilty before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services, as well as one count of wire fraud and one count of aggravated identity theft. Batista’s co-conspirator, Farintong Calderon, 38, pleaded guilty to the same count of conspiracy.
According to the plea agreements, Batista, Calderon and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from Calderon and additional co-conspirators, and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through Arymyx; acting as a “call site operator” which involved maintaining and re-programming cellphones through which he routed phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones. Moreover, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers, and that the fraudulent use of these “lines” caused almost $800,000 in losses to Sprint and Verizon.
In addition, Calderon admitted that he was a “line supplier” based in New York City, who provided stolen or compromised telecommunications identifying information to Batista and other co-conspirators in Florida and elsewhere. Among other things, Calderon admitted that he sent or received about 1,408 “lines” and was personally responsible for more than $250,000 in losses resulting from the scheme.
Batista and Calderon are the third and fourth defendants to be sentenced in the case by Senior Judge Hurley. Edwin Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Jose Santana was sentenced on Jan. 4, 2017, to 52 months in prison.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the Bureau’s ongoing effort to combat large-scale telecommunications fraud. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Florida Telecommunications Company and His Co-Conspirator Sentenced to Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
A federal court in West Palm Beach, Florida, today sentenced the owner and operator of a Florida-based telecommunications company to 75 months in prison and his co-conspirator, a resident of Bronx, New York to 36 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 50, the owner and operator of Arymyx Inc., earlier pleaded guilty before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services, as well as one count of wire fraud and one count of aggravated identity theft. Batista’s co-conspirator, Farintong Calderon, 38, pleaded guilty to the same count of conspiracy.
According to the plea agreements, Batista, Calderon and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from Calderon and additional co-conspirators, and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through Arymyx; acting as a “call site operator” which involved maintaining and re-programming cellphones through which he routed phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones. Moreover, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers, and that the fraudulent use of these “lines” caused almost $800,000 in losses to Sprint and Verizon.
In addition, Calderon admitted that he was a “line supplier” based in New York City, who provided stolen or compromised telecommunications identifying information to Batista and other co-conspirators in Florida and elsewhere. Among other things, Calderon admitted that he sent or received about 1,408 “lines” and was personally responsible for more than $250,000 in losses resulting from the scheme.
Batista and Calderon are the third and fourth defendants to be sentenced in the case by Senior Judge Hurley. Edwin Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Jose Santana was sentenced on Jan. 4, 2017, to 52 months in prison.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the Bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida prosecuted the case.
North Carolina Return Preparers Indicted for False Tax ReturnsRead the Press Release
A federal grand jury sitting in Greensboro, North Carolina returned an indictment yesterday charging two Durham tax return preparers with conspiring to defraud the United States and preparing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to the indictment, Keesha Frye owned and operated KEF Professional Tax Services, a Durham tax preparation business, where Maria Streater also worked as a return preparer. From 2012 through 2014, Frye and Streater allegedly falsified their clients’ tax returns by including fake and inflated sources of income to qualify for and maximize the earned income tax credit, and thereby increase the refunds claimed on the returns. Frye and Streater also allegedly filed false personal tax returns. Streater did not report the income she earned from KEF and Frye claimed false child care expenses.
An indictment merely alleges that crimes have been committed. The defendant are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Frye and Streater face a statutory maximum sentence of five years in prison for conspiracy and three years for each count of preparing false tax returns. They also face a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Sentenced for Role in Bank Fraud, ID Theft ConspiracyRead the Press Release
Lynchburg, VIRGINIA – A North Carolina man, who conspired with others to make money by cashing checks that had been stolen and altered, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Donald Hicklin, 39, of Charlotte, N.C., previously pled guilty to one count of conspiracy to commit bank fraud and two counts of aggravated identify theft. Today in District Court, Hicklin was sentenced to a term of imprisonment of 98 months. In January 2016, Charlotte resident Mario Clinton was sentenced to 85 months in federal prison for his involvement in the same conspiracy.
According to evidence presented at previous hearings by Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro, Hicklin and Clinton stole checks from corporate mailboxes located in and around business districts and then altered them to reflect a new payee name and dollar amount. They recruited individuals off the street, who were frequently women, to cash the fraudulent checks at issuing banks. They operated primarily in Virginia and North Carolina but made criminal sweeps on a regular basis through locations as far away as Pennsylvania, Missouri and Tennessee.
Investigation of the case was conducted by the United States Postal Inspection Service, the Franklin County Sheriff’s Office, the Bedford County Sheriff’s Office and the Mount Holly, North Carolina Police Department. Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
North Carolina Man Sentenced for Role in Bank Fraud, ID Theft ConspiracyRead the Press Release
Lynchburg, VIRGINIA – A North Carolina man, who conspired with others to make money by cashing checks that had been stolen and altered, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Donald Hicklin, 39, of Charlotte, N.C., previously pled guilty to one count of conspiracy to commit bank fraud and two counts of aggravated identify theft. Today in District Court, Hicklin was sentenced to a term of imprisonment of 98 months. In January 2016, Charlotte resident Mario Clinton was sentenced to 85 months in federal prison for his involvement in the same conspiracy.
According to evidence presented at previous hearings by Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro, Hicklin and Clinton stole checks from corporate mailboxes located in and around business districts and then altered them to reflect a new payee name and dollar amount. They recruited individuals off the street, who were frequently women, to cash the fraudulent checks at issuing banks. They operated primarily in Virginia and North Carolina but made criminal sweeps on a regular basis through locations as far away as Pennsylvania, Missouri and Tennessee.
Investigation of the case was conducted by the United States Postal Inspection Service, the Franklin County Sheriff’s Office, the Bedford County Sheriff’s Office and the Mount Holly, North Carolina Police Department. Assistant United States Attorney Laura Day Rottenborn and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
New York Man Sentenced for False Statement at the BorderRead the Press Release
ALBANY, NEW YORK – Luis Augusto Santos Alonzo, age 50, of New York, New York, was sentenced today to one year in jail for making a false statement to federal officers during an immigration inspection.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
On January 24, 2017, Santos Alonzo pled guilty. He admitted that he provided a false name and falsely claimed to be a United States citizen, born in Puerto Rico and residing in Pennsylvania, during an immigration inspection at the Champlain Port of Entry on June 18, 2016. Santos Alonzo admitted that he was in fact a citizen of the Dominican Republic and a lawful permanent resident of the United States.
