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Tuesday 21 March 2017
Wheeling Island woman indicted for heroin and cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Carla Webb Daniels, of Wheeling Island, West Virginia, was indicted today by a federal grand jury sitting in Martinsburg for allegedly distributing heroin near two Ohio County schools, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Daniels, age 56, was indicted on four counts of “Distribution of Heroin Within 1,000 Feet of a Protected Location,” one count of “Possession with Intent to Distribute Cocaine Base within 1,000 Feet of a Protected Location,” and one count of Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location.” Daniels is accused of committing the crimes from January to March of this year in close proximity to Madison Elementary School on Wheeling Island and Wheeling Central Catholic High School in Wheeling.
Daniels faces up to forty years and a $2,000,000 fine for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force and the Marshall County Drug & Violent Crime Task Force, HIDTA-funded initiatives, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia man indicted for heroin and cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wilbur Reid, Jr., of Roanoke, Virginia, was indicted today by a federal grand jury for allegedly possessing heroin and cocaine, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Reid, age 42, was indicted on one count of “Possession with Intent to Distribute Cocaine Hydrochloride” and one count of “Possession with Intent to Distribute Heroin.” Reid is accused of committing the crimes in September 2016 in Berkeley County.
Reid faces up to forty years and a $5,000,000 fine for the first count and up to twenty years and a $1,000,000 fine for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Men Sentenced to Prison for Smuggling Foreign Nationals into the United StatesRead the Press Release
NEWARK, N.J. – Two men were each sentenced to 17 months in prison today for their roles in a conspiracy to illegally transport foreign nationals into the United States via commercial airline flights, Acting U.S. Attorney William E. Fitzpatrick announced.
Nileshkumar Patel, 42, and Harsad Mehta, 67, both of India, previously pleaded guilty before U.S. District Judge William J. Martini to separate superseding informations charging them each with one count of conspiracy to smuggle foreign nationals into the United States for commercial advantage and private financial gain. Judge Martini imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Patel and Mehta admitted that from June 2013 through October 2015, they conspired to make money by recruiting Indian nationals to enter and reside in the United States illegally. Patel and Mehta admitted that on July 24, 2014, they brought two Indian nationals to Bangkok, Thailand, so that they could be transported into the United States. They also admitted paying an individual – who was actually an undercover officer – to transport the foreign nationals from Thailand into Newark.
In addition to the prison terms, Judge Martini sentenced them Patel and Mehta to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S Attorney’s Office National Security Unit in Newark.
Two Kershaw County Men Plead to Armed Bank RobberyRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Yancey Kevon Wilson, age 23, and Randy Jones, Jr., age 23, both of Kershaw County plead guilty in federal court today to various charges stemming from the June 23, 2015, armed robbery of Sandhills Bank in Bethune, South Carolina. Wilson plead guilty to armed bank robbery, use/possession/discharge of a firearm in connection with a crime of violence, and felon in possession of a firearm and ammunition, all in violation of Title 18, United States Code, Sections 922(g)(1), 924(c), 2113(a), and 2113(d). Jones plead guilty to conspiracy to commit armed bank robbery and aiding and abetting the use/possession/discharge of a firearm in connection with a crime of violence, all in violation of Title 18, United States Code, Sections 371 and 924(c). Chief United States District Judge Terry L. Wooten of Columbia accepted the guilty pleas and will impose sentences after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
Evidence presented in court during the guilty plea hearing established that on the early morning hours of June 23, 2015, Wilson, while armed with a Smith and Wesson .40 caliber handgun and wearing a white hoodie, sunglasses, and gloves, approached a bank employee outside the bank and forced her at gunpoint to get him inside the locked bank building. Once inside the bank, Wilson brandished the firearm and demanded money. After obtaining money, Wilson fled from the bank and discharged the firearm twice outside the bank. Witnesses heard the shots fired and observed a dark colored vehicle, later determined to be driven by Jones, with paper tags pick up Wilson and flee the scene. On June 25, 2015, deputies with the Kershaw County Sheriff’s Department located Jones and Wilson, along with another individual with a vehicle fitting the description of the get-away vehicle at a carwash in Lugoff. Further investigation lead to the discarded clothes worn by the bank robber, Wilson, and the empty bank bag from Sandhills Bank, all of which was found on the side of a road where Jones told investigators they left them. DNA analysis revealed Wilson’s DNA on the discarded white hoodie. Additionally, the two fired .40 caliber shell casings recovered from the scene of the bank robbery were matched to a Smith and Wesson .40 caliber firearm purchased by Jones in February 2015. Finally, text messages were recovered from a cell phone showing that Wilson and Jones planned the bank robbery in advance. Wilson is prohibited from possessing a firearm and ammunition by virtue of his prior state convictions for strong arm robbery and assault and battery 1st degree.
Wilson faces a maximum of twenty-five years imprisonment, a fine of $250,000, and three years of supervised release on the armed bank robbery charge, as well as a maximum of ten years imprisonment, a fine of $250,000, and three years of supervised release on the felon in possession of a firearm and ammunition charge. Jones faces a maximum of five years imprisonment, a fine of $250,000, and three years of supervised release on the conspiracy charge. Additionally, both Wilson and Jones face a statutory mandatory minimum ten years imprisonment with a maximum of life imprisonment, which will be served consecutively to the other terms of imprisonment, a fine of $250,000, and five years of supervised release on the use/possession/discharge of a firearm during a crime of violence charge. Both Wilson and Jones will also be required to make restitution to the bank.
The case was investigated by the Kershaw County Sheriff’s Department, the Bethune Police Department, the South Carolina Law Enforcement Division (“SLED”), and the Federal Bureau of Investigation. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Three Men Indicted for Kidnapping ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted three men for a kidnapping conspiracy in which the defendants allegedly lured the victim from New Jersey to Maryland, in order to kill the victim. The indictment was returned on March 20, 2017. The indictment charges the following individuals:
Neris Moreno-Martinez, a/k/a Jose Neris Moreno, Jr., age 19, of West New York, New Jersey;
Jose Israel Melendez-Rivera, age 19, of Montgomery Village, Maryland; and
Reynaldo Alexi Granados-Vasquez, age 21, of Gaithersburg, Maryland
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“This indictment alleges a horrifically planned effort to lure a victim across multiple states into Maryland with the sole purpose of kidnapping and inflicting grotesque bodily harm,” said Andre R. Watson, Special Agent in Charge of HSI Baltimore. “HSI will continue to use its wide jurisdictional authorities and collaborate with state and local law enforcement to ensure that we shield Maryland-area communities from this type of violent criminal activity.”
According to the indictment, on October 1, 2016, Moreno created a social media account in the name of Shaila Smith. From that time until October 15, 2016, Moreno, and others acting at the direction of Moreno, posed as Shaila Smith and used the social media account to communicate with the victim. Pretending to be Shaila Smith, Moreno and his co-conspirators allegedly expressed a romantic interest in the victim and persuaded the victim to travel from New Jersey to Maryland to meet in person. Using the Shaila Smith social media account, Moreno and his co-conspirators instructed the victim when to travel to Maryland, what transportation service to use, and provided Melendez-Rivera’s address as the location where the victim should meet “Shaila Smith.”
The indictment alleges that on October 15, 2016, Moreno traveled from New Jersey to Maryland in order to kill the victim. According to the indictment, on October 15, 2016, Moreno, Melendez-Rivera and Granados-Vasquez killed the victim in a wooded area in Gaithersburg and buried the victim’s body in a shallow grave.
The defendants each face a maximum sentence of life in prison for the conspiracy. Reynaldo Granados-Vasquez had his initial appearance at 1:45 p.m. today before U.S. Magistrate Judge Charles B. Day, in U.S. District Court in Greenbelt and is detained. An initial appearance for Moreno and Melendez-Rivera has not yet been scheduled. They are currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Montgomery County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lindsay Eyler Kaplan and Daniel C. Gardner, who are prosecuting the case.
Tampa Mother Sentenced for Tax Fraud Conspiracy Along with Her SonsRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Elise Ellis to 18 months in federal prison and 6 months’ home detention for conspiracy to commit tax fraud and aggravated identity theft. As part of her sentence, the Court also entered a joint and several money judgement in the amount of $221,000, representing the proceeds of the tax fraud conspiracy. Ellis pleaded guilty on January 3, 2017.
Her sons, Keith Godbolt and Paul Johnson, were previously sentenced to four years and three years and six months, respectively, for their roles in this case.
According to court documents, from August 2011 through April 2013, Ellis, Godbolt, and Johnson conspired to commit wire fraud, theft of government property, and identity theft by electronically filing fraudulent tax returns in the names of others, using their social security numbers. The fraudulent tax refunds were directed to bank accounts in the defendants’ names, or in some cases, to debit cards that they controlled. Ellis and her sons then withdrew the fraudulent refunds by writing checks or otherwise transferring funds to each other through bank transfers or cash withdrawals.
Most of the fraudulently filed tax returns claimed unusually high taxable interest or dividend income, many using the exact same figure, with a large withholding amount, and a false occupation listed for the taxpayer. Many of the victims were deceased when their false tax return was filed.
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Tahlequah Woman Sentenced to 70 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TERESA CHAGOLLA, age 55, of Tahlequah, Oklahoma, was sentenced to 70 months imprisonment, and 3 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C).
The Information alleged that beginning in or about the end of 2013 and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester, and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Man Sentenced to 60 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GARY WAYNE WILDER, age 36, of Tahlequah, Oklahoma, was sentenced to 60 months imprisonment, and 4 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The Information alleged that in or about October, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester, and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Stroudsburg Man Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Andershonis, age 58, of Stroudsburg, Pennsylvania, pleaded guilty on March 20, 2017, before United States Magistrate Judge Karoline Mehalchick for failing to pay employment taxes.
According to United States Attorney Bruce D. Brandler, Andershonis owned and operated Just Very Affordable, Inc., a Stroudsburg home renovation business, and failed to pay employment taxes from the first quarter of 2010 to the last quarter of 2012, resulting in a tax loss of more than $212,000.
The case was investigated by the Internal Revenue Service. Assistant United States Attorney Evan Gotlob is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. 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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Statement by Attorney General Sessions on Fatal Officer Shooting in LouisianaRead the Press Release
Attorney General Jeff Sessions today issued the following statement regarding Saturday’s fatal shooting in Louisiana:
“We are all saddened to learn of the death on Saturday night of Sergeant Shawn Anderson, who was shot and killed while trying to question a rape suspect. His death adds to the sorrow of the law enforcement community in Baton Rouge, Louisiana, which still mourns the killing last July of three officers during an ambush. The loss of Sergeant Anderson underscores the dangers that our men and women in law enforcement face willingly every day as they serve and protect us. We are forever in their debt, and we must do more to keep them safe. I will make available all of the resources of the department to aid the state and local authorities investigating this incident, and to ensure that the suspect who killed this brave officer faces justice. My thoughts and prayers, and those of the entire Department of Justice, go out to the family, loved ones, and colleagues of Sergeant Anderson.”
