Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 April 2017
Man Charged with Sending Threats to South Burlington High School Students and Faculty Appears in CourtRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Josiah Leach, 18, of South Burlington, Vermont, appeared today before the Honorable Christina Reiss charged with one count of knowingly transmitting in interstate commerce threats to injure others. Chief Judge Reiss advised Leach of the charge against him and appointed the Office of the Federal Public Defender to represent him. He is deemed innocent until proven guilty of the charges.
Leach, who was arrested on Friday night, will remain in custody pending a detention hearing on Thursday, April 27, 2017 at 10:00 a.m.
Acting United States Attorney Eugenia A.P. Cowles again thanked the Federal Bureau of Investigation, the South Burlington Police Department, the Vermont State Police, and Champlain College’s Leahy Center for Digital Investigations for their tireless work in the investigation leading to Leach’s arrest.
Leach was represented by Assistant Federal Public Defender Elizabeth Quinn. AUSA Michael Drescher represented the United States.
MEDIA ADVISORY-- HOPE Initiative Partners to Encourage Community Participation in DEA’s April 29, 2017 National Prescription Drug Take-Back Event by Hosting Promotional Event on Tuesday in Civic PlazaRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office and UNM Health and Sciences Center are encouraging community participation in DEA’s 13th National Prescription Drug Take-Back Day on Saturday, April 29, 2017 from 10:00 a.m. to 2:00 pm as part of the prevention and education component of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. To raise public awareness about Saturday’s nationwide event, the HOPE Initiative Partners and DEA are collaborating with the City of Albuquerque, Bernalillo County and Healing Addiction in our Community (HAC) in hosting a promotional Drug Take-Back event on Tuesday, April 25, 2017, from 11:00 a.m. to 1:30 p.m., during “Truckin’ Tuesday” in Civic Plaza. The promotional event will provide City and County employees and others who work in downtown Albuquerque with a safe, convenient and responsible way of disposing of unused, unwanted or expired medications. Representatives from these collaborators will be available to speak with the media at 1:00 p.m. on Tuesday, April 25, 2017, in Civic Plaza during the promotional event.
WHO:
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Bernalillo County Commissioner Maggie Hart Stebbins, District 3
Executive Assistant U.S. Attorney Elizabeth Martinez
WHEN:
TUESDAY, APRIL 25, 2017
1:00 P.M.
WHERE:
Albuquerque Civic Plaza
1 Civic Plaza NW
Albuquerque, NM 87012
OPEN PRESS
Members of the public who wish to participate in Saturday’s nationwide event can find a nearby Prescription Drug Take-Back collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and entering their zip code into the search window, or they can call 800-882-9539. Only pills and other solids, like patches, will be accepted at DEA Drug Take Back collection sites – the public should not bring liquids, needles or other sharp items to take back sites. This service is free and anonymous, no questions asked.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic that has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Long Island Men Sentenced to Prison for Methylone ConspiracyRead the Press Release
ALBANY, NEW YORK – Two Long Island men were sentenced to prison and fined on Friday for their roles in a conspiracy to distribute the controlled substance methylone.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
In September 2014, Douglas Marshall, age 25, of Lindenhurst, New York, and Anthony Carlson, age 25, of Merrick, New York, pled guilty to conspiring to possess with intent to distribute methylone. Methylone is an analogue of MDMA and often marketed as ecstasy.
On August 23, 2013, Marshall and Carlson were arrested in Saratoga Springs, New York, after selling 1 kilogram of methylone in exchange for $14,000 in cash. A search of Carlson’s residence in Bellmore, New York, later that day uncovered an additional kilogram of methylone, cocaine, a scale, and 2 firearms.
Senior United States District Judge Thomas J. McAvoy sentenced Marshall to 21 months in prison and fined him $5,000. Carlson, who was found to have possessed the 2 firearms in connection with his drug trafficking activities, was sentenced to 29 months in prison and fined $5,000. Both men were also ordered to serve 3 years of post-imprisonment supervised release. They also forfeited $15,000 in drug proceeds.
This case was investigated by the DEA and the Saratoga Springs Police Department, and prosecuted by Assistant United States Attorney Wayne A. Myers.
Jury Convicts Leader of Marriage Fraud Ring and Two OthersRead the Press Release
HOUSTON - Three Houston residents have been found guilty after a five-day jury trial for conspiracy to commit marriage fraud, aiding/abetting marriage fraud, marriage fraud, theft of government funds and false statements, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston, District Director Tony Bryson of U.S. Citizenship and Immigration Services (CIS) – District 33, and Special Agent in Charge Dax Roberson of U.S. Department of Agriculture, Office of Inspector General – Investigations.
The federal jury deliberated for approximately four hours before convicting Nigerian citizens Folarin H. Alabi, 35, and Justice Daniel, 41, and U.S. citizen Letrishia Andrews, 37, all of Houston, of conspiracy to commit marriage fraud. Alabi was the leader of the conspiracy and also convicted of aiding and abetting marriage fraud. Daniel was further convicted of one count of marriage fraud, while the jury also convicted Andrews of aiding and abetting marriage fraud, theft of government funds and false statements related to her Supplemental Nutrition Assistance Program (SNAP) applications.
The verdicts bring to a total 11 defendants now convicted in two separate, but related, cases of marriage fraud in a scheme involving Nigerian nationals.
Eight others had previously pleaded guilty for their roles in the scheme – Nigerian citizen Ifeoma Adamolekun, 40, and U.S. Citizen Charles R. Warren, 44, in the Alabi case as well as Anisha Gable, 35, Anthony Andrews, 29, Shakietha Joseph, 41 and Trevor Frenney, 41 all of Houston; and Nigerian citizens Michael Nathan, 38, and Hauwa Bello, 39, all of whom also resided in Houston.
A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws. All 11 defendants conspired together in connection with a marriage fraud ring involving arranging “sham” marriages between recruited U.S. citizens and recruited Nigerian nationals. Evidence at trial revealed Alabi would search for and recruit Nigerian nationals at nightclubs.
The defendants would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and falsely submit them to CIS to obtain legal permanent resident status. As part of the conspiracy, the defendants would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
At trial, the government presented evidence that Alabi recruited Nigerian nationals, including Daniel, to enter into “sham” marriages with U.S. citizens to deceive immigration authorities and ultimately gain lawful permanent status in the Unites States. The evidence proved Daniel did knowingly marry Andrews, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. At the time of this conspiracy, Alabi and Daniel were citizens of Nigeria and had entered the U.S. temporarily on non-immigrant visas.
The jury also heard that Andrews submitted false SNAP applications claiming to be single, while at the same time, filing sworn immigration documents claiming to be married to Daniel.
The defense attempted to convince the jury that Andrews and Daniel had marital issues but were in a legitimate marriage despite all the documents and testimony to the contrary. The jury did not believe their claims and found them guilty as charged.
Each defendant faces up to five years in federal prison and a possible $250,000 fine on the conspiracy and marriage fraud counts. Andrews also faces an additional five years for the false statements as well as a maximum of 10 years for theft of government funds. Sentencing is set for Aug. 3, 2017. All will remain in custody pending that hearing.
HSI, CIS - Fraud Detection and National Security Directorate conducted the joint investigation along with Department of Agriculture - Office of the Inspector General. The agencies work together on the Document and Benefit Fraud Task Force which was established to combat these types of crimes where fraudulent representations are made to multiple government agencies. Assistant U.S. Attorneys Rick Bennett and Julie Searle prosecuted the case.
Jamaican National Arrested in St. Thomas for Illegal ReentryRead the Press Release
St. Thomas, USVI- Ewart Henry, 71, of Jamaica, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in a criminal complaint with illegal reentry, Acting United States Attorney Joycelyn Hewlett announced. Henry was detained pending further proceedings. Preliminary and detention hearings are set for April 25, 2017.
According to the criminal complaint, on April 21, 2017, Henry presented himself at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands. Henry was a ticketed passenger on an outbound American Airlines flight to Connecticut. He provided a Connecticut state ID card and was unable to provide further documentation of citizenship. CBP secondary inspection discovered that Henry is a Jamaican national and was previously deported in 2008. Henry had not obtained permission to reenter the United States.
Under federal law, if convicted of illegal reentry, Henry faces a maximum sentence of 10 years and a $250,000 fine. The case is being investigated by CBP and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), and is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Acting United States Attorney Hewlett reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Inmate at USP Lee Pleads Guilty to Assaulting Corrections OfficerRead the Press Release
Abingdon, VIRGINIA – A federal inmate at United States Penitentiary at Lee County faces additional federal prison time after pleading guilty this morning to resisting and assaulting a corrections officer, Acting United States Attorney Rick A. Mountcastle announced.
Darren Wall, 24, waived his right to be indicted and pled guilty this morning to a one count Information charging him with one count of forcibly assaulting and resisting an officer and employee of the United States while that officer was engaged in the performance of official duties and during the commission of such offense did inflict bodily injury.
United States District Judge James P. Jones scheduled a sentencing hearing for July 6, 2017, at 2:30 p.m., in Abingdon. At sentencing, Wall faces a sentence of imprisonment for a term of between five and eight years
According to evidence presented to the court today by Assistant United States Attorney Randy Ramseyer, on May 9, 2016, on May 9, 2016, Wall, while an inmate at USP Lee, resisted and assaulted a corrections officer while the officer performed his official duties. That assault caused bodily injury to the officer.
The investigation of the case was conducted by the Bristol, Virginia, office of the Federal Bureau of Investigation. Assistant United States Attorney AUSA Randy Ramseyer is prosecuting the case for the United States.
Imposter Attorney Sentenced to Prison in Marriage Fraud SchemeRead the Press Release
LOS ANGELES — A Santa Fe Springs man who posed as an attorney as part of an elaborate immigration fraud scheme in which at least 87 foreign nationals – mostly Chinese citizens – paid tens of thousands of dollars to be “married” to United States citizens was sentenced today to two years in federal prison.
Jason Shiao, also known as “Zheng Yi Xiao,” 67, who operated the Pasadena-based Jason (USA) International Law Corporation, was sentenced by United States District Judge Dale S. Fischer.
Shiao “assisted foreign nationals who were seeking to obtain lawful permanent resident status to remain in the United States by arranging fraudulent marriages for those foreign nationals to United States citizen spouses,” according to documents filed by prosecutors in relation to today’s sentencing.
Shiao was initially charged in this case in 2015, and in January he pleaded guilty to one count of conspiracy to commit visa fraud and marriage fraud.