Senior United States Judge Norman A. Mordue also imposed a 3-year period of supervised release, to begin after Alonzo’s release from jail.
This case was investigated by Customs and Border Protection and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
New York Man Admits Armed Robbery of New Jersey Bar, Carjacking, and Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – A Rockland County, New York, man today admitted participating in a December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Guillermo Carrillo-Iraheta, 19, of Suffern, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count each of conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.
According to documents filed in this case and statements made in court:
Guillermo Carrillo-Iraheta admitted that on Dec. 25, 2015, he and others robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Guillermo Carrillo-Iraheta and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta admitted that he and others forced the driver into the back of the vehicle and took over driving. Guillermo Carrillo-Iraheta also admitted that he and others caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for June 27, 2017.
Guillermo Carrillo-Iraheta was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, Oscar Avalos-Cortez, 23, of New City, New York, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016. Chiliseo-Vega pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on March 21, 2017 to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. He awaits sentencing.
The charges against Barahona, Reyes, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michele Ann Adubato Esq., Bayonne, New Jersey.
New Jersey Man Admits Operating Payroll Tax Fraud SchemeRead the Press Release
TRENTON, N.J. – The owner of former payroll company, Innovative Payroll Services LLC (IPS) admitted today he operated a multimillion-dollar fraud scheme through his company, Acting U.S. Attorney William E. Fitzpatrick announced.
John Scholtz, 68, of Sea Isle City, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of wire fraud and one count of transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Scholtz owned and operated IPS, a company that provided payroll services to clients – including municipalities, educational institutions, and various small to medium-sized privately held companies – in New Jersey and elsewhere. Each payroll period, IPS provided its clients with a summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.
Scholtz admitted that from February 2012 to January 2016, he withdrew or directed others at IPS to withdraw client tax funds from IPS’ Tax Impound Accounts, knowing that these funds constituted client tax funds, and used these funds instead for IPS operating expenses and his own personal expenses, including payments for homes, cars, boats, airplanes and credit cards.
This ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result, at least 103 IPS clients lost more than $8.4 million worth of federal, state and local tax deposits that IPS failed to make, as well as more than $578,000 in associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016, and is one of is the IPS clients whose tax deposit funds were misappropriated by Scholtz.
The wire fraud count to which Scholtz pleaded guilty carries a maximum potential penalty of 20 years in prison; the transacting in criminal proceeds count carries a maximum penalty of 10 years in prison. Both charges also carry a fine of $250,000 or twice the gross gain or loss from the offense. Scholtz will also be ordered to pay restitution and forfeit certain property at sentencing, currently scheduled for July 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division; and the Mercer County Prosecutor's Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian Reilly Esq., Assistant Federal Public Defender, Trenton
Navy Senior Chief Sentenced for ID Theft and Bank FraudRead the Press Release
NORFOLK, Va. – A U.S. Navy senior chief who stole personal identity information of sailors under his command was sentenced today to 50 months in prison for identity theft and bank fraud.
Clayton A. Pressley, 41, of Chesapeake, pleaded guilty on Aug. 22, 2016. According to the statement of facts filed with the plea agreement, Pressley used his position as a senior enlisted member of a local military command to steal personal identity information and identification documents of members of his command. Using that information and pretending to be two of his subordinates, he applied for and received several loans from Pioneer Mid-Country Bank totaling $24,000. He also possessed identity documents at his residence for eight other members of his military command.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Maureen Evans, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney Alyssa Nichol and Assistant U.S. Attorney Stephen W. Haynie prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-66.
Navajo Woman from Arizona Pleads Guilty to Federal Firearms and Burglary Charges in New MexicoRead the Press Release
ALBUQUERQUE – Lisa Benally, 37, an enrolled member of the Navajo Nation from Fort Defiance, Ariz., pled guilty today in federal court in Albuquerque, N.M., to federal firearms and burglary charges.
Benally and co-defendant Loren Lloyd Wauneka, 37, an enrolled member of the Navajo Nation from Window Rock, Ariz., were arrested on Jan. 29, 2016, on a criminal complaint charging them with being felons in possession of firearms and burglary. The criminal complaint alleged that Benally and Wauneka committed the crimes on the Navajo Indian Reservation in McKinley County, N.M., on Dec. 1, 2015. According to the criminal complaint, a law enforcement officer encountered Benally, Wauneka and others as they were burglarizing the officer’s residence. During the execution of a search warrant on the vehicle in which Benally and Wauneka were traveling, officers seized a television, jewelry, bags, computer laptops and two firearms belonging to the officer whose home was burgled.
Benally and Wauneka were indicted on Feb. 24, 2016, and charged with being felons in possession of firearms and ammunition, possession of stolen firearms, and aggravated burglary on Dec. 1, 2015. According to the indictment, Benally was prohibited from possessing firearms or ammunition because she previously had been convicted of escape, possession of drug paraphernalia, and possession of dangerous drugs. Wauneka was prohibited from possessing firearms or ammunition because he previously was convicted of unlawful discharge of a firearm and aggravated driving while intoxicated.
During today’s proceedings, Benally pled guilty to being a felon in possession of a firearm and ammunition and aggravated burglary. In entering the guilty plea, Benally admitted that on Dec. 1, 2015, she and others drove to and unlawfully entered a residence with the intent to commit theft and stole two firearms and ammunition, which Benally placed into her vehicle, thus making Benally armed during the burglary. Benally further admitted that she was prohibited from possessing firearms or ammunition because of her status as a convicted felon.