St. Charles Man Sentenced for Heroin Distribution that Killed Local ManRead the Press Release
St. Louis, MO – David Bollinger, was sentenced to 130 months imprisonment today on charges of knowingly and intentionally distributing heroin to Mitchell Stenger.
According to testimony presented at sentencing, Stenger contacted Bollinger on December 3, 2014, and asked Bollinger to provide him with heroin. After initially declining, Bollinger made the 60-mile round-trip from his home in Cottleville to a source of supply in the City of St. Louis, where he acquired heroin. Bollinger then delivered that heroin to Stenger, despite knowing that Stenger was suffering from significant asthma-related breathing difficulties and was receiving regular injections of Vivitrol. Dr. Stacey Hail, an Emergency Department physician at Parkland Hospital in Dallas, Texas, testified that Vivitrol is a prescription medication used in the treatment of heroin addiction. The medication is administered by injection, given once monthly and blocks heroin’s effects on the user’s brain. As a result, Hail testified, users who attempt to overcome the blockade use increasingly large amounts of heroin in order to get high, leaving them especially vulnerable to overdose. Shortly after Stenger’s death, Bollinger admitted to police that he knew that Stenger was using dangerous amounts of heroin in an attempt to counteract the Vivitrol, and reported that his last words to Stenger were “dude, be careful.”
Bollinger pled guilty in July 2016 to one felony count of distribution of heroin. He appeared today for sentencing before United States District Judge Carol E. Jackson. In her remarks, Judge Jackson noted that Stenger would not have died "but for" the ingestion of the heroin distributed by Bollinger, and that the offense required a significant punishment.
This case was investigated by the Cottleville Police Department, the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.
Six indicted for shipping methamphetamine, heroin and cocaine from California to OhioRead the Press Release
Six people were indicted for their roles in a conspiracy to bring methamphetamine, heroin and cocaine to Ohio from California and then sell the drugs here and in West Virginia, Acting U.S. Attorney David A. Sierleja.
Named in the 19-count indictment are: Roya Tabatabai, 32, of Grafton; Omid Tabatabai, 36, of Los Angeles; Joshua Thacker, 36, of Elyria; Joseph Bratkovich, 41, of Wellington; Gabrielle Fry, 22, of California, and Nancy Rhode, 39, fo Maysel, W. Va.
Omid Tabatabai obtained multi-kilogram shipments of methamphetamine and cocaine from suppliers in Los Angeles. He and others would then mail weekly shipments of the drugs to his sister, Roya Tabatabai and others, according to the indictment.
Roya Tabatabai, in turn, distributed the methamphetamine to Thacker, Bratkovich, Rhodes and others in Ohio and West Virginia. She used her house at 36097 Capel Road in Grafton to store and distribute the methamphetamine and cocaine, according to the indictment.
Omid Tabatabai, Thacker and Bratkovich used firearms to protect their drug trafficking activities. The conspiracy took place between 2015 and this year, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Vasile Katsaros and Phillip Tripi following an investigation by the DEA and the U.S. Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Six New Jersey Men Charged in Manhattan Federal Court in Telemarketing Fraud Scheme Targeting the ElderlyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of ARASH KETABCHI, a/k/a “Zach Peterson,” ANDREW OWIMRIN, a/k/a “Andrew Owens, a/k/a “Jonathan Stewart,” WILLIAM SINCLAIR, MICHAEL FINOCCHIARO, a/k/a “Michael Foster,” ARIEL PERALTA, and JOSEPH McGOWAN for conspiring to commit wire fraud and money laundering. KETABCHI, OWIMRIN, SINCLAIR, FINOCCHIARO, PERALTA, and McGOWAN were arrested this morning and will be presented this afternoon before U.S. Magistrate Judge Henry B. Pitman in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, these defendants targeted the elderly, convincing them to ‘invest’ in their businesses with promises of financial returns. In fact, as alleged, these defendants never fulfilled their promises, and instead swindled their victims out of thousands of dollars. Thanks to the cooperative work of HSI and the NYPD, these defendants will now have to answer for their alleged criminal acts.”
HSI Special Agent-in-Charge Angel M. Melendez said: “For almost three years, these defendants allegedly targeted some of the most vulnerable in our society, the elderly, by running a fraudulent telemarketing scheme that bilked the victims out of several thousands of dollars. It is very important that individuals do their due diligence when deciding to invest with companies. If the promise on returns seems too good to be true, then it probably is.”
Police Commissioner James P. O’Neill said: “As alleged, the defendants targeted the elderly, promising big payoffs. Instead, ‘investors’ were victim to a purported business development scheme that stole from our most vulnerable. Today, the defendants find themselves under arrest and facing serious charges. Thanks to the detectives, agents, and prosecutors whose work resulted in today’s announcement.”
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
Beginning in October 2013 through September 2016, KETABCHI, OWIMRIN, SINCLAIR, FINOCCHIARO, PERALTA, and McGOWAN operated a group of telemarketing companies (the “Telemarketing Companies”) that engaged in a fraudulent scheme (the “Telemarketing Scheme”), by which they promised to earn victims (the “Victims”) money in exchange for particular Victims making an initial cash “investment” in business development, website design, grant applications, or tax preparation services. Many Victims, the majority of whom are over 70 years old, “invested” thousands of dollars with the Telemarketing Companies, but did not earn any of the promised returns. When Victims of the Telemarketing Scheme sought refunds, or fought credit card charges, the Telemarketing Companies provided explanations and documentation to the credit card companies falsely representing that the Victims had received the promised services.
KETABCHI, OWIMRIN, SINCLAIR, FINOCCHIARO, PERALTA, and McGOWAN participated in the Telemarketing Scheme by, among other things, operating the interrelated Telemarketing Companies as set forth in the chart below:
Telemarketing Company
Defendants
A1 Business Consultants
Element Business Services
Elevated Business Consultants
Arash Ketabchi, a/k/a “Zach Peterson”
Andrew Owimrin, a/k/a “Andrew Owens,” a/k/a “Jonathan Stewart”
Olive Branch Marketing
Paramount Business Solutions
William Sinclair
Michael Finocchiaro, a/k/a “Michael Foster”
Carlyle Management Group
Ariel Peralta
Vanguard Business Solutions
Joseph McGowan
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KETABCHI, 43, of Wayne, New Jersey, OWIMRIN, 27, of Hackensack, New Jersey, SINCLAIR, 37, of Secaucus, New Jersey, FINOCCHIARO, 34, of East Rutherford, New Jersey, PERALTA, 31, of Cliffside Park, New Jersey, and McGOWAN, 31, of West New York, New Jersey, are each charged with one count of conspiring to commit wire fraud and one count of conspiring to commit money laundering, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of HSI and the NYPD. He added that the investigation is ongoing.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kiersten A. Fletcher and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If you have any information regarding KETABCHI, OWIMRIN, SINCLAIR, FINOCCHIARO, PERALTA, or McGOWAN, or victims of the Telemarketing Companies, please report it by phone at 917-480-7167 or by email at [email protected].
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Serial Armed Robber Sentenced to 168 Months in Federal Prison for His Role in Three Armed RobberiesRead the Press Release
DALLAS — Coby Cole Ditto, 21, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 168 months in federal prison for his role in committing several violent armed robberies in Dallas in 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Ditto pleaded guilty in October 2016 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence.
All of Ditto’s codefendants in the case, Michael Deshun Holland, Jr., 22, Devonte Aaron Dillard, 24, Tatiana Renee Sallie, 20, and Trenton Kyle Sirkel, 21, have pleaded guilty to their respective roles in the conspiracy. Dillard was sentenced to 240 months in federal prison. Skirkel was sentenced to 24 month in federal prison. Holland and Sallie are awaiting sentencing.
According to documents filed in the case, Ditto discussed and planned with each other co-defendants, among other things, the robberies of convenience stores located in Mesquite and Garland, Texas.
On May 8, 2015, Dillard, Holland, Ditto and Sirkel entered the 7-Eleven store on Interstate Highway 30 in Mesquite, brandished a firearm, and robbed the store.
On May 12, 2015, Dillard, Holland, Ditto and Sallie entered the 7-Eleven store on Gus Thomasson Road in Mesquite, brandished a firearm, struck an employee in the head with the firearm, and robbed the store.
That same night, Dillard, Holland, Ditto and Sallie went to the 7-Eleven store on Northwest Highway in Garland, brandished a firearm, assaulted a store employee, and robbed the store.
The case was investigated by Mesquite Police Department, Garland Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jamie Hoxie and Keith Robinson prosecuted.
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Seafood Processing Company and Owner Sentenced to Pay $60k for Dumping Oil and Raw SewageRead the Press Release
Anchorage, Alaska – East West Seafoods LLC, a State of Washington company, was sentenced in federal court today to pay a total of $50,000 in fines for violating the Act to Prevent Pollution from Ships, the Clean Water Act, and the Refuse Act by intentionally discharging oily bilge water and raw sewage into the ocean off the coast of Alaska, and then presenting false records to the U.S. Coast Guard.
East West Seafoods LLC was also placed on probation for five years. During the term of probation, East West Seafoods LLC will be subject to a heightened level of scrutiny, including warrantless searches of its vessels and places of business based upon a reasonable suspicion that it is violating the law. Other terms of probation require East West Seafoods LLC to instruct crewmembers on the proper operation of the pollution prevention equipment, including the Oil Water Separator, and the completion of the Oil Record Book, and to review and certify the accuracy of the Oil Record Book every six months for any vessel owned, operated, managed, or controlled by East West Seafoods LLC.
The 75% owner of East West Seafoods LLC and operator of the F/V Pacific Producer, Kodiak resident Christos Tsabouris, age 78, was sentenced to pay a $10,000 fine and serve a five-year term of probation for his role in these offenses. During the term of probation, Tsabouris is required to pay for and complete at least two courses related to marine pollution, marine environmental protection, proper disposal of sewage, bilge water and waste oil, recordkeeping, and vessel engineering systems. Tsabouris is also required to instruct crewmembers on the proper operation of the pollution prevention equipment, including the Oil Water Separator, and the completion of the Oil Record Book, and to review and certify the accuracy of the Oil Record Book every six months for any vessel owned, operated, managed, or controlled by Defendant Tsabouris. Tsabouris and East West Seafoods LLC also paid pre-existing outstanding fines totaling over $25,000 owed to the U.S. Coast Guard and the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA).
East West Seafoods LLC is the owner of the F/V Pacific Producer. The F/V Pacific Producer is a large seafood processing vessel and is registered in the United States. It is a 472 gross ton fishing vessel built in 1946, and is 169 feet long. Christos Tsabouris has had charge of the F/V Pacific Producer since at least November 2012. Tsabouris supervised the work of the engineering and deck crews and had overall responsibility for the vessel’s operations. As the person in charge of the operations and having charge of the ship, Tsabouris was responsible for ensuring the proper disposal of sewage, bilge water, and waste oil and maintaining an accurate Oil Record Book.
