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Wednesday 22 March 2017
Joplin Man Pleads Guilty to Attempted Armed Bank Robbery Foiled by CustomerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to the attempted armed robbery of Pinnacle Bank in Joplin.
Sean LaDue, 29, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a Jan. 18, 2017, superseding indictment.
By pleading guilty today, LaDue admitted that he used a firearm to rob Pinnacle Bank, 1316 E. 32nd Street, Joplin, on Nov. 14, 2016. LaDue also pleaded guilty to using a firearm during a crime of violence.
LaDue and an accomplice entered the bank at approximately 3:50 p.m. and announced, “This is a robbery, get down!” The sole customer of the bank struggled with one of the robbers in the bank lobby. During the struggle, the robber produced a firearm and fired three shots. Both robbers then fled from the bank without taking any money.
Police officers located and arrested LaDue after a brief foot chase on Nov. 16, 2016.
Under federal statutes, LaDue is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of up to life 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 the Joplin, Mo., Police Department and the FBI.
Jefferson City Man Pleads Guilty to Burglary Scheme, Possessing Stolen FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to burglarize residences in Columbia, Mo., and sell the stolen items – including firearms.
Henry Anthony Williams, also known as “Foolish,” 27, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to possessing stolen firearms and to participating in a wire fraud conspiracy.
According to today’s plea agreement, Williams admitted that he possessed firearms that had been stolen during the burglary of a residence in Columbia. The investigation began on Sept. 17, 2014, when Moberly, Mo., police officers received a report from a local gun store that someone was trying to sell one of the stolen firearms – a customized Remington rifle – to the store’s owner. The person who tried to sell the stolen rifle told officers that he had purchased it from another man, identified as “LJ,” who in turn said he purchased it from Williams. LJ told officers that Williams had other firearms for sale.
On Sept. 24, 2014, LJ arranged to meet Williams in the Hooters parking lot in Columbia to purchase another firearm. In a controlled undercover transaction, LJ was provided $350 and purchased a Marlin .22-caliber rifle and a Western Field 12-gauge shotgun from Williams. The Marlin rifle was among the firearms stolen in the Columbia burglary.
Williams also admitted that he was part of a conspiracy to burglarize residences in the Columbia area, primarily targeting college housing and electronic equipment. Williams and others burglarized residences and sold the stolen merchandise to a coconspirator, who sold the items on eBay.
Williams admitted that he committed at least one of the three residential burglaries that occurred on Nov. 17, 2015, among residences on Commercial Drive in Columbia.
Under federal statutes, Williams is subject to a sentence of up to 30 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 Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the FBI, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jamaican Man Indicted on “Sweepstakes Fraud” Charges Targeting Senior CitizensRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tackya Whyte, age 41, a Jamaican citizen residing in Richmond, Virginia, was indicted by a federal grand jury on conspiracy, mail fraud, and money laundering charges.
Whyte was arrested on February 6, 2017, in Richmond and ordered detained by United States Magistrate Judge Susan E. Schwab following a February 14, 2017, preliminary hearing in Harrisburg.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Whyte and unidentified fraudsters perpetrated a scheme to defraud senior citizens that were falsely told they had won a multi-million-dollar international sweepstakes prize. The indictment further alleges that the purported winners were directed to send Western Union and MoneyGram money transfers and money orders payable to Whyte, and others, to pre-pay taxes and other fictitious expenses in order to collect the non-existent cash prizes. The indictment also alleges that Whyte re-transferred the fraud proceeds to conspirators in Jamaica.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
The United States Attorney and United States Postal Inspectors remind all citizens that they should never make an advance payment of any kind on the promise of a sweepstakes prize, loan or grant.
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.
Mail fraud and money laundering are each punishable by up to 20 years’ imprisonment. Conspiracy to commit mail fraud and money laundering carry a five-year statutory maximum, 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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Indianapolis man sentenced to 15 years’ imprisonment for unlawful possession of a firearmRead the Press Release
Armed career criminal had three prior felonies on his record
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler today announced the sentencing of an Indianapolis man for being an armed career criminal, having illegally possessed a firearm. John Foster, 48, Indianapolis, was sentenced to 15 years’ imprisonment by U.S. District Judge Sarah Evans Barker in federal court.
“Keeping our communities safe from violent criminals like Mr. Foster remains a top priority at the U.S. Attorney’s Office,” said Minkler. “The narrative is simple; if you illegally possess a firearm and terrorize Hoosier neighborhoods, you will be arrested, held without bond, convicted and sent to federal prison.”
Foster was confronted by officers from the Indianapolis Metropolitan Police Department (IMPD) on October 5, 2015, on the Southside of Indianapolis. Officers saw Foster driving a stolen SUV near the intersection of Southport Road and South Meridian Street. When he saw the officers following him, he drove through the front yard of a business and fled south on Meridian Street. Several weeks prior, Foster walked away from a work release facility in Oldham County, Kentucky.
After a short pursuit, IMPD officers stopped Foster in the parking lot of Perry Meridian Middle School where they observed him holding a pistol in his hand as he got out of the stolen vehicle. During the time of the incident, school was in session and several children were present. The school was placed on lockdown until the incident was over.
Foster cannot legally possess a firearm because he has three prior violent felony convictions. He was convicted of dealing cocaine in 2006, burglary in 1988, and robbery in 1986, all in Marion County.
The Armed Career Criminal Act mandates a minimum 15-year sentence to anyone possessing a firearm after three prior convictions for serious drug offenses or violent felonies.
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
“The defendant’s disregard for the safety of our community by unlawfully possessing a firearm, posed a threat and underlines the necessity of his spending significant time removed from society,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at IMPD to ensure that individuals who are threating our streets with firearms violence are brought to justice.”
According to Assistant United States Attorney Jeffrey D. Preston, who prosecuted this case for the government, Foster must serve three years of supervised release following his sentence.
INTERPOL Washington to Attend Counter ISIL Ministerial MeetingRead the Press Release
Department of StateINTERPOL Washington Acting Director Wayne Salzgaber will attend a meeting of the Ministers of the Global Coalition working to defeat ISIS on March 22, 2017, at the U.S. Department of State. Secretary of State Rex Tillerson will host the 68 foreign ministers and senior Coalition leaders from around the world.
As one of the international organizations represented in the Coalition, INTERPOL, the largest international police organization, will be represented by INTERPOL Secretary General Jϋrgen Stock. INTERPOL Washington is the U.S. National Central Bureau representing the United States in INTERPOL. INTERPOL provides a global framework of resources for combating transnational crime and terrorism, including leading a multinational fusion cell and analytical database containing biometric and other data of value to law enforcement and border control authorities responsible for determining threats from foreign fighters within their jurisdictions.The Ministerial is intended to accelerate international efforts to defeat ISIS in the remaining areas it holds in Iraq and Syria and to maximize pressure on its branches, affiliates, and networks. The Coalition regularly meets at the Small Group level to coordinate and enhance combined efforts to counter ISIS.
The ministerial participants will discuss detailed priorities for the Coalition’s multiple lines of effort, including military, foreign terrorist fighters, counterterrorist financing, counter-messaging, and stabilization of liberated areas, to increase the momentum of the campaign. Ministers will also discuss the ongoing humanitarian crises in Iraq and Syria that are affecting the region.
For more information on the Global Coalition, please visit the State Department webpage: https://www.state.gov/s/seci/ .
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to the International Criminal Police Organization on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 federal, state, local, and tribal law enforcement agencies in the United States.
Houston Man Guilty in Beaumont IH-10 Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 41-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Fabian Paredes Alvarez, also known as Fabian Hernandez Alvarez, has pleaded guilty to conspiracy to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on Dec. 28, 2015, law enforcement officers received information that a described vehicle would be traveling to Beaumont, Texas to deliver methamphetamine. Officers observed the described vehicle and performed a traffic stop on the vehicle in the Eastern District of Texas. The driver was identified as Cody Drawhorn and there were three other passengers in the vehicle. A drug-detecting K-9 was then deployed to perform an open-air search of the vehicle and while arresting one of the passengers on an active warrant, officers located a used glass smoking pipe with residue believed to be methamphetamine in her purse. Drawhorn provided the officers with consent to search his vehicle. The vehicle was then searched and officers located approximately 6.5 ounces of methamphetamine packaged in 20 individually prepackaged baggies. Additionally, officers located two firearms inside the vehicle. The first one, which was identified as a black, Hi-Point.45 caliber semi-automatic pistol, bearing serial number X4271020, loaded with nine live rounds in plain view between the driver and front passenger seat. The second firearm also located inside the vehicle was identified as a black, Davis Industries P .380 caliber automatic pistol, bearing serial number AP156106, loaded with five rounds. Additional ammunition, small amounts of methamphetamine and methamphetamine paraphernalia was also located inside the vehicle. Drawhorn later advised officers that he brought one of the passengers to Beaumont to drop off some methamphetamine there after they picked it up in northwest Houston from Drawhorn’s supplier he knew as “Rob Bos.” Drawhorn further admitted that he had been selling approximately one pound of methamphetamine per week that he obtained from “Rob Bos” to pay his bills. Phone analysis identified the person whom Drawhorn was receiving methamphetamine was Robert Borowski. The defendants were indicted by a federal grand jury on Sep. 7, 2016. Drawhorn pleaded guilty on Mar. 20, 2017. Robert Edward Borowski pleaded guilty on Mar. 15, 2017.
Under federal statutes, the defendants face up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) as a joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, weapons trafficking offenders, money laundering organizations, and those individuals responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
Honduran National Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DENIS A. MUNOZ-RODRIGUEZ, age 33, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Court Judge Ivan L.R. Lemelle sentenced MUNOZ-RODRIGUEZ to time served, followed by one year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on November 3, 2016, MUNOZ-RODRIGUEZ was found in the United States after having been previously deported on January 16, 2003. He also had not received permission from the Attorney General of the United States nor the Secretary of the Department of Homeland Security to reenter.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Holland Couple Pleads Guilty in Connection with Fraudulent Receipt of over $1,000,000 in Veterans Benefits and Postal Workers CompensationRead 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 Richard Klaffka, 59, and his wife, Cathleen Klaffka, 62, both of Holland, NY, pleaded guilty before U.S. District Judge Richard J. Arcara in connection with Richard Klaffka’s receipt of over $1,000,000 in benefits from the Department of Veterans Affairs (VA) and the Department of Labor under false pretenses. Richard Klaffka pleaded guilty to wire fraud and faces a maximum penalty of 20 years in prison and a $250,000 fine. Cathleen Klaffka pleaded guilty to misprision of a felony, which is punishable by maximum penalty of three years in prison. The couple was also ordered to pay $1,237,427 in restitution.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that in 2006, Richard Klaffka told the VA that, due to an injury connected with his military service in 1978, he was disabled, confined to a wheelchair and unable to engage in daily activities like walking, driving, and dressing himself. To promote the fraud, Cathleen Klaffka pushed Richard Klaffka in a wheelchair when at the VA hospital in order to support Richard’s false claim regarding his mobility limitations. In fact, both knew that Richard Klaffka was able to walk without assistance and regularly engaged in extensive physical activities including hiking, riding a bike, and pitching iron horseshoes.