On March 23, 2017, Wauneka pled guilty to being a felon in possession of a firearm and ammunition and aggravated burglary. In entering the guilty plea, Wauneka also admitted that on Dec. 1, 2015, he entered a residence with the intent to commit theft and stole two firearms and ammunition, which he placed into his vehicle, thus making Wauneka armed during the burglary. Wauneka further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Benally and Wauneka each face a maximum penalty of ten years in federal prison. Sentencing hearings have yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, the McKinley County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Navajo Man from Ramah Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Nochise Martinez, 23, an enrolled member of the Navajo Nation who resides in Ramah, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. Under the terms of his plea agreement, Martinez will be sentenced to 48 months in prison followed by a term of supervised release to be determined by the court.
Martinez was arrested on Jan. 4, 2017, on a criminal complaint charging him with killing a Navajo man on the Ramah Navajo Indian Reservation in Cibola County, N.M., on Dec. 31, 2016. According to the criminal complaint, Martinez stabbed the victim multiple times during a fight.
During today’s proceedings, Martinez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Martinez admitted that on Dec. 31, 2016, he killed the victim by stabbing him in the chest with a knife during a fight between the two men. Martinez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
National Crime Victims’ Rights Week Event Set for April 2 in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – The Jefferson Area Victim Assistance Coalition will host a Community Day on Sunday, April 2 from 1 to 4 p.m. at the Sprint Pavilion on the downtown mall in Charlottesville to commemorate National Crime Victims’ Rights Week (April 2-8).
“Every day in courtrooms throughout the United States victims of crime show great courage and strength by participating in our judicial system,” Acting United States Attorney Rick A. Mountcastle said today. “Their strength and resilience, as well as the dedication of the men and women in the victim advocacy community, who work with them, inspire prosecutors and law enforcement to seek justice for all victims. I am proud to honor victims and those who serve them. National Crime Victims’ Rights Week is dedicated to promoting victims’ rights and to recognizing the struggles and endurance of crime victims. Strength, Resilience, and Justice.”
The Community Day, which is free and open to the public, has been planned as a family friendly, interactive event with demonstrations and information available from dozens of local agencies. There will be plenty for kids to see and do, including police motorcycles, fire trucks, police cars, and demonstrations by local K9 Officers and therapy dogs. Many of the local agencies will have plenty of giveaways for the kids.
In addition, there will information available for parents, including DNA and fingerprinting kits available, anti-drug information, tips on home safeguarding, self-defense and how to avoid falling victim to scams.
The Jefferson Area Victim Assistance Coalition consists of members form the Albemarle Co. Victim/Witness Program, Charlottesville Victim/Witness Program, Fluvanna County Victim/Witness Program, Greene County Victim/Witness Program, Homeland Security Victim Assistance Program, Louisa County Victim/Witness Program, Sexual Assault Resource Agency, University of Virginia Victim/Witness Program, the Federal Bureau of Investigation Victim Assistance Program, the Shelter for Help in Emergency and the United States Attorney’s Office Victim/Witness Program.
Local Agencies participating in Sunday’s event include: the Jefferson Area Victim Assistance Coalition, Foothills Child Advocacy Center, Greene County Victim/Witness Program, Albemarle County Victim/Witness Program, Louisa County Victim/Witness Program, Charlottesville Victim/Witness Program, Shelter for Help in Emergency, the United States Attorney’s Office for the Western District of Virginia, Sexual Assault Resource Agency, UVA Police Department, Derby Dames, Albemarle DSS, CASA, Central Virginia Legal Aid Society, Women’s Initiative, Albemarle County Commonwealth’s Attorney, Albemarle County Police Department, Greene County Care Center, NGIC Sexual Assault Advocate/SART, WCHV 107.5 Radio, OAG Victim Services, Charlottesville Police Department, Louisa County Sheriff’s Office, Charlottesville Fire Department, DEA, Domestic Violence Project of the University of Virginia School of Law and the Virginia Parole Board/DOC Victim Services.
Nampa Man Sentenced to 25 years for Sexual Exploitation of ChildrenRead the Press Release
BOISE – Fernando Morales, 50, of Nampa was sentenced today in United States District Court to 300 months in prison, followed by lifetime supervised release, for sexual exploitation of children, Acting United States Attorney Rafael Gonzalez announced.
According to the plea agreement, officers with the Nampa Police Department contacted Morales at his residence in Nampa on August 23, 2016, after a sixteen-year-old minor living at the residence called 911. The minor victim informed officers that Morales had sexual contact with the minor victim for several years and had nude images of the minor victim on his cell phone. During an interview with Nampa Police Detectives, Morales admitted that he had sexual contact with the minor victim on numerous occasions, beginning in approximately June of 2015 in El Paso, Texas. Morales, the victim, and two other children later moved to Nampa in July of 2016. Morales also admitted that he recorded videos and pictures of himself and the minor victim engaged in sexually explicit conduct, and that he saved the videos and pictures on his cell phone.
Nampa Police Detectives seized several electronic devices from Morales. A Computer Forensic Agent with the Department of Homeland Security analyzed the devices, and discovered twenty-three videos and twenty-one still images of the minor victim engaged in sexually explicit conduct. Nineteen of the videos and all of the still images depicted Morales engaged in sexually explicit conduct with the victim. Two of the videos and nine of the still images contained data showing they were produced in the State of Texas, then transported to the State of Idaho.
“This prison sentence ensures that Morales will never again be a threat to children,” said Gonzalez. His conduct caused unimaginable harm to this child victim. The U.S. Attorney’s Office, along with our local, state and federal partners, will vigorously prosecute those who harm the children of this community.”
“Innocent children continue to be re-victimized with every view of a sexually explicit image or video,” said Brad Bench, special agent in charge of Homeland Security Investigations Seattle. “HSI and local law enforcement strive to assist traumatized youth by dedicating every resource available to ensure child predators are held accountable for their deeds.”
The case was investigated by the Nampa Police Department and the Department of Homeland Security, with assistance from the Canyon County Prosecutor’s Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Methamphetamine Traffickers SentencedRead the Press Release
AMARILLO, Texas — Francisco Javier Gutierrez-Alvarez, 33, Octavio Cabrera-Mayorquin, 28, and Guillermo Urenda-Bustos, 31 were sentenced today by U.S. District Judge Sidney A. Fitzwater following their guilty pleas in December 2016 to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater sentenced Gutierrez-Alvarez to 70 months in federal prison, Cabrera-Mayorquin to 63 months in federal prison and Urenda-Bustos to 46 months in federal prison. The defendants have been in custody since their arrest in October 2016.