As part of the scheme, Shiao falsely claimed to be an attorney, paid United States citizens thousands of dollars to participate in the scheme, introduced immigrants seeking benefits to American citizens to facilitate the sham marriages, instructed his clients to pose for wedding photographs, and told clients to lie to officials with U.S. Citizenship and Immigration Services (USCIS).
According to court documents, Chinese nationals paid up to $50,000 to enter into sham marriages in the hopes of obtaining lawful permanent resident cards – often referred to as “Green Cards” – that would allow them to legally reside in the United States.
Shiao’s daughter, Lynn Leung, 45, of Pasadena, also pleaded guilty to a conspiracy charge. Leung was sentenced last week by Judge Fischer to six months in prison.
A third defendant charged in the case – Shannon Mendoza, 50, of Pacoima – was transferred to the Eastern District of Pennsylvania, where he is also being prosecuted for drug trafficking charges based on conduct allegedly committed while on pre-trial release in the immigration fraud case.
While Shiao and Leung served as brokers by arranging the sham marriages and filing immigration applications, Mendoza allegedly acted as a recruiter by finding U.S. citizens who were willing to enter into sham marriages in exchange for payments of up to $15,000.
Court documents describe how the defendants went to considerable lengths to make the fake marriages appear real. According to Shiao’s plea agreement, he and his daughter prepared documentation that was filed with USCIS to bolster the validity of the fraudulent marriages, including staged photographs of “wedding ceremonies” and bogus tax returns, life insurance policies, joint bank account information and apartment lease applications.
The investigation in this case began in September 2012 based on information provided by an anonymous caller who contacted U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This case was the result of an undercover investigation by the Los Angeles Document and Benefit Fraud Task Force, which includes HSI, the U.S. Department of State’s Diplomatic Security Service, and U.S. Citizenship and Immigration Services’ Fraud Detection and National Security unit.
The case was prosecuted by Assistant United States Attorney Sheila Nagaraj of the Public Corruption and Civil Rights Section. Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section also worked on the case.
Huntington woman pleads guilty to federal heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman involved with others in distributing heroin in 2016 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Tonya Lynn Thompson, 44, entered her guilty plea to conspiracy to distribute heroin.
From the summer of 2016 to September of 2016, Thompson admitted that she participated in the conspiracy to distribute heroin in the Huntington area. During this time period, Thompson and another individual received heroin on consignment. Thompson and others would then distribute the heroin and return the proceeds back to the heroin source.
On September 5, 2016, a deputy with the Cabell County Sheriff’s Department seized $6,407 in cash from Thompson and another individual during a traffic stop on U.S. Route 60 in Huntington after law enforcement received information they would be delivering money that day. Thompson admitted that this money was proceeds from drug trafficking and that they were delivering the cash back to the heroin source. Thompson further admitted that she and others were responsible for distributing up to 400 grams of heroin during her involvement in the conspiracy.
Thompson faces up to 20 years in federal prison when she is sentenced on August 7, 2017.
The Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Houston Couple Heads to Prison for Stolen Identity Tax FraudRead the Press Release
HOUSTON – A 32-year-old legal permanent resident from Nigeria and his 31-year-old Houston girlfriend have been ordered to federal prison in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Tom Emasealu and Krystal Prophet entered guilty pleas in December 2016 after four days of trial and hearing the testimony of 21 witnesses. Emasealu pleaded guilty to all charges contained in the indictment - conspiracy, possession of at least 15 unauthorized access devices, access device fraud, wire fraud and aggravated identity theft. Prophet admitted to the conspiracy, access device fraud, wire fraud and aggravated identity theft.
Today, U.S. District Judge Vanessa Gilmore handed Emasealu a total of 87 months in federal prison for the conspiracy, fraud and possession of access devices. He also received a mandatory 24 months for the identity theft which must be served consecutively for a total 111-month-sentence. Prophet received 30 months plus 24 months for a total 54-month-term of federal imprisonment. Prophet will be required to serve three years of supervised release following completion of the prison term, while Emasealu is expected to face deportation proceedings following his release from prison.
Both were jointly and severally liable for $37,100.29 in restitution to the victims. Prophet and Emsealu were also found responsible for $113,526 and $273,181.29, respectfully, to the IRS.
In handing down the sentence, Judge Gilmore addressed Emasealu and noted, “You totally messed up [the victims’] lives by stealing their identities.”
According to witness testimony and the evidence admitted during trial, the conspiracy began in January 2014 and continued through May 2015. Emasealu and Prophet conspired and worked together to obtain the identities of approximately 50,000 victims located nationwide which they used to apply for debit and credit cards with various banking institutions.
The evidence showed that Emasealu and Prophet applied for and obtained approximately 230 debit cards using identities of other individuals. These identities were then used to apply for fraudulent tax refunds. The monies were deposited onto the debit cards that were previously created using victim identities.
In total, the defendants attempted to obtain approximately $1.9 million in fraudulent tax refunds. The IRS was able to stop the majority of the transactions, but Emasealu and Prophet still managed to obtain approximately $250,000 in a four-month period.
Prophet was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Emasealu will remain in custody.
The U.S. Postal Inspection Service, Secret Service and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
Horry County Man Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake stated that Emmanuel Lamar Bellamy, age 29, entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and distribution of a quantity of marijuana, cocaine, cocaine base and oxycodone, in violation of 21 U.S.C. § 841(a)(1). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
The case was part of an investigation into a heroin distribution organization operating in the Horry County, South Carolina area. Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department (HCPD) were investigating illegal drug activity in the Loris, South Carolina area. Agents believed that Bellamy was a distributor of illegal drugs. Evidence at the change of plea hearing established that in 2015, agents made two controlled purchases of cocaine base from Bellamy. In September 2016, Bellamy was arrested during a traffic stop and found in possession of a quantity of cocaine. A firearm was also recovered during the traffic stop. As a result of the arrest, a hotel room connected with Bellamy was searched and a quantity of cocaine and fentanyl was located in the room.
Ms. Drake stated that the maximum penalty Bellamy could receive is 20 years imprisonment and a fine of $1,000,000 dollars.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department (HCPD). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
#####
Hartford Man Sentenced to 6 Years in Federal Prison for Distributing Heroin, Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL GAMERO, 24, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 72 months of imprisonment, followed by three years of supervised release, for heroin distribution and firearm possession offenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in February 2016, Hartford Police began investigating the distribution of heroin marked with a particular brand stamp that was linked to at least two overdose deaths, one in Vernon on February 1 and one in Granby on March 22. Between February and April 2016, law enforcement conducted four controlled purchases of heroin marked with the same stamp from GAMERO and his associate, Charlie Tacuri.
GAMERO and Tacuri were arrested on April 21, 2016. On that date, a search of GAMERO’s Preston Street residence revealed approximately 650 bags of heroin, a quantity of marijuana, a loaded firearm and approximately $1,600 in cash. At the time of Tacuri’s arrest, Tacuri possessed approximately 60 bags of heroin and approximately $1,200 in cash.
On December 15, 2016, GAMERO pleaded guilty to one count of conspiracy to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
GAMERO, a citizen of Peru and lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
On December 8, 2016, Tacuri pleaded guilty to one count of conspiracy to distribute heroin. He awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hartford, Vernon and Granby Police Departments. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Haitian National Pleads Guilty to Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
A former high-ranking Haitian National Police officer pleaded guilty today in the United States to a money laundering charge in connection with an international narcotics scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division, Special Agent in Charge Matthew G. Donahue of the DEA, Caribbean Division, and Special Agent in Charge Kelly R. Jackson Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Guy Philippe, 49, of Haiti, appeared before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, where he pleaded guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida, and elsewhere in the United States in the late 1990s and early 2000s. The defendant is scheduled to be sentenced by Judge Altonaga in Miami on July 5, 2017.
“In addition to its other pernicious effects, drug trafficking corrupts public officials and important government institutions that form the foundation of every democracy. Philippe – a former high-ranking official in the Haitian National Police – was on the payroll of the drug traffickers for years, receiving more than $1.5 million in bribe payments for protecting drug shipments,” said Acting Assistant Attorney General Blanco. “The department’s investigation and prosecution of this case for more than a decade demonstrates its commitment to prosecuting all of those who facilitate the international drug trade, including the corrupt officials on the take, and that there is no place to hide from the U.S. justice system.”
“After evading law enforcement for over a decade, Guy Philippe's guilty plea demonstrates the unrelenting commitment of the U.S. government and our foreign counterparts to disrupt and dismantle transnational narco-trafficking and money laundering organizations,” said Acting U.S. Attorney Greenberg. “Philippe cast aside his duty to protect and serve the people of Haiti. Instead, he abused his position of authority as a high-ranking Haitian National Police Officer to safeguard drug shipments and launder illicit trafficking proceeds. The prosecution of those who abuse the public’s trust to facilitate criminal conduct remains a top priority for the U.S. and our Haitian law enforcement allies.”
“It is important that Philippe accepted responsibility for his criminal offenses against the United States and the people of Haiti for his involvement in criminal activities associated with drug trafficking,” said Special Agent in Charge Wright. “With the increased strength of our law enforcement partners, both in the United States and abroad. DEA will never abandon nor ever give up on seeking and bringing to justice those responsible for drug trafficking and the laundering of drug money, no matter how many years they attempt to evade capture.”
“This international investigation demonstrates the possibilities of success in identifying and producing significant prosecutorial evidence against members of drug trafficking organizations, money laundering organizations and corrupt public figures,” said Special Agent in Charge Donahue. “Guy Philippe violated public trust and the confidence of the Haitian people and others throughout the Caribbean Region and the United States, by supporting and benefiting from drug trafficking organizations. The arrest of Guy Philippe is a testament to the collective mission of our federal agencies and exceptional Foreign Police Units. The Haitian Police, La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), is commended for their continued hard work, dedication and assistance provided to the international law enforcement community. This investigation sends a strong message to criminal organizations globally, that the law enforcement partners throughout the Eastern Caribbean Region will not rest until these violators are brought to justice.”
“Today Mr. Philippe admitted to accepting bribes while employed as a high-ranking Haitian National Police Officer and to assisting a drug operation that brought cocaine into Miami,” said Special Agent in Charge Jackson. “IRS-CI is pleased this longtime fugitive has admitted his role in the money laundering conspiracy and will now face the consequences of his actions. IRS-CI will continue to work alongside our global law enforcement partners and provide our financial investigative expertise to dismantle these international drug and money laundering organizations.”
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Haitian National Pleads Guilty to Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
A former high-ranking Haitian National Police officer pleaded guilty today in the United States to a money laundering charge in connection with an international narcotics scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Guy Philippe, 49, of Haiti appeared before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, where he pleaded guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida and elsewhere in the United States in the late 1990s and early 2000s. Philippe faces a maximum statutory sentence of 20 years’ imprisonment. The defendant is scheduled to be sentenced by Judge Altonaga in Miami on July 5, 2017 at 9:30 a.m.