Similarly, in order to get workers compensation benefits from his employment with the United States Postal Service, the defendant falsely claimed that his mobility was limited due to a work injury and that he was only able to walk with the assistance of a cane. All told, the Klaffka’s received $1,237,427 in government benefits to which they were not entitled. The investigation was triggered by an anonymous call to a fraud hotline.Acting U.S. Attorney Kennedy noted that the defendants “sought fraudulently to enrich themselves by exploiting for their own personal financial benefit a system intended to provide a safety net for disabled American veterans and workers. Through these pleas, the government, in addition to forcing the couple to repay the money they essentially stole, will also seek to hold them liable for interest—in the form of their liberty—when it comes time for sentencing.”
USPS-OIG Special Agent-in-Charge Monica Weyler stated, “The U.S. Postal Service spends more than $1-billion dollars per year on workers compensation related expenses. The majority of that money goes to unfortunate postal employees who suffered legitimate on the job injuries. However, as the evidence in this case shows, there are a few employees who decide to take advantage of the federal workers compensation program for their own personal gain. When special agents with the U.S. Postal Service Office of Inspector General receive allegations of workers compensation fraud, they will conduct a thorough investigation with our law enforcement partners, and seek criminal prosecution of those found to be committing fraud. To report workers compensation fraud, or any other crimes committed by postal employees, contact us at www.uspsoig.gov or 888-USPS-OIG.”
The pleas are the result of an investigation on the part of Special Agents of the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves; the Department of Veterans Affairs Police Department, under the direction of Chief Jeremy Novak; U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region; and the United States Postal Service, Office of Inspector General, under the direction of Monica Weyler, Special Agent-in-Charge, Eastern Area Field Office.
Sentencing for the couple is scheduled for July 26, 2017, at 1:00 p.m. before Judge Arcara.
Holdenville Man Pleads Guilty to Delay or Destruction of Mail by Postal EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MIKEL DWAYNE MEEK, age 48, of Holdenville, Oklahoma, pled guilty to DELAY OR DESTRUCTION OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1703, punishable by up to 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about November 22, 2016 in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully secrete, destroy, detain and open a package entrusted to him and which came into his possession to be conveyed by mail, while performing his assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service Office of Inspector General.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant remains on release status pending a sentencing hearing.
Assistant United States Attorney John David Luton represented the United States.
Harrisburg Man Charged with Drug and Firearms OffensesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Timothy Madison, age 29, of Harrisburg, Pennsylvania, was indicted by a federal grand jury for possession of heroin with intent to distribute and possession of firearms in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Madison was in possession of heroin and two handguns, a 9mm Kel-Tec and .40 caliber EEA Witness, at his home on April 14, 2016.
The case was investigated by the Harrisburg Police Department, the Pennsylvania Probation and Parole Board, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Scott Ford 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.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 life 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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Garland, Texas, Man Sentenced to 144 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — Jeffrey David Mitchell, 54, of Garland, Texas, was sentenced today by U.S. District Judge Ed Kinkeade to 144 months in federal prison and 10 years supervised release following his guilty plea in August 2015 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Mitchell has been in federal custody since his arrest in May 2015 on related charges.
According to documents filed in the case, the investigation began in late April 2015 resulting from a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding the upload of images depicting child pornography to an electronic group and to various email accounts. The investigation led law enforcement to secure and execute a search warrant on Mitchell’s home on April 29, 2015; Mitchell and his parents were home during the search.
Mitchell admitted he possessed child pornography and that he sent and received child pornography via his email account. He confirmed that he created and used multiple email accounts to trade the child pornography, and that images of child pornography were on his desktop computer located in his bedroom.
Law enforcement seized several media items from the residence, and a forensic analysis and review of Mitchell’s email accounts revealed approximately 750 images and 100 videos of child pornography. Some of those images and videos depict sadistic/and/or violent content, and some of the files depict infants and toddlers.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI, Collin County Sheriff’s Office and Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Founder of Non-Profit Organization Sentenced to 36 Months in Prison for Defrauding Parents of Abducted ChildrenRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that PETER SENESE, the Founding Director of the I CARE Foundation (“I CARE”), a purported non-profit organization allegedly dedicated to preventing child abduction and trafficking, was sentenced in Manhattan federal court today by U.S. District Naomi R. Buchwald to 36 months in prison for wire fraud and conspiracy to commit wire fraud. In connection with the scheme, SENESE defrauded parents of international abduction victims by falsely representing that he could find and return the children to the United States in exchange for payments to fund his purported international rescue operation. SENESE pled guilty September 8, 2016.
Manhattan Acting U.S. Attorney Joon H. Kim said: “In this most cruel and heartbreaking criminal scheme, Peter Senese preyed on the most vulnerable and desperate victims, anguished parents of abducted children. Senese did more than just steal his victims’ money – he robbed them of hope. For seeking personal profit out of others’ pain and tragedy, Senese has been convicted of federal crimes and will now do time in a federal prison. We hope this prosecution provides some measure of justice to those who were so callously victimized by Senese.”
As alleged in the Superseding Indictment and in other documents filed in federal court:
Between November 2013 and February 2015, on his websites (www.stopchildabduction.org and www.petersenese.com) and elsewhere, SENESE claimed falsely that I CARE was “a self-funded not-for-profit 501-C-3 corporation” that successfully “reunited numerous internationally kidnapped children” with their parents “while protecting an exponentially larger number of children from abduction.” SENESE credited I CARE’s success to the “great efforts, financial, legal, and investigative resources” of individuals associated with I CARE, including a team of former members of the U.S. Army component Delta Force. In one instance, SENESE represented to a parent-victim that he could recover her child from India, appearing on a local radio program with the parent-victim, and sending numerous text messages and emails to the parent-victim stating falsely that he was in a “remote location” in India, was communicating with her child, and that the child would be returned to the United States in a matter of hours or days. Though he never traveled overseas or communicated with the child, SENESE collected over $70,000 from the parent-victim.
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In addition to the prison sentence, SENESE, 51, of Brooklyn, New York, was ordered to pay restitution and forfeiture in the amount $85,100.
Mr. Kim praised the outstanding work of the FBI for its investigative efforts and ongoing support and assistance with the case.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
Founder and Former CEO of Technology Firm Charged with Defrauding Investors Out of $6 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging MARYSE LIBURDI with defrauding investors out of more than $6 million through a technology company founded and operated by LIBURDI. The defendant was arrested by Italian authorities in Rome, Italy, in April 2016, and arrived in the Southern District of New York yesterday following her extradition. LIBURDI was arraigned this afternoon and the case has been assigned to U.S. District Judge Denise Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Maryse Liburdi repeatedly lied to investors in her tech company, telling them the company was profitable when it was in fact generating no revenue. Rather than using investor money to operate her company, she was allegedly spending it on herself and her family, paying for personal expenses like spas and salons, wine, luxury clothing, and rental fees on a three-bedroom Manhattan apartment.”
FBI Assistant Director William F. Sweeney Jr. said: “We see this behavior time and time again--fraudsters intentionally misrepresenting a company's financials to lure investors down a path from which it's particularly hard to return. Today, Maryse Liburdi is charged with allegedly defrauding investors out of more than $6 million over the course of several years, all the while converting much of the money to her own personal and extravagant use. As long as this type of criminal activity continues to go on, we will continue to go after those responsible for it.”
According to the allegations contained in the criminal Complaint and Indictment filed against LIBURDI:[1]
Since at least in or about 2008, LIBURDI perpetrated a multi-year scheme to defraud individuals into investing more than $6 million in a technology company (the “Company”) founded and run by LIBURDI. LIBURDI repeatedly made misrepresentations to investors about the Company’s revenue and assets, manipulated Company bank accounts to hide the Company’s true financial condition and, contrary to LIBURDI’s express promises to the investors, converted hundreds of thousands of dollars of investor funds to LIBURDI’s own use, including rent for LIBURDI’s Manhattan apartment and to purchase luxury clothing and other personal items.
While LIBURDI repeatedly told investors that the Company had millions of dollars in revenue, a review of the Company’s bank records shows that, from at least 2008 until the Company ceased operating in January 2015, the Company earned little or no revenue. Moreover, as reflected in the Company’s bank records, LIBURDI misappropriated investor funds, transferring over $1 million to her and her former husband’s bank accounts and to pay LIBURDI’s personal expenses, including luxury clothing. For example, LIBURDI used funds from one victim investor for, among other things, transfers to a personal bank account in the name of LIBURDI and her former husband; rental payments for LIBURDI’s three-bedroom Manhattan apartment; payments for personal credit cards; and substantial personal expenditures on corporate credit cards, including, among other things, expenditures at various retail clothing, accessories, and cosmetics stores, salons and spas, and wine and liquor stores.
In order to hide her scheme, LIBURDI manipulated the Company’s bank accounts by, on at least three occasions, writing checks for hundreds of thousands of dollars drawn on accounts with insufficient funds in order to fraudulently inflate the balance of a Company bank account and thereby hide the Company’s true cash balance from the investors. For example, in October 2013, LIBURDI wrote and deposited into the Company’s bank account a $700,000 check drawn on a different account that had a balance of only about $2,000. LIBURDI then falsely represented to the victims that the Company’s bank account held approximately $700,000 and showed investors a bank statement for the Company account listing the inflated balance.
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LIBURDI, 45, formerly of Victoria, Minnesota, and New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI. He also thanked Italian law enforcement authorities, including Interpol Rome, for their assistance in the arrests, as well as the Department of Justice’s Attaché at the U.S. Embassy in Rome and the DOJ Office of International Affairs.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the description of the Complaint and Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
Former Tax Preparer in Belleville Pleads Guilty to Submitting False Claims Against the United States for Preparation of False Federal ReturnsRead the Press Release
Victoria Foster, 55, of East St. Louis, Illinois, entered pleas of guilty to two counts of false claims against the United States by a paid tax preparer assisting in the preparation of a false federal tax return, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Victoria Foster worked at Elite Tax in Belleville. As part of the plea, Foster admitted that for the 2015 tax year she filed false returns that caused a loss in excess of $180,000. Victoria Foster faces a prison sentence of up to ten years, a fine of up to $500,000, and up to three years of supervised release with mandatory restitution. Sentencing is scheduled for June 27, 2017.
The prosecution is the result of an investigation by the Internal Revenue Service/Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former President of Telexfree Sentenced for Billion Dollar Pyramid SchemeRead the Press Release
BOSTON – The former President of Telexfree, Inc., a global pyramid scheme disguised as an internet telecom company, was sentenced today in U.S. District Court in Worcester.
James Merrill, 55, of Ashland, was sentenced by U.S. District Court Judge Timothy S. Hillman to six years in prison and three years of supervised release. In October 2016, Merrill pleaded guilty to one count of wire fraud conspiracy and eight counts of wire fraud. He also agreed to forfeit approximately $140 million and other assets.
