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4 May 2017
Eight Residents of Florida and Missouri Charged in $1.67 Million Fraud SchemeRead the Press Release
Eight defendants have been charged in a multi-count indictment, for their participation in an elaborate automobile fraud scheme that netted over $1.67 million.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Division; and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Mark David Johnson, 41, of Fort Lauderdale, Florida, David William Wheat, 66, of Fort Pierce, Florida, Michael Kennedy Brown, 53, of Delray Beach, Florida, James Carrington, 37, of Aurora, Missouri, Jana Kabelova, 41, of Fort Lauderdale, Florida, Michael Munday, a/k/a “Mickey,” 71, of North Miami, Florida, Juan Ottavianelli, 71, of North Miami, Florida, and Edwin Fernandes, 50, of North Miami, Florida are charged in a fourteen count indictment with conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and mail fraud, in violation of Title 18, United States Code, Section 1341. If convicted, the defendants face up to twenty years in prison, three years of supervised release, a $250,000 fine, and restitution, as to each count.
The initial hearings are scheduled for May 5, 2017 before U.S. Magistrate Judge Judge Alicia Otazo-Reyes.
According to the indictment, between September 2008 and February 2015, defendants Johnson, Wheat, Brown, Carrington, Kabelova, Munday, Ottavianelli and Fernandes engaged in a scheme to unjustly enrich themselves by, among other things, (1) obtaining mortgaged automobiles through various fraudulent methods, including, among other things, the use of straw buyers; (2) preparing and mailing, via U.S. mail, false and fraudulent lien notices to all interested parties, including the lender, as required by Florida law; (3) hiding the automobiles at various locations in Miami-Dade and Broward Counties, in Florida, to avoid repossession by the rightful lienholders; (4) falsely and fraudulently removing the automobile’s lawful owner from its title; and (5) selling the automobiles to co-conspirators at prices below market value, so that the co-conspirators could re-sell the automobiles at a profit.
The indictment alleges that Johnson, Kabelova, and their co-conspirators fraudulently obtained automobiles by (1) recruiting straw buyers to purchase automobiles from dealerships in Miami-Dade and Broward Counties; (2) identifying distressed automobiles loans in Miami-Dade and Broward Counties and offering to buy those automobiles at a discounted rate; and (3) enlisting Carrington to steal automobiles. Munday, Fernandes, and other co-conspirators transported automobiles, provided by Carrington, from Missouri to Florida. Brown, Johnson, Munday, Ottavianelli, and other co-conspirators stored the fraudulently obtained automobiles at various locations in Miami-Dade and Broward Counties. Wheat prepared and mailed false and fraudulent documents falsely claiming that the lienholders incurred costs to tow and store the automobiles. Johnson sold the fraudulently obtained automobiles to Brown, among others. Wheat prepared and filed applications for a Certificate of New Title from the Florida Department of Motor Vehicles.
Mr. Greenberg commended the investigative efforts of the USSS and Fort Lauderdale Police Department in this matter. This case is being prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Nalina Sombuntham.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
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.
East Side Crips Taken Down by Metro Gang Task Force in One of the Largest Federal Drug Enforcement Actions in the Past DecadeRead the Press Release
DENVER – A federal grand jury in Denver has returned eight separate indictments charging a total of 52 individuals with trafficking cocaine and crack cocaine in the Denver metro area, Acting United States Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers, Aurora Police Chief Nick Metz, and members of the Metro Gang Task Force announced. Of the 52 indicted, 35 were arrested. The other 17 defendants are considered fugitives. Most of those arrested today made an initial appearance before a U.S. Magistrate Judge, where they were advised of their rights and the charges pending against them. Those individuals will have detention hearings and arraignments next week on May 9, 2017. Those who didn’t make it to court today will appear in court tomorrow.
Today’s take down involved 225 Special Agents and officers from 18 agencies, including SWAT teams from 4 different departments. This 20-month investigation focused on cocaine and crack cocaine dealing by members and associates of the East Side Crips. These gang members dealt cocaine and crack cocaine in open air drug markets, including near parks and public transportation centers – both areas where children and families congregate. The goal of this investigation is to remove poison, fear and danger from these places so they can be used again freely by the public.
The lead defendants of each of the eight indictments are: Jerrell Birch (1 of 14 defendants); Rodrick Harris (1 of 4 defendants); Shedrick Wilford (1 of 6 defendants); Tamar Henry (sole defendant); Sealed Indictment; Deon Jackson (sole defendant); Kiki Douglas (1 of 6 defendants); and Clarence Antoine and Spencer Antoine (2 of 22 defendants). Three defendants are named in two different indictments.
If convicted, the 52 defendants face a wide variety of criminal consequences depending on the drug trafficking charges. Some face not less than 10 years and up to life, others face not less than 5 years and up to 40 years, and yet others face not more than 20 years in federal prison. Also, some defendants are charged with using a telephone to commit a drug trafficking offense. The penalty for that charge is not more than 4 years in federal prison per count.
“In Colorado we pride ourselves on gold-standard law enforcement partnerships that make life safe here,” said Acting U.S. Attorney Bob Troyer. “Eighteen agencies came together in this investigation and removed poison, fear and danger from parks, neighborhoods, and public transportation. And they did it with minimal disruption to the folks in those communities who just want to go outside, walk to school, use their parks, or take the light rail.”
“Today’s arrests are indicative of the success that can be attained when agencies combine resources to attack violent street gangs,” said FBI Special Agent in Charge Calvin Shivers. “Crimes of this nature cause our citizens to live in fear and threaten to destroy our neighborhoods. This cannot be tolerated. We are confident today’s arrests will send a message to those contemplating committing these egregious acts that they will be aggressively investigated and prosecuted to the full extent of the law. The FBI will continue to continue to work with our law enforcement partners and prosecutors to attack this crime problem and remove violent criminals from our neighborhoods.”
“The magnitude of this investigation demonstrates the collaborative effort to identify, target and address metropolitan-wide organized gangs involved in drug trafficking and violence in our community,” said Aurora Police Chief Nick Metz. “The hard work and dedication of all the investigators and officers involved will have a tremendous impact on our communities. Thank you to everyone who was involved.”
The Metro Gang Task Force consists of the U.S. Attorney’s Office, the Aurora Police Department, the FBI, the Denver Police Department, the Arapahoe County Sheriff’s Office, the Colorado State Patrol, the Colorado National Guard Joint Counter-Drug Task Force, the Denver District Attorney’s Office, the Douglas County Sheriff’s Office, the Lakewood Police Department, the Jefferson County Sheriff’s Office, High Intensity Drug Trafficking Area (HIDTA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigation (HSI). Agencies assisting with the arrest operations include: the Longmont Police Department, the Northglenn Police Department, the Thornton Police Department, the Westminster Police Department, and the U.S. Marshal’s Service.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Document Broker Pleads Guilty to Role in Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A document broker pleaded guilty today in connection with his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.
Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican citizen residing in Springfield, Massachusetts, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni of the District of Massachusetts, to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. Tavera Mora was charged in a superseding indictment returned by a federal grand jury in Springfield on July 23, 2015. Sentencing is set for June 22, 2017.
According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States, identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.
As part of his plea, Tavera Mora admitted that he operated as a document broker in Springfield, Massachusetts, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were undocumented aliens who would use this information to assume identity of U.S. citizens in order to apply for other identity documents. Tavera Mora also admitted that he knew that these customers would use these documents to violate federal law, including social security fraud and the impersonation of a U.S. citizen.
Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Lareano Ayala,” stated he was born in Puerto Rico and possessed a fraudulent Puerto Rico Driver's License and a U.S. social security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol (CBP) admittance stamp.
The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI Springfield, Massachusetts, and USPIS in Hartford, Connecticut. The ICE-HSI Attaché office in the Dominican Republic, International Organized Crime Intelligence and Operations Center (IOC-2) and Illinois Secretary of State Police provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS CI offices around the country.
Trial Attorney Marianne Shelvey of the Justice Department Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kevin O’Regan of the District of Massachusetts are prosecuting the case
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
District Court Enters Permanent Injunction Against Florida Company and Senior Managers to Stop the Distribution of Misbranded and Adulterated Medicated Animal FeedsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Syfrett Feed Company Inc. of Okeechobee, Florida, its owner and President Charles B. Syfrett I, its Vice President Melissa S. Montes De Oca and its Operations Manager Charles B. Syfrett II, the Department of Justice announced today. injunction permanently enjoins the defendants from distributing misbranded and adulterated medicated animal feed in violation of the federal Food, Drug, and Cosmetic Act, and requires the defendants to cease manufacturing medicated animal feed until remedial steps are taken.
The Department filed a complaint in the U.S. District Court for the Southern District of Florida on Feb. 1, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, the company’s medicated animal feeds failed to list the name of the active drug ingredients and to include adequate instruction for use on the labels of the medicated feeds. As noted in the complaint, the label of the medicated feeds did not include dose administration instructions, feeding limitations and/or cautionary statements for use of the drugs in combination with other drugs.
The complaint also alleged that the medicated feed was not manufactured in conformity with current good manufacturing practices for medicated feeds. For example, the complaint alleged that the defendants failed to establish and maintain adequate procedures for the identification, storage, and inventory control of drugs intended for use in their medicated feeds, and failed to establish and use adequate procedures for all equipment used in the production and distribution of medicated feeds to avoid unsafe contamination of animal feeds.
“Animal feed manufacturers that fail to comply with labeling and good manufacturing requirements for medicated animal feeds jeopardize the health of animals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to ensure that animal feed manufacturers produce safe medicated animal feed products.”
The complaint further alleged that Syfrett Feed conducted a recall of its non-medicated horse pellet food in April 2014 when customers complained that their horses were falling ill after consuming Syfrett Feed’s horse pellet food. The complaint stated that 15 horses had to be euthanized, and in September 2014, two more horses had to be euthanized after consuming Syfrett Feed’s horse pellet food. According to the complaint, following these events, Syfrett Feed discontinued manufacturing medicated and non-medicated feeds for horses.
The consent decree entered today resolves the litigation. The decree requires that the defendants adhere to the law’s labeling requirements and current good manufacturing practices for medicated animal feeds. The decree also directs Syfrett Feed to cease manufacturing medical animal feed until the company implements specified remedial measures. The measures include, among other things, retaining an expert to conduct an inspection of Syfrett Feed and certifying that the company’s manufacturing methods, facilities and controls are in conformity with current good manufacturing practices for medicated feeds.
This matter was handled by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Christopher Cheek of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Davis Man Found Guilty of Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. C A federal jury found Alexander Nathan Norris, 28, of Davis, guilty of distribution and possession of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 27, 2010, and April 12, 2011, law enforcement agents noticed an individual sharing child pornography over the internet using a peer-to-peer filing sharing software. One of the IP addresses the individual was using was registered to an apartment in Davis where three female UC Davis students lived. All three denied accessing or distributing child pornography. With the residents’ permission, the agents used a computer program and a directional antenna to find the individual involved in the file sharing. This led to Norris, who lived nearby in the same apartment complex and had gained unauthorized access to the students’ password‑protected network.
At the time of his arrest on April 12, 2011, Norris had child pornography on his computer, including files that he had distributed to law enforcement approximately four days earlier.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Shelley D. Weger are prosecuting the case.
Norris is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on August 2, 2017. Norris faces a mandatory minimum of five years in prison and a statutory maximum of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Corpus Christi Man Sentenced for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old Corpus Christi man has been ordered to prison following his two convictions of sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez. Mark Hamauei pleaded guilty Jan. 6, 2017, admitting he took sexually explicit videos of both a 13 and 14-year-old victim.
He was sentenced to 210 months on each count to run concurrently. 10 years of supervised release in each count and $1,229.08 in restitution.