"After evading law enforcement for over a decade, Guy Philippe's guilty plea demonstrates the unrelenting commitment of the U.S. government and our foreign counterparts to disrupt and dismantle transnational narco-trafficking and money laundering organizations,” said Acting United States Attorney Greenberg. “Philippe cast aside his duty to protect and serve the people of Haiti. Instead, he abused his position of authority as a high-ranking Haitian National Police Officer to safeguard drug shipments and launder illicit trafficking proceeds. The prosecution of those who abuse the public’s trust to facilitate criminal conduct remains a top priority for the U.S. and our Haitian law enforcement allies.”
“In addition to its other pernicious effects, drug trafficking corrupts public officials and important government institutions that form the foundation of every democracy. Philippe – a former high-ranking official in the Haitian National Police – was on the payroll of the drug traffickers for years, receiving more than $1.5 million in bribe payments for protecting drug shipments,” said Acting Assistant Attorney General Blanco. “The department’s investigation and prosecution of this case for more than a decade demonstrates its commitment to prosecuting all of those who facilitate the international drug trade, including the corrupt officials on the take, and that there is no place to hide from the U.S. justice system."
“It is important that Philippe accepted responsibility for his criminal offenses against the United States and the people of Haiti for his involvement in criminal activities associated with drug trafficking,” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division, also adding “With the increased strength of our law enforcement partners, both in the United States and abroad, DEA will never abandon nor ever give up on seeking and bringing to justice those responsible for drug trafficking and the laundering of drug money, no matter how many years they attempt to evade capture.”
This international investigation demonstrates the possibilities of success in identifying and producing significant prosecutorial evidence against members of drug trafficking organizations, money laundering organizations and corrupt public figures,” stated Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division. “Guy Philippe violated public trust and the confidence of the Haitian people and others throughout the Caribbean Region and the United States, by supporting and benefiting from drug trafficking organizations. The arrest of Guy Philippe is a testament to the collective mission of our federal agencies and exceptional Foreign Police Units. The Haitian Police, La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), is commended for their continued hard work, dedication and assistance provided to the international law enforcement community. This investigation sends a strong message to criminal organizations globally, that the law enforcement partners throughout the Eastern Caribbean Region will not rest until these violators are brought to justice.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), said, "Today Mr. Philippe admitted to accepting bribes while employed as a high-ranking Haitian National Police Officer and to assisting a drug operation that brought cocaine into Miami. IRS-CI is pleased this longtime fugitive has admitted his role in the money laundering conspiracy and will now face the consequences of his actions. IRS-CI will continue to work alongside our global law enforcement partners and provide our financial investigative expertise to dismantle these international drug and money laundering organizations."
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guinean National Pleads Guilty to Possessing Fake Passport and Identity TheftRead 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 Abdoulaye Barry, 25, of Jamaica, NY, pleaded guilty to possessing a fraudulent passport card and aggravated identity theft before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 10 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that on February 26, 2017, the defendant, a citizen of Guinea, was found at the Rainbow Bridge with a fraudulent United States Passport card, bearing the name and passport card number of a real person with the defendant’s photograph. Barry also had a fraudulent Ohio driver’s license bearing the name of a real person with the defendant’s photograph, and a Florida driver’s license bearing the name and photograph of another person. The defendant was also in possession of a debit and credit card matching the name on the fraudulent Ohio driver’s license.
The plea is the result of an investigation by the United States Department of State, under the direction of William Ferrari; Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Sentencing is scheduled for August 3, 2017, at 1:00 p.m. before Judge Arcara.
Former Tennessee Commerce Bank Executive Pleads Guilty to Deceiving Federal RegulatorsRead the Press Release
Lamar Cox, 73, of Nashville, Tenn., former Chief Operating Officer and Board of Directors member of now defunct Tennessee Commerce Bank (TCB), pleaded guilty on April 21, 2017, to causing the bank to make a false statement to the Federal Deposit Insurance Corporation (FDIC), announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. TCB was closed by federal regulators on January 27, 2012, due to its failing financial condition.
“Deceiving federal regulators can have dire consequences for banks and ultimately place its stakeholders in financial peril,” said Acting U.S. Attorney Jack Smith. “Those who engage in such behavior should expect that they will be held accountable through the efforts of our office and our financial regulatory partners.”
According to the Information, Cox devised a scheme to deceive the FDIC by delaying reporting of the full amount of a $710,000 loss by TCB on the bundled sale of $4,000,000 in foreclosed properties. Cox sought to delay reporting the full amount of the loss so that TCB’s books would look better to federal bank examiners, who were scheduled to soon examine TCB. In order to accomplish the deception, Cox created a pre-planned and fraudulent “posting error,” causing TCB to report only $270,000 of the $710,000 loss from its sale of the foreclosed properties in the third quarter of 2009. Cox’s actions caused TCB to understate its net loss by $440,000 reported in the Call Report filed with the FDIC for the third quarter of 2009, thus concealing the true financial condition of TCB from shareholders, examiners and the public.
"In 2009, at the height of the financial crisis and while Tennessee Commerce Bank was in TARP, Lamar Cox had an important decision to make: as required by law, he could tell the truth to bank examiners about loan losses or hatch a scheme to make the bank appear healthier than it actually was," said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (TARP). "Cox chose lies and deception to understate the bank's losses and inflate its income. And, as the chief operating officer and member of the bank's board of directors, he made that decision to deceive in a key position of authority with decades of experience in finance, compliance, and lending. Tennessee Commerce Bank received a $30 million bailout from TARP, all of which was lost when the bank failed. I commend Acting U.S Attorney Jack Smith and Assistant U.S. Attorney Thomas J. Jaworski for standing united with SIGTARP against crime by this TARP banker."
Cox is scheduled to be sentenced on August 14, 2017. He faces up to 30 years in prison, a criminal fine of up to $1,000,000, and restitution to be determined by the Court. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the FDIC Office of Inspector General-Office of Investigations; and the FBI. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Former Russell County Teacher, Guilty of Sexual Exploitation of ChildrenRead the Press Release
Criminal activity took place during a two-year period
LOUISVILLE, Ky. – A Russell County, Kentucky, resident and former teacher, pleaded guilty today in United States District Court, before District Judge Greg N. Stivers, to a single charge of sexual exploitation of children, announced United States Attorney John E. Kuhn, Jr.
According to the factual basis of the plea agreement, Jeffrey McGaha, 49, of Russell Springs, Kentucky, admitted to attempting to receive materials that contained child pornography between September 23, 2012, and September 5, 2014. McGaha used a cellular telephone and various social media applications to communicate with an individual in an attempt to obtain the materials. The materials depicted a minor engaged in sexually explicit conduct. McGaha engaged in this conduct while in Russell County, Kentucky and other places.
McGaha was taken in to federal custody. He is scheduled for sentencing in Bowling Green, on July 18, 2017, at 10:30 a.m. before Judge Stivers.
If the Court accepts the Plea Agreement, McGaha will be sentenced to five years in prison and be required to register as a sex offender. He will also face at least five years of Supervised Release and it could be up to life of Supervised Release.
Assistant United States Jo E. Lawless is prosecuting the case. The Russell Springs Police Department conducted the investigation.
mcgaha_plea_agreement_4-24-17.docx***
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources."
Former Executive Director of Canadian County CASA Sentenced to Ten Months in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – TRACI LORRE OWENS, 48, of Edmond, Oklahoma, was sentenced on Friday to ten months in federal prison and three years of supervised release for embezzling from a Canadian County charity for abused and neglected children, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
From November 2010 until July 2013, Owens was the Interim Executive Director and then the Executive Director of Canadian County Court Appointed Special Advocates ("CASA"), which received more than $10,000 in federal assistance annually from the United States Department of Justice. Based on this federal interest, a federal grand jury indicted Owens on July 22, 2015, for embezzling money from Canadian County CASA. According to the indictment, Owens created duplicate payroll checks for herself and also deposited checks payable to herself and to cash for reimbursement of unauthorized expenses. On August 5, 2016, Owens pled guilty to a superseding information that charged the same embezzlement offense.
On April 21, 2017, U.S. District Judge Vicki Miles-LaGrange sentenced Owens to ten months in the custody of the Federal Bureau of Prisons, to be followed by three years of supervised release. The court found that Ms. Owens embezzled $55,143.93 and ordered restitution to Canadian County CASA in that amount. She also found that Owens abused the trust of Canadian County CASA, which lost its CASA certification in December 2013 because of Owens’s embezzlement. In mid-2014, Canadian County CASA was reconstituted as a certified CASA under the leadership of a new board of directors.
This case is the result of an investigation by the Department of Justice Office of Inspector General, with assistance from the Canadian County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Scott E. Williams.
Former Executive Director of Birmingham Volunteer Lawyer Program Charged with Misapplication of Federal Program FundsRead the Press Release
NASHVILLE, Tenn. – April 21, 2017 - Kelli Hogue Mauro, 48, of Birmingham, Alabama, and former Executive Director of the Birmingham Volunteer Lawyer Program, has been charged with misapplication of property worth at least $5,000 from a federal program, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
The criminal information, filed on April 19, 2017, charged that between January 1, 2012 through August 31, 2012, Mauro misappropriated property owned by and under the control of the Birmingham Volunteer Lawyers Program, an organization that received benefits in excess of $10,000 from grants made by the federal Legal Services Corporation through Legal Services Alabama.
The criminal information was filed in the United States District Court for the Northern District of Alabama by the Office of the United States Attorney for the Middle District of Tennessee. The Office of the United States Attorney for the Northern District of Alabama was recused from the matter to avoid any appearance of impartiality.
This offense is punishable by not more than 10 years in prison, a fine of not more than $250,000, a period of supervised release of not more than 3 years, and payment of restitution in an amount to be determined by the court.
A criminal information is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Office of Inspector General for the Legal Service Corporation. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee is prosecuting the case.
# # # # #
Former Boilermakers Business Manager Charged with Embezzling $1.5 Million, Income Tax EvasionRead the Press Release
PITTSBURGH - An Information has been filed in federal court charging an Allegheny County resident with one count of embezzlement and theft of Labor Union assets and five counts of income tax evasion, Acting United States Attorney Soo C. Song announced today.
Raymond C. Ventrone, 59, of Pittsburgh, Pa. was the Business Manager of Local 154 of the International Association of Boilermakers from January 2010 to June 2015. According to the Information filed, during that time, Ventrone embezzled approximately $1,499,000 of union funds for his own use. In addition, Ventrone evaded payment of his income taxes on the embezzled monies.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, the Department of Labor-OIG and the Office of Labor Management Standards conducted the investigation leading to the information in this case.