“Despite knowing that Telexfree was a pyramid scheme, Mr. Merrill profited for years at the expense of the hard-working individuals who invested in the fraudulent company,” said Acting U.S. Attorney William D. Weinreb. “For the hundreds of thousands of investors, here and around the world, who were taken in by the lies promoted by Mr. Merrill and Telexfree, today’s sentence provides a measure of justice. Mr. Merrill’s greed damaged the livelihoods of thousands of people who were simply struggling to make ends meet.”
“While the harm and damage James Merrill caused by stealing more than $3 billion from innocent investors can never be repaired, his victims in more than 240 countries around the world can take some small measure of satisfaction that he is now looking at six years in federal prison and a substantial forfeiture as repayment for his crimes.” said Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston. “HSI special agents will continue to aggressively investigate those who seek to profit by taking advantage of others.”
Between February 2012 and April 2014, Merrill was the President of TelexFree, Inc., which sold a “voice-over-internet-protocol” (VOIP) telephone service, similar to Skype, for which customers could sign up on a website maintained by TelexFree. TelexFree, however, was a pyramid scheme; all of the money TelexFree paid out came, not from sales of its product, but from new participants paying TelexFree to sign up as “promoters” for the company.
TelexFree’s website prominently featured Merrill as the leader of the company and as an experienced businessman in the telecom field. As the website advertised at various times, participants paid $1,425 or $339 to sign up with TelexFree, after which they would be paid $100 per week or $20 per week to post classified ads every day on the internet. The company couched those payments in terms of “buying back” unused VOIP packages the participants were unable to sell, but the reality was that participants were guaranteed an annual return of over 200% on their money without having to sell anything. Among other things, emails showed Merrill’s awareness that the ad-posting was intended only to ensure that people visited TelexFree’s web site as opposed to generating actual retail sale of the VOIP product. Participants spent minutes a day cutting and pasting ads into various classified ad sites provided by TelexFree, which were already saturated with thousands of ads posted by earlier participants.
Participants were also given substantial financial incentives to recruit others to join the scheme. To receive bonuses for recruiting others, in theory each participant needed to have one VOIP customer. But in reality, participants met this requirement simply by buying the product themselves and, in 97% of instances, never using it. In this way, TelexFree created the illusion that it had hundreds of thousands of legitimate VOIP customers. On paper the company sold about 12.4 million VOIP plans, but in reality it had a tiny number of legitimate customers, an even smaller number of which had actually paid money to TelexFree for the service. Overall, the nearly 2 million who participated in TelexFree made 96% of their compensation, not from selling the company’s VOIP service, but from ad-posting and recruiting others to join.
TelexFree derived only a fraction of its total revenue in a two-year period from sales of VOIP service – approximately 2%. The remaining 98% came from new people buying into the scheme. TelexFree could only pay the returns it had promised to its existing promoters by bringing in money from newly-recruited promoters.
Beginning in late 2012, involvement in TelexFree spread rapidly, and by April 2014, well over a million people worldwide had signed up with the company. This included over 20,000 people in Worcester, Mass. alone, and thousands more in Boston, Framingham, Chelsea and other communities statewide. Meanwhile, beginning in 2013, Merrill received increasingly frequent warnings that the company was a pyramid scheme. Beginning in August 2013, Merrill began to take steps to change how the company did business, but Merrill never alerted the public, even though over a million people signed up for TelexFree between that month and TelexFree’s collapse.
In December 2013, Merrill wired himself and two co-conspirators a total of $10 million from TelexFree accounts. On April 14, 2014, Telexfree filed for bankruptcy, at which point it owed approximately $6 billion to its participants, while having only about $120 million on hand (about 2% of what it owed). At that point, approximately 1,855,000 participants worldwide lost money in the scheme, with total losses of about $3,045,000,000. Overall, these victims came primarily from the United States (all 50 states), Brazil, China, Portugal, Peru, other Central and South American nations, Italy, and Russia, with smaller victim populations in dozens of other countries.
Acting U.S. Attorney Weinreb and HSI SAC Etre made the announcement today. The U.S. Attorney’s Office also received valuable assistance from the Federal Bureau of Investigation, the Brazilian Federal Police based in Vitoria, Brazil, the Securities & Exchange Commission, and the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts. Assistant U.S. Attorneys Andrew E. Lelling and Neil J. Gallagher, Jr., of Weinreb’s Economic Crimes Unit are prosecuting the case.
Former Oil Company President Charged with Orchestrating $30 Million Stock Manipulation SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker announced a 13 count indictment charging RYAN RANDALL GILBERTSON, 41, founder of Dakota Plains, Inc., DOUGLAS VAUGHN HOSKINS, 48, and NICHOLAS HARRIS SHERMETA, 49, with wire fraud stemming from a complex stock manipulation scheme that resulted in the company owing more than $30 million in fraudulent bonus payments. The defendants are expected to make their initial appearances in U.S. District Court in Minneapolis within the next week.
“This fraud scheme, like other financial crimes involving the mail, erodes public trust and threatens the integrity of the U.S. Mail," said Craig Goldberg, Inspector in Charge of the U.S. Postal Inspection Service, Denver Division, which includes Minnesota. "It is critical we make every effort to protect shareholders from being cheated. To help protect the public and ensure America's confidence in the U.S. Mail, Postal Inspectors are committed to working with our federal, state and local partners to aggressively investigate any fraud in which the mail is used.”
“IRS Criminal Investigation is committed to unraveling complex financial transactions where individuals, such as Ryan Randall Gilbertson, Douglas Vaughn Hoskins, and Nicholas Harris Shermeta operated a stock scheme to defraud investors,” stated Shea Jones, Special Agent in Charge of IRS-CI’s St. Paul Field Office. “Those individuals who engage in this type of stock manipulation fraud should know they will not go undetected and will be held accountable."
“As alleged, each of the defendants played a key role in this complex fraud scheme,” said Special Agent in Charge Richard T. Thornton of the Minneapolis Division of the FBI. “The FBI will continue to work closely with our law enforcement partners to ensure those who engage in this type of criminal behavior will be brought to justice.”
According to the indictment, in December 2008, GILBERTSON and his business partner (identified in the indictment as “Individual A”) founded Dakota Plains, Inc. (Dakota Plains), a privately held Minnesota corporation that owned and operated a transloading facility in New Town, North Dakota, for loading crude oil onto trains for transport to oil refineries.
According to the indictment, in January 2011, GILBERTSON and his partner caused Dakota Plains to issue a $1.9 million cash dividend to shareholders, from which GILBERTSON and his ex-wife received nearly $450,000 in dividend payments. That same month, GILBERTSON and his partner caused Dakota Plains to issue $3.5 million in promissory notes (the “Senior Notes”) from which GILBERTSON purchased a $1 million promissory note and another $100,000 promissory note in the name of Total Depth Foundation, GILBERTSON’S nonprofit corporation. In April 2011, GILBERTSON and his partner caused Dakota Plains to issue $5.5 million in promissory notes (the “Junior Notes”) in which GILBERTSON instructed the company to include an “additional payment” provision stating that the noteholders would receive bonus payments based on the price of Dakota Plains’ stock at the time of an initial public offering (“IPO”). From the Junior Notes, GILBERTSON purchased a $2 million promissory note and another $250,000 promissory note on behalf of Total Depth Foundation.
According to the indictment, in November 2011, at GILBERTSON’S direction, Dakota Plains combined the Senior Notes and Junior Notes into a series of consolidated promissory notes (the “Consolidated Notes”). GILBERTSON then directed Dakota Plains to alter the “additional payment” provision from the Junior Notes to (a) apply to the new total value of the Consolidated Notes; and (b) apply not only in the event of an IPO but also if Dakota Plains became public via a reverse merger. Specifically, the “additional payment” provision provided that if Dakota Plains’ average stock price exceeded $2.50 per share during the first 20 days of public trading, the noteholders would receive bonus payments which would increase relative to the average stock price.
According to the indictment, as part of the scheme, in late 2011 and early 2012, GILBERTSON arranged for Dakota Plains to become a publicly traded company by entering into a “reverse merger” agreement with MCT Holding Corporation (“MCT”), a public shell company that owned a single defunct tanning salon in Salt Lake City, Utah. At GILBERTSON’S direction, HOSKINS, who was a player and manager for GILBERTSON’S polo team, purchased 50,000 freely trading shares of MCT stock and opened a trading account with a broker in Salt Lake City, Utah, which would allow him to sell the MCT stock. HOSKINS, who had no prior investing experience or assets and a significant amount of debt, received $30,000 from GILBERTSON to purchase the stock. On March 23, 2012, following the merger of Dakota Plains with MCT, Dakota Plains Holdings became a publicly traded company.
According to the indictment, on the first day of public trading, HOSKINS offered to sell his newly acquired shares for an inflated price of approximately $12 per share at GILBERTSON’S direction, and continued to do so throughout the first 20 days of trading following the reverse merger. During this same time period, SHERMETA, who had a series of bogus consulting agreements with GILBERTSON, began purchasing shares of Dakota Plains stock on behalf of both himself and his clients at inflated prices without their knowledge. Throughout the 20-day period following the reverse merger, GILBERTSON, with the help of SHERMETA and HOSKINS, manipulated the price of Dakota Plains stock to increase the average trading price to $11.30 per share which, as stated in the “additional payment” provision in the Consolidated Notes, triggered a bonus payment of approximately $32,851,800 to GILBERTSON and the other noteholders. GILBERTSON, who controlled 40 percent of the Consolidated Notes, was entitled to more than $12 million in bonus payments.
This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorneys Joseph H. Thompson and Kimberly A. Svendsen.
Defendant Information:
RYAN RANDALL GILBERTSON, 41
Delano, Minn.
Charges:
- Wire Fraud, 13 counts
DOUGLAS VAUGHN HOSKINS, 48,
Wayzata, Minn.
Charges:
- Wire Fraud, 7 counts
NICHOLAS HARRIS SHERMETA, 49
Minnetonka, Minn.
Charges:
-
Wire Fraud, 5 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Jefferson County Resident Indicted on Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – On October 12, 2016, a federal grand jury returned a ten-count indictment charging Malachi Duncan, a/k/a "Demarcus Brewster" with multiple fraud charges for orchestrating a scheme to commit student loan fraud, mail fraud, bank fraud, social security fraud and identity theft. Duncan had his first appearance in federal court today.
On March 1, 2017, Duncan, a former resident of Hillsboro, Missouri, was arrested by the United States Marshals Service in Memphis, Tennessee. At the time of his arrest, the defendant was living in Memphis and had enrolled at the University of Memphis under an assumed name.
According to the indictment, Duncan fraudulently used the pedigree information of co-conspirator "Demarcus Brewster" to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing and on-campus employment.
Duncan is charged with: one felony count of conspiracy, two felony counts of identity theft, two felony counts of aggravated identity theft, one felony count of fraudulent production of an identification document, three felony counts of social security fraud and one felony count of bank fraud.