On March 15, 2013, the F/V Pacific Producer was travelling from Kodiak and grounded near Ouzinkie Narrows. While the F/V Pacific Producer was within three miles of shore, the defendants unlawfully discharged approximately 1,000 gallons of raw sewage into Chiniak Bay between Long Island and Spruce Island.
On March 29, 2013, while the F/V Pacific Producer was departing from the ferry dock in Ouzinkie, the defendants knowingly discharged a harmful quantity of oil into the water while the F/V Pacific Producer was within three miles of shore and caused a sheen upon the surface of the water. The defendants regularly used an illegal pump system to knowingly discharge oily bilge water directly overboard. The illegal pump system consisted of a 55 gallon barrel with portable pumps and hoses. The illegal pump system allowed the defendants to discharge oily bilge water from the bilge directly overboard without processing it through the required pollution prevention equipment (Oil Water Separator and oil content meter). While there was an Oil Water Separator on board the F/V Pacific Producer, it was not connected to any of the piping and was inoperative.
The defendants also knowingly failed to maintain an accurate Oil Record Book as required by the Act to Prevent Pollution from Ships (APPS). The defendants failed to record the discharges of oil into the sea by way of the illegal pump system, the transfers and storage of waste oil from the 55 gallon barrel to the engine room sludge tank, and the inoperability of the Oil Water Separator. The defendants knowingly presented the false and fictitious Oil Record Book to the United States Coast Guard and/or had it available for inspection by the United States Coast Guard, in violation of APPS, when the F/V Pacific Producer was in Kodiak on Jan. 27, 2014. The defendants knew that the use of the pump system and failure to record the discharges was illegal.
When the Coast Guard boarded the F/V Pacific Producer in Kodiak on Jan. 27, 2014, there was raw sewage flowing from piping onto the open weather deck. There was a vent pipe that discharged raw sewage onto the weather deck and onto the side of the vessel into the water. The defendants unlawfully discharged raw sewage from the F/V Pacific Producer into St. Paul Harbor while the vessel was within three miles of shore without a permit.
"The United States Attorney’s Office will enforce federal law, including the Clean Water Act, the Act to Prevent Pollution from Ships, and the Refuse Act, to protect the pristine waters of Alaska from intentional discharges of oil and raw sewage,” said Acting U.S. Attorney Bryan Schroder.
“The Coast Guard is committed to environmental enforcement to ensure the cleanliness of the nation's waters,” said CGIS Special Agent in Charge of the Northwest Region, Jonathan Sall. “The Clean Water Act, the Act to Prevent Pollution from Ships, and the Refuse Act are all in place to ensure that pollutants are handled properly. Intentional discharges of raw sewage, within 3 miles of our coastline, are unacceptable and we will continue to investigate and prosecute violators along with those that seek to deceive investigators in this effort.”
This case was investigated by the U.S. Coast Guard Investigative Service.
San Jose Cleric Convicted of Bank FraudRead the Press Release
SAN JOSE –San Jose cleric Hien Minh Nguyen was convicted on bank fraud charges announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty verdict followed a bench trial before the Honorable Beth Labson Freeman, United States District Judge.
From 2005 through 2011, Nguyen, 57, was a priest for the Diocese of San Jose (the Diocese), a pastor of St. Patrick’s Church (St. Patrick’s) and the director of the Vietnamese Catholic Center, also known as the Trung Tam Cong Giao (VCC). The evidence at trial showed that while employed as a priest in the Diocese, Nguyen received donations for St. Patrick’s from parishioners, some of which he deposited into his own personal bank account. Nguyen also signed checks drawn on VCC’s bank accounts to pay his personal expenses.
Further, the evidence demonstrated that Nguyen received from parishioners fourteen separate checks made payable to the VCC, which the parishioners intended would be used for the benefit of VCC. Rather than depositing those checks into VCC’s bank accounts, Nguyen intentionally deposited them into his personal bank account. On December 1, 2015, Nguyen was charged by way of a superseding indictment with fourteen counts of bank fraud, in violation of both 18 U.S.C. §§ 1344(1) and 1344(2), and four counts of tax evasion, in violation of 26 U.S.C. § 7201. He pleaded guilty to the tax evasion charges on August 9, 2016. With today’s verdict, the Court concluded Nguyen also was guilty of all fourteen counts of bank fraud.
Nguyen is scheduled to be sentenced on June 30, 2017, at 9:00 before Judge Freeman in San Jose. The maximum statutory penalty for bank fraud, in violation of 18 U.S.C. § 1344(2), is thirty years in prison and a $1,000,000 fine or twice the gain/loss from the offense. The maximum statutory penalty for tax evasion, in violation of 26 U.S.C. § 7201, is five years in prison and a $250,000 fine. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Michael G. Pitman and Thomas Moore and Trial Attorney Gregory Bernstein of the Tax Division are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rochester Man Sentenced for Armed Drug TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Wilfredo Sanchez, 21, of Rochester, NY, who was convicted of possession of a firearm in furtherance of a drug trafficking crime, was sentenced to 60 months in prison and five years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that on May 18, 2016, two Rochester Police Department officers, who were working in a marked RPD patrol vehicle in the area of North Clinton Avenue, observed a vehicle pull away from the curb without signaling, in violation of the New York State Vehicle and Traffic Law. The officers stopped the car and the passenger, later identified as the defendant Sanchez, immediately exited the vehicle and began walking at a fast pace toward a corner store located at 1384 North Clinton Avenue. The officers asked Sanchez to stop and to return to the vehicle, which he did. Observing marijuana inside the vehicle, the officers arrested the defendant, and upon a search of his person, the officers discovered $1,660.00 as well as a handgun. The handgun, which was loaded with eight live rounds of 9mm caliber ammunition, had a defaced serial number. After his arrest, officers advised Sanchez that he was going to be searched again. Sanchez told the officers he had more drugs and a zip lock bag containing approximately 10 grams of heroin was recovered from his pants.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Registered Sex Offender Is Sentenced to 50 Years on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Brady Leon Beck, Jr., 40, of Monroe, N.C. to 50 years in prison on child pornography and related charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Beck was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Director Robert Schurmeier of the North Carolina State Bureau of Investigation, Chief Kerr Putney of the Charlotte-Mecklenburg Police Department, and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and information introduced at the sentencing hearing, in or around June 2014, Beck used his cellular phone to produce an image of child pornography of a three-year-old child victim. In November 2014, court records indicate that law enforcement became aware that Beck had shared child pornography via email with another individual. Law enforcement executed search warrants and seized electronic and computer devices that belonged to Beck. A forensic analysis of the devices revealed that Beck possessed images of children, ranging in age from infant to approximately 15 years of age, being sexually abused. Law enforcement also conducted a search of an email account associated with Beck, and discovered that Beck had sent and received child pornography with others, including sending the images of the three-year-old child victim.
Beck is a registered sex offender, which stems from his 2004 conviction of second-degree rape of a 10-year-old female victim. He pleaded guilty in December 2016 to one count of transportation of child pornography and one count of committing a felony offense involving a minor while registered as a sex offender. Beck is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the SBI, CMPD and the Gastonia Police Department. The U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Preston County man convicted on firearm and methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Richard Star Haggarty, 37, of Albright, West Virginia, was convicted in federal court today for unlawful possession of a firearm and methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Haggarty, who had previously been convicted of felony offenses in California, is prohibited from possessing a firearm. He admitted to possessing 12 firearms and crystal meth in December 2016.
Haggarty pled guilty to one count of “Unlawful Possession of a Firearm” and one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 10 years and a $250,000 fine for the firearm count and up to 20 years and a $1,000,000 fine for the methamphetamine charge.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Police and Prosecutors Join Students for a Day of LearningRead the Press Release
BLAST (Building Lasting Relationships Between Police and Community) Program
Brings Law Enforcement and Communities Together
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, together with the Pensacola Police Department and AMIkids, will present a BLAST Program event tomorrow to approximately 50 youth from the AMIkids Pensacola and Emerald Coast programs.
Event: BLAST Program
Location: AMIkids Pensacola
3685 Muldoon Road
Pensacola, FL 32526Date: Wednesday, March 22, 2017
Time: 10:00 a.m. – 2:00 p.m. CST
Press: A media availability will take place at 12:50 p.m. CST.
Please RSVP to Amy Alexander at [email protected] if you plan to attend.United States Attorney Christopher P. Canova: “The BLAST initiative was created by the U.S. Attorney’s Office to provide a forum to exchange information about officer risks and citizen viewpoints. Sharing these perspectives encourages safe interactions between citizens and officers to improve our community.”
Pensacola Police Chief David Alexander III said: “We must continue to work hard at building trusting relationships between citizens and law enforcement to protect the community from crime and disorder. This effort includes our youth.”
AMIkids Inc. representatives said: “#BreakingBarriers is an important priority for AMIkids and our partners in law enforcement as it is critical to our service of building and maintaining healthy, safe communities.”
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with officers in a familiar setting. Officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers:
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Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
Session is open to the media and public, and videography and photography is permitted.
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Domestic Violence: Students will participate in a scenario in which police respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to the police.
Session is open to the media and public, and videography and photography is permitted.
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Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
Session is open to the media and public, and videography and photography is permitted.
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Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
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United States Attorney’s Office, Northern District of Florida
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Pensacola Police Department
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AMIkids Pensacola
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AMIkids Emerald Coast
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Bureau of Alcohol, Tobacco, Firearms and Explosives
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Drug Enforcement Administration
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United States Probation Office
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Homeland Security Investigations
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Naval Criminal Investigative Service
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
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Plattsburgh Man Sentenced to 16 Months for Illegally Possessing ShotgunRead the Press Release
ALBANY, NEW YORK – Marc T. Woodley., age 32, of Plattsburgh, New York, was sentenced today to 16 months in prison following his conviction for unlawfully possessing a shotgun.
The announcement was made by United States Attorney Richard S. Hartunian; Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Plattsburgh Police Chief Ken Parkinson.
Woodley was sentenced for possessing a Mossberg shotgun on June 22, 2015 after he called Plattsburgh Police to report a burglary at his apartment. Responding officers found nearly a pound of marijuana and the shotgun in Woodley’s bedroom. A further search of Woodley’s apartment revealed multiple smoking devices and a digital scale. As part of the burglary investigation, officers determined that an additional one and a half pounds of marijuana had been stolen from Woodley. As a user of marijuana, a controlled substance, Woodley was federally prohibited from possessing the Mossberg shotgun.
Chief United States District Judge Glenn T. Suddaby also ordered Woodley to serve 3 years of post-imprisonment supervised release.