A criminal Information is an accusation. A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Former BB&T Senior Vice-President and Regional Branch Operations Manager Pleads Guilty to EmbezzlementRead the Press Release
Abingdon, VIRGINIA – A former senior vice-president with BB&T, who stole cash from bank vaults to which she had access through her employment with the bank, pled guilty to federal embezzlement charges this morning in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Melissa D. Huffman, 46, of Roanoke, Virginia, waived her right to be indicted and pled guilty this morning to a one count Information charging embezzlement from a FDIC-insured bank.
United States District Judge James P. Jones scheduled a sentencing hearing for August 1, 2017, at 2:30 p.m. At sentencing, Huffman faces a maximum possible penalty of up to 30 years in prison and a fine of up to $1,000,000. Huffman agreed to make full restitution and to pay more than $30,000 toward restitution by May 24, 2017.
Between 2014 and December 2016, Huffman worked as a senior vice-president and regional branch operations manager for BB&T. As part of her official duties, Huffman had access to the vaults of BB&T’s banks throughout the Western District of Virginia. On several occasions, Huffman stole case from the vaults she visited and caused the shortages to be attributed to subordinate employees at the banks. The branches from which she stole cash included Boonsboro, Fort Hill, Martinsville, Tanglewood, Tazewell, and Warrenton.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Fontana Company, Owner and 3 Employees Charged with Violating Clean Water Act by Illegally Discharging Industrial Waste into SewersRead the Press Release
LOS ANGELES – A federal grand jury has issued a 12-count superseding indictment that accuses a Fontana company, its owner and three employees with violating the Clean Water Act by regularly engaging in illegal discharges of acidic industrial wastewater into a sewer system, as well as tampering with monitoring devices designed to prevent those violations.
The indictment, which was returned by the grand jury last Wednesday afternoon, charges:
Starlite Reclamation Environmental Services, Inc.;
Christopher Jaramillo, 47, of Victorville, the owner and president of Starlite;
Robert Conn, 74, of Torrance, a former Starlite Vice President who was responsible for overseeing wastewater treatment;
Andrew Hucks, 29, formerly of Riverside and now residing in another state, a former Starlite employee who acted as a plant operator; and
Fernando Torres, 40, formerly of San Bernardino and now believed to be residing in the Central Valley, another former plant operator at Starlite.
The indictment charges the five defendants with conspiring to violate the Clean Water Act, nine counts of violating the Clean Water Act by knowingly discharging a low-pH wastewater pollutant, and two counts of tampering with a monitoring device.
The substantive Clean Water Act counts allege that Starlite discharged wastewater with an average pH of 3 – well below the national standard pH level of 5 mandated by the Clean Water Act. There are strict controls on the discharge of acidic wastewater into sewer systems because low pH wastewater can cause damage to sewage treatment systems.
Starlite treated and disposed of industrial wastewater. But, according to the indictment, the company and the individual defendants repeatedly and regularly discharged acidic wastewater into a sewer system operated by the Inland Empire Utilities Agency, and, ultimately, by the Sanitation Districts of Los Angeles County, from November 2014 through June 2015.
While Starlite was required to monitor the wastewater it discharged into the sewer, the indictment alleges that the defendants attempted to avoid detection of the illegal discharges by placing monitoring devices in buckets of clean water. As a result of this tampering, the monitors created records that showed the discharges were within legal limits, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The indictment filed last week supersedes an indictment returned by another federal grand jury in June 2015. The initial indictment charged only Conn with 12 counts of violating the Clean Water Act. Conn previously pleaded not guilty to the charges in that indictment.
In relation to the superseding indictment, the five defendants will be summoned to appear in United States District Court for arraignments in May.
If they are convicted of the 12 counts in the indictment, each of the four individual defendants would face a statutory maximum of 54 years in prison. If Starlite is convicted, the company would face fines of up to $6 million.
The investigation in this case was conducted by the Environmental Protection Agency, the Inland Empire Utilities Agency, and the Sanitation Districts of Los Angeles County.
The prosecution of Starlite and the other defendants is being handled by Assistant United States Attorneys Dennis Mitchell and Erik M. Silber of the Environmental and Community Safety Crimes Section.
Federal Jury Convicts Silver City Man on Federal Firearms and Narcotics Trafficking OffensesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict on Friday afternoon (April 21, 2017) finding Trevor Lee Thayer, 46, of Silver City, N.M., guilty of violating the federal firearms and narcotics trafficking laws after a five-day trial. The jury found Thayer guilty on two firearms charges and one narcotics trafficking charge, and acquitted Thayer on three firearms charges and a narcotics trafficking charge.
The jury’s verdict was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Thayer was charged with firearms and narcotics trafficking offenses in a five-count indictment that was filed on Feb. 13, 2013. The indictment charged Thayer with illegally possessing a short-barreled rifle and a silencer, manufacturing a silencer, manufacturing marijuana, and possessing a firearm in furtherance of a drug trafficking crime. On Aug. 14, 2013, Thayer was charged with the additional charge of maintaining premises for the purpose of manufacturing marijuana in a superseding indictment. The indictment was superseded a second time on Sept. 13, 2016, to include two additional charges for manufacturing silencers. Thayer was charged with committing these offenses in Grant County, N.M., in Aug. 2012.
Thayer’s trial began on April 17, 2017, and concluded on April 21, 2017, when the jury returned a guilty verdict on Counts 2, 4 and 5 of the second superseding indictment, which charged him with unlawful possession of a silencer, unlawful possession of a silencer manufacturing kit, and manufacturing and possessing approximately 30 marijuana plants. The jury acquitted Thayer on Counts 1, 3, 6 and 7.
The jury’s guilty verdict was based on evidence establishing that in Aug. 2012, law enforcement officers executed a search warrant at Thayer’s residence and seized eight firearms, hundreds of rounds of ammunition, two silencers, a silencer manufacturing toolkit, marijuana plants and marijuana plant manufacturing materials. Investigation revealed that Thayer modified a firearm and manufactured the two silencers, one metal and one plastic, and that he did not have any firearms registered to him in the national Firearms Registration and Transfer Record.
The evidence at trial also established that in Aug. 2012, Thayer was manufacturing and growing marijuana plants at his residence with an expired grow license from the State of New Mexico.
At sentencing, Thayer faces a statutory maximum penalty of ten years in prison on each of the two firearms charges and five years in prison on the marijuana offense.
This case was investigated by the Las Cruces offices of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the New Mexico Motor Transportation Police and the New Mexico State Police. Assistant U.S. Attorneys Maria Y. Armijo and Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Federal Jury Convicts Lamont Fortune in Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on April 20, 2017, Lamont Darnell Fortune, 36, of Johnson City, Tennessee, was convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine.
Sentencing is set for 10:00 a.m., August 8, 2017, before the Honorable Judge Leon Jordan, Senior U.S. District Court Judge. Fortune faces a mandatory minimum of 20 years in prison up to life.
From January 2011 to November 2015, Fortune conspired with others to distribute, and possess with the intent to distribute, 280 grams or more of crack cocaine. During this period, he made regular trips from Johnson City to Winston-Salem, North Carolina, to obtain multi-ounce quantities of crack cocaine to supply his coconspirators, who then sold those drugs in Johnson City and Bristol, Tennessee. Fortune supplied crack cocaine to an individual working on behalf of law enforcement on two occasions. In May 2015, he led Virginia law enforcement on a high-speed chase on I-77, at speeds of over 120 mph, as he returned from one of those drug supply trips. Three of Fortune’s coconspirators pleaded guilty prior to his trial and have not yet been sentenced.
This long-term investigation was the product of a partnership between the Johnson City Police Department and Federal Bureau of Investigation. Former Assistant U.S. Attorney Nick Regalia participated in the prosecution and Assistant U.S. Attorneys David Gunn and Christian Lampe represented the United States at trial.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
###
Federal Indictment Charges A Charlotte Man, His Wife, and His Mother with Conspiracy to Sex Traffic Three Minors and Related ChargesRead the Press Release
CHARLOTTE, N.C. – A Charlotte man, his wife, and his mother are facing federal charges for engaging in a conspiracy to sex traffic three minor victims and related charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned the eight count indictment on April 20, 2017, charging Zerrell Ross Fuentes, 22, Brianna Leshay Wright, a.k.a. Brianna Fuentes, 24, and Tanya Marie Fuentes, 53, all of Charlotte, with one count of sex trafficking conspiracy, two counts of sex trafficking of a minor, and three counts of transportation of a minor to engage in prostitution. Brianna Wright and Tanya Fuentes are also charged with one additional count of sex trafficking of a minor.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.
The federal indictment alleges that between April 28, 2016 and May 8, 2016, the three defendants conspired with each other to recruit, entice, harbor, transport, provide and obtain by any means three minors, for the purpose of engaging in commercial sex act. The indictment also alleges that the minors were transported across state lines for the purposes of prostitution.
Specifically, the indictment alleges that Zerrell Fuentes, while in jail, used a telephone to recruit three minor victims living in Charlotte to engage in commercial sex acts for his benefit, knowing the minor victims were not yet 18 years of age. The indictment further alleges that Zerrell Fuentes used the telephone to arrange for the minor victims’ transportation from Charlotte to Myrtle Beach to engage in commercial sex acts for his benefit. Specifically, according to allegations contained in the indictment, the proceeds from the conspiracy would be used to pay Zerrell Fuentes’ bond so he could get out of jail.
According to the indictment, Brianna Wright, accompanied by Tanya Fuentes, transported the minor victims from Charotte to Myrtle Beach by car, so the minor victims could engage in commercial sex acts. While in Myrtle Beach, Tanya Fuentes paid for lodging for the two adult women and the minor victims. The indictment also alleges that Brianna Wright facilitated the placement of advertisements on the Internet, advertising the minor victims for commercial sex acts. She also provided her own telephone number on the ads, as a means of communication to arrange “dates” between the minor victims and customers, where the minor victims would be caused to engage in commercial sex acts. Brianna Wright also transported the minor victims to and from the arranged prostitution “dates.”
Zerrell Fuentes is currently in custody on a federal firearms violation and will appear in court on the sex trafficking charges. Brianna Wright and Tanya Fuentes will have their court appearances this morning before U.S. Magistrate Judge David Cayer.
The penalty for each of the eight sex trafficking related offenses is a mandatory minimum of 10 years and a maximum of life in prison and a $250,000 fine. Zerrell Fuentes is also facing a maximum penalty of up to 10 years in prison and a $250,000 fine for the unrelated firearms offense.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was handled by the FBI, HSI and CMPD. Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s office in Charlotte, is prosecuting the case.