Today, Senior U.S. District Judge Nelva Gonzales Ramos sentenced Hamauei to a total of 210 months in federal prison on each count to run concurrently. The sentence will be immediately by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and pay $1229 in restitution.
At today’s hearing, the court also heard testimony from one of the victims. She described to the court the impact the crime has had on her life and that of her family.
Hamauei came to the attention of law enforcement after identifying two young females who had been sexually assaulted. Law enforcement later executed a search warrant at Hamauei’s residence and seized various electronic devices which led to the discovery of two videos of the two girls being sexually assaulted. Hamauei’s hands were compared and matched to the hand of the person filming the video. Authorities also discovered 239 videos and more than 1,400 other images of child pornography. At the hearing today, the court heard that many of these images depicted sadistic or masochistic conduct including bondage of children as young as toddlers.
Hamauei was arrested on the federal charges in October 2016 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Convicted Felon Sentenced to 100 Months for Firearm OffenseRead the Press Release
DAYTON – Charles G. Thomas, Jr., 27, of Dayton, was sentenced in U.S. District Court to 100 months in prison for possessing a firearm after being convicted of a felony crime.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, between March and July 2016 Thomas possessed nine firearms, including seven pistols, a revolver and a shotgun. One of the firearms was possessed with a high capacity magazine. At least one of the weapons had previously been reported as stolen.
In 2010, Thomas was convicted of aggravated robbery with a deadly weapon, a felony offense, in Montgomery County Common Pleas Court.
Thomas pleaded guilty in December 2016 to one count of felon in possession of a firearm.
U.S. Attorney Glassman commended the cooperative investigation by ATF, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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Colombian Man Pleads Guilty to Drug, Immigration OffensesRead the Press Release
BOSTON – A Colombian man pleaded guilty today in federal court in Worcester to drug and immigration charges.
Leonardo Franco, 45, a Colombian national who resided in Worcester, pleaded guilty to one count of possession of cocaine with intent to distribute and one count of illegal re-entry of a deported alien. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 4, 2017.
On Nov. 3, 2016, Franco was traveling to Oxford, Mass., with the intent of selling cocaine to another individual - an individual to whom Franco had previously sold cocaine. Law enforcement confronted Franco and found him in possession of more than a half-pound of cocaine contained in several clear baggies.
Franco was convicted of illegal re-entry of a deported alien in 2011 and was subsequently deported from the United States. Franco had previously been removed from the United States on three other occasions, including twice in 2010. Sometime after his removal in 2011, Franco illegally re-entered the United States again.
The charging statute for possession of cocaine with intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charging statute for illegal re-entry provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Franco will be subject to deportation upon completion of his sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
Charleston felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Re’Shaun Lamonte Wilborne, 31, entered his guilty plea to being a felon in possession of a firearm.
Wilborne admitted that on October 13, 2016, he possessed a Taurus, Model PT92AF, 9x19mm semiautomatic pistol and several boxes of ammunition. An officer with the Metropolitan Drug Enforcement Network Team discovered the handgun in Wilborne’s backpack in a Motel 6 on MacCorkle Avenue in Charleston. Three days later, on October 16, 2016, a Charleston Police Department officer was dispatched to the 700 block of Central Avenue in Charleston in reference to two individuals behind a bar fighting, one of whom was later identified as Wilborne. When Wilborne saw the officer, he admitted that he began to flee. The officer caught up to Wilborne around the 400 block of Elm Street and in a search of Wilborne incident to arrest, law enforcement recovered a Glock, Model 29, 10mm semiautomatic pistol. After a check of the gun’s serial number, law enforcement confirmed that the firearm was stolen. Wilborne was prohibited from possessing any firearm under federal law because of a 2004 conviction for second degree sexual assault in Fayette County Circuit Court.
Wilborne faces up to 10 years in federal prison when he is sentenced on August 3, 2017.
The Metropolitan Drug Enforcement Network Team, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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 existing local programs targeting gun crime.
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California Woman Pleads Guilty to $6.6 Million K2 ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Roseville, Calif., woman has pleaded guilty in federal court to her role in a conspiracy to distribute more than $6.6 million of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.
Sheila Marie Nawaz, 40, of Roseville, pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, May 3, 2017, to participating in a conspiracy to commit mail fraud from Dec. 18, 2012, to July 16, 2015.
Nawaz was the president of eComm Organix, Inc., a California distributor of “novelty products.” eComm Organix purchased synthetic cannabinoids from other businesses then distributed those synthetic cannabinoids to retail customers throughout the United States via the U.S. Postal Service.
By pleading guilty, Nawaz agreed that she accumulated approximately $806,260 in gross proceeds attributable to this conduct. Nawaz obtained approximately 179,169 grams of synthetic cannabinoids for distribution at approximately $4.50 per gram.
During the conspiracy, eComm Organix mailed approximately 2,359 retail packages of synthetic cannabinoids to customers in the state of Missouri. The labels on these synthetic cannabinoids misidentified the contents as “incense,” “aroma therapy” or “potpourri” that were “not for human consumption.” In fact, these products were drugs intended for human consumption as a drug. Conspirators mislabeled packages of synthetic cannabinoids for the purpose of avoiding government regulation over these drugs, and to protect the continued sale of these drugs.
Nawaz is among eight co-defendants who have pleaded guilty in this case. Shawn Michael Browning, 26, Timothy Christopher Sandfort, 31, Joshua Adam Sheets, 31, and Brandon Derek Rader, 32, all of Fulton, Mo., also pleaded guilty to participating in the mail fraud conspiracy as well as a money-laundering conspiracy during that time; both conspiracies were related to the distribution of synthetic cannabinoids. Dara Leanne Shirley, 31, of Fulton, pleaded guilty to participating in the money-laundering conspiracy. Casey Dewayne Miller, 32, of Columbia, and Billie L. Bruce, 36, of Jefferson City, each pleaded guilty to distributing synthetic cannabinoids.
According to court documents, the drug-trafficking conspiracy generated $6,656,843 in gross proceeds. Rader and Sandfort each acknowledged that his conduct directly contributed to the generation of approximately $4,544,700 of that total. Browning and Sheets each acknowledged that his conduct directly contributed to the generation of approximately $2,112,142 of that total.
Sandfort, Rader, Shirley, Miller and others operated First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto. First Stop Last Stop Pawn & Aromatherapy represented itself as a “pawn shop” and “potpourri store.” Inscentives Resale was represented to be a “buy, sell, and trade business.” Inscentives Auto held a Missouri motor vehicle dealer’s license. Browning, Sheets, Bruce and others operated Esscentials Resale and S&J Tobacco.
These businesses purchased synthetic cannabinoids from co-conspirators in California and Nevada. At least 251 shipments of synthetic cannabinoids were made via FedEx and UPS. Inscentives Resale sold synthetic cannabinoids from locations in Auxvasse, Mo., and Fulton. Esscentials Resale and S&J Tobacco sold synthetic cannabinoids from locations in Holts Summit, Mo.
Browning, Sandfort, Sheets, Rader and others obtained packages of synthetic cannabinoids from co-conspirators and periodically supplied each other with packages of synthetic cannabinoids for resale.
Under federal statutes, Nawaz is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.
Buffalo Man Sentenced on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today Julio Sanchez, 30, of Buffalo, NY, who was convicted of possession with intent to distribute more than 100 grams of heroin, was sentenced to 78 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash. Sanchez and co-defendants Tomas Figueroa and Elias Figueroa were arrested at the scene. Two other defendants, Steven Martinez and Jeffrey Coleman, were also arrested that day. All five defendants have been convicted; Sanchez is the first to be sentenced.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Boston Man Charged with Threats Against Federal OfficerRead the Press Release
BOSTON – A Boston man was arrested today and charged in federal court in Boston in connection with making threats to a Federal Bureau of Investigation (FBI) Task Force Officer.
Carmen J. Polito, 35, was charged in a criminal complaint with knowingly transmitting in interstate communications containing a threat to kidnap or injure an FBI Task Force Officer in Miami, Fla. At his initial appearance today, U.S. District Court Magistrate Judge M. Page Kelley ordered a competency evaluation.
According to court documents, on May 3, 2017, Polito, an individual known to the FBI Miami Division, left threatening voice mails and sent threatening text messages to an FBI Task Force Officer assigned to the Miami Field Division. In those voice messages, Polito threatened to stab the officer and made statements such as, “an officer is going to die.” Polito also sent threatening texts with accompanying photographs including, various weapons, Boston City Hall, and police vehicles.
Federal agents were able to locate Polito by tracking the location of the cell phone used to place the calls and send the texts. On May 3, 2017, Polito was located in Brookline, Mass., and arrested.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brookline Police Chief Daniel C. O’Leary made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alpine Man Admits to Intentionally Setting U.S. Post Office AblazeRead the Press Release
In Alpine today, 59-year-old Karl Henry Peterson admitted to setting the U.S. Post Office in Alpine ablaze last year announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.
Appearing before United States Magistrate Judge David Fannin, Peterson pleaded guilty to one count of arson involving a federal facility. By pleading guilty, Peterson admitted to setting fire to the U.S. Post Office during the early morning hours on October 12, 2016. As a result, the building suffered extensive damage.
Peterson, who remains in federal custody, faces an agreed sentence of 37 months in federal prison. Formal sentencing has yet to be scheduled.
The United States Postal Inspection Service, together with the Texas State Fire Marshal’s Office and the Alpine Police Department, investigated this case. Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.
Albuquerque Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Edward Kriglstein, 50, of Albuquerque, N.M., was sentenced this morning in federal court to 120 months in prison for a methamphetamine trafficking conviction. Kriglstein will be on supervised release for eight years following his prison sentence.
Kriglstein was arrested in Feb. 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Feb. 8, 2016, in Bernalillo County, N.M. According to the complaint, on that day, law enforcement officers executed an arrest warrant on Kriglstein and seized approximately 153.5 gross grams of methamphetamine, marijuana, cash and drug paraphernalia from him incident to his arrest. Kriglstein was indicted on the same charge on Feb. 24, 2016.
On Dec. 16, 2016, Kriglstein pled guilty to the indictment and admitted that on Feb. 8, 2016, law enforcement seized approximately 107.4 grams of pure methamphetamine from him when they arrested him on an outstanding arrest warrant relating to a prior criminal conviction.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Alexander M. Uballez prosecuted the case.
Albuquerque Man Sentenced to Seven Years for Conviction on Federal Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jeffrey Burlingame, 59, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison followed by three years of supervised release for violating the federal firearms and drug trafficking laws.
Burlingame was arrested in Feb. 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute. The complaint alleged that Burlingame committed the crime on Feb. 24, 2016, in Bernalillo County, N.M. According to the complaint, on that day, law enforcement agents executed a search warrant at the Albuquerque residence of another person. The agents seized methamphetamine, cash, firearms, ammunition and drug paraphernalia from Burlingame, who was present at the time the search warrant was executed.
Burlingame was indicted on March 23, 2016, and was charged with possession of methamphetamine with intent to distribute and carrying a firearm in relation to a drug trafficking crime on Feb. 24, 2016, in Bernalillo County.
On Nov. 28, 2016, Burlingame pled guilty to carrying a firearm in relation to a drug trafficking crime and possession of methamphetamine with intent to distribute. In entering the guilty plea, Burlingame admitted that on Feb. 24, 2016, he was in possession of 450.55 grams of pure methamphetamine and a firearm and ammunition when law enforcement agents executed a search warrant at a residence in Albuquerque.
This case was investigated by Homeland Security Investigations and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Alexander M. Uballez prosecuted the case.