If convicted, Duncan faces penalties of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
In June 2016, co-conspirator Demarcus Brewster entered a plea of guilty to one count of conspiracy to commit student loan fraud. On September 27, 2016, United States District Judge John A. Ross sentenced Brewster to a seven-month term of imprisonment and ordered that Brewster pay restitution to the United States Department of Education.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Financial Manager Pleads Guilty to Embezzling over $1.4 Million from EmployerRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that WADE BARBAY, age 54, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge John W. deGravelles to engaging in a wire fraud scheme to defraud his former employer Axiall Corporation. Through the scheme, BARBAY embezzled approximately $1,406,080. His sentencing date has not yet been determined.
During today’s hearing, the defendant admitted to using his position as Director of Shared Services, which oversaw Axiall’s corporate credit card program, to embezzle more than $1.4 million from the organization from January of 2011 through May of 2016. BARBAY did so by submitting fraudulently-inflated business expenses of other employees for payment to Axiall’s headquarters, causing the company to pay the inflated amounts to American Express. The defendant then directed American Express to credit his account with the fraudulently-inflated funds. Through this scheme, the defendant embezzled over $1,125,000. In addition, the defendant’s scheme included negotiating and depositing corporate refund checks into his personal bank account, totaling approximately $280,430. In total, over the course of a five-and-a-half-year period, the defendant fraudulently obtained over $1.4 million from his former employer.
Axiall Corporation is an international manufacturer and supplier of products derived from petrochemicals. The company is headquartered in Houston, Texas, and employs approximately 9,000 people in more than 42 facilities worldwide. One of Axiall’s facilities is located in Plaquemine, Louisiana. The defendant worked at this facility in a financial capacity for over 24 years.
Acting U.S. Attorney Amundson stated, “Fraud schemes perpetrated by insiders, particularly those entrusted with an organization’s finances, pose a serious threat to all organizations and, by extension, their employees. Our office will continue to aggressively pursue such matters, along with the FBI and our other excellent federal, state, and local partners. Once identified, these fraudsters must not be allowed to simply move to their next victim employer. Employers and law enforcement must work together to stop them. I thank the victim organization for uncovering the fraud and assisting in this important matter.”
FBI Special Agent-In-Charge Jeffrey S. Sallet stated: "I applaud the men and women of the FBI's Baton Rouge Resident Agency and U.S. Attorney’s Office for their aggressive work to help root out white collar crime within Louisiana. This is yet another example of how greed has driven an individual to enrich himself through dishonesty and theft. The arms of justice have a long reach and with our federal, state, and local law enforcement partners, we will continue to pursue such criminals."
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge Office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Former Finance Director Pleads Guilty to EmbezzlementRead the Press Release
PROVIDENCE – Charles F. Denno, 66, of East Providence, a former finance director for the Providence Plan, pleaded guilty in federal court today to fraud, admitting to the court that he devised and executed a scheme in which he fraudulently converted $742,190.69 of Providence Plan funds for his own use.
The Providence Plan is a non-profit educational entity which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
Denno’s guilty plea to one count of wire fraud is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Brian Hickey, Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Appearing before U.S. District Court Chief William E. Smith, Denno admitted to the court that from November 2012 through July 2016, that he used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts, and then fraudulently converted funds to his own accounts and personal use. Denno admitted to the court that he fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
Denno is scheduled to be sentenced on June 23, 2017. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; 3 years supervised; and a fine of up to $250,000.
The matter, being prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former FBI Contractor Pleads Guilty to Making False Statements to InvestigatorsRead the Press Release
A former FBI contractor pleaded guilty today to making false statements to FBI agents in connection with an official FBI investigation.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Assistant Director in Charge Andrew W. Vale of the of the FBI’s Washington Field Office and Acting Inspector General April Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.
Arkadiy Zagaytov, 59, pleaded guilty before U.S. Magistrate District Judge Robin M. Meriweather of the District of Columbia. The defendant’s sentencing will be scheduled at a later date.
From June 2010 to October 2011 and September 2012 to August 2014, Zagaytov worked as an Oracle Database Administrator at the FBI Headquarters Information Technology Division and maintained Top Secret security clearance level for the entirety of his term at FBI. On July 31, 2014, Zagaytov was interviewed by Special Agents of the FBI in connection with an official investigation.
According to admissions made in connection with his plea agreement, Zagaytov lied to investigators about a financial transaction that he facilitated in 2004 and 2005 between a senior DOE official and a private company doing business in the United States. Specifically, at the request of the senior official, Zagaytov served as a conduit for purported “consulting” payments from the private company to the senior official. Zagaytov prepared and submitted false invoices to the private company for up to $140,000 in services that he never rendered or performed. Upon receiving payment from the private company and withholding a portion thereof to cover tax liabilities and other personal expenses, Zagaytov made several cash disbursements to the senior official. During his interview with the FBI on July 31, 2014, Zagaytov denied making any such payments to the senior official. Zagaytov also failed to disclose these transactions in his application for Top Secret clearance even though he was required to do so.
The FBI’s Washington Field Office and DOE-OIG investigated the case. Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section is prosecuting the case.
Felon Sentenced for Counterfeit Charges and Possession of a FirearmRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Nakeo Tawian Vance, age 41, of Greenville, South Carolina was sentenced today in federal court in Greenville, South Carolina, for two counts Uttering Counterfeit Securities and one count Felon in Possession of a Firearm, in violation of 18 U.S.C. §§ 472 and 922(g). United States District Judge Bruce H. Hendricks of Charleston sentenced Vance to thirty months imprisonment, followed by three years of supervised release.
Evidence presented at the change of plea hearing established that in May of 2015, law enforcement stopped Vance and found him in possession of ninety-eight counterfeit bills. Vance claimed he had received the money from a drug deal and had already used $600 to pay off drug debts. In May of 2016, the Greenville Police Department responded to a call concerning suspicious activity at a hotel. When law enforcement arrived, they observed Vance standing outside a vehicle, and upon their approach, the officers saw Vance shove something into a backpack and throw the backpack in the car. The officers frisked Vance and located a Butler Associate Incorporated, Model Single Shot, .22 short caliber pistol. The firearm was loaded with one round of .22 short ammunition. Vance fled, but the officers apprehended him shortly thereafter. Law enforcement recovered more counterfeit bills from Vance at that time. Greenville Police Department obtained and executed a search warrant for the car and located a General Precision Corporation, Model 60, .22 short caliber revolver, in the backpack Vance had been holding, along with other drug paraphernalia. The firearm was loaded with five rounds of .22 short ammunition. Vance has prior felony convictions and was prohibited from possessing firearms at the time.
The case was investigated by agents of ATF and the Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Federal Prison Inmate Sentenced for Possession of ContrabandRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Wheeler J. Paavola, 35, of Spokane, Washington was sentenced to six months of imprisonment on March 20, 2017 for possession of a controlled substance inside the federal prison at Greenville, Illinois. Paavola’s six-month sentence will be served consecutively to his original 2011 sentence of 188 months for possession with intent to deliver methamphetamine.
At his change of plea hearing, Paavola admitted that he had possessed "K-2," a form of synthetic marijuana, on July 27, 2016 while he was an inmate at the federal prison in Greenville.
The investigation which resulted in Paavola’s arrest and conviction was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Federal Inmate Sentenced for Possessing MarijuanaRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John Vercusky, age 39, a federal inmate, was sentenced by United States District Court Judge Robert D. Mariani in Scranton, on March 21, 2017, to serve three months in prison for possessing contraband at the United States Penitentiary located in Schuylkill, Pennsylvania (“USP Schuylkill”).
According to United States Attorney Bruce D. Brandler, Vercusky was caught in possession of marijuana on October 25, 2015, while incarcerated at USP Schuylkill.
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Schuylkill. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Father and Son Indicted on Federal Conspiracy Charges that Allege They Steal Cash from the U.S. Postal ServiceRead the Press Release
Update:
LOS ANGELES – A father and son from Adelanto are scheduled to be arraigned this afternoon on federal charges related to a string of thefts from moving mail trucks and the robbery of a United States Postal Service facility in Victorville. Kory Kreshon Parker Sr., 46, and Kory Kreshon Parker Jr., 23, are expected to enter pleas to a two-count indictment that was returned by a federal grand jury on March 15. Both Parkers are charged with conspiracy and robbery of United States property. Each of the two counts carries a five-year statutory maximum sentence.
Original Release (March 6):
Federal Case Charges San Bernardino County Father and Son in Conspiracy to Steal Cash from the U.S. Postal Service
RIVERSIDE, California – A father and son have been arrested and charged in federal court in connection with a robbery late last week at a United States Postal Service facility in Victorville.
According to court documents filed on Friday, the father and son – Kory Kreshon Parker Sr., 46, and Kory Kreshon Parker Jr., 23, both of Adelanto – also are suspects in a series of Postal truck robberies across Southern California that has caused more than $400,000 in losses.
The Parkers were charged Friday in a criminal complaint filed in United States District Court. The complaint charges both men with conspiracy to rob the Victorville Post Office on Thursday night.
According to the affidavit in support of the criminal complaints, the pair also are believed to have committed a string of postal truck robberies over the last 18 months – thefts that occurred while the trucks were moving or otherwise in transit. During those robberies, the thieves jumped on the back of a postal truck and opened the rear door to steal the truck’s contents, specifically registered mail that included cash, checks and money orders.
The Parkers made their initial court appearances on Friday afternoon, and United States Magistrate Judge Sheri Pym ordered them detained – held without bond – pending trial. A preliminary hearing in this case was scheduled for March 17, and the two men are scheduled to be arraigned on March 22.
If convicted of the conspiracy charge in the criminal complaint, the defendants each would face a statutory maximum sentence of five years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This matter is being investigated by the United States Postal Inspection Service, with the assistance of the Rialto Police Department. The case is being prosecuted by Assistant United States Attorney Bilal Essayli of the Riverside Branch Office.
The Parkers are the latest defendants to be charged in relation to crimes affecting the mails and the United States Postal Service.
Other cases prosecuted recently by the United States Attorney’s Office include:
- 33 defendants charged across 28 cases;
- 11 defendants charged across seven cases in the Inland Empire;
- Carlos Canjura, 54 of Van Nuys;
- Chinh Vuong, 48, of Garden Grove;
- Bernie Martinez, 23, and Kammi Leigh Vestesen, 24, both of Corona; and
- Paul Wagner, 28, of Corona.
This representative sample of cases is only a portion of the cases charged by the U.S. Attorney’s Office in which the mail service was victimized. To address the rising problem of mail theft and crimes such as identity theft that flow from mail theft, the Los Angeles-based U.S. Attorney’s Office more than doubled the number of cases charged which were investigated by the United States Postal Inspection Service from 2015 to 2016.