Federal Grand Jury Indicts McKinney Man Charged with Fraudulently Obtaining and Cashing $16 Million in U.S. Treasury ChecksRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas last week, and unsealed today, charges Moiz Mumtaz Ali, 36, of McKinney, Texas, with offenses related to his role in fraudulently obtaining and cashing 3,423 U.S. Treasury checks totaling approximately $16 million, announced John Parker, U.S. Attorney for the Northern District of Texas.
Specifically, Ali is charged with one count of conspiracy to commit bank fraud, twenty-six counts of bank fraud, one count of theft of public money and property, two counts of aggravated identity theft, and one count of failure to develop, implement, and maintain anti-money laundering program. Ali will remain on bond pending trial.
The indictment alleges that from December 2010 through June 2012, Ali operated, and managed Gateway Newsstands (“Gateway”), located at 700 North Pearl Street, Dallas Texas. The business included a convenience and check-cashing store and was registered as a money service business, with the ability to cash checks for customers and members of the general public. Ali was responsible for Gateway’s check cashing operations and oversaw the day-to-day operations of the store, approved transactions, and maintained control of the business’ bank accounts.
Ali and others devised a scheme to defraud Neighborhood Credit Union by negotiating fraudulently obtained United States Treasury checks. False and fraudulent tax returns were filed using the personal identifying information of legitimate tax payers without the tax payers’ authorization. Once these fraudulent returns were submitted and approved by the Internal Revenue Service, co-conspirators received United States Treasury checks that represented the fraudulently obtained tax refunds. Co-conspirators brought these United States Treasury checks to Ali at Gateway. The United States Treasury checks were exchanged with Ali for cash that represented a percentage of the stated amount of each check.
Between December 2010 through June 2012, Ali negotiated and cashed approximately 3,423 United States Treasury checks totaling approximately $16,600,000.00. The vast majority of the checks were addressed to individuals with out-of-state addresses. Most of the checks had been obtained through fraud, either because the checks were based on fraudulent federal tax returns or because the checks had been stolen.
The indictment also alleges Ali failed to require and/or retain copies of any identification documents applicable to the party cashing the Treasury checks or to the payees whose names were on the Treasury checks he accepted and cashed. In those very limited instances in which Ali purportedly required identification and retained a copy of such identification, Ali failed to take any steps to verify whether the identification document was false, fictitious, or counterfeit.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, the bank fraud counts carry a maximum statutory penalty of 30 years in federal prison and a $1,000,000 fine. The theft of public money and property carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Each count of aggravated identity theft carries a maximum statutory penalty of 2 years in federal prison and a $250,000 fine. The failure to develop, implement, and maintain anti-money laundering program carries a maximum statutory penalty of 10 years in federal prison and a $500,000 fine.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense.
The case is being investigated by the Internal Revenue Service and the U.S. Secret Service.
Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
# # #
Federal Correctional Officer Charged with Accepting Bribes for Prison ContrabandRead the Press Release
BIRMINGHAM – Federal prosecutors last week charged a former employee at the Federal Correctional Institution at Aliceville with accepting $5,695 in bribes to smuggle contraband into the prison and lying about it to investigators, announced Acting U.S. Attorney Robert O. Posey, FBI Special Agent in Charge Roger C. Stanton and Department of Justice, Office of the Inspector General, Special Agent in Charge Robert A. Bourbon.
The U.S. Attorney’s Office filed a two-count information in U.S. District Court charging ERIC C. PENDLETON, 54, of Montgomery, with accepting a bribe in return for violating his official duty as a federal correctional officer, and with making false statements to agents of the FBI and the DOJ-OIG. In conjunction with the charges, prosecutors also filed a plea agreement with Pendleton.
As a federal correctional officer, Pendleton was a public official. He worked at the women’s prison from about January 2014 to August 2015. Beginning about September 2014, Pendleton worked as a federal materials handler supervisor in the prison commissary and laundry, overseeing inmates assigned to work in those facilities, according to his plea agreement.
During that time, Pendleton reached an agreement with an inmate to bring requested items, including prohibited items such as cigarettes, into the prison in return for payment, according to his plea agreement. Pendleton arranged for payment by providing inmates with prepaid credit card numbers and instructing them to have friends or family members load money onto the cards. He also told inmates they could pay him by having friends or family send money orders to a Tuscaloosa County address, according to the plea agreement. Pendleton owned the home at that address, but relatives lived there.
Pendleton deposited many of the money orders into his bank account, some bearing the name of the inmate on whose behalf the payment was made in the “memo” line, according to the plea agreement.
When agents interviewed Pendleton in September 2015, he falsely denied smuggling contraband into the prison or providing credit card numbers or an address to inmates so they could have payments sent to him, his plea agreement states.
The FBI and DOJ-OIG investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. is prosecuting.
###
Fairfield County Drug Trafficker Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BOBBY GUTIERREZ, also known as “B.O,” 37, formerly of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 160 months of imprisonment, followed by five years of supervised release, for trafficking heroin and cocaine.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, arose from several overdoses that involved heroin/fentanyl marked with the same brand stamp on the packaging.
According to court documents and statements made in court, between approximately September 2015 and May 2016, BOBBY GUTIERREZ and others, including his brother Wilfredo Gutierrez, also known as “Bean” and “Big Pun,” conspired to distribute at least 10 kilograms of heroin in Fairfield County. BOBBY GUTIERREZ and others also acquired kilogram quantities of cocaine from sources located in Florida and New York and sold the drug locally.
As part of this investigation, law enforcement officers executed several federal search warrants on May 26 and May 27, 2016. A search of BOBBY GUTIERREZ’s Bridgeport residence revealed a quantity of cocaine, $25,916 in cash and other items used in the trafficking of narcotics; a search of his girlfriend’s residence revealed $47,316 in cash, more than three kilograms of cocaine, and two firearms, and a search of B & B Deli in Bridgeport, which was owned by the Gutierrez family and served as a hub for drug dealing, revealed two digital scales, two large ziplock bags containing what appeared to be cutting agents, and five cellphones.
Nine individuals were charged as a result of the investigation. All pleaded guilty.
BOBBY GUTIERREZ has been detained since his arrest on May 26, 2016. On November 21, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine and one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
As part of this sentence, BOBBY GUTIERREZ was ordered to forfeit $171,462, which includes cash that was seized from a co-defendant in Florida in April 2016, and cash seized during the searches in May 2016.
On March 16. 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Energy & Process Corp. agrees to pay $4.6 Million for alleged False Claims Regarding Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
ATLANTA – Energy & Process Corporation (“E&P”), of Tucker, Georgia, has agreed to pay the United States $4.6 million to resolve allegations that it violated the False Claims Act by knowingly failing to perform mandatory quality assurance procedures and, as a result, supplying the Government with defective steel reinforcing bars (“rebar”) for use in constructing a U.S. Department of Energy (“DOE”) nuclear processing facility – i.e., the Mixed Oxide Fuel Fabrication Facility (“MOXX Facility”) – at the Savannah River Site, which is near Aiken, South Carolina. The MOXX Facility has never been operational or processed nuclear materials, and currently remains under construction.
“Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the Government that it had performed the quality assurance work.” said U.S. Attorney John Horn. “This settlement recovers substantial losses caused by E&P’s decision to cavalierly place its own profits above its commitment to adhere to important nuclear safety and quality control requirements.”
“Compliance with contract requirements is expected by all who contract with the U.S. government, but is especially critical in connection with the construction of a nuclear facility,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The Government alleges that, although the DOE – in connection with construction of the MOXX Facility – paid E&P to supply rebar meeting the stringent quality assurance standards of the U.S. Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed its failing by falsely certifying that it had completed the work. As result of E&P’s failure to perform the requisite quality assurance work, one-third of the rebar supplied by E&P for use in the MOXX Facility was incorrectly bent, and therefore outside of safety specifications. After discovering the deficiency, the DOE undertook costly and time-consuming measures and successfully remediated the potential hazards associated with E&P’s rebar to ensure the safe operation of the MOXX Facility.
The settlement resolves allegations filed by Deborah Cook, a former employee of the prime contractor building the facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case. The lawsuit was filed in the Northern District of Georgia and is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.). Ms. Cook will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina, and the Department of Energy’s Office of Inspector General.
Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel handled this matter for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Energy & Process Corp. Agrees to Pay $4.6 Million for Alleged False Claims Regarding Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
The Justice Department announced today that Energy & Process Corporation (E&P) of Tucker, Georgia, has agreed to pay $4.6 million to resolve the government’s lawsuit filed under the False Claims Act alleging that it knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy (DOE) nuclear waste treatment facility.
“Compliance with contract requirements is expected by all who contract with the U.S. government, but is especially critical in connection with the construction of a nuclear facility,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
The lawsuit alleged that the DOE paid E&P a premium to supply rebar that met stringent regulatory standards for the Mixed Oxide Fuel Fabrication and Reactor Irradiation Services facility in the DOE’s Savannah River site near Aiken, South Carolina, but that E&P failed to perform most of the necessary quality assurance measures, while falsely certifying that those requirements had been met. The lawsuit further alleged that one-third of the rebar supplied by E&P and used in the construction was found to be defective. E&P subsequently replaced some of the defective rebar. The $4.6 million to be paid by E&P to resolve the government’s False Claims Act lawsuit is in addition to the replacement costs incurred by E&P.
“Our complaint alleges that after actively touting its experience with nuclear construction and quality assurance work, and then being hired to perform such work in connection with an important project, E&P chose to forego the agreed to quality assurance work, and then compounded this failure by falsely certifying to the Government that it had performed the quality assurance work,” said U.S. Attorney John A. Horn for the Northern District of Georgia. “This settlement recovers substantial losses caused by E&P’s decision to cavalierly place its own profits above its commitment to adhere to important nuclear safety and quality control requirements.”
The allegations resolved by this settlement arose in part from a whistleblower lawsuit filed under the False Claims Act by Deborah Cook, a former employee of the prime contractor that subcontracted with E&P in the course of building the DOE facility. Under the False Claims Act, private citizens can sue for false claims on behalf of the government and share in any recovery. The act permits the government to intervene and file its own complaint in such lawsuits, as it did in this case. Cook’s share of the settlement has not been determined.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Northern District of Georgia and the District of South Carolina and the Department of Energy’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only, and there has been no determination of liability.
Drug Dealing Pimp Sentenced to 18 Years in PrisonRead the Press Release
NORFOLK, Va. – A drug dealer who used his drug supply to coerce women into prostitution was sentenced today to 18 years in prison, followed by 10 years of supervised release. He will also be required to register as a sex offender.