Aggravated Felon Sentenced for Illegal Re-EntryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Manuel Salazar Estrada, 38, of Nogales, Mexico, who was convicted of illegally reentering the United States after a conviction for an aggravated felony, was sentenced to one year in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that on December 7, 2016, the defendant was encountered at the Peace Bridge Port of Entry after getting lost and turning around on the bridge before reaching Canada. When initially questioned, the defendant claimed to be a citizen of the United States, born in Arizona and gave officials an Arizona voter card as additional proof of identification. Standard record checks revealed that Estrada is a citizen of Mexico and had been deported from the United States on five prior occasions. The most recent deportation occurred in 2015 after the defendant was convicted in Arizona of conspiracy to transport illegal aliens for profit, an aggravated felony, and banned from entering the United States for life.
Estrada was also sentenced to six months in prison for violating the conditions of his supervised release for reentering the United States.
The sentencing is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Acting Manhattan U.S. Attorney Announces Settlement of Bank Secrecy Act Suit Against Former Chief Compliance Officer at Moneygram for Failure to Implement and Maintain an Effective Anti-Money Laundering Program and File Timely SARSRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Jamal El-Hindi, the Acting Director of the Financial Crimes Enforcement Network (“FinCEN”), announced today that the United States Department of the Treasury (the “Treasury Department”) has settled its claims under the Currency and Foreign Transactions Reporting Act of 1970 (“Bank Secrecy Act” or “BSA”) against THOMAS E. HAIDER (“HAIDER”), the former chief compliance officer of MoneyGram International, Inc. (“MoneyGram”). During the relevant time period, MoneyGram operated a money transfer service that enabled its customers to transfer money from one MoneyGram outlet to another. In the settlement – which resolves claims that HAIDER is liable under the BSA for failing to ensure that MoneyGram implemented and maintained an effective anti-money laundering (“AML”) program and filed timely suspicious activity reports (“SARs”) with FinCEN – HAIDER has agreed to a three-year injunction barring him from performing a compliance function for any money transmitter. HAIDER has also agreed to pay $250,000, and has admitted, acknowledged, and accepted responsibility for, among other things, (1) failing to terminate specific MoneyGram outlets after being presented with information that strongly indicated the outlets were complicit in consumer fraud schemes, (2) failing to implement a policy for terminating outlets that presented a high risk of fraud, and (3) structuring MoneyGram’s AML program such that information that MoneyGram’s Fraud Department had aggregated about outlets, including the number of reports of consumer fraud that particular outlets had accumulated over specific time periods, was not generally provided to the MoneyGram analysts who were responsible for filing SARs.
The settlement was approved yesterday by U.S. District Judge David S. Doty of the U.S. District Court for the District of Minnesota.
Acting U.S. Attorney Joon H. Kim said: “Compliance officers perform an essential function, serving as the first line of defense in the fight against fraud and money laundering. Unfortunately, as today's settlement shows, Thomas Haider violated his obligations as MoneyGram's chief compliance officer. By failing to terminate MoneyGram outlets that presented a high risk for fraud and to take other actions clearly required of him, Haider allowed criminals to use MoneyGram to defraud innocent consumers. We are committed to working with FinCEN to enforce the requirements of the Bank Secrecy Act and to hold individuals like Haider accountable.”
Acting FinCEN Director Jamal El-Hindi said: “FinCEN relies on compliance professionals from every corner of the financial industry. FinCEN and our law enforcement partners need their judgment and their skills to effectively fight money laundering, fraud, and terrorist financing. Compliance professionals occupy unique positions of trust in our financial system. When that trust is broken, it is important that we take action so that the reputations of thousands of talented compliance officers are not diminished by any one individual’s outlying egregious actions. We have repeatedly said that when we take an action against an individual, the record will clearly reflect the basis for that action. Here, despite being presented with various ways to address clearly illicit use of the financial institution, the individual failed to take required actions designed to guard the very system he was charged with protecting, undermining the purposes of the BSA. Holding him personally accountable strengthens the compliance profession by demonstrating that behavior like this is not tolerated within the ranks of compliance professionals.”
As part of the settlement, filed in federal court in Minneapolis, HAIDER has admitted, acknowledged, and accepted responsibility for the below-described conduct that occurred during the period 2003 through May 23, 2008 (the “Covered Period”).
MoneyGram operated a money transfer service that enabled its customers to transfer money to and from various locations in the United States and abroad through MoneyGram’s global network of agents and outlets.
HAIDER was MoneyGram’s chief compliance officer, and was the most senior MoneyGram employee with direct oversight over MoneyGram’s Fraud Department and AML Compliance Department. As such, HAIDER had the authority to implement a policy for terminating or otherwise disciplining MoneyGram agents and outlets. In 2006 and 2007, members of MoneyGram’s Fraud Department proposed that MoneyGram implement a policy for terminating or otherwise disciplining agents and outlets that presented a high risk of fraud. A draft policy was provided to HAIDER no later than March 2007. However, MoneyGram’s Sales Department objected to a discipline/termination policy for high-fraud agents and outlets, and therefore, during HAIDER’s employment at MoneyGram, no such policy was implemented.
In addition, in April 2007, MoneyGram’s Fraud Department recommended terminating a number of specific MoneyGram outlets that were located in Canada. To support this recommendation, the Director of Fraud provided HAIDER and other senior managers with specific information on 49 Canadian outlets, which included spreadsheets analyzing the 49 outlets’ money transfer activity during the six-month period from September 2006 through February 2007. The spreadsheets revealed that the 49 outlets accounted for approximately 58% of all reported fraud involving money sent through MoneyGram’s money transfer system to Canada during this six-month period. The spreadsheets also reflected, among other things, that each of the 49 outlets had characteristics that HAIDER and the other members of the Fraud and AML Compliance Departments who reported to him viewed as strong indicators that an outlet was complicit in consumer fraud schemes. Among the 49 outlets were four outlets that were owned and/or operated by the same individual, James Ugoh. The April 2007 spreadsheets revealed that, during the six-month period, the four Ugoh outlets alone had collectively accumulated 150 consumer fraud reports, totaling more than $300,000 in consumer losses. Ugoh has since pled guilty to various crimes relating to consumer fraud, and he has admitted that almost all of the money his outlets received constituted fraud proceeds.
HAIDER had ultimate authority to terminate agents and outlets because of fraud or AML compliance concerns, but in the face of pushback from the Sales Department did not exercise that authority with respect to the vast majority of the 49 outlets identified in the April 2007 spreadsheets.
By April 2007, HAIDER was aware that MoneyGram’s Fraud Department had the ability to aggregate – and had been aggregating – information relating to MoneyGram’s agents and outlets, including the number of consumer fraud reports particular outlets had accumulated over specific time periods. However, HAIDER structured MoneyGram’s AML program such that this information was not generally provided to the MoneyGram analysts who were responsible for filing SARs. During the Covered Period, there were numerous outlets that the Fraud Department identified as having accumulated a disproportionate number of consumer fraud reports, but for which MoneyGram did not file SARs. In addition, MoneyGram’s AML Compliance Department failed to conduct adequate audits of many of those agents/outlets, and certain of the agents were permitted to open additional outlets.
* * *
The Treasury Department filed its complaint in this lawsuit in the United States District Court for the Southern District of New York in December 2014. In March 2015, the parties agreed to transfer the case to the United States District Court for the District of Minnesota, where MoneyGram was headquartered for the period of time relevant to the Government’s complaint.
Mr. Kim thanked FinCEN’s Enforcement Division, Office of Chief Counsel, and Office of Special Investigations for their extraordinary assistance with this case.
This case has been handled at all times by the Civil Frauds Unit of the United States Attorney’s Office for the Southern District of New York. Assistant United States Attorneys Christopher B. Harwood, Jessica Jean Hu, Caleb Hayes-Deats, and Elizabeth M. Tulis are in charge of the case, having been designated as Special Assistant United States Attorneys for the District of Minnesota for that purpose.
3 May 2017
Wisconsin Farmer Sentenced to Federal Prison for Crop Insurance FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 27, 2017, Jeffrey Lewke (age: 39) was sentenced to six months in federal prison for a violation of Title 18, United States Code, Section 1001, making a false statement within the jurisdiction of the executive branch of the United States. In addition to the prison term, Lewke was ordered to serve an additional 6 months of home confinement, pay a $2,000 fine, and pay $23,799.44 in restitution to the United States Department of Agriculture (USDA).
The USDA, through the Federal Crop Insurance Corporation (FCIC), provides insurance to farmers for unavoidable crop losses. The FCIC provides insurance by reinsuring private crop insurance companies for losses claimed by their policy holders.
Pursuant to the terms of a plea agreement, Lewke acknowledged that during the 2011 crop season, he falsely represented that he irrigated 120 acres of land in Waushara County more times than he actually did. By doing so, he attempted to fraudulently obtain a nearly $63,000 insurance claim. In total, Lewke acknowledged that he submitted $246,606.53 worth of fraudulent insurance claims during the 2011 crop season.
Moreover, Lewke acknowledged that he attempted to fraudulently obtain additional monies through other false crop insurance claims in 2011. For instance, Lewke falsely claimed that he was prevented from planting a number of properties due to excessive moisture, when in fact, he never attempted to plant some of those properties, some of those properties were already planted with corn, and in one instance, the property was actually a horse pasture. In addition, Lewke fraudulently “shifted” his production by claiming that he produced corn in Dodge County, when in fact he produced the corn in Clark County. By so doing, he falsely claimed that he was entitled to another $70,000 of insurance payments for a loss in Clark County.
At Lewke’s sentencing hearing, District Judge Pamela Pepper described the federal crop insurance program at as a “safety net” for farmers in need, from which Lewke stole while he was enjoying the financial success of farming over 12,000 acres in Wisconsin during the 2011 crop season.
This case was investigated by the United States Department of Agriculture - Office of Inspector General. The case was prosecuted by Assistant United States Attorney Keith S. Alexander
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For additional Information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Westlake Oregon Woman Sentenced in Murder-for-Hire of Ex-HusbandRead the Press Release
EUGENE, Ore. – On Wednesday, May 3, 2017, United States District Court Judge Ann Aiken sentenced Pamela Jean Gygi, 58, of Westlake, Oregon to ten years in prison followed by three years of supervised release. Gygi pleaded guilty on January 23, 2017 to using interstate commerce facilities in the commission of a murder-for-hire and possession of a firearm in furtherance of a crime of violence.
According to court documents, in May 2015, Gygi attempted to end a property dispute with her divorced husband and collect on his $150,000 life insurance policy by hiring a hitman to murder him. Instead of carrying out the crime, the hitman traveled across state lines to warn the ex-husband of the plot. The ex-husband, in turn, notified police.
Meanwhile, Gygi continued plotting the murder and gathering supplies. On July 10, 2015, she drove to Springfield, Oregon with a pistol, ammunition, cash and a vehicle to be used by the hitman to travel to the ex-husband’s home. An FBI video recording shows Gygi meeting the hitman in a mall parking lot to deliver the supplies and vehicle.
Gygi instructed the hitman to make the murder look as though it were the result of a home invasion robbery and, as part of the deal, told him to steal her ex-husband’s rifle. Gygi left the meeting after confirming that she would secure an alibi witness. She was then stopped by a Springfield police officer and arrested by the FBI.
Judge Aiken commended the FBI and the United States Attorney’s Office for the investigation and prosecution, and stated that Gygi’s offenses required a severe sentence to deter those involved in domestic disputes from resorting to violence.
The case was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon, and investigated by the FBI and the Springfield, Oregon, and Saratoga Springs, Utah Police Departments.
U.S. Attorney's Office Reaches a Resolution with Clarke County to Ensure ADA Compliance at Polling LocationsRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced today that the U.S. Attorney’s Office recently reached an agreement with the Clarke County Commission to ensure that polling precincts throughout the county are in compliance with the requirements of the Americans with Disabilities Act (ADA).