This case was investigated by the Plattsburgh Police Department with assistance from the ATF, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Philadelphia District Attorney Rufus Seth Williams Indicted on Bribery and Extortion ChargesRead the Press Release
Also Charged with Defrauding Nursing Home, Family Friends
PHILADELPHIA – A federal grand jury today returned a 23-count indictment charging Philadelphia District Attorney Rufus Seth Williams with bribery, extortion, and honest services wire fraud in connection with tens of thousands of dollars’ worth of concealed bribes that he received from two business owners in exchange for his agreement to perform official acts. The indictment also charges Williams with defrauding a nursing home and family friends of money earmarked for a family member’s care.
The charges were announced today by Acting New Jersey U.S. Attorney William E. Fitzpatrick, along with FBI Special Agent in Charge Michael Harpster, Philadelphia Division; Acting Special Agent in Charge Gregory Floyd of IRS-Criminal Investigation, Philadelphia Office; and Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia.
Williams, 50, of Philadelphia, is charged with 10 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law (the “Travel Act counts”), two counts of Hobbs Act extortion under color of official right, five counts of honest services wire fraud, and six counts of wire fraud. He will be arraigned in U.S. District Court in Philadelphia on a date to be determined.
“The indictment alleges that as District Attorney, Mr. Williams compromised himself and his elected office by standing ready to help those who were willing to pay him with money, trips, and cars,” Acting U.S. Attorney William E. Fitzpatrick said. “Mr. Williams’ alleged willingness to compromise his position of public trust in exchange for private financial gain is all the more unfortunate given that he was elected to protect the interests of the people of Philadelphia as their chief law enforcement officer.”
“The alleged misconduct, as specifically laid out in this indictment, is brazen and wide-ranging, as is the idea that a District Attorney would so cavalierly trade on elected office for financial gain,” FBI Special Agent in Charge Harpster said. “The immense authority vested to law enforcement has to be kept in check, and that requires decision-makers and leaders with a steady ethical compass. When elected or appointed officials stray from their sworn oaths, they must be held accountable. Combating public corruption remains the FBI's top criminal priority."
According to the indictment:
From July 2010 to July 2015, Williams solicited and accepted a stream of bribes from two business owners in exchange for Williams performing and agreeing to perform official acts for the business owners and their associates. In order to conceal these illegal arrangements, Williams filed false and misleading personal financial statements for the years 2012 through 2015, which intentionally omitted references to the valuable items that Williams received from the business owners during those years. After Williams learned of the federal investigation, he amended those financial disclosure statements to list many of the items listed in the indictment, excluding a pre-owned 1997 Jaguar he received in June 2013.
The Unlawful Arrangement with Business Owner #1
From July 2010 through May 2015, Williams allegedly solicited and accepted a number of valuable items from an individual identified in the indictment as “Business Owner #1,” including an all-inclusive vacation to Punta Cana worth $6,381, a custom sofa worth $3,212, a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately $2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately $300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed to help Business Owner #1 with security screenings when Business Owner #1 returned from foreign travel. On numerous occasions, Williams contacted a Philadelphia police official in order to pressure and advise the police official to assist Business Owner #1 with those border encounters. On March 15, 2013, Williams met with the police official and Business Owner #1 and asked the police official to help Business Owner #1 avoid secondary screening. That same day, Williams accepted a $7,000 check from Business Owner #1. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on behalf of Business Owner #1 to pressure and advise the police official to assist Business Owner #1 with the border encounters.
Williams agreed to assist with criminal charges brought by the Philadelphia District Attorney’s Office against Business Owner #1’s associate, an individual identified in the indictment as “Person #1.” Between Feb. 1, 2012, and Feb. 5, 2012 – while on the Punta Cana vacation paid for by Business Owner #1 – Business Owner #1 asked Williams to help with Person #1’s charges, and Williams agreed. On Feb. 8, 2012, just days after returning from Punta Cana, Williams received a text message from Business Owner #1 listing the docket number and hearing date for Person #1’s case. The text message stated that Person #1 would “take any punishment” but “just doesn’t wanna do jail!” Williams responded with a text message stating: “I will look into it.” Moments later, Williams asked about a second anticipated trip to Punta Cana paid for by Business Owner #1 and stated “I am merely a thankful beggar and don’t want to overstep my bounds in asking...but we will gladly go.”
When Business Owner #1 sent a text message in September 2012 again asking Williams to assist Person #1, Williams responded with text messages saying, among other things, “It seems like he has the possibility of having it thrown out or continued ... if it gets continued I will then ask for the file and see what can be done to make it a county sentence...”
The Unlawful Arrangement with Business Owner #2
From March 2012 through July 2015, Williams solicited and accepted from a Philadelphia bar owner identified in the indictment as “Business Owner #2” approximately 16 round-trip airline tickets to Florida, San Diego, and Las Vegas for himself, his girlfriend and members of his family. Williams also solicited and accepted from Business Owner #2 a 1997 Jaguar XK8 convertible and at least $900 in cash.
In return for the benefits that he received from Business Owner #2, Williams appointed Business Owner #2 as Special Advisor to the Philadelphia District Attorney’s office in November 2012, including issuing an official badge, writing an official letter of appointment, and giving certain assignments to Business Owner #2 as Special Advisor. At the time, Business Owner #2 was on federal probation resulting from a June 2010 federal tax conviction.
In May 2013, Business Owner #2 requested that Williams write an official letter, as the Philadelphia District Attorney, acknowledging Business Owner #2’s appointment as Special Advisor to his office. On May 10, 2013, Williams provided the letter to Business Owner #2. In June 2013, Williams accepted the Jaguar from Business Owner #2.
On June 2, 2014, Williams issued a second official letter to the California Department of Alcoholic Beverage Control in order to influence a then-pending hearing to revoke or suspend Business Owner #2’s California liquor license.
In July 2015, Williams obtained a police accident report at Business Owner #2’s request. During this time, Williams sent text messages to Business Owner #2 saying, among other things, “I wish I could help more,” “Can I be a greeter or celebrity bartender to work off my debt…?” and “…I was serious about just doing whatever I can to help you guys!”
The Fraud on the Nursing Home and Family Friends
From February 2012 through November 2013, Williams allegedly diverted a relative’s pension and Social Security payments to pay for his own personal expenses instead of applying them to the relative’s nursing home costs, as was his obligation under agreements with the nursing home. Williams also falsely told a nursing home employee his relative spent the pension and Social Security payments. In addition, after accepting $10,000 from friends of his relative intended to cover expenses for the relative’s nursing home care, Williams spent the money on his personal expenses instead.
“Rooting out public corruption remains one of the IRS-Criminal Investigation’s highest priorities,” IRS Acting Special Agent in Charge Gregory Floyd said. “Today’s indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violated the public’s trust.”
“Homeland Security Investigations will continue to work with our law enforcement partners to bring to justice public officials who betray the trust of the community by engaging in unscrupulous behavior,” Marlon V. Miller, special agent in charge of HSI Philadelphia, said. “The public places an enormous amount of trust in elected officers, as such, they should be held accountable to a higher standard of conduct. HSI is pleased with the results of this criminal investigation and the collaborative efforts between our agency and our counterparts at the FBI and IRS.”
Each of the Travel Act counts is punishable by a maximum potential penalty of five years in prison. The Hobbs Act extortion under color of official right and the wire fraud charges are punishable by a maximum potential penalty of 20 years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. The indictment also seeks forfeiture of a total of $54,466, representing the sum of $34,146 worth of bribe proceeds and $20,320 worth of fraud proceeds.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Harpster; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Floyd; and special agents of the HSI Philadelphia, under the direction of Special Agent in Charge Miller, with the investigation leading to today’s indictment. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Peoria Gas Station Owner to Pay $1.5 Million, Serve 21 Months in Prison for Fraud, Tax EvasionRead the Press Release
PEORIA, Ill. – A New Jersey man who owned four Peoria area gas stations, Adnan Rashid, 35, has been sentenced to serve 21 months in federal prison and to pay $1.5 million for underreporting sales on federal corporate and Illinois sales tax returns and for later failing to file corporate returns. On March 20, Chief U.S. District Judge James E. Shadid sentenced Rashid and ordered that he pay $1.28 million in restitution to the State of Illinois and $206,573 to the IRS. Rashid was ordered to report to the federal Bureau of Prisons on May 30, to begin serving his prison sentence.
On Dec. 1, 2016, Rashid pled guilty to mail fraud and tax evasion. According to court documents, Rashid was the sole owner of two Peoria area Marathon gas stations and a 50 percent owner of two additional Peoria Marathon stations. Rashid admitted that he grossly underreported or failed to report sales at the four stations on federal corporate tax returns and the Illinois sales and use tax returns. Rashid admitted that he altered the stations’ gross receipt data before he provided it to his accountant. Information at the sentencing hearing showed that he had over $41 million in unreported gross receipts for the gas stations and $1 million in unreported personal income.
Supervisory Assistant U.S. Attorney Darilynn J. Knauss and former Illinois Assistant Attorney General Eugene Bian prosecuted the case. The Internal Revenue Service, Criminal Investigation Division, and the Illinois Department of Revenue investigated the charges.
Owners of Property on Which Big Blue Sportsmen’s Club Operated Plead Guilty to Conspiracy ChargesRead the Press Release
Abingdon, VIRGINIA – The 10,000 square-foot facility known as the Big Blue Sportsman’s Club in McDowell, Kentucky, which has hosted cockfights for more than 20 years, will be razed following the guilty pleas of the property’s two owners, Acting United States Attorney Rick A. Mountcastle and Virginia Attorney General Mark Herring announced.
Today in the United States District Court for the Western District of Virginia in Abingdon, Shirley Ray Slone, 73, and Vernon Kelly Slone, 69, both of McDowell, Kentucky, each pled guilty to one count of conspiracy to cause others to attend a cockfight. In addition, the pair forfeited $100,000 and agreed to pay for the complete destruction of the 10,000 square-foot facility known as the Big Blue Sportsman’s Club.
“For more than 20 years, the Big Blue Sportsman’s Club facilitated illegal cockfights, illegal gambling, and decades of cruel and inhuman animal abuse,” Acting United States Attorney Rick A. Mountcastle said today. “Today’s convictions and the agreement to destroy the Big Blue facility put an end to the long-term criminal activity that took place on this property. I am grateful to the various law enforcement agencies who investigated this conspiracy.”
“Today’s announcement is another real success out of our Animal Law Unit, which is doing important work to enforce our laws on animal welfare and animal fighting,” said Attorney General Herring. “These laws not only protect animals themselves, but they also ensure the safety and strength of our communities, since animal fighting is often associated with other crimes like illegal drugs and alcohol, illegal gambling, and even things like domestic abuse, assaults, and illegal weapons. I’m proud of our office’s unrelenting work to hold those involved in Big Blue accountable and we will continue to send a strong message that these types of enterprises will not be tolerated.”
According to evidence presented at previous hearings, Shirley and Vernon Slone owned the property in McDowell, Kentucky that housed the Big Blue Sportsman’s Club, a 5,000-member club that hosted cockfights for more than 20 years. The facility, a 10,000 square-foot building that featured arena-style seating, multiple fighting pits and a restaurant, was the site of a law enforcement raid in 2014. Federal charges relating to cockfighting, gambling and narcotics arose out of the investigation.