Ellicott City Man Pleads Guilty to Federal Charges in $4.4 Million Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – Glenn R. Fischer, age 70, of Ellicott City, Maryland, pleaded guilty on March 21, 2017, to wire fraud and aggravated identity theft arising from a scheme to defraud businesses seeking insurance. Fischer admitted that he fraudulently collected more than $4.4 million in insurance premiums which he did not remit to an insurance company, causing losses in that amount to the victims who thought they were insured.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According his plea agreement, from 2002 to about 2014, Fischer was a partner at TriArc Financial Services, Inc., (TriArc Services) which provided automotive and mortgage insurance products, including residual value insurance. Residual Value Insurance (“RVI”) helped companies leasing vehicles to consumers to manage the risk from decreases in the value of the vehicle during the term of an auto lease. RVI typically provided for payments to the owner of a leased vehicle if the value of the vehicle at the end of the lease was less than a certain amount specified in the terms of the insurance coverage when the lease began. In the early 2000s, RVI policies were widely issued by insurance companies and TriArc Services generated substantial revenue for the company and its partners, including Fischer, who served as insurance brokers for RVI products. In 2008 and 2009, in conjunction with the financial recession and changes in consumers’ desires for used automobiles, many insureds suffered substantial losses under RVI insurance policies.
Fischer admitted that from 2009 until 2014, he persuaded victim businesses to purchase RVI insurance coverage, which Fischer knew did not exist, so that Fischer could use a substantial portion of the victims’ insurance premiums for his personal benefit. Specifically, in the summer of 2009, Fischer created a Nevada corporation called TriArc Marketing Solutions (TriArc Solutions) and opened bank accounts for TriArc Solutions. During the course of the scheme, Fischer caused prospective insureds to believe that he that he was authorized to issue RVI policies on behalf of TriArc Services, a multinational property and casualty insurance company specializing in coverage for small to medium sized businesses, and one of that business’ subsidiaries. Fischer also concealed the creation and use of TriArc Solutions from his partners at TriArc Services.
Fischer created and sent false insurance coverage documents, fraudulent emails, premium invoices, lists of covered vehicles, and other documents to victim companies, causing them to falsely believe that they had purchased RVI insurance through Fischer. Fischer used the identity of an employee of a multinational property and casualty insurance company in furtherance of the fraud, including his name, title and purported signature on the declaration pages of the fake insurance policies. Fischer concealed from the employee and the company that Fischer was pretending to issue RVI insurance policies on behalf of the company.
Fischer collected more than $4.4 million in RVI insurance premiums from the victims, which he deposited into the TriArc Solutions bank accounts. Fischer and his relatives used the proceeds of the insurance premium payments for their personal benefit.
Fischer also admitted that he failed to report a significant portion of the money he obtained from the fraud on his annual tax returns for the 2009 through 2014 calendar years. The total income Fischer received but did not report to the IRS for these tax years exceeded $3.3 million, which generated a substantial tax loss to the United States.
As part of his plea agreement, Fischer will be required to forfeit all property constituting, derived from, or traceable to the proceeds of the fraud, including, but not limited to $4.4 million.
Fischer faces a maximum penalty of 20 years in prison for wire fraud, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge George L. Russell has scheduled sentencing for June 9, 2017, at 11:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and David Metcalf, who are prosecuting the case.
Edgewater Man Sentenced to Federal Prison for Bank Fraud Scheme Involving over $1.3 Million in LossesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Mrugesh G. Patel (38, Edgewater) to 18 months in federal prison for bank fraud. The Court also entered a money judgment in the amount of $405,087.99, the proceeds of the offense. Patel pleaded guilty on December 19, 2016.
According to court documents, between February 2011 and December 2012, Patel participated in a scheme to defraud federally insured banks, including TD Bank and Centerstate Bank. Specifically, he opened numerous bank accounts under the names of various Florida-based companies that he had established. He then used these accounts to make bulk deposits of fraudulent bank drafts made payable to his companies. The bank drafts were made using the unauthorized account information of other individuals, businesses, and entities. Patel also made false representations to bank representatives when he opened the accounts and during the time period that he was making the deposits.
Patel's fraud scheme caused more than $1,352,956 in losses to victims whose account information was used to create the fraudulent bank drafts. He used some of this money for personal expenditures and to pay third parties. During the investigation, law enforcement seized over $400,000 in illegal proceeds from bank accounts that Patel controlled.
This case was investigated by the U.S. Secret Service and the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Nicole Andrejko.
Dunkirk Man Sentenced in Major Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Jesus Pagan, 40, of Dunkirk, NY, who was convicted of conspiring to possess with intent to distribute and distribute five kilograms or more of cocaine and being a felon in possession of a firearm, was sentenced to 97 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that David Jesus Pagan and co-defendant Rafael Burgos were the leaders of a drug trafficking organization that distributed illegal narcotics in the Dunkirk, NY, area between 2013 and June 10, 2015. During that time, members distributed multiple kilograms of cocaine throughout the Dunkirk area.
Pagan was arrested in June of 2015 along with Burgos and four others. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine, most of which was found in the defendant’s residence. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine. All defendants have been convicted.
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 Office; the Dunkirk Police Department, under the direction of Chief David C. Ortolano; the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace; the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb; and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Dominican National Sentenced for Being an Alien in Possession of a FirearmRead the Press Release
BOSTON – A Dominican national was sentenced in U.S. District Court in Boston yesterday in connection with being an alien in possession of a firearm and ammunition.
Felix Renaldo Nunez-Guerrero, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and three years of supervised release. Following the completion of his sentence, Nunez-Guerrero will be placed into removal proceedings and deported to the Dominican Republic.
On April 23, 2016, Lawrence police officers were dispatched to the area near Poplar Street and Alder Street in response to a report of shots fired. Upon arrival, they received information that the individual involved in the shooting had fled in a white Mercedes SUV. At the scene, law enforcement officers recovered eight .45 caliber shell casings.
Shortly thereafter, officers stopped a white Mercedes SUV containing three occupants and removed them for questioning. Additionally, the officers recovered a silver Para Ordinance .45 caliber semi-automatic firearm from under the front passenger’s seat. While being questioned at the police station, the front seat passenger provided a false name, but his fingerprints were found to match those of Nunez-Guerrero. According to law enforcement records, Nunez-Guerrero was a citizen of the Dominican Republic and had been deported on two previous occasions, March 25, 2009 and July 21, 2015. Nunez-Guerrero was interviewed and admitted to being an alien, to previously being deported, and to firing the .45 caliber firearm. Nunez-Guerrero’s hands were swabbed and later tested positive for gunshot residue.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigation in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James X. Fitzpatrick made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crime Unit prosecuted the case.
Diamond Bar Man Pleads Guilty to Smuggling ED Drugs that Were Sold as ‘Herbal Enhancement’ Products without PrescriptionsRead the Press Release
LOS ANGELES – A Diamond Bar man who illegally imported the active ingredients used in erectile dysfunction drugs such as Viagra and Cialis and repackaged the drugs for sale as herbal sexual enhancement products pleaded guilty today to federal charges.
Joseph Jinn, also known as Tzong Hwan Jinn, 60, pleaded guilty this afternoon to one count of conspiring to bring the drugs into the United States by means of false statements.
In a plea agreement filed in United States District Court, Jinn admitted being part of a scheme that imported Tadalafil, Sildenafil and Dapoxetine – the active ingredients in pharmaceutical medications such as Viagra and Cialis – with false claims to customs officials that the multi-kilogram shipments were “cooked powder and tools,” “Chinese bread baking mixture,” and other innocuous materials. U.S. Customs and Border Protection intercepted some of the shipments, which had a cumulative value of nearly $550,000.
But some of the illegally imported drugs entered the United States. Jinn admitted in court that he and his co-conspirators repackaged and sold the drugs as an “herbal supplement sexual enhancer.” The products were sold without the necessary prescriptions required by regulations enforced by the U.S. Food and Drug Administration, which had previously warned Jinn’s company that it was engaged in illegal sales.
According to the plea agreement, the FDA “issued public warnings regarding these sexual supplements because they contain ingredients that can interact with other drugs in dangerous ways and may lower blood pressure to unsafe levels.”
“These products were falsely and dangerously marketed as herbal supplements, when in truth they were unregulated prescription medications that are harmful to some people,” said Acting United States Attorney Sandra R. Brown. “The scheme began with a smuggling operation, and the conduct continued with the distribution of supplements falsely labeled as natural and safe.”
The products marketed by Jinn and his co-conspirators were sold in storefronts and over the internet.
As part of his plea agreement, Jinn agreed to forfeit to the United States approximately $105,000 that was seized from three bank accounts during the investigation.
“When it comes to purchasing medications online or in storefronts, never has the expression ‘buyer beware’ had a greater ring of truth,” said Joseph Macias, special agent in charge for Homeland Security Investigations (HSI) Los Angeles. “Imposter drugs pose a serious threat to consumers who mistakenly assume these substances are safe. The reality is that unscrupulous providers who introduce untested products into the marketplace purely to turn a profit are putting their unwitting clients in harm’s way.”
“The FDA oversees the production and sale of prescription drugs to ensure that they are safe and effective,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations, Los Angeles Field Office. “Criminals who attempt to sell medicines outside of FDA’s oversight put the health of U.S consumers at risk. Our office will continue to pursue and bring to justice those who endanger the public’s health.”
The FDA has warned consumers about numerous over-the-counter products that claim to be “herbal,” but in fact contain hidden active ingredients.
Jinn pleaded guilty before United States District Judge Christina A. Snyder, who scheduled a sentencing hearing for June 19. When he is sentenced, Jinn will face a statutory maximum sentence of five years in federal prison.
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Food and Drug Administration, Office of Criminal Investigations; the Los Angeles Police Department; and U.S. Customs and Border Protection.
The case against Jinn is being prosecuted by Assistant United States Attorneys Vicki Chou and Jennie L. Wang of the Cyber and Intellectual Property Crimes Section.
Daughter of Deceased VA Beneficiary Sentenced for Theft of VA BenefitsRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Pamela Bullington, age 28, of Cowpens, South Carolina was sentenced today in federal court in Greenville, South Carolina, for Theft of Government Funds, in violation of 18 U.S.C. § 641. United States District Judge Bruce H. Hendricks of Charleston sentenced Bullington to probation and to pay restitution of $12,552.50.
Evidence presented at the change of plea hearing established that Bullington used her mother’s ATM card to withdraw her mother’s veteran benefits after her mother died. The Office of Veterans Affairs had not been informed of the death of Bullington’s mother, and therefore continued to deposit VA benefits into the account. Bullington admitted that she knew these funds were from the VA. Bullington also allowed another person to use the ATM card to make withdrawals from her deceased mother’s account.
The case was investigated by agents of the Veterans Affairs Office of Inspector General. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Dallas Man Indicted in East Texas Investment Fraud SchemeRead the Press Release
SHERMAN, Texas – A 51-year-old Dallas man has been indicted for investment fraud in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Carlton Chadbourne Sayers, also known as Chad Sayers was indicted by a federal grand jury on Mar. 8, 2017, and charged with wire fraud, mail fraud, bank fraud, and aggravated identity. The indictment was unsealed on Mar. 15, 2017, and Sayers was arraigned before U.S. Magistrate Judge Christine Nowak and entered a plea of not guilty on Mar. 16, 2017.