During the general election on November 8, 2016, the office conducted a compliance review of the county’s 29 polling locations. The review identified barriers to access at various locations. Through a letter of resolution, the county ultimately adopted the office’s recommendations to remedy the barriers, in accordance with the requirements of the ADA. One example is the use of temporary portable ramps to assist voters with mobility impairments. The resolution also requires the county to develop a survey instrument to assess whether a polling location is or can be made accessible during subsequent local, state and federal elections.
Acting United States Attorney Butler said, “I commend the members of the Clarke County Commission for their cooperation in resolving the barrier issues we uncovered at the various voting precincts around the county. They recognize that making their polling places accessible to persons with disabilities is a critical responsibility.”
Title II of the ADA requires state and local governments to ensure that persons with disabilities can access their voting facilities. The ADA’s implementing regulations describe what makes a polling place accessible. Furthermore, the Department of Justice’s ADA Checklist for Polling Places, found at www.ada.gov/votingchecklist.htm, provides guidance to election officials for determining whether a polling place already has the basic accessibility features needed by most voters with disabilities or can be made accessible using temporary solutions.
Assistant United States Attorney Suntrease Williams-Maynard is the assigned attorney on this project, which is part of a nationwide initiative spearheaded by the Department’s Civil Rights Division.
People interested in learning more about the requirements of the ADA may visit the website www.ada.gov or call the toll free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).Two More Plead Guilty to Conspiracy to Lure Robbery Victims with Online Ads for EscortsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Sugar Creek, Mo., woman and an Independence, Mo., man pleaded guilty in federal court today to their roles in a conspiracy to use online escort and massage ads to lure robbery victims.
Nicole L. Covey, 34, of Sugar Creek, and Devon Davis-Aumua, 22, of Independence, pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays to the robbery conspiracy. Covey also pleaded guilty to five counts of aiding and abetting robberies. Davis-Aumua also pleaded guilty to one count of aiding and abetting a robbery and to being a drug user in possession of a firearm.
Co-defendant Sage E. Harrison, 35, of Independence, pleaded guilty on Tuesday, May 2, 2017, to his role in the robbery conspiracy and to two counts of aiding and abetting robberies.
By pleading guilty today, Covey and Davis-Aumua each admitted they participated in the conspiracy to commit robbery from April 1, 2015, to June 7, 2016. Conspirators used several websites (including craigslist.org, backpage.com and skout.com) to make connections with their victims and arrange meetings at local hotels, residences and apartments. Covey’s photo was used in the online ads. When customers arrived to meet Covey, conspirators would be lying in wait, armed with firearms and weapons that appeared to be firearms, and rob the customers.
Covey also admitted that she aided and abetted in the commission of five specific robberies in October 2015 in Kansas City-North, Independence and North Kansas City. Davis-Aumua admitted that he aided and abetted one of the robberies at an apartment in Kansas City-North on Oct. 8, 2015.
On Oct. 10, 2015, Independence police officers arrested Davis-Aumua in the parking lot of an Independence hotel at approximately 3:33 a.m. Davis-Aumua was in possession of methamphetamine and a stolen Springfield XDS .45-caliber pistol. He was also in possession of the keys to another robbery victim’s truck, which was discovered nearby out of gas. That victim, identified in court documents as “H.G.”, had been robbed by co-conspirators at the same Kansas City-North apartment on Oct. 9, 2015. A co-conspirator forced H.G. to his truck and searched it for further items to steal. This co-conspirator threatened to shoot H.G. if he didn’t produce the title to the vehicle. This co-conspirator forced H.G. to ride in the passenger seat, while the co-conspirator drove H.G.’s vehicle. This co-conspirator again threatened to shoot H.G. if he did not produce the title. While driving at highway speeds, H.G. jumped from the moving vehicle in fear for his life and sustained injuries.
Agents recovered a laptop computer and a notebook from the location of the apartment robbery and discovered information about several e-mail and social media accounts used by conspirators. Records obtained from Facebook revealed multiple communications about the robberies. For example, a Facebook message from one of Covey’s accounts stated, “My man and some of my friends, we drop pockets on backpage clients.” The term “dropping pockets” has been used by several of these individuals and is known to be a reference to conducting a robbery.
According to Backpage.com records, posts were placed in the sections “Body Rubs,” “Escorts,” and “Domination & Fetish” sections, using several different names. The records identified 31 different phone numbers which were posted in the associated ads, and that 126 separate posts were made.
Records obtained from Craigslist related to phone numbers and email addresses used in the robberies revealed 11 related accounts. Those 11 accounts had been used to post 89 ads between Sept. 28, 2015 and Jan. 7, 2016. According to Craigslist records, posts were predominantly placed in the “Casual Encounters” section using approximately 27 different names.
Under federal statutes, Harrison is subject to a sentence of up to 20 years in federal prison without parole on each count. Davis-Aumua is subject to a sentence of up to 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, and the Independence, Mo., Police Department, with assistance from the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department and the Blue Springs, Mo., Police Department.
Three Men Charged with Sex Trafficking minors in Georgia, Florida, and TennesseeRead the Press Release
ROME, Ga. – Brian Hernandez Acosta and his brother, Nilageo Alvarez Acosta, have been arraigned on charges of conspiracy to commit sex trafficking of a minor, sex trafficking of a minor, and transportation of a minor for prostitution. A third man, Jaime Adam Riano, was arraigned on the same charges on April 13, 2017.
“These men allegedly preyed on vulnerable young girls by sexually exploiting them for quick money,” said U.S. Attorney John A. Horn. “This case highlights the danger that lurks on social media sites, where the defendants allegedly pursued some of the child victims.”
“These federal charges are a reminder that sex trafficking of minors continues to be a very real problem and that it is not confined to urban areas. This case further illustrates how law enforcement, working together across many jurisdictions and state lines, remains responsive in addressing this heinous crime problem that will forever scar those being exploited,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“We are thankful for the work and success of all involved in this investigation that has ended the elaborate criminal enterprise these predators operated. The scope of their operation is a reminder that sex trafficking is a real danger for the young people in our communities,” said Chief Jason Parker, Dalton Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: Hernandez Acosta, Alvarez Acosta, and Riano allegedly conspired to traffic minor girls for commercial sex throughout North Georgia as well as in Florida and Tennessee. Beginning in or around November 2015, and continuing until December 2016, the defendants caused at least five girls between 16 and 17 years old to engage in prostitution, including by using force, fraud, and coercion.
Hernandez Acosta, after pursuing some of the girls on Facebook, allegedly posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com, a classified advertisement website, to solicit men to have sex with the minors for money. The advertisements used fake names for the minors and falsely listed the minors as between ages 19 and 21 years, when in fact, they were all underage. Hernandez Acosta and Alvarez Acosta forced one 16-year-old girl to have sex with the men after driving her from Florida to Georgia to engage in prostitution, and after falsely offering the girl a place to live. Riano often drove this 16-year-old victim to the locations where she engaged in commercial sex acts. Another 16-year-old high school student was driven to a residence in the Atlanta area to have sex with a man for $150, which was paid directly to Hernandez Acosta. The defendants operated a high-volume, low-cost business, requiring the young girls to have sex with multiple men each night and kept nearly all of the money they earned.
Hernandez Acosta, 26, of Dalton, Georgia, Alvarez Acosta, 31, of Tampa, Florida, and Riano, 29, of Stone Mountain, Georgia, were indicted April 11, 2017.
This case is being investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff's Office have also provided assistance.
Assistant U.S. Attorneys Suzette A. Smikle and Dash A. Cooper are prosecuting the case.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tennessee Family Convicted of Decade-Long Gold and Silver Ponzi SchemeRead the Press Release
Memphis, TN – After a five-week trial, a federal jury found Larry Bates; his two sons, Chuck and Robert Bates; and Kinsey Bates, the wife of Robert Bates, guilty on all counts set forth in an indictment that charged mail and wire fraud and conspiracy. The charges rose out of the defendants running a decade-long Ponzi scheme in the buying and selling of gold and silver coins. The proof at trial showed that the defendants were able to accomplish the fraud through First American Monetary Consultants, a Colorado corporation, which had offices in Memphis, Tennessee and Boulder, Colorado. More than three hundred and sixty victims lost more than twenty-one million dollars due to the defendants’ illegal scheme, which lasted from as early as 2002 through October of 2013.
"Unfortunately, fraud, corruption and embezzlement can occur everywhere, including in the investment world," said Larry Laurenzi, Acting United States Attorney, who prosecuted the case along with Assistant U.S. Attorney David Pritchard. "People need to be mindful of this terrible fact and work hard to protect themselves and their families from those who prey on others, like the Bates family preyed on so many innocent victims. As this case shows, the United States Attorney’s Office and its law enforcement partners work diligently to expose people responsible for such fraudulent acts, to vigorously prosecute them, and to bring them to justice."
At trial, the proof showed that the defendants promoted their business through a variety of Christian television and radio programs, including the Jim Baker Show and Jewish Voice. Larry Bates, a self-proclaimed doctor in economics, held conferences across the United States, predicting an economic collapse and emphasizing the need to invest in precious metals. Between 2007 and 2013, customers gave more than eighty-seven million dollars to First American Monetary Consultants for the purpose of buying precious metals. During this same period, the proof showed the defendant diverted customers’ monies that were to be used to purchase precious metals to the defendants own use and
benefit. Testimony at trial showed that by 2009, the company had more than twenty-six million dollars in unfilled customer orders.
The proof showed that the defendants used the customers’ money for a variety of purposes other than purchase of customers’ metals. Larry Bates diverted more than four million dollars to the creation of International Radio Network, a Christian radio network. Other monies were diverted to trading in commodities and the building of a ten-thousand square foot house on three hundred acres in Middleton, Tennessee. Still other customers’ monies were used to fulfill prior orders, which had not been fulfilled.
At trial, the evidence showed that Larry Bates, Chuck and Robert Bates were salespeople in the Memphis office and were responsible for taking in victims’ monies. More than forty-five witnesses testified about losing money to Larry Bates and First American Monetary Consultants. The victims,who lived across the United States, testified that their money was to be used to purchase precious metals that they never received. For example, Judith Ponder, from Kerrville, Texas, testified that she and her mother gave Larry Bates more than $1.8 million dollars to purchase precious metals and received little in return. Similarly, Barbara Santiago, from Washington State, testified that she and her paraplegic son met Larry Bates at one of his conferences in Washington State. Ms. Santiago tested that she later invested more than two hundred and sixty-six thousand dollars from her son’s insurance settlement that was to be used for her son’s care. Ms. Santiago, likewise, received little of what she was promised. And, Charles Grimsley, a pastor for the Veteran’s Administration in Mesa, Colorado, testified that he and his wife gave FAMC more than two hundred thousand dollars of their retirement money and received nothing in return.
The proof showed that many of the victims attempted to take possession of their gold and silver coins, only to be put off by the defendants for a variety of reasons. The excuses for the delays included that the gold and silver coins were scarce, the coins were coming from Europe, and the U.S. mint was shut down. In October 2013, a receiver was appointed to take over the affairs of First American Monetary Consultants. The receiver found that the company had few assets and was unable to compensate the hundreds of victims who had given money to Larry Bates and First American Consultants.
Larry Bates was convicted on all 46 counts in the indictment. Chuck Bates was found guilty of 18 counts of mail and wire fraud and one count of conspiracy. Robert Bates was convicted of five counts of mail fraud, three counts of wire fraud, and one count of conspiracy. Kinsey Bates was convicted on one count of conspiracy and two counts of wire fraud.
Each count of conviction carries a potential sentence of 20 years in prison and a potential fine of $250,000. The defendants also face potential forfeiture and restitution penalties. The defendants are scheduled to be sentenced on August 3, 2017, by U.S. District Judge Sheryl H. Lipman.