To date, nine individuals have been convicted for their roles in the cockfighting conspiracy run out of the Big Blue facility. Most recently, Russell D. Peaks, who raised fighting birds in Wise County, Virginia, and brought them to Big Blue to fight, was sentenced to 24 months in federal prison for allowing a minor to attend a cock fight, distribution of hydrocodone and conspiracy to facilitate cockfighting. Jimmy Crate Willis has pled guilty to conspiracy to sponsor an animal in a cockfight and will be sentenced on May 15, 2017.
In 2014, Walter Stumbo was sentenced to 18 months for his role in the Big Blue conspiracy, Joshua Stumbo and Sonya Stumbo were each sentenced to 10 months in federal prison for their roles in the conspiracy. Jonathan Robinson was sentenced to 12 months and one-day in federal prison and Wesley Robinson was sentenced to 6 months in prison.
In addition to forfeiting $100,000 and paying for the destruction of Big Blue, the Slones each face up to one year in prison and a fine of up to $100,000. They are scheduled to be sentenced on June 8, 2017 at 2:30 p.m. in U.S. District Court in Abingdon.
Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney/Virginia Assistant Attorney General Michelle Welch are prosecuting these cases on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
Overland Park Man Pleads Guilty to Distributing Child PornographyRead the Press Release
KANSAS CITY, KAN. – An Overland Park man pleaded guilty Monday to distributing child pornography on the Internet while posing as a 46-year-old woman, U.S. Attorney Tom Beall said.
Frank Joseph Kurtz, 70, Overland Park, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted that an investigation by the Israeli National Police first identified emails in which Kurtz used the alias “Lisayearning46” to send child pornography to another person. The FBI in Kansas followed an electronic trail to Kurtz, who registered with Yahoo under the name “Lisa Lewis” and used photos he found on the Internet as his profile picture.
Kurtz is scheduled for sentencing July 10. Both parties have agreed to recommend a sentence of 97 months in federal prison. Beall commended the FBI, the Heart of America Regional Computer Forensics Laboratory and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Oktaha Man Sentenced to 30 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRYAN STEVEN LAFAVOR, age 35, of Oktaha, Oklahoma, was sentenced to 30 months imprisonment, and 4 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The Information alleged that in or about August 2015, up to and including November 27, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester, and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio woman indicted for wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – An East Liverpool, Ohio woman was indicted today by a federal grand jury sitting in Martinsburg for allegedly stealing from her employer, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Danielle Varrati, age 37, was indicted for five counts of “Wire Fraud.” Varrati is accused of wiring approximately $176,000 from her place of employment to her personal bank account. The crimes are alleged to have occurred in Hancock County.
Varrati faces up to twenty years and a $250,000 fine for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Danae Demasi-Lemon is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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New Brighton Man Charged with Dealing Carfentanil that Killed One, Injured AnotherRead the Press Release
PITTSBURGH – A Beaver County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named Reginald Davis, age 29.
According to the indictment, on December 17, 2016, Davis possessed with intent to distribute and distributed carfentanil that caused the death of one person and the serious bodily injury of another. Davis is also charged with possessing with the intent to distribute, and distributing, additional quantities of carfentanil.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Tonya S. Goodman and Timothy M. Lanni are prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the New Brighton Area Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Navajo Man from Breadsprings, N.M., Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Brandon Bob Lincoln, 30, an enrolled member of the Navajo Nation who resides in Breadsprings, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for his involuntary manslaughter conviction. Lincoln will be on supervised release for three years after completing his prison sentence.
Lincoln was arrested in March 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Lincoln killed a Navajo man when he crashed his vehicle on March 20, 2016, on the Navajo Indian Reservation in McKinley County, N.M. At the time of the crash, Lincoln was driving under the influence of alcohol.
Lincoln subsequently was indicted on April 26, 2016, and charged with involuntary manslaughter. On Oct. 5, 2016, Lincoln pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Navajo Man Sentenced to Ten Years in Federal Prison for Discharging Firearm During Crime of ViolenceRead the Press Release
ALBUQUERQUE – Norman Yazzie, 56, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to ten years in prison followed by four years of supervised release for discharging a firearm during a crime of violence.
Yazzie was arrested in May 2016, on a criminal complaint charging him with assault and firearms offenses on April 29, 2016, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Yazzie shot the victim with a rifle in the forehead and the knee, causing her to suffer serious bodily injury.
Yazzie subsequently was indicted on May 24, 2016, and charged with assault with a dangerous weapon, a rifle, with intent to do bodily harm, assault resulting in serious bodily injury, and discharging a firearm during a crime of violence. According to the indictment, the offenses took place on April 29, 2016, in San Juan County.
On Nov. 16, 2016, Yazzie pled guilty to discharging a firearm during a crime of violence. In entering the guilty plea, Yazzie admitted that on April 29, 2016, he shot the victim in the head and knee with a rifle.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
National Leader on Crime Victims’ Rights to Address April Ceremony Honoring Victims and AdvocatesRead the Press Release
BIRMINGHAM – The executive director of the National Crime Victim Law Institute in Portland, Ore., will be the keynote speaker at a National Crime Victims’ Rights Week recognition ceremony on April 6 presented by One Place Metro Alabama Family Justice Center and the U.S. Attorney’s Office, announced Acting U.S. Attorney Robert O. Posey.
The Northern District of Alabama U.S. Attorney’s Office and One Place in Birmingham have joined to present “Strength, Resilience & Justice: A Recognition Ceremony Honoring Victims of Crime and Seekers of Justice.” One Place is a collaboration between the Jefferson County District Attorney’s Office, the City of Birmingham and Birmingham Police Department, the YWCA-Central Alabama and the Crisis Center Inc. Its mission is to provide coordinated services to victims of domestic violence and sexual assault with a multi-disciplinary team of professionals working together under one roof.
The April ceremony’s guest speaker, Meg Garvin, directs the National Crime Victim Law Institute and is a clinical professor of law at Lewis & Clark Law School, where the institute is located.
Garvin is recognized as a leading expert on victims’ rights. She has testified before Congress, state legislatures, and the Judicial Proceedings Panel on Sexual Assault in the Military. In 2014, she was appointed to the Victims Advisory Group of the U.S. Sentencing Commission and, during 2013-2014, Garvin served on the Victim Services Subcommittee of the Response Systems to Adult Sexual Assault Crime Panel of the U.S. Department of Defense.
During the recognition ceremony, sponsors will present awards to a victim advocate, a member of law enforcement and a prosecutor, each chosen for their commitment to assisting victims of crime.
Along with the address from Garvin, there will be a multi-disciplinary panel discussion featuring Ashley Smith, now a teenager, who at 14 months old nearly died from third-degree burns over 30 percent of her body after her mother put her in a broiling oven in their Etowah County home in 2002. The Alabama Board of Pardons and Paroles last year denied early release for the mother, Melissa Wright, after a hearing that included horrific photos of the burned infant. Smith appealed to the board not to grant her mother parole, but Smith’s older sister argued for the early release, saying her mother was suffering from mental illness at the time and is a “changed woman.”
The National Crime Victims’ Rights Week recognition ceremony will be 8:30 a.m. to 10 a.m., Thursday, April 6, with breakfast provided, in the Diamonds Direct Ballroom at Regions Field, 1401 First Ave. South. The event is free, but space is limited. RSVPs are required to [email protected].
This project is supported by a National Crime Victims' Rights Week Community Awareness Project sub-grant awarded by the National Association of VOCA Assistance Administrators under a Victims of Crime Act (VOCA) grant from the Office for Victims of Crime, Office of Justice Programs, U.S. Department of Justice.
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Nashville Man Pleads Guilty to Production of Child PornographyRead the Press Release
Jarratt A. Turner, 35, of Nashville, Tennessee pleaded guilty yesterday in U.S. District Court in Nashville, to 16 counts of Production of Child Pornography and one count of Transportation of Child Pornography, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to testimony during the plea hearing, Turner took sexually explicit images and videos of an infant boy and toddler girl, whom he was baby-sitting, on 16 different occasions between October 2014 and May of 2015. The sexually explicit material included depictions of himself sexually molesting the two very young children, who were between the ages of 12 and 31 months during this period. Turner also distributed these images via the internet to other like-minded individuals.
Turner faces a mandatory minimum sentence of 15 years in prison and up to 500 years in prison for these crimes. Sentencing is scheduled for October 11, 2017, before U.S. District Court Judge Marvin E. Aspen.
This matter was investigated by Homeland Security Investigations, and the United States is represented by Assistant U.S. Attorney S. Carran Daughtrey.
Misdemeanor Verdicts Issued in Oregon Standoff Bench TrialRead the Press Release
PORTLAND, Ore. – A federal judge today delivered verdicts against four defendants charged with misdemeanor trespassing; tampering with government vehicles and equipment; and destruction and removal of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.
United States District Court Judge Anna J. Brown found Jason Patrick, Darryl Thorn, Duane Ehmer, and Jake Ryan guilty of trespassing and tampering with vehicles and equipment. Additionally, Jason Patrick was found guilty of destruction and removal of property.
All four defendants were previously found guilty of felonies in a jury trial ending March 10, 2017. Felony convictions ranged from conspiracy to impede officers of the United States by force, threats, or intimidation to possession of firearms on a federal facility and depredation of government property.
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.
Mexican National Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Rumaldo Varela Enriquez, 46, a Mexican national residing in Lovington, N.M., was sentenced today in federal court in Las Cruces, N.M., to 57 months in prison for his conviction on a methamphetamine trafficking charge. Enriquez will be deported after completing his prison sentence.
Enriquez was one of 34 individuals charged in December 2015, with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Enriquez was arrested in Dec. 2015, on an indictment charging him and co-defendants Octavio Herrera, 54, and Johnny Flowers, 51, both of Hobbs, N.M., with methamphetamine trafficking offenses. The indictment charged Enriquez with participation in a methamphetamine trafficking conspiracy, possession of methamphetamine with intent to distribute, and use of a communication facility in relation to a drug trafficking crime.
On Sept. 9, 2016, Enriquez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Enriquez admitted that on Dec. 14, 2015, law enforcement agents located approximately 128 grams of methamphetamine in a locked shed located on the property where Enriquez was residing in Lovington, N.M., and approximately 21 grams of methamphetamine and a handgun inside Enriquez’s bedroom. Enriquez further admitted that he had intended to distribute the methamphetamine found on his property.