According to the indictment and information presented in court, Sayers is alleged to have devised a scheme to defraud numerous victims by requesting that individuals loan to or invest money with him and Wellington and Franklin Financial, a business that he controlled, representing that this money would be used to purchase and/or renovate various residential real properties, to be secured by an interest in the property. The indictment also alleges that Sayers would promise a significant rate of return (such as ten percent) to the investors, and would frequently secure multiple investments based on a single piece of real property. As set out in the indictment, however, Sayers did not invest the funds as he had represented to investors and did not provide the secured interests in real property as he represented to the investors. On some occasions, as set forth in the indictment, when Wellington and Franklin Financial or Sayers did actually own the residential properties, the property had been purchased with a pre-existing loan from a seasoned investor, and was already acting as security to that investor. Sayers is also alleged to have defrauded dozens of victims with little experience in real estate investments, who were induced by Sayers’s false claims of a secure investment, purportedly backed by the assignment of an interest in the respective real estate asset and returns that were considerably higher than what they could achieve through many other investments. The scheme is alleged to have resulted in substantial losses of over $3 million affecting dozens of victims.
If convicted, Sayers faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Tom Gibson.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Indicted on More Charges Related to Sex Trafficking Additional VictimsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man charged last month with sex trafficking a minor was indicted by a federal grand jury today on additional charges.
Kenneth Ronald Jones, 25, of Columbia, was charged in an eight-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Jones on Feb. 23, 2017, and includes additional charges related to additional victims.
Today’s indictment charges Jones with three counts of transportation for illegal sexual activity by coercion and enticement. The indictment alleges that Jones induced three victims to travel across state lines to engage in prostitution and illicit sexual activity between May 1 and June 1, 2016.
Because one of those victims, identified in court documents as “L.V.,” was under the age of 18, the indictment also charges Jones with one count of transporting a minor across state lines for illegal sexual activity and with the sex trafficking of a minor. The indictment also charges Jones with three counts of sex trafficking by force, fraud or coercion.
According to an affidavit filed in support of the original criminal complaint, FBI agents learned on June 29, 2016, that a 17-year-old runaway from Wisconsin – identified in court documents as “L.V.” – was being held against her will and forced into prostitution by Jones. She was located at a residence in Columbia and removed by law enforcement agents the same day.
L.V. told investigators that she met Jones in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. Within a few minutes of arriving at a Columbia residence that was used as a brothel, the affidavit says, a man arrived soliciting prostitution. This man selected L.V. from the approximately five prostitutes present, and paid to have sex with her. L.V. subsequently engaged in prostitution almost every day, averaging two or three clients per day.
Although Jones knew that L.V. was 17 years old, the affidavit says, he told everyone else at the brothel that L.V was 18 years old so she would be allowed to work there. L.V. reported that escort advertisements were purchased on Backpage, a classified advertising website frequently utilized by prostitutes.
Another victim, identified in court documents as “C.M.,” told police that three days after arriving at the house, Jones told her that she needed to make money, and threatened to kick her to the streets if she did not do what he wanted. C.M. agreed and did a prostitution “date.” When C.M. told Jones she didn’t want to do that anymore and that she was willing to work as a dancer to make money, Jones allegedly pulled out a handgun and pointed it at her. Jones said he was not playing games, and that C.M. was going to make money.
C.M. and a third victim, identified in court documents as “K.S.,” ran away from Jones in late May or early June 2016.
Jones became increasingly verbally abusive and cruel, the affidavit says, and pressured L.V. to see more clients. L.V. said she wanted to stop prostituting herself after two weeks and told Jones on multiple occasions she did not want to prostitute anymore because it was sad and degrading. Jones did not care, the affidavit says, and instructed L.V. to keep making money. She feared repercussions from Jones if she attempted to leave him.
L.V. told investigators that Jones had left for Milwaukee the day before law enforcement took her from the Columbia residence. Before he left, the affidavit says, Jones instructed L.V. to send the money she earned prostituting herself to him while he was in Milwaukee. L.V. told investigators that she had planned to flee from the residence the following day. Jones was arrested when he returned from Milwaukee for a Boone County court appearance today on an unrelated matter on Feb. 27, 2017.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI.
Columbia Man Indicted for Producing, Distributing Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for producing and distributing child pornography.
Sergio Antonio Dominguez-Gonzalez, 23, of Columbia, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Dominguez-Gonzalez used a minor to produce child pornography between Feb. 1 and Feb. 22, 2017. The indictment also charges Dominguez-Gonzalez with distributing child pornography over the Internet.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Washington, D.C. Metropolitan Police Department.
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."
Chicago Chiropractor Indicted for Allegedly Billing $10 Million to Medicare and Private Insurers for Nonexistent TreatmentRead the Press Release
CHICAGO — A Chicago chiropractor with a clinic in the West Lawn neighborhood has been indicted on federal fraud charges for allegedly submitting at least $10 million in bogus claims to Medicare and private insurers.
HENRY POSADA submitted the fraudulent claims for purported physical therapy and chiropractic services that were never provided, according to the indictment. In some instances Posada was out of the state on the dates he claimed to have provided chiropractic services, while other times he used his patients’ names without their knowledge to create wholly fictitious claim forms, the indictment states. From 2008 to 2016, Posada submitted at least $10 million in fraudulent claims to Medicare and private insurers, causing those programs to pay at least $5.1 million to Posada and his clinic, Spine Clinics of America S.C., which does business as Associated Back Care and Rehabilitation. The clinic is located in the 4300 block of West 63rd Street in Chicago.
The indictment was returned March 16, 2017, in federal court in Chicago. It charges Posada, 54, of Clarendon Hills, with 18 counts of health care fraud. He pleaded not guilty at his arraignment Tuesday afternoon before U.S. District Judge Edmond E. Chang. A status hearing was scheduled for May 30, 2017.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General. The U.S. Office of Personnel Management’s Office of Inspector General provided valuable assistance.
The indictment seeks forfeiture of the $5.1 million, as well as $850,000 in cashier checks, a 2013 Lexus LX 570 automobile, and a property in Watseka, Ill.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Health care fraud is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Nathalina Hudson.
Chelsea Produce Distributor Sentenced for Perjury and Obstruction of JusticeRead the Press Release
BOSTON – A Chelsea produce distributor was sentenced yesterday in U.S. District Court in Boston after pleading guilty to filing fraudulent documents in federal court and then committing perjury in an attempt to conceal his crime.
John S. Alphas, 57, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison, to be served consecutively with a 15-month federal sentence he is currently serving for an unrelated insurance fraud scheme, and a fine of $5,000. In January 2017, Alphas was charged with tampering with documents and making false declarations before a court.
From 2010 to 2012, Alphas was a participant in at least 14 lawsuits filed in federal court in Boston. In a number of the lawsuits, Alphas filed fraudulent appeal bonds, usually created by purchasing less expensive bonds that were easier to obtain, altering them, and then filing the forgeries with the court. When one of Alphas’s counterparties discovered his fraud in 2013, Alphas filed a false declaration about the bond with the court, and then testified falsely in a court hearing disclaiming any role in the creation or filing of any fraudulent bond. Despite having been responsible for filing the forged bond, Alphas falsely testified that he “had nothing to do with” obtaining, altering, or filing the bond with the court.
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. Assistant U.S. Attorney Brian Pérez-Daple of Weinreb’s Criminal Division prosecuted the case.
Charleston gun and drug dealer pleads guilty to illegally possessing firearmsRead the Press Release
CHARLESTON, W.Va. – A Charleston felon pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Damian Means, 28, entered his guilty plea to being a felon in possession of a firearm.
Means admitted that on August 23, 2016, he sold heroin to a confidential informant working with law enforcement. Means also admitted that on September 13, 2016, he sold two loaded Hi-Point .40 caliber semiautomatic pistols and one Hi-Point 9mm Carbine semiautomatic rifle to an undercover police officer. Means further admitted that during the gun deal, he accidentally discharged one of the firearms. The undercover officer making the controlled firearms purchase also observed Means selling methamphetamine to another individual.
Means additionally admitted that on September 15, 2016, law enforcement executed a search warrant on his residence. During the search, officers discovered an H&R .32 caliber semiautomatic pistol. In a statement to law enforcement, Means admitted to selling guns and drugs. Means was prohibited under federal law from possessing any firearm because of a 2012 conviction in the United States District Court for the Southern District of West Virginia for distribution of crack.
Means faces up to 10 years in federal prison when he is sentenced on June 22, 2017.
The Sheriff’s Tactical Operations Patrol (STOP Team) of the Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case is also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Charleston felon pleads guilty to federal gun chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Tiffany Shaffer, 27, entered her guilty plea to being a felon in possession of a firearm.
Shaffer admitted that on January 9, 2017, she sold crystal methamphetamine at her residence to a confidential informant working with the Drug Enforcement Administration. Shaffer also admitted that during the controlled buy, she displayed a North American Arms .22 magnum pistol to the confidential informant. On January 16, 2017, law enforcement executed a search warrant at Shaffer’s house. During the search, officers found two additional firearms that had been in Shaffer’s possession. Shaffer was prohibited from possessing any firearm under federal law because of a 2012 conviction in Kanawha County Circuit Court for conspiracy to operate a clandestine drug laboratory.
Shaffer faces up to 10 years in federal prison when she is sentenced on June 19, 2017.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. This case is also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Chambersburg Man Indicted on Drug Trafficking ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dexton Brunson, age 44, of Chambersburg, Pennsylvania, was indicted by a federal grand jury on drug trafficking charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Brunson with possessing with the intent to distribute cocaine and marijuana and criminal conspiracy. The charges arise out of an incident that occurred on December 8, 2016, when Brunson’s home was searched by the Pennsylvania State Police and the United States Marshals Service that led to the discovery of cocaine and marijuana in his home.
The case was investigated by the Pennsylvania State Police, the Franklin County District Attorney’s Office, the United States Marshals Service and the Harrisburg Resident Office of the Drug Enforcement Administration. Assistant United States Attorney William A. Behe is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each drug charge is a 20-year term of imprisonment. A term of supervised release following imprisonment must be imposed as well as a potential fine of $1 million dollars. 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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Cass City Resident Sentenced for Falsely Certifying Cargo TanksRead the Press Release
Garald Bennett of Cass City, Michigan was sentenced on Monday, March 20, 2017, to one year and one day in custody for falsely certifying and marking cargo tanks as having passed hydrostatic pressure and wet fluorescent magnetic particle test as required by the Hazardous Materials Transportation Safety Act, acting United States Attorney Daniel L. Lemisch announced.
Mr. Lemisch was joined in the announcement by Thomas J. Ullom, Regional Special Agent-in-Charge, Office of Inspector General, U.S. Department of Transportation.