Acting United States Attorney Lawrence J. Laurenzi and Assistant United States Attorney David Pritchard prosecuted the case. The United States Postal Service and the Federal Bureau of Investigation investigated the case.
Tahlequah Woman Sentenced to 46 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SHEENA CHANDEL MEIKLE, age 28, of Tahlequah, Oklahoma, was sentenced to 46 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
The Second Superseding Indictment alleged that in or about the end of 2013, the exact date being unknown, and continuing until on or about January 27, 2016, the Defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to Distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Man Sentenced to 87 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DONALD WAYNE TRAMMEL, age 41, of Tahlequah, Oklahoma, was sentenced to 87 months imprisonment and 4 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The Information alleged that in or about November through December 2015, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to Distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Stroudsburg Man Indicted on Drug Trafficking OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jackie Johnson, age 31, of Stroudsburg, Pennsylvania, was indicted on April 11, 2017, by a federal grand jury on drug trafficking charges. The indictment was unsealed on April 25, 2017, following Johnson’s initial appearance before United States Magistrate Judge Joseph F. Saporito.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Johnson distributed and possessed with the intent to distribute heroin on two occasions in July and August 2016, and cocaine in December 2016, in Monroe County, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Springfield Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Joseph E. Finch, 38, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years and eight months in federal prison without parole. Finch was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 3, 2016, Finch pleaded guilty to being a felon in possession of a firearm. Finch was arrested on Oct. 27, 2015, when law enforcement officers executed a search warrant at his residence. Finch was in possession of 9.83 grams of methamphetamine, .21 gram of heroin, 3.5 grams of marijuana and $900. Officers found a Hi-Point .45-caliber semi-automatic pistol and 32 rounds of ammunition inside a cooking stove on the back porch of the residence. More ammunition was found in a storage shed.
Finch admitted to law enforcement officers that he was a drug dealer.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Finch has two prior felony convictions for distributing cocaine and prior felony convictions for drug trafficking and distributing crack cocaine.
This case was prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Springfield Man Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography.
Michael V. Lucas, 31, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Sept. 28, 2016, federal indictment.
By pleading guilty today, Lucas admitted that he received and distributed child pornography from Jan. 1, 2016, to Sept. 22, 2016.
According to court documents, a federal law enforcement agent in Phoenix, Ariz., encountered a person later identified as Lucas among the participants who were live streaming images and videos of child pornography over the Internet on Sept. 15, 2016. During the live streaming session, Lucas claimed to have molested two 13- and 16-year-old victims and said he would attempt to broadcast a future sexual encounter with the victims.
Lucas was partially visible in a reflection during the live stream. The federal agent engaged in two additional live streaming sessions that day in which Lucas participated and continued to share images and videos of child pornography.
On Sept. 19, 2016, Lucas was identified by the agent posting messages in a known pedophile group. These messages described the number of videos he possessed as well as advertising his new Skype group. Lucas was live streaming videos of child pornography and his reflection could be seen. Lucas also shared two links to a Dropbox account that contained images of child pornography and claimed that he was in possession of more than 1,000 videos of child pornography.
On Sept. 20, 2016, Lucas was live streaming and moved the position of the camera to show his face. Lucas also displayed a handgun and loaded magazine for the weapon during the course of the stream.
A federal law enforcement agent in Springfield executed a search warrant at Lucas’s residence on Sept. 22, 2016, and Lucas was arrested.
Under federal statutes, Lucas is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
Sioux Falls Man Receives Life Sentence in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of conspiracy to distribute 500 grams or more of methamphetamine and being a felon in possession of firearms, was sentenced on April 25, 2017, by U.S. District Judge Karen E. Schreier.
Shawn Russell Sorensen, age 55, was sentenced to life in prison on the methamphetamine conspiracy conviction. That sentence was mandatory because Sorensen had two previous felony drug convictions. He was sentenced to 120 months in prison on the firearms offense, to run concurrent to the life sentence. He was also ordered to pay $200 to the Federal Crime Victims Fund.
Sorensen was indicted for the offenses by a federal grand jury on September 20, 2016. He was found guilty after a three-day jury trial that began October 4, 2016.
The investigation of Sorensen began when a package containing a half-pound of cocaine and 10 pounds of methamphetamine was intercepted by the United States Postal Service. The package was subsequently linked to Sorensen. The evidence established Sorensen had received multiple packages in this manner. When Sorensen’s vehicle was stopped by law enforcement, he had in his possession three firearms and ammunition.
This case was investigated by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the Rock County, Minnesota Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorneys Jennifer D. Mammenga and John E. Haak prosecuted the case.
Sorensen was immediately turned over to the custody of the U.S. Marshals Service.
Simpson County, Kentucky Woman Sentenced to 46 Months in Prison for Bank RobberyRead the Press Release
Stole $43,100 and threatened to kill bank employees, customers and an alleged child hostage
BOWLING GREEN, Ky. – A Simpson County, Kentucky, woman was sentenced yesterday, in United States Court, by District Court Judge Greg N. Stivers, to serve 46 months in federal prison and ordered to pay $43,100 restitution, for a single count of bank robbery, announced United States Attorney John E. Kuhn, Jr.
“Every bank robbery jeopardizes the safety of bank employees and customers,” stated U.S. Attorney John Kuhn. “In this case the defendant absolutely terrorized bank employees with her threat against them and spurious hostages, including a woman and her young daughter. Although no one was physically hurt, this four year sentence is appropriate considering this defendant had robbed another bank in this same manner without any concern for the risks to innocent employees or by-standers.”
Patricia Lamar Brewer, 48, previously admitted to robbing the Citizens First Bank located at 1200 South Main Street, in Franklin, Kentucky, of $43,100 at approximately 9:30 a.m. on July 30, 2012. She also admitted to wearing eye-glasses, a hat, and a wig and handing a teller a threatening note stating:
“Don’t call cops or set off any alarms be calm we are watching you we have this ladys child if she don’t do what we say she will die and her daughter and everyone in this bank 80,000 dollars unmarked, untraceable bills if she is not out here in 5 min she will die along with her daughter and everyone in this bank we are watching you now so hurry now if you want to live.”
Brewer was previously convicted of robbing a bank in Panama City Beach, Florida, using a similar disguise and note. Evidence gathered from that robbery led FBI to Brewer and the Kentucky bank robbery.
Brewer remains free on bond.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Federal Bureau of Investigation (FBI).
Seventh Loiza Boys Gang Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Oscar Romero, 37, of Buffalo, NY, who was convicted of possession with intent to distribute and distribution of cocaine, was sentenced to 151 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that the defendant was an associate of a gang known as the Loiza Boys, which has been distributing heroin and cocaine on Buffalo’s West Side since at least 2006.
The defendant was charged in 2013 along with nine co-conspirators following a long-term investigation that involved the interception of telephone calls of various defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Nine of the 10 defendants have been convicted. Charges are pending against Josbel Garcia. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Real Estate Investor Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Memphis, TN – A Memphis real estate investor has pled guilty to a charge of bank fraud. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the guilty plea today.
In September 2016, Thomas L. Boyd, 44, was indicted by a federal grand jury in connection with a scheme to fraudulently obtain mortgage loans. The indictment alleged that Boyd, the owner of Wonderful Properties, LLC made false statements and presented false documents to Regions Bank, First Tennessee Bank, Bank of America and Oak Tree Funding on behalf of persons who were financing the purchase of properties from Boyd and Wonderful Properties.
According to the indictment, Boyd often made false statements on the loan closing documents by failing to disclose to the lenders on HUD-1 settlement statements that he was kicking back a portion of the loan proceeds to borrowers. Boyd’s scheme caused the lenders to disburse approximately $635,000 in loan proceeds.
At his plea hearing, Boyd admitted making false statements to Regions Bank in connection with a mortgage loan being made to an individual who was financing the purchase of a property from Boyd.
Boyd faces a maximum penalty of 30 years of imprisonment on the bank fraud charge and a fine of up to $1,000,000 and 5 years supervised release and a mandatory special assessment of $100.
The defendant is scheduled to be sentenced on August 9, 2017, by U.S. District Judge Sheryl H. Lipman.
The case was investigated by the FBI; Federal Housing Finance Agency (FHFA) – OIG; Department of Housing and Urban Development (HUD); Postal Inspection Service and IRS. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Randolph Man Sentenced for Attempting to Defraud Dreamworks by Falsely Claiming He Created Kung Fu PandaRead the Press Release
BOSTON – A Randolph man was sentenced today in federal court in Boston for wire fraud and perjury in connection with a scheme to defraud DreamWorks Animation SKG Inc. by falsely claiming that the company stole from him the characters and story for its animated movie Kung Fu Panda.
Jayme Gordon, 51, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, three years of supervised release and ordered to pay more than $3 million in restitution. On Nov. 18, 2016, a federal jury found Gordon guilty on four counts of wire fraud and three counts of perjury.
In early 2008, several months before the movie’s June 2008 release, Gordon saw a trailer for Kung Fu Panda. Gordon had previously created some drawings and a story about Pandas, which he called “Panda Power,” that bore little resemblance to the characters in the movie. But after seeing that trailer, Gordon revised his “Panda Power” drawings and story and renamed it “Kung Fu Panda Power.” He made these revisions as part of his scheme so that his work would appear to be more similar to the DreamWorks pandas he had seen in the movie trailer. In February 2011, Gordon filed a copyright infringement suit against DreamWorks in U.S. District Court in Massachusetts, and later that year, he proposed that DreamWorks agree to settle the suit by paying him $12 million. DreamWorks rejected that proposal, and the litigation continued for another two years.
During the course of the civil litigation, Gordon intentionally deleted relevant evidence on his computer that he was required to produce in discovery and lied during his civil deposition. Furthermore, Gordon fabricated and backdated sketches that served as support for his suit. The full nature of Gordon’s scheme came to light when DreamWorks discovered that Gordon had traced some of his panda drawings from a Disney Lion King coloring book.
Gordon’s sketches, which were dated 1992 or 1993, were copied from this coloring book, which was not published until 1996, therefore demonstrating that Gordon drew these sketches after 1996 and backdated them. After DreamWorks discovered the tracing from the coloring book, Gordon agreed to dismiss his suit. By this point, however, DreamWorks had spent more than two years defending the fraudulent suit, at a cost of approximately $3 million.
At trial, Gordon testified that he had not traced his drawings from the coloring book. Instead, he claimed, Disney, like DreamWorks, had apparently copied his drawings and based characters in the Lion King on his work. He also claimed that DreamWorks and Disney had copied characters in other movies from his work, including characters in The Incredibles, A Bug’s Life, MegaMind and Flushed Away.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Adam Bookbinder and Amy Harman Burkart of Weinreb’s Cybercrime Unit prosecuted the case.
Press Conference Regarding Federal Criminal Investigation into Death of Alton SterlingRead the Press Release
***** MEDIA ADVISORY *****
PRESS CONFERENCE REGARDING FEDERAL CRIMINAL INVESTIGATION PINTO DEATH OF ALTON STERLING
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that his office, together with the United States Department of Justice-Civil Rights Division and the Federal Bureau of Investigation-New Orleans Field Office, will hold a press conference in the Jury Assembly Room in the United States Federal Courthouse located at 777 Florida Street, Baton Rouge, Louisiana at 1:00 p.m. CST.
Press should plan to arrive at the Courthouse and be in place by 12:30 p.m. Broadcast Media: Pool only. WAFB will be the pool. Any questions on pool should be directed to WAFB @ (225) 215-4801 or [email protected].
CNN Coords - Mpeg4 HD)
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Prepared Remarks of Acting U.S. Attorney Corey AmundsonRead the Press Release
Good morning. My name is Corey Amundson. I serve as the Acting United States Attorney for the Middle District of Louisiana where I have been a career federal prosecutor for over 15 years.