Seventeen of the 18 federal defendants, including Enriquez’s co-defendants, have entered guilty pleas. The remaining federal defendant has entered a not guilty plea. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorneys Terri J. Abernathy and Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Mexican Citizen Pleads Guilty to Timeshare Resale Fraud ConspiracyRead the Press Release
SACRAMENTO, Calif. — Marco Antonio Ramirez Zuno, 32, of Cancun, Mexico, pleaded guilty today to conspiracy to commit wire fraud in relation to a timeshare resale fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2012, Zuno and others conducted a timeshare resale fraud scheme based in Puerto Vallarta, Mexico. Sales agents including co‑defendant Juan Montalbo, aka John Monte, conducted sales meetings to convince prospective customers to purchase a timeshare vacation package marketed under the names Platinum Access Program or World Luxury Destinations. If customers had existing timeshare properties, Montalbo assured them that another company, Continental Resources, would arrange for their sale. When the customers returned from Mexico, they were contacted by co-defendant Wayne York, aka Tim Hamick or Michael Halston, who claimed to represent companies named Property Marketing Group or Eagle Market Solution and claiming that a bona fide purchaser had been found and was ready to purchase their existing timeshares. Others were contacted directly by York without first giving their information to Montalbo.
According to court documents, York and others would then extract a series of upfront payments from the victims, which York claimed were required to be wired to bank accounts in Mexico in order for the guaranteed sale to be completed. York and the others would falsely claim that a buyer for the timeshare had already been located and that all the prepaid fees wired to Mexico were being held in escrow and would be refunded to the victims as soon as the transaction was completed. After the victims wired the money to Mexico, York and the others would break off all contact with them. According to court documents, Ramirez Zuno managed the Mexican bank accounts used in the fraud, trained co-conspirators on how to conduct the fraud, and managed the disbursement of the proceeds of the fraud.
The charges against Montalbo and York are only allegations; those defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Ramirez Zuno has been in custody since his arrest on April 14, 2016, in Miami, Florida. Montalbo and York have been released on bond. Montalbo and York are next scheduled to appear in court on June 6, 2017, for a further status hearing on their cases.
Ramirez Zuno is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 27, 2017. Ramirez Zuno faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Messer Man Sentenced to 105 Months for Two Counts of Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRADLEY DEWAYNE BAILEY, age 39, of Messer, Oklahoma, was sentenced to concurrent terms of 105 months imprisonment, and 3 years of supervised release for two counts of FELON IN POSSESSION OF FIREARM, all in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 17, 2016, and on July 18, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Hugo Police Department, the Choctaw County Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Manhattan Energy Investor Sentenced to 70 Months in Prison for Evading over $45 Million of Income and Sales TaxesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MORRIS ZUKERMAN, a Manhattan businessman who owns companies involved in energy investments, was sentenced today to 70 months in prison for engaging in multi-year tax fraud schemes pursuant to which he evaded over $45 million in income taxes and other taxes. ZUKERMAN pled guilty on June 3, 2016, before United States District Judge Analisa Torres, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “While amassing a personal fortune through, among other things, the $130 million sale of his company, Morris Zuckerman cheated on his taxes for years, illegally scheming to evade almost every one of his tax liabilities. Through his criminal schemes, Zukerman deprived the public of over $45 million in taxes he rightfully owed. For brazenly cheating on his tax obligations – a duty that all Americans owe to each other – Zukerman will now spend significant time in a federal prison.”
According to the allegations in the Indictment to which ZUKERMAN pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
ZUKERMAN, the principal of M.E. Zukerman & Co. (“MEZCO”), an investment firm located in Manhattan, schemed to evade taxes based on income received from the January 2008 sale of a petroleum products company (the “Oil Company”) he co-owned (through a MEZCO subsidiary) with a public company. ZUKERMAN schemed to evade the reporting of the sale – which resulted in the receipt by the MEZCO subsidiary of $130 million in gross sales proceeds – by falsely telling his accountants in mid-2008 that he had transferred ownership of the MEZCO subsidiary to a family trust in early 2007. In support of the false story he gave to the accountants, ZUKERMAN created backdated documents such as promissory notes and a board resolution purporting to show the transfer of the subsidiary to his family trust in 2007. The false documents allowed ZUKERMAN to remove the MEZCO subsidiary from the consolidated tax reporting being handled by the accountants for MEZCO and thereby evade the reporting to the IRS of the sale of the Oil Company, as well as the payment of over $33 million in corporate income taxes.
Following the sale of the Oil Company, ZUKERMAN transferred the proceeds of the sale from the MEZCO subsidiary to his family trust, his personal bank accounts, and various corporations he controlled, including a company called Zukerman Investments. Between 2008 and 2013, ZUKERMAN directed that over $50 million of the funds transferred to Zukerman Investments be used to purchase paintings by European artists from the 15th through the 19th centuries (the “Old Master paintings”), which ZUKERMAN used to decorate his Upper East Side apartment and the apartments of two family members – Family Member-1 and Family Member-2.
In connection with the purchase of the Old Master paintings, ZUKERMAN schemed to defraud New York State of over $4.5 million of sales and use taxes by directing that the paintings, which were frequently purchased from galleries located blocks from ZUKERMAN’s Manhattan residence, be shipped by the galleries to ZUKERMAN’s corporate addresses located in Delaware and New Jersey, and transported immediately thereafter (sometimes within minutes), by ZUKERMAN and others, back to ZUKERMAN’s residence in New York – all without the payment to New York State of sales or use taxes.
ZUKERMAN also schemed to evade personal income taxes and to obstruct the IRS by (i) causing various tax return preparers to prepare U.S. Individual Income Tax Returns, Forms 1040, for ZUKERMAN and his wife, and for Family Member-1, Family Member-2, and Family Member-3, that claimed, in the aggregate, millions of dollars of false and fraudulent deductions and expenses, such as phony charitable contributions and investment interest expenses; (ii) diverting, for personal use, corporate assets from MEZCO and other corporate entities ZUKERMAN controlled by directing that hundreds of thousands of dollars of fees be paid between 2007 and 2013 to Family Member-1, Family Member-2, and Family Member-3, for which the family members performed little or no work; (iii) directing that corporate funds be used to pay compensation to, and health care insurance for, a household employee of ZUKERMAN, whom ZUKERMAN also caused to be falsely identified as a MEZCO employee to ZUKERMAN’s corporate health care provider when, in truth and fact, the household employee worked exclusively out of ZUKERMAN’s homes in New York City and Maine as a domestic employee; (iv) falsely under-reporting employment taxes through the payment of hundreds of thousands of dollars of cash and other wages to ZUKERMAN’s domestic employees; and (v) providing false information to the IRS during audits in an attempt to fraudulently convince IRS auditors and other IRS employees that the fraudulent claims made on his previously filed tax returns were accurate when, in truth, they were not.
The False Charitable Contribution Deductions for the 2009 & 2011 Tax Years
ZUKERMAN’s fraudulent charitable contribution deductions – totaling $1 million – arose out of a real estate transaction in 2009 and 2010, pursuant to which ZUKERMAN purchased approximately 240 acres of property on Black Island, a small island located off the coast of Maine, close to ZUKERMAN’s home on a nearby island. ZUKERMAN was enlisted to purchase the Black Island property by the Maine Coast Heritage Trust (“MCHT”), a Maine-based land conservation entity that was seeking to orchestrate the purchase, for conservation purposes. After considering making a charitable contribution to the MCHT to allow MCHT to purchase the property, ZUKERMAN decided instead to purchase the land as the outright owner for the benefit of himself and his family for $1 million through a newly formed limited liability company he solely owned. ZUKERMAN, however, falsely told his tax return preparer that the $1 million he paid for the property should be declared on his personal income tax returns as a charitable contribution to MCHT during the 2008 and 2010 tax years. ZUKERMAN subsequently signed the false 2008 and 2010 tax returns and caused them to be filed with the IRS.
The Audit Fraud
ZUKERMAN sought to defraud the IRS during three separate audits. In audits of his personal returns and that of a family member, ZUKERMAN provided his accountants with false documents and false information in an attempt to provide support for false items previously placed on individual tax returns by him. During an IRS audit of one of ZUKERMAN’s companies, ZUKERMAN attempted to obstruct the audit by utilizing two attorneys from a law firm in Washington, D.C., to convey a false factual narrative to an IRS Appeals Officer.
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In imposing ZUKERMAN’S sentence, Judge Torres stated: “Mr. Zukerman’s crimes were driven by unmitigated greed,” and that ZUKERMAN “thought himself to be above the law.”
In addition to the prison term, ZUKERMAN, 72, of New York, New York, was sentenced to three years of supervised release and ordered to pay a $37,547,951 in restitution to the IRS and New York State Department of taxation and finance. ZUKERMAN was also fined $10 million.
Mr. Kim praised the outstanding investigative work of the IRS and the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Stanley J. Okula, Jr. and Assistant United States Attorney Edward Imperatore are in charge of the prosecution.
Manchester Man Sentenced to 83 Months in Prison on Federal Firearms ChargesRead the Press Release
Concord, New Hampshire—Acting United States Attorney John J. Farley announced that Marcos Nieves, 40, previously of Manchester, New Hampshire, was sentenced on Friday to serve 83 months in prison for the illegal possession of firearms and ammunition.
According to court documents and statements made in court, members of the Manchester Police Department obtained a search warrant for the defendant’s Manchester residence in connection with an investigation into a non-fatal shooting on August 8, 2015. While executing the search warrant, officers recovered two stolen AK-47 style weapons, several firearm magazine clips, ammunition, drugs, drug dealing paraphernalia, and personal documents identifying Nieves in a bedroom closet. At the time, Nieves was prohibited from possessing any firearm as a result of at least one prior felony conviction.
Nieves was indicted on these federal firearms charges in April 2016 and he pleaded guilty in December 2016.
Nieves also pleaded guilty to narcotics charges in Hillsborough County in connection with the drugs recovered during the execution of the search warrant. He is serving a sentence of two to four years in New Hampshire State Prison. The Court’s sentence on federal charges will run concurrent with entirety the state sentence. Following his release from federal prison, will be subject to a period of supervised release of three years.
Commenting on the sentence, Acting United States Attorney Farley said, “Working with our state, local, and federal law enforcement partners, the United States Attorney’s Office is committed to prosecuting those who possess firearms unlawfully or use firearms to commit crimes. Individuals who commit crimes involving guns should be aware that they will face substantial penalties for their actions.”
This matter is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Man indicted on a firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Kearneysville, West Virginia man was indicted today by a federal grand jury for a firearm violation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
William Edwin Rogers, age 27, who had previously been convicted of a felony offense in Jefferson County, is prohibited from possessing a firearm. He was indicted for one count of “Unlawful Possession of a Firearm.” The crime is alleged to have occurred on April 27, 2016 in Berkeley County.
Rogers faces up to ten years and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Who Moved Drug Overdose Victim’s Unresponsive Body to Cover up Drug Crime Pleads Guilty to Being Accessory After the FactRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARC HENRY JOHNSON pled guilty today before U.S. District Judge Jesse M. Furman to acting as an accessory after the fact to a narcotics offense. As alleged in the Indictment to which JOHNSON pled guilty and the related criminal Complaint, JOHNSON helped move an unresponsive woman’s body out of a Manhattan apartment where the woman had overdosed on cocaine.