Devon Jay Caldwell, 26, of Norfolk, pleaded guilty on January 17 to his involvement in a conspiracy to engage in sex trafficking by force, fraud, and coercion. According to a statement of facts filed with his plea agreement, Caldwell convinced several women with serious drug problems to work for him as prostitutes by promising them an unlimited supply of drugs in exchange for the money they earned from commercial sex acts. Caldwell arranged their prostitution appointments and set quotas for how much money certain of his prostitutes were required to earn. Caldwell provided the women with drugs in advance of their appointments, and at the conclusion of each act as a reward. If a woman did not want to perform commercial sex acts, Caldwell would withhold drugs from her causing, in some cases, significant physical withdrawal symptoms. Caldwell recruited three co-conspirators – including a 16-year-old boy – to help him run his business, set up appointments, and dole out or withhold drugs at his direction. Caldwell ran this business for a full year before Virginia Beach Police arrested him in August 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
This case was investigated by the Hampton Roads Human Trafficking Task Force, which includes the U.S. Attorney’s Office for the Eastern District of Virginia, the Virginia Attorney General’s Office, Homeland Security Investigations and the police departments and commonwealth’s attorneys of Virginia Beach, Chesapeake, Norfolk, Hampton and Newport News. Samaritan House, a Virginia Beach-based nonprofit, is helping the victims.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-2.
Davon Lymon Sentenced to Eighteen Years for Conviction on Federal Heroin Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – This morning, Chief U.S. District Judge M. Christina Armijo sentenced Davon Lymon, 36, of Albuquerque, N.M., for his conviction on federal heroin trafficking and firearms charges. Lymon was sentenced to 216 months (18 years) of imprisonment to be followed by three years of supervised release. The Chief Judge ordered that Lymon serve the 18-year prison sentence consecutive to the 20-year prison sentence previously imposed on April 5, 2017, on Lymon’s conviction on two felon in possession of firearms charges, for a total sentence of 38 years of imprisonment.
Lymon’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA, and Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD).
In announcing the sentence, Acting U.S. Attorney James D. Tierney said, “The U.S. Attorney’s Office prosecuted Davon Lymon on federal charges because as a community, we cannot and will not tolerate violence against law enforcement officers. The entire law enforcement community – federal, state, county, local and tribal – is committed to working collaboratively to thoroughly and completely investigate and prosecute those who seek to harm the courageous officers who put their lives on the line to protect us and safeguard our communities.”
“I wish to commend the investigative efforts of all our law enforcement partners involved in the federal prosecutions of Davon Lymon,” said Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “I also wish to recognize the determination of the federal prosecutors assigned to this case and the leadership of the U.S. Attorney’s Office.”
“Today’s sentencing closes the door on the federal prosecutions of Davon Lymon,” said Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA. “DEA and its law enforcement partners are committed to working together to ensure that drug traffickers who use firearms to facilitate their drug trafficking activities and to commit other crimes face the consequences of their criminal activities.”
"We are very grateful for the hard work of Assistant U.S. Attorneys Kimberly Brawley and Jacob Wishard of the U.S. Attorney’s office in the successful prosecution of Davon Lymon on federal charges,” said Chief Gorden E. Eden Jr., of the APD. “The federal convictions will ensure that Lymon remains behind bars until he can be prosecuted on his pending state charges.”
Lymon now stands convicted in two federal cases. The first indictment in the first case, filed on Nov. 27, 2015, charged Lymon with four counts of being a felon in possession of firearms and one count of possessing a stolen firearm (the firearms case). The indictment in the second case, filed on Dec. 2, 2015, charged Lymon with two heroin trafficking charges and a felon in possession of a firearm charge (the heroin trafficking case). At the time Lymon committed the crimes, he was prohibited from possessing firearms because of his prior felony convictions for voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud, and forgery.
Lymon was convicted on two of the four charges in the firearms case. Chief U.S. District Judge Armijo found Lymon guilty on Count 4 of the four-count indictment on Oct. 28, 2016, following a bench trial on that charge alone. Count 4 charged Lymon with being a felon in possession of a firearm and ammunition on Oct. 21, 2015, the day on which he allegedly shot Albuquerque Police Officer Daniel Webster. Officer Webster died on Oct. 29, 2015, due to injuries he allegedly sustained during the shooting, and Lymon has been charged with murdering Officer Webster in a separate state case. Lymon has entered a not guilty plea to the charges in the state case and is presumed innocent unless found guilty.
On Dec. 13, 2016, Lymon pled guilty to Count 2 of the indictment in the firearms case under a plea agreement with the U.S. Attorney’s Office, and admitted unlawfully possessing a firearm on May 27, 2016. As part of the plea agreement, the U.S. Attorney’s Office agreed to dismiss Count 1, charging Lymon with being a felon in possession of a firearm on May 27, 2015, and Count 3, of the indictment, charging Lymon with possessing a stolen firearm in May 2015.
The indictment in the second federal case charged Lymon with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm on Oct. 2, 2015. Lymon pled guilty to the three charges in the heroin trafficking case on May 9, 2016, without the benefit of a plea agreement.
The Albuquerque office of ATF and APD investigated the firearms case, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division. The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA.
Assistant U.S. Attorneys Jacob A. Wishard and Kimberly A. Brawley prosecuted the two federal cases against Lymon as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Convicted Felon Pleads Guilty to Illegal ReentryRead the Press Release
RICHMOND, Va. – An El Salvadorian citizen who has illegally entered the United States on multiple occasions pleaded guilty today to illegal reentry following deportation and conviction for an aggravated felony.
According to the statement of facts filed with the plea agreement, Mario A. Macias-Maldonado, 29, is a convicted felon who has previously been removed from the United States. In August 2009, Macias-Maldonado was convicted of felony forgery, driving while intoxicated, grand larceny, obstructing justice, unauthorized use of a motor vehicle, and operating a motor vehicle without a license. Macias-Maldonado was removed from the United States in January 2010, only to illegally return again sometime later. In July 2016, Chesterfield County police issued a felony warrant for Macias-Maldonado on charges of rape by force, threat or intimidation. Macias-Maldonado was arrested in August 2016, and in February 2017 was convicted in Chesterfield County Circuit Court of sexual battery and sentenced to one year in prison.
Macias-Maldonado faces a maximum penalty of 20 years in prison when sentenced on July 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. Magistrate Judge David J. Novak accepted the plea. Assistant U.S. Attorney S. David Schiller is prosecuting the case. This case was investigated by U.S. Immigration and Customs Enforcement.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-300.
Claimed Naturopathic Doctor Indicted for Defrauding Cancer Patients at Hoover ClinicRead the Press Release
BIRMINGHAM – A federal magistrate judge today ordered a woman who claimed to be a naturopathic doctor to be held pending trial on charges she defrauded patients of the Euro Med Klinic in Hoover in 2015 by lying about her name, her credentials, her experience and her license to practice medicine, announced Acting U.S. Attorney Robert Posey and U.S. Postal Inspector Frank Dyer.
A federal grand jury in February indicted ISABEL KESARI GERVAIS, 60. The indictment was unsealed following her March arrest in Arkansas. The nine-count indictment filed in U.S. District Court charges Gervais, who is known in Birmingham as “Dr. Rose Starr,” and in other locales as “Debrah Goodman,” with six counts of wire fraud affecting a financial institution, one count of false statements, and two counts of aggravated identity theft.
The indictment charges that in 2015, Gervais opened the Euro Med Klinic in Hoover using the alias, Dr. Rose Starr, and claiming to have years of experience and various credentials, including a license to practice medicine in Alabama and throughout the world. Acting as Dr. Starr, Gervais promised patients, including cancer sufferers, that she could provide various medical services, including DNA tests, according to the charges. She ran various tests and prescribed various substances to these patients. Through her misrepresentations about her name, licensure and qualifications, she fraudulently induced patients to pay her thousands of dollars, according to the indictment.
Gervais also is charged with misappropriating the identity of one patient to fraudulently charge the patient’s credit card without consent, and with misappropriating the identity of another individual and fraudulently using it to set up a post office box.
The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine. Aggravated identity fraud carries a two-year mandatory minimum prison sentence to run consecutive to any other sentence imposed.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Erica Barnes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Buffalo Man Sentenced for Food Stamp FraudRead 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 Ali Mohamed, 44, of Buffalo NY, who was convicted of unauthorized use of food stamp benefits, was sentenced to time served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that the defendant worked at Bailey Food Mart located at 3209 Bailey Avenue in Buffalo. Between July 2010 and August 2011, Alawdi and others knowingly purchased food stamp benefits for less than their full value for cash from eligible beneficiaries. Retailers are prohibited from exchanging cash for food stamps. During this time, the defendant and others exchanged approximately $124,406 of food stamp benefits for cash.
The sentencing is the culmination of an investigation by the United States Department of Agriculture, Office of Inspector General, under the direction of Special Agent-in-Charge William G. Squires Jr.; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Buffalo Man Charged with ObstructionRead 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 two-count indictment charging Jeffrey Mills, 48, of Buffalo, NY, with obstructing justice. The charge carries a maximum of life in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, on February 14, 2016, the defendant was called as a witness for the Government in the trial of United States v. Eldridge, et al. Prior to his testimony, Mills provided federal agents with detailed information regarding two unsolved murders. The defendants in United States v. Eldridge, et al. were charged with those murders. When called by the prosecution at trial, Mills at first refused to be sworn. After being advised by the Honorable Judge Richard Arcara, Senior U.S. District Judge, that he could face contempt proceedings if he refused to testify, Mills took the stand only to testify that he could not remember any details of the murders about which he previously provided detailed information. While convicting the defendants who were on trial of certain crimes, the jury was unable to reach a verdict on those counts pertaining to the murders.
Mills was arraigned before U.S. Magistrate Judge Michael J. Roemer, and is being held pending a detention hearing on April 25, 2017.
The indictment is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Adam S. Cohen; and the New York State Department of Parole, under the direction of Acting Commissioner Anthony J. Annucci.
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.
Ambulance Company Owner and Brother Sentenced in $6 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two brothers have been sentenced to more than four years in federal prison for their convictions of conspiracy to commit health care fraud, health care fraud and money laundering, announced Acting U.S. Attorney Abe Martinez. Kevin Olufemi Davies, 29, and his brother Melvin Olusola Davies, 28, pleaded guilty Dec. 9, 2016.