All three defendants are Mexican citizens and were in the United States illegally at the time of the offense. They will be deported after serving their sentence.
According to documents filed in the case, on October 6, 2016, New Mexico State Police (NMSP) made a traffic stop of a tractor-trailer (car hauler) for an obstructed license plate. During the course of the traffic stop, the officer noticed that the bill of lading regarding the shipment of a white Nissan Frontier was suspicious because it provided only general information. The officer asked the driver for consent to search the Nissan Frontier, and the driver granted consent to search the vehicle.
During the search of the vehicle, NMSP officers located 24 bundles of suspected methamphetamine concealed within the door panels. The bundles field tested positive for the presence of methamphetamine and had a gross weight of approximately 24.5 pounds.
The vehicle was being delivered to “Johnny” in Amarillo, Texas. “Johnny” was subsequently identified as Cabrera-Mayorquin.
On October 7, 2016, Homeland Security Investigation Amarillo and Homeland Security Investigation Albuquerque, along with the assistance from other law enforcement agencies and the truck driver, who was not involved in the conspiracy, delivered the Nissan Frontier to the scheduled destination in Amarillo, Texas. The Nissan Frontier was unloaded from the trailer and Cabrera approached the driver and took custody of the Nissan Frontier. Cabrera drove the Nissan Frontier to a nearby parking spot where it was left. Cabrera entered a silver F-150 pickup and left the area. The driver of the F-150 was subsequently identified as Gutierrez-Alvarez and the back passenger was later identified as Urenda-Bustos.
A tow truck arrived and loaded the Nissan Frontier. The tow truck transported the Nissan Frontier to a residence and then left. Gutierrez, Cabrera, and Urenda-Bustos were observed arriving in the alleyway behind the residence. Cabrera exited the F- 150 and moved the Nissan Frontier to the backyard of the residence.
Amarillo Police Department conducted a traffic stop of the silver F-150 pickup for a traffic violation. All three subjects were transported to the Amarillo Drug Enforcement Administration office for further investigation.
Subsequent testing by the DEA South Central Laboratory confirmed that the substance in the vehicle contained methamphetamine, a Schedule II controlled substance, with an approximate weight of 10,351 grams, and had a purity level of 94 percent.
The case was investigated by Homeland Security Investigation, with assistance from Amarillo Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.
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Memphis Man Pleads Guilty to Obstructing the IRSRead the Press Release
Memphis, TN – A Memphis man has pleaded guilty to obstructing the Internal Revenue Service ("IRS"). Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, Cedric Zimbalist Chism was the former owner and operator of a security guard service, Memphis Security of Tennessee, Inc. ("MSOFT").MSOFT had contracts for services with various businesses throughout the Western District of Tennessee in Memphis. Chism attempted to impede and evade payment and reporting of employment taxes to the IRS from 1999 through 2011. Chism, personally and as owner and operator of MSOFT, owed $1,688,473.45 with a tax loss to the IRS of $854,144.39.
This charge carries a penalty of up to 36 months in federal prison and a fine of $5,000.00. The sentencing hearing is set for July 1, 2017.
The case was investigated by the United States Internal Revenue Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Maryland Man Found Guilty of Assaulting Man with Metal Pipe in Dispute at Northeast Washington Towing CompanyRead the Press Release
WASHINGTON – Dominic White, 30, of Lanham, Md., has been found guilty by a jury of charges for assaulting a man with a metal pole at a towing establishment in Northeast Washington. In addition, White and a co-defendant, Phanessa Haynes, 29, of Washington, D.C. were found guilty of charges of insurance fraud and conspiracy to commit insurance fraud.
The verdicts, which were returned March 24, 2017 in the Superior Court of the District of Columbia, were announced today by U.S. Attorney Channing D. Phillips. Both defendants are to be sentenced on May 24, 2017, by the Honorable Juliet McKenna.
According to the government’s evidence, on Nov. 4, 2014, at approximately 5 p.m., Haynes arrived at a towing company in the 1000 block of Kenilworth Avenue NE to pick up her car, which was getting its rims and tires replaced. She quickly noticed that the job wasn’t completed to her standards and became angry at the man who was doing the work. She called her boyfriend – White - multiple times expressing her frustrations.
White raced over and once arriving, picked up a metal pipe. Haynes pointed to the victim, and said, “That’s him, that’s the one.” White rushed to the victim and struck him with the metal pipe a couple of times, hitting and injuring him. He then dropped the pipe and fled. The victim’s head injuries required 18 staples and resulted in debilitating migraines for approximately a year. Following the attack, other employees at the towing shop called 911 and one gave a partial license tag of White’s car. White was later identified as the owner of a car with the same make and color described by witnesses, with a similar tag.
Further investigation showed that Haynes and White were involved with an insurance policy that was purchased by Haynes, which led to her car being at the towing establishment on the day of the assault. Soon after purchasing the policy, and making sure it covered tires and rims, Haynes filed a claim with the insurer for “stolen” rims.
White was arrested on March 30, 2015, and Haynes was arrested at the scene on Nov. 4, 2014.
In announcing the verdicts, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team and the U.S. Marshals Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Stephen Rickard, Daniel Lenerz, Jocelyn Ballantine, Fernando Campoamor-Sanchez, Kathryn Rakoczy, and Opher Shweiki; Victim/Witness Advocate James Brennan; Paralegal Specialists Richard Cheatham, Debra McPherson, Crystal Waddy, and Tiffany Fogle; Criminal Investigator, Melissa Matthews; Litigation Technology Specialists, Josh Ellen and Leif Hickling; Investigative Analyst, Zachary McMenamin, and Computer Forensic Examiner; John Marsh.
Finally, he commended the work of Assistant U.S. Attorneys Karen Seifert and David Misler, who investigated and indicted the case, and Monica Trigoso and Alysa Kociuruba, who prosecuted the case.