Bennet was sentenced by United States District Judge Thomas Ludington in Bay City, Michigan. In imposing the sentence, Judge Ludington described Bennett’s work as “dangerously ineffective.”
“The sentencing of Garald Bennett related to falsely certifying and marking certain cargo tanks as having passed required safety tests is a clear signal that severe penalties await those that would seek to circumvent hazardous materials transportation laws,” said Thomas J. Ullom, regional Special Agent-in-Charge of U.S. DOT’s Office of Inspector General. “Working with our Federal, state and local law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to ensure the integrity of DOT’s HAZMAT safety program.”
According to court documents, Bennett, 72, managed LPG Service and Leasing LLC (LPG), a cargo tank testing facility in Cass City, MI. In that capacity, Bennett supervised the employees of LPG. Bennett, both personally and through his subordinates, repeatedly and falsely certified to customers that LPG had property inspected and tested the cargo tank portions of tanker trucks used to transport liquid and gaseous bulk cargos, including explosive materials, as required by the Department of Transportation regulations governing five year re-certifications. The regulations are designed to ensure the safety of the public on the roadways and the people who work on and around the cargo tanks.
Bennett also knew that the water tank at LPG that should have held the water used to conduct hydrostatic pressure tests was drained to prevent freezing. Nevertheless, he continued to certify that hydrostatic pressure tests had been done on tanks brought in for inspection.
Similarly, when Bennett was in charge at LPG, some of the cargo tanks that were supposed to be tested were not emptied and cleaned properly, making it impossible for workers to enter the cargo tanks to conduct the required testing procedure. Bennett nevertheless falsely certified that the cargo tanks had been properly subject to wet fluorescent magnetic particle testing and had passed inspection.
Knowing that the required testing procedures had not been followed, Bennett instructed the employees at LPG to apply labels to the cargo tanks that indicated that the tanks had been successfully tested. Moreover, Bennett directed employees to work on cargo tanks without verifying that the employees followed required procedures.
The case was investigated by agents of OIG- U.S. Department of Transportation and prosecuted by the United States Attorney’s Office in Bay City, Michigan.
Cape Cod Man Pleads Guilty to Heroin Trafficking and Money LaunderingRead the Press Release
BOSTON – A Hyannis man pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin and money laundering.
Christian Chapman, 27, pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and money laundering. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 12, 2017.
In October 2015, law enforcement initiated an effort to address the rising opiate epidemic in Massachusetts and on Cape Cod in particular. According to court documents, Chapman and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictment. Chapman obtained heroin from New Bedford, amongst other suppliers, and distributed the heroin to numerous drug dealers on Cape Cod. In total, Chapman agreed to accept responsibility for between 400 and 700 grams of heroin. In addition, Chapman rented a home in Hyannis at which he stored his narcotics. In order to pay the rent, Chapman wired money to the individual whose name was on the lease.
The charge of conspiracy to distribute and possession with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million. The charge of money laundering provides for a sentence of no greater than 20 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Buffalo Man Convicted by A Jury of Gun and Drug ChargesRead 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 that a federal jury this afternoon returned a verdict convicting Gregory Ramos, a/k/a Prospect, 25, of Buffalo, NY, of possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a person subject of a domestic violence order of protection. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorneys Michael P. Felicetta and Laura A. Higgins, who handled the prosecution of the case, stated that Ramos is a member of the FEB Gang which has a history of drug trafficking, firearms possession and violent crime. On May 21, 2016, Buffalo Police received a complaint involving a domestic dispute on Fargo Avenue between a woman and the defendant. An investigation determined that Ramos assaulted the woman, causing abrasions and bruising, and threatened her life. At the time of the domestic assault, Buffalo Police were looking for the defendant in connection with a fatal shooting, which occurred at the Anchor Bar Restaurant the previous day.
The charges contained in the federal indictment primarily involved events occurring on May 23, 2016. On that date, Niagara Falls Police Officers spotted Ramos’ car on Pine Avenue and attempted to stop the vehicle. As officers approached, the defendant sped away. A high-speed chase ensued during which Ramos threw bags of cocaine and a gun from his car window. The cocaine struck the windshield of the officers’ car on Hyde Park Avenue, while the gun struck and shattered the rear window of another driver’s vehicle.
The chase, which involved multiple Niagara Falls Police vehicles, proceeded onto Grand Island, where a toll collector at the Grand Island Bridge reported that the defendant’s vehicle was traveling approximately 100 miles per hour as it went through the tollbooths. Once on Grand Island, Ramos abandoned his vehicle on Stony Point Road and fled into a wooded area. A few minutes later, the Erie County Sheriff’s Department received a call from an individual who identified himself as Gregory Ramos. The caller claimed his vehicle had been stolen in Niagara Falls by an unknown black male. The defendant Ramos was apprehended a short time later in a wooded area on the Island and taken into custody. At the time, Ramos was in possession of $3,640 in cash.
With Ramos having been convicted in federal court on these drug and gun charges, he remains under indictment on state murder and domestic assault charges involving the Anchor Bar shooting death and the beating of his girlfriend.
The verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto; and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for July 11, 2017, at 10:00 a.m. before U.S. District Judge Lawrence J. Vilardo, who presided over the trial.Bismarck Woman Sentenced in Meth ConspiracyRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on March 20, 2017, Maisie Elizabeth Barnson, 37, Bismarck, ND, was sentenced before Chief US District Judge Daniel L. Hovland to serve 10 years in prison and five (5) years supervised release. Judge Hovland further ordered that Barnson pay a $300 special assessment to the Crime Victims’ Fund. Barnson pled guilty to a three (3) count Superseding Indictment charging her with: Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance, Distribution of a Controlled Substance, and Possession with Intent to Distribute a Controlled Substance.
Beginning around January 2016, law enforcement officers were informed that Barnson was distributing methamphetamine throughout the Bismarck area. Search warrants were obtained for a hotel room as well as the residence where Barnson was living along with her brother and codefendant Matthew King. During the search of both locations, an estimated 1 kg of methamphetamine and $10,000 were discovered.
This case was investigated by the Bismarck Police Department and the Drug Enforcement Agency.
Special Assistant US Attorney Dawn Deitz prosecuted the case.
Ballston Spa Man Sentenced to 96 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Parker S. Sikand, age 25, of Ballston Spa, New York, was sentenced today to 96 months in prison for distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
United States District Judge Mae A. D’Agostino also ordered Sikand to serve a 15-year term of supervised release, to begin after his release from prison, and to pay restitution, in an amount to be determined by Judge D’Agostino at a later time, to a child pornography victim whose images Sikand possessed. Sikand must also register as a sex offender upon his release from prison.
As part of his November 23, 2016 guilty plea, Sikand admitted that while living in Troy, New York, in September and October 2012, he distributed, received and possessed videos depicting children, some as young as 2-3 years old, engaged in sexual acts. He admitted to distributing and receiving these videos through an Internet peer-to-peer file-sharing service, and to possessing them on a laptop computer and a separate computer hard drive.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Bailey Boys Gang Member Sentenced for Involvement in Two ShootingsRead 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 Derrick Ramos, aka Little D, 26, of Buffalo, NY, who was convicted of RICO conspiracy, was sentenced to 72 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that Ramos was a member of the Bailey Boys Gang. On December 30, 2010, the defendant was one of the shooters involved in a drive-by shooting during which Philip Brown, also known as "Skateboard," and a second, unidentified man were wounded. Believing that they had found members of a rival gang in the vicinity of Broadway and Sears on Buffalo’s East Side, Ramos and at least one other individual, all of whom were travelling in a van with several other individuals, fired a series of shots. Brown was hit in the shoulder, while the second individual was shot in the upper thigh.
Ramos is one of 10 individuals indicted in this case. Six defendants have been convicted, charges are pending against the remaining four defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Alabama Resident Sentenced for Bank RobberyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on March 21, 2017, George David Treece, 38, of Alabama, was sentenced for bank robbery. Treece received a term of imprisonment of 115 months to be followed by a three year term of supervised release. Treece was also ordered to pay a $300 fine, a $100 special assessment, and $345 in restitution to the Farmers State Bank. Treece has been held without bond since his arrest on a criminal complaint on August 29, 2016.
The charge arose when, on August 26, 2016, Treece entered the Farmers State Bank in Central City, Illinois, and demanded money from a bank teller. After the teller removed the money from her drawer and placed it on the counter, Treece took the money and left. Treece led police on a high speed chase in an effort to evade capture. The chase ended when Treece crashed his vehicle. Later that day, Treece admitted robbing the bank.
The case was investigated by the Central City Police Department, Centralia Police Department, Wamac Police Department, and the Federal Bureau of Investigation. The case was assigned to Assistant United States Attorney Angela Scott.
A North Miami Resident was Sentenced to More than 3 Years in Prison for Identity TheftRead the Press Release
A North Miami resident was sentenced yesterday by United States District Judge Kathleen M. Williams to 40 months in prison, to be followed by three years of supervised release, for possessing over 1,000 pieces of personal identifying information of other individuals.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), and Nonie Manion, Acting Commissioner, New York State Department of Taxation and Finance made the announcement.
Randy Jacques, 28, previously pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on August 20, 2015, pursuant to a search warrant, law enforcement searched Jacques’ residence in connection with an investigation related to the more than 200 fraudulent telephone calls made to the New York State Department of Taxation and Finance. During the search of the residence, law enforcement recovered a laptop from the defendant’s room. A forensic analysis of the laptop revealed documents containing the personal identifying information (PII) of other individuals, including their names, dates of birth and social security numbers. The forensic analysis identified 1,147 unique pieces of PII. In addition, approximately 47 New York State tax forms were recovered from the laptop.
Law enforcement spoke with an individual victim whose name, date of birth, and social security number were located on Jacques’ laptop, and confirmed that he/she did not authorize the defendant to be in possession of the PII.
“The U.S. Attorney’s Office in the Southern District of Florida is committed to combatting identity theft fraud schemes that compromise local and national taxpayer identities,” said Acting U.S. Attorney Benjamin G. Greenberg. “Prosecuting the offenders who unlawfully steal and possess the personal identification information of others remains a top priority for the Office and our partners.”
“The U.S. Department of Labor, Office of Inspector General collaborated with investigative partners at the New York State Department of Taxation and Finance to dismantle an identity theft scheme based in South Florida. We will continue working diligently to combat these types of schemes,” stated Rafiq Ahmad, Special Agent in Charge, Atlanta Region, DOL-OIG.
"Criminals who steal private taxpayer information will be prosecuted to the fullest extent of the law," said Acting Commissioner of the New York State Department of Taxation and Finance Nonie Manion. "New York State goes to great lengths to protect honest taxpayers from being victimized by identity thieves using stolen data for their own personal gain. We will continue to track down these criminals, wherever they may be, and stop their illegal schemes."
Mr. Greenberg commended the investigative efforts of DOL-OIG and the New York State Department of Taxation and Finance. This case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.
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.