Acting U.S. Attorney Joon H. Kim said: “Marc Henry Johnson’s immediate response to seeing a dying overdose victim should have been to summon help. Instead, Johnson helped his cocaine dealer cover up the drug crime by moving the victim’s body. In this time of a growing overdose epidemic, today’s guilty plea should serve as a reminder that the proper response to a potential drug overdose is to immediately call 911, not to delay to help cover for the drug dealer.”
According to the allegations contained in the Indictment and the Complaint against JOHNSON and codefendant James Holder:
JOHNSON regularly bought cocaine from Holder, who lived in and sold cocaine from a third-floor apartment in Chelsea. During the night of October 3, 2015, and the early morning hours of October 4, 2015, JOHNSON met with a 38-year-old woman (“Individual-1”) and others at a bar in Manhattan. Individual-1 had been using cocaine before JOHNSON arrived. Later, JOHNSON and Individual-1 left the bar together in a taxi. They arrived at Holder’s apartment building at approximately 4:25 a.m., and walked upstairs to Holder’s apartment. Hours later, JOHNSON and Holder dragged Individual-1’s apparently unconscious body into the building’s first-floor vestibule. Holder then left the building, and JOHNSON called 911 to summon an ambulance. JOHNSON declined to provide his name to the 911 operator, and he did not identify Individual-1, or describe his relationship to her, or explain what had happened to her and why she needed medical assistance. Emergency Medical Technicians (“EMTs”) responded and found Individual-1 unresponsive in the Chelsea building’s vestibule. JOHNSON left the building soon after the EMTs arrived.
Individual-1 was taken to a hospital and pronounced dead later on October 4, 2015. Her death was caused by, among other things, cocaine use.
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JOHNSON pled guilty to one count of acting as an accessory after the fact to the offense of maintaining a drug-involved premises. The accessory-after-the-fact offense carries a maximum sentence of 10 years in prison. JOHNSON is scheduled to be sentenced by Judge Furman on June 26, 2016.
Holder pled guilty before Judge Furman on December 12, 2016, to maintaining a drug-involved premises, which carries a maximum sentence of 20 years in prison. Holder is scheduled to be sentenced by Judge Furman on May 4, 2017, at 3:00 p.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the U.S. Drug Enforcement Administration’s (DEA) New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, Port Washington Police Department, and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Margaret Garnett and David Abramowicz are in charge of the prosecution.
Man Pleads Guilty to Robbery-Related OffensesRead the Press Release
St. Croix, USVI B Ajani Plante, 26, pleaded guilty today in federal court on St. Croix to one count of interference with commerce by robbery and using and carrying a firearm during and in relation to a crime of violence, Acting United States Attorney Joycelyn Hewlett announced.
According to the plea agreement filed with the court, on June 17, 2013, Plante, while aided and abetted by others, entered Perfection Gift Shop to rob the store. Plante and the other individuals had guns drawn and one of the robbers hit the store security person in the head with the gun, injuring him. Plante and the other robbers went behind the counter and removed several trays of gold jewelry. After the robbery, they ran out of the store, got into a vehicle behind the shopping center, and left the scene.
Plante faces a maximum of 20 years in prison and a fine of $250,000 on the robbery count and a mandatory seven years and a $250,000 fine on the gun charge. A sentencing date has been set for July 20, 2017.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Media AdvisoryRead the Press Release
WHAT: Acting United States Attorney Lawrence J. Laurenzi; and Steve Gerido, ATF Special Agent in Charge will make an announcement regarding the Department of Justice’s investigation into an armed drug trafficking organization. DATE: Tuesday, March 21, 2017 TIME: 1:45 p.m. WHERE:United States Attorney’s Office – Main Conference Room
NOTE:
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103All media members must present government-issued photo I.D.
(such as driver’s license), as well as valid media credentials.Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 1:15 p.m. everything must be pre-set by 1:30 p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Los Angeles Man Convicted in Tax Fraud Scheme that Sought over $800,000 in Refunds for ‘Employees’ of Bogus CompaniesRead the Press Release
SANTA ANA, California – A Los Angeles man who participated in a scheme that filed fraudulent tax returns with the Internal Revenue Service seeking more than $800,000 in refunds was found guilty today of federal charges.
Julien Jitt Noel, 36, who lived in Placentia while he participated in the scheme, was convicted this morning of one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false and fraudulent tax returns. After a five-day trial, a jury in United States District Court deliberated for approximately one hour before finding Noel guilty.
The evidence presented at trial showed that, starting in late 2008 or early 2009, Noel and two co-conspirators prepared and filed fraudulent tax returns, most of which were filed in the names of individuals whose identities had been stolen.
The fraudulent tax returns indicated that the taxpayers were employed by a shell company called Picaso Fashions, a business that did not employ the taxpayers and never had any employees. The tax returns indicated that Picaso Fashions had excessively withheld income tax for each taxpayer, and each fraudulently filed tax return sought a tax refund the taxpayer was not entitled to receive.
Members of the conspiracy filed 69 false individual federal tax returns during 2009 that claimed tax refunds totaling $621,589.
Noel and one of his co-conspirators established other fake companies to serve as fraudulent employers. In relation to these other bogus companies, Noel filed 45 fraudulent tax returns in 2009 and 2010 that sought $195,344 in refunds.
In total, Noel conspired to file a total of 114 fraudulent returns between 2009 and 2010 seeking tax refunds totaling $816,933. The IRS paid full or partial tax refunds on 98 of these returns and suffered actual losses of $520,426.
Noel, who has been in federal custody since this case was indicted two years ago, is scheduled to be sentenced by United States District Judge Josephine L. Staton on June 14. As a result of today’s six guilty verdicts, Noel faces a statutory maximum sentence of 20 years in federal prison.
Co-conspirator Antonio Jerome Cook, 38, of Long Beach, was sentenced in March 2016 to four years in federal in prison and was ordered to pay restitution of $537,309 for his role in the scheme.
The third conspirator – Rebecca Magruder, 38, of Dallas, Texas – was sentenced in January of 2016 to 18 months in prison and ordered to pay $119,671 in restitution.
The investigation into Noel, Cook and Magruder was conducted by IRS Criminal Investigation and prosecuted by Assistant United States Attorneys Aron Ketchel and Jamie A. Lang.
Long Island Man Found Guilty of Defrauding South Korean School of over $5 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM COSME, a/k/a “William Cosmo,” was found guilty today in Manhattan federal court in connection with a scheme to defraud a Christian missionary school in South Korea of $5.5 million dollars. The jury convicted COSME on both counts with which he was charged following a one-week trial before U.S. District Judge Loretta A. Preska.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury swiftly concluded after trial, William Cosme duped and defrauded a South Korean international school out of $5.5 million, money the school needed to carry out its mission of educating children. Cosme then took this stolen money and spent it lavishly on himself, including on a Lamborghini, a Ferrari, and a Cadillac Escalade, not to mention a 110-day gambling spree in Las Vegas. Cosme now faces time in a federal prison for his brazen crimes.”
According to the Indictment, other filings in Manhattan federal court, and evidence admitted at trial:
COSME purported to operate a “Privately Held, Global, Private Equity family practice with a concentration on it’s [sic] own Family’s Private Wealth Management, Commercial [real estate], physical gold trade and Business Consulting.” COSME further claimed that the entity through which he did business “manage[d] family assets with a Net Asset Value in excess of USD $11b on a global basis” and that his clientele included royalty and the families of royalty. None of those claims was true.
In about January 2011, COSME, acting through his company Cosmo Dabi International Trading Group Inc. (“Cosmo Dabi”), entered into an agreement with a Christian missionary school located in South Korea (the “International School”) whereby Cosmo Dabi would lend the International School approximately $55 million and the International School would make a deposit of approximately $5.5 million (the “Equity Deposit”), which COSME would invest in order to generate funds to loan the International School. The International School sought to use the proceeds of the loan to expand its operations in South Korea.
In January 2011, the International School sent by wire transfer approximately $5.5 million to an account maintained by COSME at a bank.
Thereafter, COSME transferred the funds that the International School had entrusted to him into other accounts, including accounts in his own name rather than that of his company. From the other accounts, COSME began a run of unauthorized personal spending, including purchasing a Lamborghini costing nearly $314,000 (which itself was meant to secure COSME a preferred spot on a waiting list to purchase an even more expensive Lamborghini); a Ferrari costing nearly $287,000; a Cadillac Escalade; a sport utility vehicle for a family member of COSME’s; a 110-day gambling trip to Las Vegas; gaming losses while on that trip in excess of $200,000; paying for his girlfriend’s rent; and otherwise funding a lavish lifestyle. All the while, COSME failed to invest the $5.5 million as he had promised, and made a series of misrepresentations to the leadership of the International School as to why they had not been issued their promised loan payments. COSME also devised and executed a sham audit process in order to convince the International School that they were in default of their agreement and that COSME could keep the school’s deposit for himself. In connection with his fraud on the International School, COSME also used, without authorization, the identities of two individuals by falsely representing to the International School that these individuals were officers of Cosmo Dabi.
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COSME, 51, resides in Jericho, New York. He faces a minimum sentence of two years in prison for his conviction for aggravated identity theft, and a maximum sentence of 20 years in prison for his wire fraud conviction. COSME also faces a maximum term of three years of supervised release and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victim. COSME’s sentencing is set for June 21, 2017, before the Honorable Loretta A. Preska.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding efforts of Federal Bureau of Investigation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah D. Solowiejczyk and Martin S. Bell are in charge of the prosecution.
Lockport Man Indicted on Drug and Sex Trafficking 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 today that a federal grand jury has returned a 13-count superseding indictment charging Oliver Kimmons, 49, of Lockport, NY, with possession and distribution of heroin and fentanyl, maintaining a drug premises, and sex trafficking. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the superseding indictment, over the course of three years, the defendant solicited young, opiate-addicted women to have sex with paying customers. In exchange, Kimmons provided the victims with drugs. The defendant drove the victims to farms, dairies, and Indian Reservations in Western New York where they engaged in sex acts with paying customers. Kimmons collected the money from customers and then “paid” his victims in heroin. The defendant also had sex with the victims in exchange for drugs.
Kimmons was initially indicted on drug charges in March 2016 and has been in custody since his arraignment on those charges. The defendant is scheduled to be arraigned on the charges included in the superseding indictment on March 23, 2017, at 11:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
The superseding indictment is the result of an investigation by the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; the Lockport Police Department, under the direction of Chief Michael Niethe; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in Charge Kevin Kelly. The investigative team included Investigator Michael A. Licinio of the Niagara County Sherriff’s Office; Investigator Kevin Newman and Officer Eric Herrington of the Niagara County Drug Task Force; Theresa Nietzel of the Erie County Sherriff’s Office; Captain Brian Wentland of the Lockport Police Department; Special Agent Shane Nastoff of the Drug Enforcement Administration; and Special Agent Nathan Spisak of Homeland Security Investigations.
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.