I am here today with Robert Moossy, a 22-year career federal prosecutor who serves as the senior career official with the Civil Rights Division of the U.S. Department; Tamera Kessler, a 28-year career federal prosecutor who serves as Chief of the Criminal Section of the Civil Rights Division; Jeff Sallet, Special Agent-in-Charge of the FBI’s New Orleans Field Office and previously Chief of the FBI’s National Civil Rights Section; and Ron Reed, the supervisor of the FBI’s Civil Rights Squad in the New Orleans Field Office.
We are career public servants who have served over 70 years under multiple administrations.
Following the fatal shooting of Alton Sterling last July, and in response to requests by the community and state and local leaders, our offices commenced an extensive and thorough federal criminal investigation into the circumstances surrounding the shooting.
This morning I want to discuss our investigation, the approach we took to our review of this tragic incident, as well as the decision and the reasons for it.
After an exhaustive almost year-long investigation, all of the prosecutors and agents involved in this matter have come to the unanimous conclusion that insufficient evidence exists to charge a federal crime.
A short while ago, we met with Mr. Sterling’s family. We expressed our condolences for the loss of their nephew, their father, and their children’s father. We also shared our findings and decision with them. We also informed Officers Salamoni and Lake, through their attorneys, of the decision.
We do not normally publicly discuss the declination of charges in a matter, particularly in a situation, like this, where a state investigation is anticipated following our decision. simply felt that making a public appearance was the right thing to do in a case that means so much, to so many. However, we must still be careful not to impede or jeopardize the integrity of the state investigation and decision process. To do that, this briefing will be limited to this statement. hope that the information provided in my statement, along with the detailed press release, will answer any questions you may have.
Our investigation focused on one question: Did either Officer Salamoni or Officer Lake violate federal criminal civil rights laws or any other federal criminal law in connection with their encounter with Mr. Sterling.
As explained in more detail in our press release, federal law makes it a crime for a law enforcement officer, acting willfully, to deprive an individual of their constitutional rights. To prove that a shooting, such as occurred here, violated Mr. Sterling’s rights under federal law, the government must establish, beyond a reasonable doubt, that the officers’ use of force was objectively unreasonable based on the circumstances at the time.
The government would also have to prove, beyond a reasonable doubt, that the officers acted willfully, that is, that they acted with the specific intent to do something the law forbids. This is one of the highest legal standards in criminal law.
Under this standard, it is not enough to show that an officer acted recklessly or with negligence or by mistake, exercised bad judgment, used poor tactics, or even that he escalated the situation where he could have de-escalated it.
Federal prosecutors are only allowed to bring federal criminal charges if we believe we could establish the defendant’s guilt beyond a reasonable doubt at trial. These rules apply to every federal criminal case and federal prosecutor in the country.
With this rule and the law in mind, we began our investigation the day following the shootings. My office, the Civil Rights Division, and the FBI assigned very experienced senior career prosecutors and agents who worked on this matter nearly full-time, through many nights, weekends, and holidays. We also enlisted support from literally dozens of additional team members, including personnel from the FBI lab in Quantico.
Our aim was to determine the facts as best we could through an exceedingly thorough and comprehensive investigation. We promised that when the investigation began and owed it to Mr. Sterling’s family, the officers involved in the shooting, the police department, and everyone else who has been touched by this tragedy.
One agent remarked that we would not only leave no stone unturned, but each time we turned over a stone, we would turn over whatever was underneath and keep digging. We did just that.
The team probed and questioned dozens of witnesses, from government employees to civilians. We obtained, reviewed, and enhanced numerous videos that captured all or part of the incident and the periods before and after, including cell-phone videos, store surveillance video, police vehicle video, and videos from body cameras. We examined how evidence was collected and analyzed, hired national use-of-force experts, and obtained and reviewed voluminous documents and records, including BRPD records, policies, training manual, personnel records and other documents.
We took nothing for granted. We followed any trail of available evidence that we thought had any possibility of shedding some light on the officers’ state of mind and intent at the time of the shooting. In addition to the shooting itself, we gathered evidence concerning the officers’ activity before and after the shooting to determine whether any of that activity violated any federal criminal laws, including criminal civil rights laws, as well as laws against making false statements and obstructing justice. Again, we assumed nothing.
Some of the additional investigative steps that we took added to the length of the investigation. But we believed it was most important to ensure that the investigation was complete and correct. Also, while understanding of the interest in the investigation, we firmly believed that premature public disclosures about the investigation would risk its accuracy and reliability. This was an unacceptable risk given our goal of ensuring the most accurate and complete results.
Let us now turn to the facts. It is important to note that the entire exchange between Mr. Sterling and the officers happened very quickly, with events happening in rapid succession. The entire encounter—from the moment the officers first approached Mr. Sterling, through the firing of the sixth and final shot—lasted less than 90 seconds.
Based on dispatch recordings, we know that, at approximately 12:30 a.m. on July 5, 2016, Officers Salamoni and Lake were told to respond to a report that an African American man wearing a red shirt and selling CDs had “pulled a pistol” on someone outside the Triple S Food Mart and had the gun in his pocket. It is reasonable to expect officers with this information to focus on eliminating any threat from a gun immediately upon their arrival.
The videos, which are disturbing, show that the officers arrived on the scene with an immediate goal of ensuring that Mr. Sterling’s hands were in control and not able to access a weapon. At first, they directed Mr. Sterling to put his hands on the hood of a car. When he did not comply, the officers placed their hands on Mr. Sterling, who struggled with and resisted the officers. Officer Salamoni then pulled his gun and pointed it at Mr. Sterling’s head, prompting Mr. Sterling, who appears confused, to put his hands on the hood. Mr. Sterling’s size – 6 feet 3 inches tall and over 300 pounds – made it difficult for officers to control, much less handcuff, Mr. Sterling. After Mr. Sterling, still struggling, briefly attempted to move his hands from the hood, Officer Lake deployed his Taser on Mr. Sterling, who fell to his knees but then began to get back up. officers ordered Mr. Sterling to get down, but Mr. Sterling did not comply, and Officer Lake attempted unsuccessfully to use his Taser on Mr. Sterling again.
At this point, as Mr. Sterling stood to face the officers with his hands free, Officer Salamoni holstered his weapon, and then tackled Mr. Sterling; they both went to the ground, with Officer Salamoni on top of Mr. Sterling, who was on his back with his right hand partially under the hood of a car. Officer Lake joined them on the ground, kneeling on Mr. Sterling’s left arm while Officer Salamoni attempted to gain control over Mr. Sterling’s right arm.
Within a few seconds, we know from the audio and video that Officer Salamoni yelled, “Going for his pocket. He’s got a gun! Gun!”, or words to that effect. Officer Salamoni did not shoot at this point. Instead, he attempted to gain control of Mr. Sterling’s right hand, but we know from the video that he was unsuccessful. Officer Lake drew his weapon and yelled at Mr. Sterling, again directing him not to move. Less than one second later, during a point at which the location of Mr. Sterling’s right hand is not visible to the cameras, Officer Salamoni again yelled that Mr. Sterling was “going for the gun!” Officer Salamoni then fired three shots into Mr. Sterling’s chest.
In order to convict Officer Salamoni of a federal criminal civil rights violation for this shooting, we would have to prove, beyond a reasonable doubt, that Officer Salamoni did not believe Mr. Sterling was going for a gun when he made that statement and simply wanted to shot him.
Within a few seconds of the first three shots, as Officer Salamoni and Mr. Sterling were both laying on the ground, Mr. Sterling began to sit up and roll to his left, with his back to the officers. At that point the officers could not see what Mr. Sterling was doing with his hands and whether he was going for his gun. Officer Lake yelled at Mr. Sterling to get on the ground, and when Mr. Sterling continued to move, Officer Salamoni fired three more shots into Mr. Sterling’s back.
Immediately after the shooting, video shows Officer Lake go directly to Mr. Sterling’s right pocket and retrieve a .38-caliber revolver. It was loaded. In statements made immediately following the incident, both officers stated they saw Mr. Sterling reaching for the gun, and saw the gun itself coming out of his pocket.
The struggle on the ground lasted a total of about 27 seconds. As a result, life and death decisions were being made in split seconds. This is an unfortunate reality of police work at a time when encounters between police and the community have become increasingly violent and, too often, deadly.
In this case, we consulted with two independent use-of-force experts whom the Civil Rights Division has previously engaged as government witnesses in other federal civil rights cases. Both experts are nationally-recognized authorities in this field, and they are truly independent; neither is from the Baton Rouge area or has any ties to the Baton Rouge Police Department or the officers involved. Now, I want to be clear: both experts criticized certain aspects of the officers’ techniques in this case. Having said that, the experts’ unanimous conclusion was that the officers’ actions were not unreasonable under the quickly unfolding and dangerous circumstances and therefore met constitutional standards. In the experts’ opinion, the officers cycled up and down a use-of-force continuum in a manner reasonable when confronting an armed suspect, before ultimately using lethal force, which they did not use until Officer Salamoni shouted that Mr. Sterling was reaching for his gun.
In light of all of the above, it was the unanimous decision of all the prosecutors and agents who handled the investigation that we must decline prosecution in this case.
As I said before, to prove a federal criminal civil rights violation, we would have to prove, beyond a reasonable doubt, that the officers acted unreasonably and willfully, that is, that they acted with specific intent to do something the law forbids. This is the highest standard in federal criminal law. Being reckless, or escalating a situation that could have been de-escalated is not enough.
First, we are unable to establish, beyond a reasonable doubt, the precise location of Mr. Sterling’s right hand at the moment at which the officer states, on the recording, that Mr. Sterling was “going for his gun.” In other words, we cannot establish that Mr. Sterling was not reaching for his gun -- or, more accurately, that the officers didn’t believe that he was reaching for his gun -- and therefore we cannot establish that the use of lethal force was unreasonable. Second, as I mentioned earlier, there is a distinct statutory requirement of willfulness. In our view, the evidence is insufficient to meet this element, because we cannot prove beyond a reasonable doubt that the officers knew that what they were doing was unreasonable or prohibited and that they chose to do it anyway.
Conclusion
There are no winners here and no victory for anyone. A man has died. A father, a nephew has died. My heart goes out to his family. For the family, for the community, for the police department, and for the cause of justice, please know that experienced, highly trained federal agents and prosecutors worked hard to investigate and examine the facts to determine if a federal criminal case could be brought here. We have all concluded that no such case can be made.
Going forward, we will continue to support and work with the Department of Justice’s Community Relations Service, which has been on the ground since last summer working to increase dialogue and engagement among civic and community leaders. And my office—which has long been involved in numerous community outreach projects and initiatives across Baton Rouge—will continue to look for opportunities to engage with students, lawyers, and others interested in federal civil rights law through healthy, productive dialogue.
The U.S. Department of Justice (of which we are all a part) remains committed to investigating allegations of excessive force by law enforcement officers, and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined. The Department aggressively prosecutes civil rights violations whenever there is sufficient evidence to do so, and in fact there are other investigations and criminal prosecutions underway in this district. Having said that, based on the evidence in this particular case, all of the prosecutors and agents involved in this matter have come to the unanimous conclusion that insufficient evidence exists to charge a federal crime in connection with the July 5, 2016 fatal shooting of Alton Sterling.
The Louisiana Attorney General’s Office, with the assistance of the Louisiana State Police, now intends to conduct its own inquiry into whether the conduct at issue violated any provision of Louisiana state law, and it will have at its disposal every piece of evidence that the federal investigation has been able to obtain.
Finally, I would like to discuss how we came to the decision to provide limited advance notice of today’s announcement. Given the events following Mr. Sterling’s death, we worked with the Governor, the Mayor, and our state, parish, and local law enforcement heads to establish an agreed-upon notice procedure that would minimize public safety concerns. That is the procedure implemented today.