Louisville Felon Sentenced to 97 Months in Prison for Multiple Drug and Firearms ChargesRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., today announced the 97-month sentence of a Louisville felon, for multiple charges including the sale and distribution of controlled substances; unlawful possession of firearms by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime, in United States District Court before District Judge David J. Hale. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky, law enforcement agencies, developed by the United States Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
“Today’s sentencing takes a violent convicted felon off the streets of Louisville for eight years without the possibility of an early parole,” stated United States Attorney Kuhn. “Not only did this felon have multiple firearms and ammunition in his possession, he was dealing heroin and crack cocaine. Project Recoil is working. This joint effort has removed another violent drug dealer from our community.”
Demetric A. Flint, a/k/a Meechie, pleaded guilty to all counts of federal indictment on November 29, 2016. He also agreed to forfeit his interest in ammunition, $469.00 in United States currency, and firearms including a SigSauer Model P232, .380 Caliber pistol, a Hi-Point Model JHP45, .45 caliber pistol, and a Browning Citori 12 gauge shotgun seized at the time of his arrest.
According to court records, on October 19, 2015, law enforcement officials conducted a controlled purchase of heroin from Demetric Flint – using a confidential informant. Following the controlled purchase, law enforcement officials obtained and executed a Kentucky state search warrant at Flint’s residence on East Ormsby Avenue, the address where the controlled purchase had occurred. No one was at home. The law enforcement officials forced entry and seized suspected methamphetamine, a Sig Sauer Model P232, .380 caliber pistol, and Kentucky identification card for Flint, United States currency, a 50-gram weight digital scale, suspected heroin, and marijuana. Later, law enforcement officials found Flint at his child’s mother’s residence on South Jackson Street. While speaking with the woman, officers saw Flint walk from hallway to the living room and arrested him. At the time of his arrest, Flint was in possession of $469.00 United States currency. The woman gave written consent for a search of her residence. The search resulted in seizure of suspected crack cocaine, prescription pills, digital scale, box of baking soda, items with suspected residue of crack cocaine, 12 gauge and 45 caliber ammunition, marijuana, a Hi-Point .45 caliber pistol, and a Browning Citori 12 gauge shotgun.
During a post-Miranda, signed waiver, statement by Flint, he admitted the items seized from both the Ormsby and South Jackson addresses were his. He admitted selling “hard” (i.e., crack cocaine), and heroin. During the interview, Flint admitted that he had crack cocaine and heroin secreted on his body.
On or about May 31, 2012, in Jefferson Circuit Court case number 11-CR-3685, Flint was convicted of trafficking in a controlled substance first degree, tampering with physical evidence, and trafficking in a controlled substance second degree, crimes punishable by imprisonment for more than one year.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Local Senior Home Health Caregiver Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – De’Janay Noldon pled guilty to charges of mail fraud and identity theft. Noldon appeared today before United States District Judge Henry E. Autrey.
According to court documents, between February 2016 and May 2016, Noldon was employed as a certified nurse’s assistant caregiver with Seniors Health Care (SHC) in Webster Groves, Missouri. Noldon used her position as a caregiver to gain access to an elderly victim’s personal information and used the victim’s personal identification information to obtain open lines of credit that Noldon used to purchase merchandise at stores, make online purchases, and pay personal bills for Noldon and her family and friends. Noldon also fraudulently accessed an Edward Jones account belonging to that victim and initiated several money transfers in an attempt to steal the victim’s savings. The investigation has thus far revealed that Noldon defrauded 13 elderly individuals and six financial institutions. The total loss amount is approximately $30,000.00.
Noldon, St. Louis County, pled guilty to one count of mail fraud and one count of aggravated identity theft. Sentencing has been set for June 27, 2017.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a two year mandatory consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Shrewsbury Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
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Knoxville Man Sentenced to Ten Years in Prison for Sex Trafficking Conspiracy and Related Drug OffensesRead the Press Release
U.S. District Court Judge R. Leon Jordan of the Eastern District of Tennessee sentenced Marcus D. Washington today to 10 years in prison followed by 3 years of supervised release. Washington pleaded guilty on November 21, 2016, to one count of conspiracy to commit commercial sex trafficking by force, fraud, or coercion in violation of 18 U.S.C. § 1594(c), conspiracy to possess with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C §§ 846, 841(a)(1) and (b)(1)(C), and possession with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).
According to court documents, on September 25, 2013, Knox County Sherriff Deputies arrested Washington after he arranged for a woman to meet an undercover law enforcement officer in a hotel for commercial sex. Police seized Oxycodone from Washington at the time of his arrest. A subsequent investigation revealed that Washington recruited the woman to engage in prostitution, knowing that she was addicted to Oxycodone and that she feared withdrawal sickness. In the weeks prior to his arrest, Washington threatened to – and did in fact – withhold Oxycodone from the woman as a means to compel to her to prostitute for his profit. Washington kept all of the money from the prostitution. In addition to manipulating her addiction and fear of withdrawal symptoms, Washington assaulted and threatened physical harm against the woman.
“Opiate addiction exists in every corner of this country,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This defendant used an addicted woman’s fear of opiate withdrawal as his weapon of coercion – all for his own profit.”
“Today’s sentencing demonstrates that the FBI will identify, investigate, and prosecute those who commit human trafficking violations wherein force, fraud and coercion is used for personal profit,” said FBI Knoxville Special Agent in Charge Renae McDermott.
The Court ordered Washington to pay nearly $14,000 in restitution to two victims referenced in the plea agreement.
This case was investigated by the FBI. The case was prosecuted by Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and Trial Attorneys Rose E. Gibson and Nicholas Durham of the Civil Rights Division.
KC Man Pleads Guilty to Meth Conspiracy in Mid-MissouriRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine in mid-Missouri.
David Wayne Lederhos, 54, of Kansas City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a March 17, 2016, federal indictment.
By pleading guilty today, Lederhos admitted that he participated in a conspiracy to distribute methamphetamine from November 2015 to Feb. 10, 2016.