Today, U.S. District Judge Lynn Hughes ordered Kevin Davies to serve a 57-month sentence, while his brother received 63 months in federal prison. Both will also be required to serve three years of supervised release following completion of the prison term. They were further ordered to pay a more than $2.3 million in restitution. In handing down the sentence, Judge Hughes said that stealing from tax-payers - including blue collar workers who work under difficult conditions such as out in the cold and snow to pay taxes intended to be used to provide health care services to the elderly and sick - was not acceptable. He further noted that probation was not an option for this conduct.
The brothers owned and operated KMD Healthcare Services Inc. (KMD) from their home in a gated townhouse community in Houston. As part of their guilty pleas, the pair admitted they submitted approximately $6 million in false and fraudulent claims to Medicare, Medicaid and Tricare (another government health program) for ambulance services that were not provided. The brothers admitted they transported Medicare beneficiaries with only one of the two required EMTs and in vans instead of ambulances. They also admitted they paid a Houston physician $500 for certificates of medical necessity and paid some of the Medicare beneficiaries to ride in the vans.
Medicare, Medicaid and Tricare only pay for medically necessary ambulance services in vehicles designed and equipped to respond to medical emergencies and for patients who cannot be safely transported by any other means of transportation. Medicare also requires two individuals to staff ambulance transports, including at least one licensed EMT.
According to the plea agreements, the EMTs working for the defendants wrote up ambulance “run sheets” even though the Medicare beneficiaries did not travel by ambulance and did not need ambulance services. The individuals transported were not bed bound, could walk and routinely used non-ambulance transport in their daily activities. One patient even walked to her own therapy session, but KMD billed Medicare $51,952 for her ambulance transportation.
In total, KMD billed Medicare, Medicaid and Tricare approximately $6,293,108 in false and fraudulent claims for ambulance services that were not provided and not medically necessary. They received at least $2,201,137 from Medicare, $219,924 from Medicaid and $16,735.29 from Tricare as payment for those claims.
The brothers have been in federal custody since their arrest on May 25, 2016. They have both forfeitted vehicles they purchased with the fraudulent health care proceeds, including a 2010 Porsche Panamera and a 2012 Mercedes Benz CLS.
The FBI, IRS – Criminal Investigation and Texas Office of the Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Julie Redlinger prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Miguel Ordonez, 24, of Albuquerque, N.M., pled guilty today in federal court to heroin trafficking charges.
Miguel Ordonez and his four co-defendants, Gonzalo Montenegro-Coronel, 31, a Mexican national, Esther Ordonez, 48, and Reydecel Lopez-Ordonez, 24, both of Albuquerque, and Fernando Gomez-Campos, 21, of El Paso, Tex., were charged in a 13-count indictment that was filed on Dec. 2, 2015. The indictment charged the defendants with participating in a heroin trafficking conspiracy between Nov. 2014 and Sept. 2015, distributing heroin on eight occasions between Nov. 2014 and Sept. 2015, and with using telephones to facilitate drug trafficking crimes. It also charged Esther Ordonez, Miguel Ordonez and Montenegro-Coronel with maintaining a residence for the purpose of manufacturing and distributing heroin between Nov. 2014 and Sept. 2015. According to the indictment, the defendants committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Miguel Ordonez pled guilty to two counts of distributing heroin, using a communication facility in furtherance of a drug trafficking crime, and maintaining a drug involved premises. In entering the guilty plea, Miguel Ordonez admitted participating in telephone communications on March 27, 2015, in order to arrange heroin sales with individuals who unbeknownst to him were undercover agents. Miguel Ordonez admitted selling 148 grams of heroin for $4,200 on March 27, 2015, and 98 grams of heroin for $3,200 on May 7, 2015, to the undercover agent. He also admitted that from Nov. 10, 2014 and until his arrest in July 2015, he helped others store heroin for distribution at 2620 Katrina Dr. SW in Albuquerque.
At sentencing, Miguel Ordonez faces a statutory penalty of not less than five years nor more than 40 years of imprisonment. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
To date, four of the five defendants have entered guilty pleas and one has been sentenced. Lopez-Ordonez pled guilty on Oct. 19, 2016, and was sentenced to 60 months of imprisonment followed by four years of supervised release on March 30, 2017. Gomez-Campos pled guilty on March 10, 2017, and Esther Ordonez pled guilty on April 12, 2017. Gomez-Campos and Esther Ordonez have yet to be sentenced.
Montenegro-Coronel has entered a not guilty plea to the indictment and is pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Drug Task Force as part of the Organized Crime Drug Enforcement Task Forces (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 HIDTA Region I Drug Task Force is comprised of officers from the Albuquerque Police Department, Rio Rancho Police Department, Valencia County Sheriff’s Office, Pueblo of Pojoaque Tribal Police Department and DEA. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys Shaheen P. Torgoley and Stephen R. Kotz are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Investment Bank Vice PresidentRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that AVANEESH KRISHNAMOORTHY, who works as a vice president and risk management specialist for a Manhattan-based investment bank (the “Investment Bank”), was arrested this morning and charged with insider trading. KRISHNAMOORTHY made approximately $48,000 in connection with stock and options trading based on material nonpublic information he misappropriated from the Investment Bank and its parent company (the “Company”), about a private equity fund’s potential acquisition of a publicly traded company.
KRISHNAMOORTHY was presented today in Manhattan federal court before United States Magistrate Judge Kevin Nathaniel Fox.
Acting U.S. Attorney Joon H. Kim said: “Avaneesh Krishnamoorthy is charged with violating his duty to his company and trading on insider information. He allegedly exploited his access to information about a pending acquisition to purchase stock and options, making tens of thousands of dollars in illegal profit for himself. This Office remains committed to enforcing the nation’s securities laws to protect the fairness and integrity of the markets.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “When one has access to material nonpublic information, they are afforded significant knowledge that could give them a competitive edge in stock and options trading. But, as we all know, it’s illegal to use this information in furtherance of personal gain. As alleged today, Krishnamoorthy ignored these rules, using the information at his fingertips to his advantage, and made personal profits in the tens of thousands. The FBI and our partners will continue to investigate and prosecute those who cheat the system in this way.”
According to the Complaint filed today Manhattan federal court[1]:
As a vice president and risk management specialist, KRISHNAMOORTHY had access to material nonpublic information concerning mergers and acquisitions for which the Investment Bank might potentially provide financing. In November 2016, a private equity fund (the “Fund”) contacted the Investment Bank concerning financing for the Fund’s acquisition of Neustar, Inc. (“Neustar”), a publicly traded company whose shares trade on the New York Stock Exchange. Around that time, KRISHNAMOORTHY received multiple emails regarding the Investment Bank’s potential involvement in the transaction, including emails that summarized the details of the deal. In violation of the Company’s policies and in breach of his duties to the Company, KRISHNAMOORTHY used this material nonpublic information to acquire Neustar stock and options. In the days and weeks after receiving the emails, and prior to the public announcement of the Fund’s acquisition of Neustar, KRISHNAMOORTHY purchased numerous Neustar call options and shares of Neustar stock. Purchases of Neustar securities took place in brokerage accounts held in the names of both KRISHNAMOORTHY and his spouse. Contrary to the policies of the Company, KRISHANMOORTHY did not reveal these trades or the existence of these brokerage accounts to the Company.
The public announcement of the Fund’s acquisition of Neustar on December 14, 2016, resulted in an approximately 20 percent increase in the value of Neustar stock in the hours following the announcement, resulting in a corresponding increase in the value of the call options and equity stock held by KRISHNAMOORTHY and his spouse. As a result of the insider trading alleged in the Complaint, KRISHNAMOORTHY generated at least $48,000 in profits.
* * *
KRISHNAMOORTHY is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Brendan F. Quigley is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
22 April 2017
Individual Found Guilty of Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, after a two day trial, a jury found Luciano Mendoza-Garcia guilty of drug trafficking charges, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Chief Judge Aida Delgado presided over the trial.
On October 13, 2016, the defendant Luciano Mendoza-Garcia and Jorge Balbuena-Peguero were arrested in the high seas during a high speed maritime interdiction were 56 kilograms of cocaine were recovered. On October 19, 2016 a federal grand jury indicted Mendoza-Garcia and Balbuena-Peguero charging them with conspiracy to import controlled substances, conspiracy to possess a controlled substance on board a vessel subject to the jurisdiction of the United States and possession of a controlled substance on board a vessel subject to the jurisdiction of the United States, aiding and abetting each other.
Assistant U.S. Attorney Laura Montes and Special Assistant U.S. Attorney Nicholas Smith were in charge of the prosecution of the case. The defendant faces a minimum mandatory term of imprisonment of 10 years.
21 April 2017
Worcester Businessman Pleads Guilty to Tobacco Tax FraudRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday in connection with a scheme to defraud the Commonwealth of Massachusetts of tobacco excise taxes and submitting false tax returns.
Mohamed Afeez, 32, pleaded guilty to subscribing a false tax return and conspiracy. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 13, 2017.
Between approximately late 2014 and July 2016, Afeez operated a wholesale business in Worcester that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), as well as other non-tobacco items, to convenience stores, gas stations and other retail businesses. Under state law, smokeless tobacco wholesalers must file an excise tax form monthly and pay a 210% excise tax on smokeless tobacco brought into Massachusetts. Cigar wholesalers must file an excise tax form quarterly and pay a 40% excise tax on cigars brought into Massachusetts.
In order to evade tobacco taxes, Afeez made regular purchases of loose smoking tobacco and smokeless tobacco from a distributor in Pennsylvania where these tobacco products are not taxed. Afeez and a co-conspirator repeatedly drove bundles containing more than $10,000 in cash to the distributor for payment. A co-conspirator then drove the tobacco products to Massachusetts where Afeez resold them wholesale without paying the Massachusetts state excise taxes he knew were due. The illegal tobacco business generated over $448,000 that Afeez failed to report on his business’ income tax return for 2015.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of subscribing to a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Washington State Man Pleads Guilty to Trafficking in Prohibited Ivory ProductsRead the Press Release
A resident of Ridgefield, Clark County, Washington, pleaded guilty today in U.S. District Court in Tacoma to violating the Lacey Act by trafficking in sperm whale ivory, announced U.S. Attorney Annette L. Hayes. TIM DAVIS, 55, admitted to participating in at least 74 transactions involving the purchase and sale of whale, elephant and walrus ivory between May 2006 and June 2015. The Endangered Species Act and the Marine Mammal Protection Act prohibit unlawful purchases and sales of these products. DAVIS will be sentenced by U.S. District Judge Robert J. Bryan on July 13, 2017.
“By buying and selling ivory products, this defendant was providing a marketplace for those who are hunting animals such as elephants and whales to extinction,” said U.S. Attorney Annette L. Hayes. “I commend the U.S. Fish and Wildlife Service for working diligently to stamp out this kind of trafficking. The laws we have enforced in this case are essential to preserving the kind of healthy planet we all want to leave to future generations.”