I pray that God gives our community the strength to rise above this tragedy and all the events that followed, and that He enables us to listen to those different from ourselves so that we may become better because of it. God bless all those touched by this tragic incident and our great and resilient City of Baton Rouge.
Postmaster Charged with False ClaimsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Carl R. Bonser, age 56, of Lehighton, Pennsylvania, was charged in a one count criminal information on May 2, 2017, with false, fictitious or fraudulent claims.
According to United States Attorney Bruce D. Brandler, the information alleges that from January 1, 2016 through October 31, 2016, Bonser, in his official capacity as Postmaster of the Orwigsburg Post Office, falsely requested monetary compensation for travel that never occurred, causing a loss of $6,500.
The United States also filed a plea agreement, which is subject to the approval of the Court, wherein it is indicated that Bonser intends to plead guilty to the charges when he appears in federal court for his arraignment.
The case was investigated by the United States Postal Service, Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pierre Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography and Possession of Child Pornography.
Amin Ricker, age 30, was indicted on April 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 26, 2017, and pled not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 15 years imprisonment up to 40 years imprisonment and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that between October 2016 and February 2017, Ricker knowingly distributed and possessed child pornography, and that at the time, he had a prior conviction under the laws of the state of South Dakota relating to the possession and distribution of child pornography.
The charges are merely accusations and Ricker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Pierre Police Department, the South Dakota Division of Criminal Investigation, and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Ricker was released pending trial. Trial is set for June 27, 2017.
Parma couple charged for conspiring to avoid paying taxes; people used as hotel housekeeping falsely treated as independent contractorsRead the Press Release
A Parma couple was charged in federal court for their roles in a conspiracy to avoid paying taxes, in which people used to clean hotels and motels were falsely treated as independent contractors, Acting U.S. Attorney David A. Sierleja said.
Steven Caldwell, 55, and Gayane Lashina, 51, were charged via criminal information with one count of conspiracy to defraud the United States.
A man identified in court documents as T.P. controlled various corporations that entered into contracts to provide maid and housekeeping services to various hotels and motels. These corporations included Evrica Inter Services Inc., Evrica International LLC, Antelope’s Services LLC and Zeromax LLC, according to the information.
Caldwell was the incorporator of Evrica International and Antelope’s Services, according to the information.
T.P. and his associates hired people, many of them immigrants from Africa or Eastern Europe, to work as maids and housekeepers. He, Caldwell and Lashina required employees to signed independent contractor agreements to work for the cleaning companies. These agreements specified the employee was responsible for all federal, state and local taxes, according to the information
T.P. hired the employees, assigned them work location, trained and instructed the employees and set their schedules, among other actions. He falsely treated the employees as independent contractors to avoid payment of employment taxes, according to the information.
Caldwell and Lashina made false statements to law enforcement agents about T.P.’s ownership, operation and control of the companies. They were also used to disguise his ownership of the companies, according to the information.
The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carmen Henderson following an investigation by the U.S. Department of Labor and the Internal Revenue Service.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Non-Indian Man from Santa Fe Pleads Guilty to Trespassing and Damaging Property on Pojoaque Pueblo LandRead the Press Release
ALBUQUERQUE – Derek I. Hunt, 28, of Santa Fe, N.M., pled guilty yesterday in federal court in Albuquerque, N.M., to misdemeanor charges of criminal trespass and criminal damage to property. Hunt’s plea agreement includes a recommendation that Hunt be sentenced to a one-year term of probation, including 120 days in a halfway house.
Hunt was charged in a criminal complaint on Feb. 8, 2017, with misdemeanor criminal trespass and criminal damage to property. The complaint alleged that in Aug. 2016, the Pojoaque Pueblo Governor banished Hunt, a non-Indian, from entering Pojoaque Tribal Lands. According to the complaint, Hunt reentered Pojoaque Pueblo on two occasions between Aug. 2016 and Jan. 2017, in violation of the Pueblo’s banishment resolution. The complaint also alleged that on Jan. 12, 2017, Hunt damaged a vehicle belonging to a Pojoaque Pueblo woman.
During yesterday’s proceedings, Hunt pled guilty to a misdemeanor information charging him with criminal trespass and criminal damage to property. In entering the guilty plea, Hunt admitted that although the Pueblo of Pojoaque served him with an Order of Exclusion in Aug. 2016, he reentered the Pueblo on Jan. 5, 2017 and several times prior to Jan. 5, 2017, in violation of the Pueblo’s Tribal Order. Hunt further admitted that on Jan. 5, 2017, he used a rock to damage the windshield of a vehicle on the Pojoaque Pueblo. A sentencing hearing has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Pojoaque Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Elisa Dimas.
Nine Aliens Indicted on Immigration, Passport, and Social Security OffensesRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging GRACIANO BERMUDEZ-OCHOA, age 39, of Mexico, JUAN CARLOS CUANAS-PEDRO, age 30, of Mexico, ANTONIO LAMAS-RIOS, age 42, of Mexico, SERGIO MENDOZA-GOMEZ, age 48, of Mexico, MARBIN RAMIREZ-PEREZ, age 36, of Honduras, FELIPE RENTERIA-GOMEZ, age 35, of Mexico, ABIEL ROBLERLO-VASQUEZ, age 27, of Mexico, and JOSE ALFONSO RODRIGUEZ-GARCIA, age 49, of El Salvador, with Illegal Reentry of a Deported Alien. Also, a federal grand jury returned an indictment charging LUCAS RIVERA-HERNANDEZ, age 41, of Mexico, with Passport Fraud and False Representation of a Social Security Account Number.
If convicted of Illegal Reentry of a Deported Alien, BERMUDEZ-OCHOA, CUANAS-PEDRO, RAMIREZ-PEREZ, and ROBLERO-VASQUEZ, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
LAMAS-RIOS and RENTERIA-GOMEZ are alleged to have been previously deported subsequent to a felony conviction (sale or transportation of a controlled substance, and trafficking cocaine, respectively). Therefore, if convicted, they face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MENDOZA-GOMEZ is alleged to have been previously deported subsequent to an aggravated felony conviction (attempted second degree robbery). RODRIGUEZ-GARCIA is alleged to have been previously deported ten times and having sustained aggravated felony convictions (grand theft and illegal reentry subsequent to an aggravated felony conviction). If convicted, both face a maximum imprisonment term of twenty years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Passport Fraud and False Representation of a Social Security Account Number, RIVERA-HERNANDEZ would face maximum penalties of 10 years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security and the U.S. Department of State’s Diplomatic Security Service.
New Orleans Man Sentenced for Illegal Possession of a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KIDUS WODAJO, age 24, of New Orleans, was sentenced today after previously pleading guilty to being a felon in possession of a firearm.
U.S. District Judge Sarah S. Vance sentenced WODAJO to 46 months imprisonment followed by three years of supervised release.
According to court documents, WODAJO, who has a felony conviction in Orleans Parish Criminal District Court, possessed a Taurus Millennium Pro .45 caliber semiautomatic pistol in December 2013.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, were in charge of the prosecution.
New London Man Sentenced to 43 Months for Dealing Heroin While Serving Previous Federal Prison TermRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT CABANBAN JR., 27, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 43 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, on two occasions in September 2012, CABANBAN sold heroin to an individual at his New London apartment. On September 26, 2012, investigators conducted a court-authorized search of CABANBAN’s apartment and seized approximately 12 grams of heroin, narcotics packaging materials and a loaded .380 caliber semi-automatic pistol. CABANBAN was arrested and subsequently pleaded guilty to one count of possession of a firearm by a previously convicted felon. On July 15, 2013, he was sentenced in Bridgeport federal court to 48 months of imprisonment.
In June 2016, the Groton Town Police Department received information that CABANBAN was selling heroin while out on day passes from a halfway house in Hartford. On July 1, 2016, investigators arranged a controlled purchase of 500 bags of heroin from CABANBAN. CABANBAN was arrested after he arrived at Groton motel to complete the transaction.
CABANBAN had been transferred from a federal Bureau of Prisons facility to a Hartford halfway house to complete his 48-month federal sentence, which was scheduled to conclude in September 2016.
On January 31, 2017, CABANBAN pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
In addition to the federal firearm conviction, CABANBAN’s criminal history includes state felony convictions for possession with intent to sell narcotics and burglary in the third degree.
This matter was investigated by the Groton Town Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Sarah P. Karwan.
New Haven Man Sentenced to 90 Months for Armed Robberies of West Haven Post Office and Hamden BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MALCOLM HAYNES, also known as “Black,” 26, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 90 months of imprisonment, followed by five years of supervised release, for committing armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.
According to court documents and statements made in court, on the morning of April 21, 2016, HAYNES, Derrick White, Howard Bookert and another male drove in White’s vehicle to the vicinity of the Allingtown Post Office located at 75 Farwell Avenue in West Haven. HAYNES, who was armed with a .22 caliber rifle, White and Bookert then entered the post office. HAYNES pointed the rifle at individuals who were in the lobby and the clerk behind the counter and directed them to stay away from the door. White then hopped over the counter, waved the postal clerk away from her station, removed the cash drawer from the counter and handed it to Bookert. The robbers then fled with the drawer, which contained approximately $491.
In the afternoon of April 21, 2016, the four individuals drove to a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden. HAYNES, again armed with the rifle, White and the other male entered the bank. HAYNES pointed the rifle in the direction of various employees as White went behind the counter and removed approximately $9,287 from teller drawers. During the robbery, the other male brandished what appeared to be a small black semi-automatic pistol.
White and Bookert were apprehended in New Haven on April 21, 2016. On that date, investigators also recovered the firearm that HAYNES used during the robberies, which HAYNES had hidden in a plastic garbage bag behind a house in New Haven. HAYNES was arrested on May 23, 2016. The three defendants have been detained since their arrests.
On February 2, 2017, HAYNES pleaded guilty to one count of armed robbery of a postal employee and one count of armed bank robbery.
White and Bookert, both of Hamden, previously pleaded guilty and await sentencing. The fourth male was charged by the state.
This matter was investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Multiple-Time Felon Sentenced to 101 Months in Federal Prison for Two Firearms ConvictionsRead the Press Release
United States Attorney G. F. “Pete” Peterman, III, announces that William Hampton Tedrick, age 34, from Madison County, Georgia, was sentenced on May 2, 2017 to serve 101 months in federal prison for possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. The sentence was handed down by United States District Court Judge C. Ashley Royal in Athens, Georgia.
In his plea agreement, Mr. Tedrick admitted to criminal conduct on two occasions. First, Mr. Tedrick admitted that on February 12, 2015, he and a companion were stopped by the Athens Clarke County Police Department following a tip from a confidential informant. Mr. Tedrick fled on foot from the officers, but he was quickly apprehended. A subsequent search of Mr. Tedrick and his vehicle revealed U.S. currency, hypodermic needles, plastic jewelry bags, methamphetamine, a digital scale, Xanax pills, and a loaded pistol.
Mr. Tedrick also admitted that on October 28, 2015, he was found to be in possession of a shotgun and three pistols during a Department of Community Supervision compliance check on another individual and her residence. At the time, Mr. Tedrick had four prior felony convictions for firearms and narcotics charges, and he was prohibited from possessing any firearms.
The case was investigated by the Athens Clarke County Police Department and the Department of Community Supervision. Assistant United States Attorney Peter D. Leary prosecuted the case for the government.
United States Attorney Peterman stated, “Mr. Tedrick is precisely the type of person who should not be carrying a weapon, period. With the proliferation of gun violence against law enforcement officers and others in this district in the past few months, any such prohibited person can expect vigorous prosecution by this office with resulting sentences of this nature. Our message is clear: unlawful possession of a firearm means time in prison.“
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Mortgage Foreclosure Rescue Owner Recieves Prison SentenceRead the Press Release
Drew Alia, 40, of Philadelphia was sentence to a 12 month and 1 day term of imprisonment for willfully failing to file federal income tax returns for tax years 2010 through 2013 announced Acting United States Attorney Louis D. Lappen. Alia, an attorney, operated a home mortgage rescue service that was designed to assist home owners who were facing foreclosure.