According to today’s plea agreement, a cooperating individual made a controlled purchase of approximately two ounces of methamphetamine from Lederhos on Feb. 4, 2016. Law enforcement officers executed a search warrant at Lederhos’s residence on Feb. 10, 2016. They found a Ziploc bag that contained eight separate baggies, each of which contained methamphetamine, for a total of 364 grams of methamphetamine. Officers also found a loaded Beretta 12-gauge shotgun, drug paraphernalia and approximately 19 grams of marijuana in the bedroom.
Lederhos told investigators that he had purchased one pound of methamphetamine the previous day for $8,000. He also stated that he purchased approximately one or two pounds of methamphetamine every day or every other day over a four-month period of time.
Under the terms of today’s plea agreement, Lederhos is subject to a sentence of 13 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Drug Enforcement Administration, the Jackson County, Mo., Sheriff’s Department, the Cooper County, Mo., Sheriff’s Department and the East Central Drug Task Force.
Judge Sentences Zambelli Fireworks Company for Failing to Report Loss of Explosive MaterialRead the Press Release
PITTSBURGH – A corporation based out of New Castle, Pennsylvania pleaded guilty and was sentenced in federal court on a charge of Failure to Report Loss of Explosive Material, Acting United States Attorney Soo C. Song announced today.
Zambelli Fireworks Manufacturing Company, Inc. pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that, Zambelli was licensed by the federal government as an importer and manufacturer of explosive fireworks. Federal regulations require such licensees to make and keep accurate records relating to their inventories of explosive materials. Licensees must also subject themselves to inspections by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). In 2014, ATF conducted inspections of Zambelli’s business premises and inventories of explosives, at which time they found discrepancies between the actual inventories and Zambelli’s inventory records. In particular, ATF found that Zambelli had approximately 63,000 less units of explosives than was reflected in their inventories.
Consequently, Zambelli was charged with, and pleaded guilty to one count of knowingly failing to notify the United States Government of lost or missing explosive materials.
Pursuant to the terms of a plea agreement, Zambelli will pay a fine of $5,000 and, in addition, will forfeit $195,000 to the United States Government as part of the sentence for this violation. Those plea terms were approved by Judge Cercone, who imposed that sentence at the conclusion of the hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Zambelli Fireworks Manufacturing Company, Inc.
Jewelry Store Owners Sentenced for Roles in International, $200 Million Credit Card Fraud SchemeRead the Press Release
TRENTON, N.J. – The two owners of a New Jersey jewelry store who used the business to further one of the largest credit card fraud schemes ever charged by the Justice Department were both sentenced today for their respective roles in the scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
Vijay Verma, 49, and Tarsem Lal, 78, both of Iselin, New Jersey, were sentenced to 14 months in prison and 12 months of home confinement, respectively. Both previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to informations charging them with one count of access device fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Verma and Lal were indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma and Lal each admitted allowing others who came to their Jersey City, New Jersey, store, store to swipe cards they knew did not legitimately belong to them. Verma and Lal would then split the proceeds of the phony transactions with these other conspirators.
In addition to the prison terms, Judge Thompson sentenced Verma to three years of supervised release and Lal to three years of probation. Each defendant was fined $5,000 and ordered to pay forfeiture of $451,259.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher; postal inspectors from the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencings. He also thanked the U.S. Social Security Administration Office of Inspector General, Office of Investigations in New Jersey for assisting in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel:
Verma: Gerald Krovatin Esq., Newark
Lal: Paul Condon Esq., Jersey City, New Jersey
Jacksonville Woman Pleads Guilty to Smuggling Mexican National into the United States for Purposes of Forced Labor and SurrogacyRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Esthela Clark (47, Jacksonville) today pleaded guilty to a charge of forced labor. She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Clark paid so-called “coyotes” approximately $3,000 to smuggle a woman from Mexico into the United States for the purpose of serving as her pregnancy surrogate. Clark assured her victim that the surrogacy would be medically supervised. Clark instead forced her victim to engage in domestic labor through physical and psychological abuse. She attempted to impregnate the victim using syringes containing Clark’s boyfriend’s sperm that she had retrieved from used condoms. The attempts at insemination lasted approximately nine months, however, no pregnancy resulted.
Clark isolated the victim from her family and limited her to a diet consisting exclusively of beans, resulting in a 65-pound weight loss. She also attempted to collect from the victim’s family the cost she had paid to the “coyotes,” with interest.
This case was investigated by U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who was caught with heroin in 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Ashley Dawn Smith, 24, entered her guilty plea to possession with intent to distribute heroin.
On March 30, 2016, agents with the Huntington FBI Drug Task Force executed a search warrant at Smith’s residence located at 1814 7th Avenue in Huntington. When agents entered the residence, Smith concealed approximately 45 grams of heroin on her person. During the search, agents recovered a loaded 9mm pistol, digital scales, inositol powder used to cut heroin for distribution, and a magic bullet blender used to mix heroin. Smith was arrested based on a warrant from Putnam County and then transported to the Huntington Police Department, where she provided agents with the heroin that she had hidden.
Smith faces up to 20 years in federal prison when she is sentenced on June 26, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Hollywood Resident Sentenced to 30 Years in Federal Prison for Attempting to Entice a Child to Engage in Sexual ActivityRead the Press Release
Patrick Antczak, 25, of Hollywood, Florida, was sentenced today to 30 years in prison by U.S. District Court Judge Robert N. Scola Jr in Miami, after having been convicted at trial of attempting to entice a child to engage in sexual activity.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, and Sheriff Scott Israel, Broward County Sheriff’s Office, made the announcement.
On January 11, 2017, a jury convicted Defendant Antczak of attempted enticement of a child. According to the court record, including trial evidence, Antczak contacted an undercover agent, in an on-line forum, regarding a meeting with a father and his minor daughter for the purposes of engaging in sexual conduct with the child. Upon making contact with the undercover, whom the defendant believed was the child’s father, he asked the age of the child and provided graphic details of his intended sexual abuse of the minor. The defendant exchanged over 500 text messages. During his chats with the child, the defendant promised that he would bring her an iTunes gift card when they met in person. The defendant arranged to meet the father and his minor daughter at a hotel in Broward County and arrived carrying the gift card and a condom.