Lithuanian Man Arrested for Theft of over $100 Million in Fraudulent Email Compromise Scheme Against Multinational Internet CompaniesRead 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 Office of the Federal Bureau of Investigation (“FBI”), announced criminal charges against EVALDAS RIMASAUSKAS for orchestrating a fraudulent business email compromise scheme that induced two U.S.-based internet companies (the “Victim Companies”) to wire a total of over $100 million to bank accounts controlled by RIMASAUSKAS. RIMASAUSKAS was arrested late last week by authorities in Lithuania on the basis of a provisional arrest warrant. The case has been assigned to U.S. District George B. Daniels.
Acting U.S. Attorney Joon H. Kim said: “From half a world away, Evaldas Rimasauskas allegedly targeted multinational internet companies and tricked their agents and employees into wiring over $100 million to overseas bank accounts under his control. This case should serve as a wake-up call to all companies – even the most sophisticated – that they too can be victims of phishing attacks by cyber criminals. And this arrest should serve as a warning to all cyber criminals that we will work to track them down, wherever they are, to hold them accountable. The charges and arrest in this case were made possible thanks to the terrific work of the FBI and the cooperation of the victim companies and their financial institutions. We thank the companies and their banks for acting quickly, coming forward promptly, and cooperating with law enforcement; it led not only to the charges announced today, but also the recovery of much of the stolen funds.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Evaldas Rimasauskas carried out a business email compromise scheme creatively targeting two very specific victim companies. He was initially successful, acquiring over $100 million in proceeds that he wired to various bank accounts worldwide. But his footprint would eventually lead investigators to the truth, and today we expose his lies. Criminals continue to commit a wide variety of crimes online, and significant cyber data breaches have had a negative impact across a variety of industries. The FBI will continue to work with our domestic and international partners to pursue criminals who engage in this type of activity, wherever they may be hiding.”
According to the allegations contained in the Indictment unsealed today[1]:
From at least in or around 2013 through in or about 2015, RIMASAUSKAS orchestrated a fraudulent scheme designed to deceive the Victim Companies, including a multinational technology company and a multinational online social media company, into wiring funds to bank accounts controlled by RIMASAUSKAS. Specifically, RIMASAUSKAS registered and incorporated a company in Latvia (“Company-2”) which bore the same name as an Asian-based computer hardware manufacturer (“Company-1”), and opened, maintained, and controlled various accounts at banks located in Latvia and Cyprus in the name of Company-2. Thereafter, fraudulent phishing emails were sent to employees and agents of the Victim Companies, which regularly conducted multimillion-dollar transactions with Company-1, directing that money the Victim Companies owed Company-1 for legitimate goods and services be sent to Company-2’s bank accounts in Latvia and Cyprus, which were controlled by RIMASAUSKAS. These emails purported to be from employees and agents of Company-1, and were sent from email accounts that were designed to create the false appearance that they were sent by employees and agents of Company-1, but in truth and in fact, were neither sent nor authorized by Company-1. This scheme succeeded in deceiving the Victim Companies into complying with the fraudulent wiring instructions.
After the Victim Companies wired funds intended for Company-1 to Company-2’s bank accounts in Latvia and Cyprus, RIMASAUSKAS caused the stolen funds to be quickly wired into different bank accounts in various locations throughout the world, including Latvia, Cyprus, Slovakia, Lithuania, Hungary, and Hong Kong. RIMASAUSKAS also caused forged invoices, contracts, and letters that falsely appeared to have been executed and signed by executives and agents of the Victim Companies, and which bore false corporate stamps embossed with the Victim Companies’ names, to be submitted to banks in support of the large volume of funds that were fraudulently transmitted via wire transfer.
Through these false and deceptive representations over the course of the scheme, RIMASAUSKAS, the defendant, caused the Victim Companies to transfer a total of over $100,000,000 in U.S. currency from the Victim Companies’ bank accounts to Company-2’s bank accounts.
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RIMASAUSKAS, 48, of Vilnius, Lithuania, is charged with one count of wire fraud and three counts of money laundering, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are 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, and thanked the Prosecutor General’s Office of the Republic of Lithuania, the Lithuanian Criminal Police Bureau, the Vilnius District Prosecutor’s Office and the Economic Crime Investigation Board of Vilnius County Police Headquarters for their assistance in the investigation and arrests, as well as the Department of Justice’s Office of International Affairs.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Eun Young Choi is in charge of the prosecution. Assistant U.S. Attorney Edward Diskant is handling the forfeiture aspects of the prosecution.
The charges contained in 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Lexington Man Sentenced for Misprision of a Felony and Making False StatementsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that Joseph Carlton Meek, 22, of Lexington, South Carolina, was sentenced to 27 months for Misprision of a Felony and Making False Statements in connection with Dylann Storm Roof’s racist assault on parishioners at Mother Emanuel AME Church.
More than a week prior to Roof’s June 17 attack, Roof told Meek that Roof was going to shoot people during Wednesday night bible study at an AME Church in Charleston. Roof also explained that he had been planning the attack for more than six months and that he intended the attack to serve as a catalyst for a race war.
As the initial news reports were released on the night of June 17, Meek knew that Roof had committed the attack based on Roof’s prior statements. Meek told friends and family that he knew Roof had committed the attack but took active steps to stop them from contacting law enforcement on the night of June 17 as well as the morning of June 18. Only after learning that a friend had already called the FBI on June 18 did Meek then call law enforcement. When the FBI first interviewed Meek on June 18, Meek repeatedly lied about his advance knowledge of the details of Roof’s plans to attack the church.
United States Attorney Beth Drake explained, “Meek’s actions in concealing Roof’s involvement and his false statements to the FBI impacted law enforcement’s efforts to capture and investigate Roof who had escaped with a loaded .45 Glock. Separate and apart from the murders, his actions are serious criminal violations.” U.S. Attorney Drake credited the cooperative relationship between the many law enforcement agencies supported by tips from private citizens for the quick capture of Roof. “This was excellent policing with the support of the community.”
According to Alphonso Norris, FBI Special Agent in Charge, “This sentence demonstrates the FBI’s commitment to bring justice to all those who played a part in this horrific crime. This successful prosecution was the result of coordinated efforts with our state, local and federal partners. We are proud to be part of such a professional team that also obtained justice for the victims, families and communities that were forever changed by the cowardly acts of Dylan Roof and Joey Meeks.”
The investigation was conducted by the Federal Bureau of Investigation (FBI), City of Charleston Police Department, and South Carolina Law Enforcement Division (SLED). Assistant United States Attorneys Jay N. Richardson and Nathan Williams are prosecuting the case.
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Las Cruces Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Anthony Margarito Berumen, 32, of Las Cruces, N.M., was sentenced today in federal court to 42 months in prison followed by six years of supervised release for his conviction on methamphetamine trafficking charges.
Berumen was arrested on Feb. 9, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Dec. 9, 2015 and Dec. 15, 2015. The complaint alleged that Berumen committed the crimes in Dona Ana County, N.M. According to the complaint, Berumen sold a total of 4.6 grams of methamphetamine to undercover law enforcement agents during two transactions on Dec. 9, 2015, and one transaction on Dec. 15, 2015.
Berumen was indicted on Aug. 17, 2016, and charged with three counts of distributing methamphetamine. The indictment was superseded on Sept. 22, 2016, charging Berumen with distributing methamphetamine on Dec. 9, 2015 and Dec. 16, 2015, and distributing methamphetamine in the vicinity of a school on Dec. 9, 2015.
On Jan. 12, 2017, Berumen pled guilty to the superseding indictment. In entering the guilty plea, Berumen admitted selling methamphetamine to undercover law enforcement on three occasions in Dec. 2015. He also acknowledged that one of the drug transactions took place in a middle school parking lot in Las Cruces.
This case was investigated by the Las Cruces office of the FBI and the New Mexico State Police and was prosecuted by Assistant U.S. Attorneys John Balla and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
Kirby Cleveland Charged with Murder of Navajo Nation Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Kirby Cleveland made his initial appearance in federal court this morning on a criminal complaint charging him with murder, announced Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety. Cleveland remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for March 22, 2017.
The criminal complaint, which was filed on March 14, 2017, charges Cleveland, 32, an enrolled member of the Navajo Nation from Prewitt, N.M., with murdering a Navajo Nation tribal police officer. The criminal complaint alleges that Cleveland shot the victim officer, who was responding to a domestic violence call, on the night of March 11, 2017. The victim officer died on March 12, 2017, as the result of the gunshot injuries he sustained. If convicted on the murder charge, Cleveland faces a maximum penalty of life imprisonment.
Cleveland was arrested on tribal charges on March 12, 2017, by the Navajo Nation Division of Public Safety, and he remained in tribal custody until March 20, 2017, when the tribal charges against him were dismissed. Immediately after the dismissal of the tribal charges, the FBI arrested Cleveland on the criminal complaint.
The Gallup and Albuquerque offices of the FBI and the Crownpoint, Shiprock and Chinle offices of the Navajo Nation Division of Public Safety are investigating this case, with assistance from the New Mexico State Police and the McKinley County Sheriff’s Office. Assistant U.S. Attorneys Novaline D. Wilson and Niki Tapia-Brito are prosecuting the case.
Cleveland ComplaintJustice Department Settles with Public School District to Resolve HIV-Related Discrimination FindingsRead the Press Release
The Justice Department announced today that it has reached an agreement with the Pea Ridge School District (PRSD) of Pea Ridge, Arkansas, to remedy alleged violations of the Americans with Disabilities Act (ADA). Title II of the ADA prohibits discrimination by public entities, including school districts, against individuals who have disabilities; individuals regarded as having disabilities; and individuals associated with people with disabilities.
Based on its investigation, the Department previously issued a Letter of Findings outlining how the District excluded three students after reviewing a document referencing the human immunodeficiency virus (HIV) status of the students’ family member. The District initially concluded that the students were not to be allowed back into the school district until they underwent HIV testing and the results were returned to the District. Following the students’ exclusion from school and extracurricular activities for multiple days, the District changed its position, readmitting the students prior to its receipt of their HIV test results.
The Settlement Agreement requires the District to adopt and implement a written non-discrimination policy that makes clear that PRSD does not discriminate on the basis of disability and that those individuals who are “regarded as disabled” or are associated with a person with a disability are covered by the ADA’s protections. PRSD has also agreed to revise its “Communicable Diseases and Parasites” policy to state that HIV is not considered to be a condition requiring a student’s exclusion from school under that policy; to provide ADA training to PRSD instructors and administrators; to report on its compliance with the agreement; and to pay $15,000 in compensatory damages.
“No child should be kept from attending school based on unfounded fears about HIV,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We commend the Pea Ridge School District for its commitment, reflected in this agreement, to ensure the ADA’s nondiscrimination promise for all students.”
To read the Settlement Agreement or for more information on the ADA and HIV discrimination, visit www.ada.gov/hiv. For more information about the ADA, including how to file a complaint, call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.