During the sentencing hearing before United States District Court Judge Paul Diamond, the Court noted that Alia had received approximately $1.6 million in gross income. Alia was charged, by Information, with four counts of failing to file returns resulting in a tax loss of $127,037. In addition to a term of imprisonment, Judge Diamond also ordered Alia to pay restitution to the Internal Revenue Service for the tax loss he caused after he is released from prison.
The case was investigated by Internal Revenue Service’s Criminal Investigation Division and was prosecuted by Assistant United States Attorney Floyd J. Miller.
Monticello Man Sentenced to Prison for Theft of Government FundsRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Robert Feldt, Special Agent-in-Charge of the Dallas Field Division of the Social Security Administration, Office of the Inspector General (SSA/OIG), announced today that Thomas “Dale” Sass, 50, of Monticello, was sentenced by United States District Judge Kristine G. Baker to 57 months’ imprisonment for theft of government funds. Sass was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $297,516 to his former sister-in-law.
Sass waived an indictment and pled guilty to one count of theft of government funds on August 25, 2016, arising from his use for himself of money meant for the care of a disabled relative.
Sass, in 1997, became the guardian of his former sister-in-law, who was severely injured in a car accident that left her in a coma for a year and killed her son. Subsequent to the accident, the former sister-in-law began receiving monthly disbursements from the Social Security Administration (SSA) and a private insurance company. Sass received and had control over disbursements made to his former sister-in-law in order to provide for her care.
Sass violated his fiduciary duty and defrauded the SSA by using the victim’s funds for his own benefit. At times, Sass even failed to pay the victim’s caretakers. Sass further defrauded the SSA by forging his brother’s name on the SSA checks in order to continue receiving the SSA money.
Harris stated, “We are vigilant in our prosecution of people who take advantage of the elderly, children, and disabled in our community and this prosecution is one more example of our efforts to protect their well-being and what is in their best interests.”
Robert G. Feldt, Special Agent-in-Charge stated that, “the Social Security Administration, Office of the Inspector General (SSA/OIG) will tirelessly investigate and bring to justice those who commit SSA program fraud and misuse their position of trust to victimize vulnerable beneficiaries.”
This investigation was conducted by the Social Security Administration, Office of the Inspector General and the Arkansas Department of Insurance, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Erin O’Leary.
Mississippi man pleads guilty to possessing child pornographyRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Mississippi man pleaded guilty Tuesday to possessing child pornography.
Jesse Easterling, 41, of Hattisburg, Miss., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of possession of child pornography. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, law enforcement agents identified the defendant as having child pornography in April of 2016 while he was staying at an RV park in Lake Charles. Law enforcement agents searched his property and found 72 videos of child pornography on his computer. Some of the videos were sexually explicit images of children under the age of 12. He also admitted during an interview that he had downloaded child pornography over the internet.
Easterling faces up to 20 years in prison, five years to life of supervised release, mandatory registration as a sex offender and up to a $250,000 fine. The court set the sentencing date for August 18, 2017.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Methamphetamine Dealer Sentenced to 188 Months in Prison Consecutive to His Thirty-Year State SentenceRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that Paul Leonard Hodge, age 40, of Madison County, Georgia, was sentenced to 188 months imprisonment for conspiracy to possess with intent to distribute methamphetamine by United States District Court Judge C. Ashley Royal in Athens, Georgia on May 2, 2017. Mr. Hodge’s federal sentence will run consecutively to the 30-year state prison sentence he is already serving for trafficking methamphetamine.
In his plea agreement, Mr. Hodge admitted that from January 21, 2015, to April 25, 2016, while he was in state prison serving a thirty-year state sentence for trafficking methamphetamine in Madison County, he conspired with other people to possess with intent to distribute 250.19 grams of actual methamphetamine in Athens, Georgia. In addition to his January 2015 conviction for trafficking methamphetamine in Madison County, Mr. Hodge had previously been convicted of felony counts involving methamphetamine in 2014, 2010, and twice in 2005.
“Mr. Hodge is obviously a career drug dealer whose pedaling of poison continued even while he was incarcerated. He deserves to serve every moment of both sentences now imposed upon him,” said United States Attorney Peterman.
The case was investigated by the Athens-Clarke County Police Department and the Madison County Sheriff’s Office. Assistant United States Attorney Peter D. Leary prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Mattydale Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Steven Doty, 52, of Mattydale, New York, pled guilty yesterday to two counts of distribution of child pornography, one count of receipt of child pornography and one count of possession of child pornography.
The announcement was made by the United States Attorney Richard S. Hartunian and Vadim Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Doty admitted to using peer-to-peer software to distribute videos of child pornography on July 6, 2015 and from July 16, 2016 through July 29, 2016. Doty also admitted to downloading a file directory containing approximately one-thousand (1000) images of child pornography and possessing thirty-two (32) “hard core” videos. Sentencing is scheduled for August 30, 2017, in Utica, New York.
Doty, who is detained in custody pending sentencing, faces a minimum term of imprisonment of five (5) years on the charges for distribution and receipt of child pornography. Doty faces a maximum term of imprisonment of twenty (20) years on all four counts. The Court is also required to impose a term of supervised release between five (5) years and life, and Doty will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Albany Division of the FBI (Syracuse Resident Agency) and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Massive Strike Against Violent Street Gangs in San Diego County Results in Federal Charges Against 140-plus Gang Members and Associates in Less Than Three MonthsRead the Press Release
SAN DIEGO, CA – A crackdown on violent street gangs in San Diego County over the last 75 days has resulted in federal charges against more than 140 gang members and associates, many of whom are accused of terrorizing neighborhoods with shootings, robberies and other violent crimes.
More than 60 firearms and 30 pounds of methamphetamine, plus cash and other illicit drugs were seized by law enforcement during the course of four long-term gang investigations that culminated this spring with various indictments charging crimes such as racketeering, money laundering and gun, drug or sex trafficking.
“This is an unusually large number of gang members arrested in a very short period of time,” said Acting U.S. Attorney Alana W. Robinson. “The sheer number of arrests illustrates that gangs are a significant problem in this county. But it also underscores our enormous commitment to use every tool we have to attack this problem and restore communities to families who should not have to live in fear in their own homes.”
The most recent charges, unsealed this week in federal court, involve the prosecution of 16 members and associates of the Escondido-based Diablos street gang. The defendants are facing various drug trafficking offenses.
According to court records, in the last year the Diablos gang has been responsible for more than 25 gang-related shootings, multiple attempted murders, dozens of armed robberies, multiple instances of witness intimidation and the widespread distribution of narcotics and firearms in North San Diego County.
This investigation helped to identify and locate Dionicio Torrez, a Diablos gang member, as the suspected shooter of Cathy Kennedy, who was fatally wounded by gang gunfire March 7 as she drove home from church in Escondido.
The case involved a total of 13 wiretaps, the interception of over 20,000 telephone calls and text messages and the seizure of approximately 13 pounds of high-quality methamphetamine and 10 rifles and handguns, including 4 AR-15 type rifles, an AK-47 rifle, an SKS rifle and 2 handguns, one of which had an obliterated serial number.
The Diablos Enterprise claims control of the eastern and north central areas of Escondido. The approximate boundaries of the territory they claim is Lincoln Avenue to the north, Grand Avenue to the south, Midway Drive to the to the east and Escondido Boulevard to the west. There are approximately 311 documented members of the Diablos Enterprise and an additional 400 individuals who are “associates” of the Diablos Enterprise.
The four proactive gang cases involved months of federal wiretaps, extensive surveillance and scores of undercover drug and gun buys. Defendants were charged with crimes ranging from money laundering and racketeering to heroin, methamphetamine, firearms and sex trafficking.
“When members of criminal street gangs are arrested during joint operations, the San Diego County District Attorney’s Office reviews their criminal histories and coordinates with the U.S. Attorney’s Office to determine where a defendant would be most appropriately prosecuted,” said Chief Deputy DA Summer Stephan, who oversees the DA’s Gangs Division. “In essence, we collaborate to get the most effective bang for our prosecutorial buck and make sure justice is served, whether that happens on the state or federal side.”
Federal Bureau of Investigation Special Agent in Charge Eric S. Birnbaum stated, “Dismantling violent gangs is a continuing priority for the FBI. We share an unwavering commitment with our law enforcement partners to address the dangerous threat facing our communities today. The impact of our recent gang cases clearly demonstrates our focus and determination to strike at gang related enterprises and to eliminate the terror these groups inflict on our neighborhoods.”
“Our communities are safer because of ATF’s expanded efforts to target and dismantle criminal gangs and organized criminal enterprises that use firearms and violent acts to further their illegal gains,” said ATF Los Angeles Field Division Special Agent in Charge Eric Harden. “ATF and its partners are dedicated to carrying out our mission by ridding our communities of these gang members and associates who shatter families and destroy lives.”
“Our agency plays a unique role in federal law enforcement’s resolve to dismantle the criminal gang enterprises terrorizing our streets. Our agents target the profit and financial gains of these organizations, following the money in an effort to disrupt these organizations and restore order to our communities,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “We are proud to provide this financial expertise as we work alongside our law enforcement partners to bring these criminals to justice."
The success of these cases is due to the collaborative effort of our federal, state and local partners working in task forces in order to leverage resources provided by the Office of National Drug Control Policy and the Organized Crime Drug Enforcement Task Force (OCDETF), which are federal anti-drug programs. The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's
battle against gangs, major drug trafficking rings, drug kingpins and money launderers.
Video file Video file
Video file Video file Firearms Red Devil IndictmentDEFENDANTS
Case Number: 17CR1071-BEN
Gustavo Cisneros Age: 38 Vista
Rafael Zamora Age: 33 Vista
Case Number: 17CR1070-BEN
Gustavo Cisneros Age: 38 Vista
Eduardo Rojo Age: 32 Tijuana, Mexico
David Bollschweiler Age: 55 Escondido
Jesus Salazar Age: 23 Chula Vista
Case Number: 17CR1069-BEN
Gustavo Cisneros Age: 38 Vista
David Bollschweiler Age: 55 Escondido
Leonel Ayala-Arambula Age: 47 El Cajon
Case Number: 17CR1068-BEN
Augustine Aragon Age: 23 Escondido
Francisco Torres-Cortez Age: 27 San Marcos
Sarah Hudgins Age: 27 San Marcos
Case Number: 17CR1067-BEN
Gustavo Cisneros Age: 38 Vista
Adrian Nieves Garcia Age: 22 San Diego
Fredy Cruz Age: 30 San Diego
Case Number: 17CR1066-BEN
Augustine Aragon Age: 23 Escondido
Marcia Cervantes Age: 27 Escondido
SUMMARY OF CHARGE COMMON TO ALL ABOVE CASES
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 846 and 841(a)(1).
Penalty: Mandatory-minimum of 10 years, up to life in prison.
DEFENDANTS Case Number: 17MJ1232
Charles Osterholtz Age: 55 Escondido
Justin Cartwright Age: 27 Escondido
David Trejo Age: 27 Escondido
SUMMARY OF CHARGE
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 846 and 841(a)(1).
Penalty: Mandatory-minimum of 5 years, up to 40 years in prison.
SUMMARY OF CHARGE
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 846 and 841(a)(1).
Penalty: Mandatory-minimum of 5 years, up to 40 years in prison.
INVESTIGATING AGENCIES
DEA
Escondido Police Department
ATF
San Diego County Sheriff’s Department
North County Regional Gang Task Force
*A complaint or indictment is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.