Evidence at trial also included the defendant’s prior obscenity conviction for the exchange of child pornography.
Mr. Greenberg commended the investigative efforts of the FBI and the Broward County Sheriff’s Office and thanked the FBI Child Exploitation Task Force for their assistance. Assistant U.S. Attorneys Francis Viamontes and M. Catherine Koontz prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Holland, PA Woman Charged with Wire FraudRead the Press Release
Antoinette Murphy a/k/a “Antoinette Barcalow,” 48 of Holland, Pennsylvania, was charged today by Information[1] with two counts of wire fraud, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant, faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, three years supervised release, and a $200 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
[1] An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Henderson Man Sentenced for Two Counts of Possession of A Firearm by A FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, United States District Judge Louise W. Flanagan sentenced ISMIL GRAY JEFFERS, 23, of Henderson, NC to 140 months of imprisonment followed by 3 years of supervised release.
JEFFERS pled guilty on November 15, 2016 to being a Felon in Possession of a Firearm.
On September 22, 2015, the Vance County Sheriff’s Office responded to a disturbance complaint. Upon arriving at the scene, officers found JEFFERS in the bathroom of Auto Connection Used Auto Sales and subsequently conducted a search of his vehicle where a firearm and controlled substances were found. On October 19, 2015, members of the Henderson Police Department conducted a checkpoint traffic stop in which JEFFERS was a passenger in a vehicle. The vehicle pulled away from the checkpoint causing an officer to pursue. The vehicle stopped a short distance later and JEFFERS, a convicted felon, was observed throwing a handgun into a grassy area.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Henderson Police Department Police Department, the Vance County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the North Carolina State Crime Lab. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Georgia Man Pleads Guilty to ID Theft, Tax Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Loganville, Ga., man pleaded guilty in federal court today to a fraud scheme in which he stole personal identity information from several victims in order to file fraudulent federal income tax returns.
Chike Uzodinma Agogbua, 44, of Loganville, a Nigerian national and a naturalized U.S. citizen, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Feb. 10, 2016, superseding indictment.
According to today’s plea agreement, federal investigators obtained bank records in 2013, which reflected that federal tax refunds for five different taxpayers were deposited into Agogbua’s bank accounts. Numerous federal tax refunds were deposited into two separate bank accounts from September through November 2013.
By pleading guilty today, Agogbua admitted that he stole the identity information of a victim identified as “TMP,” a resident of Guam, including her name and Social Security number. Agogbua used that information to file federal income tax returns.
Fraudulent federal income tax refunds, which were electronically sent from the IRS Financial Center in Kansas City, Mo., and direct-deposited into Agogbua’s bank accounts, totaled $59,610.
Under federal statutes, Agogbua is subject to a sentence of up to 20 years in federal prison without parole on the wire fraud count. Agogbua is also subject to a two-year mandatory minimum sentence on the identity theft count, which must be served consecutively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI and IRS-Criminal Investigation.
Gary’s Steals and Deals Clerk Pleads Guilty in Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Cresson, Pa. pleaded guilty in federal court in Johnstown to a charge of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
Jason A. Seymore, 41, of Cresson, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, Pennsylvania, that dealt in new and used merchandise. Mr. Seymore was an employee/clerk at the business. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customers” coming into the store, or was received by the employees as proceeds of this conduct.
Judge Gibson scheduled sentencing for Aug. 1, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, 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 of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Seymore.
Former Middle School Teacher Sentenced to More Than 11 Years in Prison for Attempting to Purchase Live Video Sex Shows Involving Filipino ChildrenRead the Press Release
BOSTON – A former Southbridge Middle School teacher was sentenced today in U.S. District Court in Worcester in connection with attempting to purchase live video sex shows involving Filipino children and to possessing child pornography.
Scott Peeler, 54, who previously resided in Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and 10 years of supervised release. In November 2016, he pleaded guilty to three counts of attempting to entice a minor to engage in unlawful sexual conduct and one count of possession of child pornography. Peeler has been in custody since his arrest in June 2015.
Between April 2013 and July 2014, Peeler used internet-based instant messaging with video streaming capabilities to communicate with individuals in the Philippines engaged in child sex trafficking and the sale of live streaming sex shows involving children. Peeler admitted to attempting on at least three occasions to arrange the purchase of live video sex shows involving children who ranged in age from four to fourteen years old.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Worcester County District Attorney Joseph D. Early, Jr.; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent, made the announcement today. Assistant U.S. Attorney Mark Grady of Weinreb’s Worcester Branch Office prosecuted the case.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Fedex Driver Who Set up Fake Hedge Fund Sentenced to 33 MonthsRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – March 27, 2017
SAN DIEGO – Joshua Knaup, the founder and chief investment officer of EquityPro Capital, was sentenced Friday to 33 months in prison and ordered to pay $556,629 in restitution for stealing over half a million dollars from local investors.
In addressing Knaup, U.S. District Judge Cathy Ann Bencivengo said, “You didn’t steal from a stranger, you stole as a friend, and in this court’s opinion that’s even worse. That’s a theft that goes right to the heart and soul and stays with the victim for a very long time.” Knaup was remanded into custody at the conclusion of the hearing.
After losing his job as a FedEx driver, Knaup opened up EquityPro Capital, an investment management firm based in downtown San Diego. Near the end of 2013, Knaup falsely claimed to have established a new hedge fund and began soliciting investors. Knaup gave potential investors a prospectus that provided detailed information about his purported hedge fund, which Knaup called “The F2 Fund.” According to the prospectus, The F2 Fund derived its name “from a passage in the Bible about giving of the ‘First Fruits’ of your income.” In order to attract investors, Knaup guaranteed that investors would receive a certain return on their investment and falsely claimed to have invested his own money in the hedge fund.