A Homestead Resident was Sentenced to Two Years in Prison for Child PornographyRead the Press Release
A Homestead resident was sentenced yesterday by U.S. District Judge William P. Dimitrouleas to 24 months in prison, to be followed by five years of supervised release, for possessing child pornography.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI) made the announcement.
Bismarck Antonio Vargas, 43, of Homestead, previously pled to guilty to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).
According to court documents, on or about September 22, 2011, in Broward County, in the Southern District of Florida, Vargas possessed an Apple iPhone containing 67 photos depicting child pornography. Among these images were pictures of prepubescent minors. Based on a forensic examination, the images of child pornography were uploaded to the iPhone between July 26, 2011 and September 19, 2011. Vargas viewed images of minor females and saved some of the images to his cellular telephone.
Mr. Greenberg commended the investigative efforts of the FBI. This case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.
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.
29 Indicted on Federal Drug Trafficking Charges; 14 are “Young Mob” Gang MembersRead the Press Release
Memphis, TN – Fourteen defendants of a violent, drug trafficking street gang, along with fifteen individuals not affiliated with "Young Mob" were indicted on federal drug charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the charges yesterday.
First indictment
Yesterday, members of the ATF Memphis Field Office, U.S. Marshals Office, Tipton County Sheriff’s Office and Shelby County Sheriff’s Office arrested fourteen defendants named in an indictment as members and associates of the Young Mob gang, an armed drug trafficking organization.
The arrests and indictment are the result of an extensive investigation by federal, state and local law enforcement officials into the Young Mob gang, which began in 2016. During the investigation, officials were able to determine that members and associates of the gang were distributing large quantities of narcotics throughout the Western District of Tennessee.
"As the indictment alleges, members of the "Young Mob" distributed substantial amounts of drugs throughout West Tennessee. In addition, members of the "Young Mob" also brought dangerous weapons into our community," said Acting U.S. Attorney Laurenzi. "We will continue to work with our law enforcement partners to eliminate the violence gang members inflict upon our communities and put a stop to their criminal enterprises. In accomplishing these goals, we will exhaust every available resource to bring them to justice. Dismantling violent gangs at the highest levels remains a priority for the U.S. Attorney’s Office and its law enforcement partners."
The fourteen defendants arrested are:
• Travlis Banks, a/k/a "Puncho," 37, of Memphis, TN;
• Cordarius Frost, a/k/a "Red," a/k/a "Lil Red," 26, of Memphis, TN;
• Antwaun Mathews, a/k/a "Twaun," a/k/a "Mobhomie Twaun," 27, of Memphis, TN;
• Ronneill Ross, a/k/a "BG,"37, of Memphis, TN;
• Cortney Williams, a/k/a "CC," 26, of Memphis, TN;
• Darrell Booth, a/k/a "Boo," a/k/a "Pawntell,"37, of Memphis, TN;
• Rubin Hampton, 26, of Memphis, TN;
• Johnquis Jones, a/k/a "Bug," 24, of Memphis, TN;
• Anthony Allen, a/k/a/ "UNC," 50, of Memphis, TN;
• Damein Pack, 32, of Memphis, TN;
• Carlus Johnson, 34, of Memphis, TN;
• Shavita Hampton 25, of Memphis, TN;
• Angela Boyd, a/k/a "Auntie," 53, of Memphis, TN;
• Tori Dickson, 24, of Memphis, TN.Steve Gerido, ATF Special Agent in Charge said, "The relentless proactive approach of this investigation by ATF and our partners has severely limited the criminal behavior in the affected Memphis neighborhoods. ATF will remain engaged as we move forward in an effort to protect the public from violent offenders. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s report it phone app."
The investigation resulted in the seizure of more than forty firearms, several of which were stolen; 15-20 digital scales, several cellular telephones, hundreds of different caliber rounds of ammunition and several magazines for firearms. Law enforcement also seized $85,661 in cash, which was derived from the sale of narcotics and firearms.
The case was investigated by the ATF Memphis Field Office, the Drug Enforcement Administration, the Tipton County Sheriff’s Office, the Shelby County Sheriff’s Office, the United States Marshals Service, and the Memphis Gang Unit.
Special Assistant United States Attorney Sam Stringfellow is prosecuting this case on the government’s behalf.
Second indictment
A second indictment charged fifteen residents of the Memphis area for conspiring to distribute large quantities of drugs throughout West Tennessee. Today nine defendants were taken into custody by federal, state, and local law enforcement officials.
According to the indictment, on or about March 1, 2016, and continuing through the returning of the indictment, the defendants conspired to distribute various controlled substances, including methamphetamine, marijuana, cocaine, oxycodone, hydrocodone, and alprazolam (Xanax). Three defendants have also been indicted for conspiring to commit money laundering.
"As alleged, these defendants worked together to distribute all sorts of illegal drugs throughout the Memphis area, while lining their pockets with the illicit proceeds," said Acting U.S. Attorney Laurenzi. "These charges and arrests show that we will bring to justice those who peddle this poison, particularly to our children and young adults. I thank the FBI, the Multi-Agency Gang Unit, and all our partners for their diligent efforts on this case, and I’d like to express particular gratitude to the federal, state and local law enforcement officials who took part in today’s takedown."
The nine defendants who have been arrested are:
• Rodriccos Broadnax, a/k/a "Rico," 22, of Memphis, TN;
• Jerome Taylor, a/k/a/ "Rome," a/k/a "Three Pop," 56, of Memphis, TN;
• Teeka Shannon, 34, of Memphis, TN;
• Angela Weaver, 41, of Memphis, TN;
• Richard Cobb, 48, of Bartlett, TN;
• Paul Williams, 33, of Lakeland, TN;
• Arteleious Ingram, a/k/a "Block," 29, of Memphis, TN;
• Brandon Davison, a/k/a/ "Millwood," a/k/a/ "Lil B," 29, of Memphis, TN;
• Shalandria Jackson, a/k/a "Pumpkin," 24, of Memphis, TN."Gang-related drug trafficking continued to plague our communities. These arrests will help return the affected neighborhoods to places where residents can live and work, and enjoy their communities free from the distraction of gangs, guns, drugs and violence," said Matthew W. Espenshade, Acting Special Agent in Charge of theMemphis Field Office of the Federal Bureau of Investigation. "It is the continued commitment of the FBI and our partners to disrupt and dismantle gang activity to ensure a safer community."
Count 1 charges Jerome Taylor, Larry Broadnax, Rodriccos Broadnax, Teeka Shannon, Jason Washington, Angela Weaver, Richard Cobb and Paul Williams with conspiracy to distribute Methamphetamine. Taylor, Larry Broadnax, Rodriccos Broadnax, Rodney Broadnax and Shannon are alleged to have distributed 500 grams or more of a mixture and substance containing a detectable amount of Methamphetamine. Washington,
Weaver, Cobb and Williams are alleged to have distributed 50 grams or more of a mixture and substance containing a detectable amount of Methamphetamine.
Count 2 charges Larry Broadnax, Artelious Ingram, Rodriccos Broadnax, Rodney Broadnax, Jerome Taylor, Brandon Davison, Shalandria Jackson and two others with conspiracy to distribute Marijuana. The indictment states that Larry Broadnax was responsible for distributing more than 1,000 kilograms of Marijuana.
Count 3 charges Larry Broadnax and another individual with conspiracy to distribute 500 grams or more of Cocaine.
Count 4 charges Larry Broadnax, Rodriccos Broadnax, Brandon Davison, Robert Cobb and another individual with conspiracy to distribute Oxycodone.
Count 5 charges Larry Broadnax, Rodney Broadnax and Jerome Taylor with conspiracy to distribute Hydrocodone.
Count 6 charges Larry Broadnax, Jerome Taylor, Rodriccos Broadnax, Angela Weaver and Brandon Davison with conspiracy to distribute Alprazolam (Xanax).
Count 7 charges Larry Broadnax, Arteleious Ingram and another individual with conspiracy to commit money laundering.
This case is being investigated by the Federal Bureau of Investigation’s Safe Streets Task Force and the Multi-Agency Gang Unit. The Safe Streets Task Force is comprised of agents and officers from the FBI’s Memphis Division, the Memphis Police Department, the Shelby County Sheriff’s Department, the Bartlett Police Department, the Germantown Police Department and the DeSoto County Sheriff’s Department. During the investigation, members of the Task Force also worked closely with the Memphis Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Mark Erskine is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tuesday 21 March 2017
Worcester Business Owner Indicted for Fentanyl Distribution and Money LaunderingRead the Press Release
BOSTON – A Worcester business owner was arrested yesterday and charged in connection with using the proceeds of drug sales to purchase and renovate nine properties in Worcester County.
Kevin A. Perry, 43, of Worcester, was indicted on nine counts of money laundering, three counts of aggravated cash structuring, one count of making a false statement on a loan application and one count of distribution of fentanyl. Perry was held pending a detention hearing following his arraignment before U.S. District Court Magistrate Judge David H. Hennessy.
According to the indictment, in January 2005, Perry was convicted in federal court in Massachusetts of conspiracy to manufacture and distribute MDMA, commonly referred to as Ecstasy. Despite filing an affidavit claiming he possessed nothing of monetary value to satisfy the court’s forfeiture order, Perry asserted to an individual that he successfully concealed “millions of dollars” in profits from his illegal drug operation from the government. Following his release from prison in 2008, Perry allegedly returned to manufacturing and/or distributing controlled substances, including anabolic steroids, cocaine and fentanyl. It is alleged that from April 2012 to October 2016, Perry used over $1 million in drug sale proceeds to purchase and renovate nine properties in Worcester County.
Perry also allegedly used the proceeds from his drug sales to purchase more than 230 money orders totaling over $150,000 from the United States Postal Service and Western Union to make structured cash payments on real estate loans and to finance his wedding in August 2015.
The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. The charge of aggravated cash structuring provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. The charge of making a false statement on a loan application provides for a sentence of no greater than 30 years in prison, five years of supervised release and fine of $1 million. The charge of distribution of fentanyl provides a mandatory minimum sentence of 10 years and no greater than life in prison, and five years of supervised release. 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 J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Williamsville Cocaine Trafficker Sentenced to 25 Years in PrisonRead 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 Jack Reid, III, 49, of Williamsville, N.Y., was sentenced, by U.S. District Judge Richard J. Arcara, to 25 years in prison and 10 years supervised release. Judge Arcara also ordered Reid to forfeit $1,000,000 and two properties in Williamsville and Amherst, NY. Reid’s sentence follows his conviction, after a jury trial, of conspiring to possess with intent to distribute five kilograms or more of cocaine and possessing with intent to distribute cocaine.
Assistant U.S. Attorney Timothy C. Lynch, who handled the sentencing, stated that beginning in 1990 through April, 2012, the defendant utilized family members and others as drug couriers and distributors of more than 50 kilograms of cocaine. The cocaine, which was obtained from sources in Rochester and New York, New York as well as Atlanta, Georgia, was distributed in various areas throughout Erie and Niagara Counties.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Lockport Police Department, under the direction of Chief Michael Niethe.