According to court documents, Knaup conned victims into giving him hundreds of thousands of dollars. Knaup ingratiated himself with Lois and Henry Mathews, who live in Bankers Hill, while attending their 45th wedding anniversary celebration. Knaup promised to help Ms. Mathews retire and claimed that her $240,000 investment would be safe. Instead, Ms. Mathews, a small-business owner, lost it all. As she wrote to the court, “I am 72 years old and work very hard in a very physical and stressful business and I will have to continue to work this hard for the rest of my life because of what Josh [Knaup] stole from us.”
Knaup met another victim, Lewis Barnum from Coronado, at a Rotary Club meeting. Knaup boasted about his success in the stock market and promised a substantial return. Barnum ultimately lost over $130,000 to Knaup. Yet another victim met Knaup on the side of a freeway while changing a tire. Knaup talked a lot about his investment company, and the victim, a Border Patrol agent, decided to invest $10,000. When the victim told he was about to have a child and needed his money, Knaup wrote him a $10,000 check that bounced.
With the thousands of dollars he stole from investors, Knaup rented prime office space in a building near Petco Park. Inside the office, Knaup created a wall using 30 flat screen televisions that displayed stock trading information—a fact that duped investors would later mention as an apparent sign of the business’ legitimacy. Knaup even threw a party for the investors at the Hotel Indigo with sushi, an open bar and gift bags.
Despite these outward indications of success, The F2 Fund did not exist. Knaup had not even opened a brokerage account for the investors’ funds. Investors ultimately poured over half a million dollars into the non-existent hedge fund. Knaup did not invest a single dollar of investors’ funds, and instead used the money for personal and business purchases. In the fall of 2014, Knaup’s business began to unravel as investors realized that Knaup had not invested their money. Knaup fled to Mexico shortly thereafter, without ever repaying the victims he had defrauded.
“Mr. Knaup perpetrated a scheme weaved with facades and lies to prey on trusting, hard-working people intending to make legitimate investments," said Special Agent in Charge Eric S. Birnbaum. “Today's sentence will prevent Mr. Knaup from victimizing investors for a long while and serve as a reminder that the FBI will continue to protect the American public by pursuing fraudsters and bringing them to justice.”
DEFENDANT: Case Number 16-CR-560-CAB
Joshua Knaup Age: 41 Santa Rosa, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Former Chairman of the Board of Payroll Services Company Sentenced to 30 Months for ConspiracyRead the Press Release
STATESVILLE, N.C. – Frank Alton Moody, II, 57, of Arden, N.C., the former Chairman of the Board of a payroll services company, was sentenced today to 30 months in prison for conspiring to steal over $2 million from client companies, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Moody was ordered to spend two years under court supervision after he is released from prison and to pay $2,146,380.97 as restitution.
Two of Moody’s conspirators, Jerry Wayne Overcash and John Bernard Thigpen, were previously sentenced to 46 and 21 months, respectively, for their roles in the conspiracy.
U.S. Attorney Rose is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, Moody was the Chairman of the Board of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere. CenterCede was established in August 2010 by Overcash and Moody, to assume business operations of The Resource Solutions Group (TRSG). Court documents in related cases indicate that, similar to CenterCede, TRSG had been a payroll services company until it was shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients. Moody served as Chairman of the Board at TRSG.
According to court documents, from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients. As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among others, as well as fees due to CenterCede. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines.
According to court records, Moody and his conspirators did not remit to the IRS the full tax liabilities of CenterCede’s clients. Instead, the conspirators diverted client funds, which were used to pay the exorbitant salaries of Moody, Overcash and others, and to cover CenterCede’s growing liabilities.
To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients. As reflected in court documents, the conspirators favored what they called “priority” clients, attempted to keep those priority clients from learning about monthly cash shortfalls and frequently paid those clients’ obligations ahead of other non-priority clients. “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and keep the scheme afloat.
Court records show that when clients inquired about failures to pay obligations, the conspirators took steps to conceal the fraud by providing false excuses and misleading explanations. Moody pleaded guilty to one count of conspiracy in October 2016.
Moody will be ordered to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by USPIS and IRS-CI. Assistant U.S. Attorneys Corey F. Ellis and Taylor J. Phillips, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former CSX Trans Employee Pleads Guilty to Benefits Fraud Against U.S. Railroad Retirement BoardRead the Press Release
GREENEVILLE, Tenn. – On Mar. 27, 2017, George W. Myers, 59, of Telford, Tenn., pleaded guilty to an information charging him with one count of theft of public money in connection with benefits fraud he perpetrated against the U.S. Railroad Retirement Board (RRB). The fraudulently obtained benefits totaled approximately $362,741, consisting of $327,737 in annuity payments and $35,004 in health benefits.
Sentencing was set for 9:00 a.m., July 10, 2017, in U.S. District Court in Greeneville. Myers faces a maximum sentence of 10 years in prison and a maximum $250,000 fine, and restitution.
According to his plea agreement on file with U.S. District Court, from October 1978 until August 2000, CSX Trans employed Myers as a welder. Myers stopped work, claiming to be disabled, and completed and signed an initial application for disability in December 2000. Between December 2000 and April 2007, he received intermittent disability payments while the application was the subject of litigation. In April 2007, following numerous denials and subsequent appeals, he was finally awarded ongoing disability payments retroactive to July 2004 and Medicare coverage retroactive to January 2007. He continued to receive full annuity payments and Medicare coverage from July 2004 through September 2016.
Including the initial disability application, Myers signed forms on multiple occasions indicating that he understood that failing to report work and earnings promptly was a crime punishable by federal law and could result in criminal prosecution and/or penalty deductions from his annuity payments. Despite this, he submitted disability update reports on which he falsely represented that he had not worked for anyone or for himself and his medical condition kept him from working. In fact, in February 2006, Myers indicated that he: a) was not at all able to dress himself; b) was not at all able to perform outdoor chores; c) did not expect to work during the next 12 months; and d) had not been self-employed in the last 12 months. However, in his plea agreement, Myers admitted to working for various people and companies between August 2004 and October 2016. Some of the work included performing physically demanding contracting, repair, and maintenance work for at least two individuals who compensated him approximately $58,612 for his work.
The Railroad Retirement Board, Office of the Inspector General conducted this investigation. Assistant U.S. Attorney TJ Harker represented the United States.
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