“We commend the Department of Justice and all other agencies that played a role in aiding this investigation and prosecution,” said Edward Grace, Deputy Assistant Director for the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “The illegal wildlife trade is a $20 billion industry that is rapidly driving elephants and many other animals to extinction. The Service will continue to use every tool at its disposal to fight the trafficking scourge and the shameful individuals who are depriving our planet of these magnificent creatures for their own profit.”
According to the plea agreement, DAVIS advertised on internet sites such as Etsy, EBay and Craigslist, offering to purchase and sell various ivory products. DAVIS sold ivory to buyers outside the U.S., particularly in Asia. To conceal his international transactions, DAVIS fraudulently labeled the ivory packages, stating that they contained “oxbone” products, when in fact, they contained ivory.
Between 2012 and 2015, DAVIS participated in a series of ivory transactions with an undercover U.S. Fish and Wildlife Service agent. For example, DAVIS sold the agent a collection of sperm whale teeth for $2,000 in May 2015. In June 2015, DAVIS purchased four walrus tusks from the agent.
Under the terms of the plea agreement, prosecutors will recommend a probationary sentence with as much as six months of home detention. DAVIS will also forfeit his unlawfully acquired ivory products.
The case was investigated by the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Volkswagen AG Sentenced in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Volkswagen AG (VW) was sentenced in federal court in Detroit today after pleading guilty on March 10, 2017, to three felony counts of: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. During the sentencing hearing, the court accepted the parties’ plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office made the announcement.
U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the plea agreement, resulting in VW’s conviction on three felony charges. VW was convicted, first, of participating in a conspiracy to defraud the United States and its U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards. Moreover, the company used cheating software to circumvent the U.S. testing process, and concealed material facts about its cheating from U.S. regulators. Second, VW was convicted of obstruction of justice for destroying documents related to the scheme. And third, VW was convicted of importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.
As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the U.S. and fully cooperate in the government’s ongoing investigation and prosecution of individuals responsible for these crimes. The parties also announced that the government had selected Larry D. Thompson as an independent corporate compliance monitor who will oversee the company during its three-year term of probation. Thompson is a former Deputy U.S. Attorney General. His team includes experts in automotive regulatory compliance, as well as the corporate monitors for Deutsche Bank in the London Interbank Offered Rate (LIBOR) manipulation prosecution and Duke Energy in the coal ash environmental prosecution.
“The sentencing of Volkswagen marks a significant milestone in this historic case,” said Acting U.S. Attorney Lemisch. “Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message to Volkswagen and others that we take our environmental laws seriously and that federal prosecution awaits those who defraud the EPA.”
“The Criminal Division will continue to be vigilant in assuring that all companies – foreign and domestic – that choose to benefit from our valuable economy and consumers abide by our laws, said Acting Assistant Attorney General Blanco. “The sentencing of VW vindicates the rights of U.S. consumers who for over a decade were victims of the calculated corporate decisions of VW and its senior management to fraudulently employ a device intended to deceive U.S. consumers and to defeat our environmental laws.”
“With today's sentence, VW is being held fully accountable for its deception and fraud perpetrated against American consumers and the environment, as well as the deliberate obstruction of the criminal investigation into its wrongdoing,” said Deputy Assistant Attorney General Williams. “We also hope this sends a message around the world that those who violate American environmental laws will be vigorously investigated and prosecuted.”
“Today's strong sentence recognizes the egregious nature of VW’s violations, and VW’s attempt to gain an unfair competitive advantage over automakers that follow the law,” said Acting Assistant Administrator Starfield. “Vehicle emissions standards help protect clean air and ensure a level playing field for companies that play by the rules. When those standards are broken, violators can expect to be held accountable.”
“Americans expect corporations doing business in the United States to conduct their business honestly,” said Special Agent in Charge Gelios. “Today's sentencing sends a clear message that the FBI, along with its federal partners, will continue to hold corporations, like Volkswagen AG, accountable when they defraud consumers and violate federal laws.”
Along with the January 2017 plea agreement, the United States also announced separate civil resolutions of environmental, customs and financial claims, in which VW agreed to pay an additional $1.5 billion to settle EPA’s claim for civil penalties in connection with the importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, that agreement requires injunctive relief to prevent future violations. The agreements also resolved alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
The FBI and EPA investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Volkswagen AG Sentenced in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Volkswagen AG (VW) was sentenced in federal court in Detroit today after pleading guilty on March 10, 2017, to three felony counts of: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. During the sentencing hearing, the court accepted the parties’ plea agreement, which requires VW to pay a $2.8 billion penalty stemming from the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office made the announcement.
U.S. District Judge Sean F. Cox of the Eastern District of Michigan accepted the plea agreement, resulting in VW’s conviction on three felony charges. VW was convicted, first, of participating in a conspiracy to defraud the United States and its U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards. Moreover, the company used cheating software to circumvent the U.S. testing process, and concealed material facts about its cheating from U.S. regulators. Second, VW was convicted of obstruction of justice for destroying documents related to the scheme. And third, VW was convicted of importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits.
As part of the plea agreement, VW will pay a $2.8 billion criminal penalty to the U.S. and fully cooperate in the government’s ongoing investigation and prosecution of individuals responsible for these crimes. The parties also announced that the government had selected Larry D. Thompson as an independent corporate compliance monitor who will oversee the company during its three-year term of probation. Thompson is a former Deputy U.S. Attorney General. His team includes experts in automotive regulatory compliance, as well as the corporate monitors for Deutsche Bank in the London Interbank Offered Rate (LIBOR) manipulation prosecution and Duke Energy in the coal ash environmental prosecution.
“The sentencing of Volkswagen marks a significant milestone in this historic case,” said Acting U.S. Attorney Lemisch. “Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message to Volkswagen and others that we take our environmental laws seriously and that federal prosecution awaits those who defraud the EPA.”
“The Criminal Division will continue to be vigilant in assuring that all companies – foreign and domestic – that choose to benefit from our valuable economy and consumers abide by our laws, said Acting Assistant Attorney General Blanco. “The sentencing of VW vindicates the rights of U.S. consumers who for over a decade were victims of the calculated corporate decisions of VW and its senior management to fraudulently employ a device intended to deceive U.S. consumers and to defeat our environmental laws.”
“With today's sentence, VW is being held fully accountable for its deception and fraud perpetrated against American consumers and the environment, as well as the deliberate obstruction of the criminal investigation into its wrongdoing,” said Deputy Assistant Attorney General Williams. “We also hope this sends a message around the world that those who violate American environmental laws will be vigorously investigated and prosecuted.”
“Today's strong sentence recognizes the egregious nature of VW’s violations, and VW’s attempt to gain an unfair competitive advantage over automakers that follow the law,” said Acting Assistant Administrator Starfield. “Vehicle emissions standards help protect clean air and ensure a level playing field for companies that play by the rules. When those standards are broken, violators can expect to be held accountable.”
“Americans expect corporations doing business in the United States to conduct their business honestly,” said Special Agent in Charge Gelios. “Today's sentencing sends a clear message that the FBI, along with its federal partners, will continue to hold corporations, like Volkswagen AG, accountable when they defraud consumers and violate federal laws.”
Along with the January 2017 plea agreement, the United States also announced separate civil resolutions of environmental, customs and financial claims, in which VW agreed to pay an additional $1.5 billion to settle EPA’s claim for civil penalties in connection with the importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, that agreement requires injunctive relief to prevent future violations. The agreements also resolved alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
The FBI and EPA investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Virginia Man Sentenced to 88 Months in Prison for Distribution of Heroin and CocaineRead the Press Release
WASHINGTON – Robert Apperson, 35, of Reva, Virginia, was sentenced today to 88 months of imprisonment on a federal drug trafficking charge relating to the distribution of heroin and cocaine in Culpeper County, Virginia. He is among 14 people charged with federal crimes following an investigation by a law enforcement task force of a narcotics trafficking ring that operated in places including New York, N.Y., Washington, D.C., and Virginia.
The sentence was announced by U.S. Attorney Channing D. Phillips; Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD), and Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA).
All told, the investigation led to the seizure of 2.8 kilograms of powder cocaine, 248 grams of crack cocaine, 700 grams of heroin, more than $100,000 in cash, and a firearm.
Apperson pled guilty in January 2017, in the U.S. District Court for the District of Columbia to a charge of conspiracy to distribute heroin and cocaine. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Apperson will be placed on four years of supervised release. Apperson also was ordered to pay $130,000 in a forfeiture money judgment.
According to plea documents, the investigation revealed that co-conspirators in the narcotics trafficking ring transported heroin and cocaine from New York to a supplier, based in Washington, D.C. In turn, the drugs were supplied to numerous other co-conspirators for distribution in Washington, Maryland, Delaware, and Virginia.
According to the plea documents, Apperson and/or one of the co-conspirators traveled to Washington, D.C., to obtain between 100 grams and one-kilogram quantities of cocaine and heroin from the supplier. Apperson and the co-conspirator then worked to distribute cocaine (as both powder and as crack cocaine) and heroin throughout the Culpeper County area.
Between September 2015, and January 7, 2016, according to the government’s evidence, Apperson and the co-conspirator purchased between 100 grams and one kilogram of cocaine and heroin approximately every seven to 10 days. In total, according to the government’s evidence, Apperson and the co-conspirator obtained approximately five kilograms of cocaine and four kilograms of heroin from the Washington, D.C. supplier, which they divided 50/50 between the two of them. Apperson then sold his half of the cocaine and heroin to customers throughout the Culpeper area. Apperson was arrested on August 25, 2016, and has been in custody ever since.
During the course of his arrest, law enforcement seized $3,750 from Apperson’s vehicle and $40,000 from a nightstand drawer at his newly leased residence in Fredericksburg, Va.
The drug sales took place at a time when the nation is experiencing a rise in opioid overdoses. In Culpeper County, Va. and the town of Culpeper, the Virginia State Police responded to more than 80 overdoses in 2016, including nine that resulted in deaths.
This prosecution was the result of an investigation initiated in the fall of 2014 by the FBI/MPD Cross Border Task Force, with assistance from the DEA and the Blue Ridge Narcotics and Gang Task Force. The Culpeper County Sheriff’s Office also assisted in the investigation. The Department of Justice’s Organized Crime Drug Enforcement Task Force sponsored and supported this complex investigation.
Those working on the case from the U.S. Attorney’s Office for the District of Columbia include Legal Assistant Peter Gaboton, former Legal Assistant Brendan Coyne, and Assistant U.S. Attorneys Kara Traster and Nihar Mohanty, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and CyberstalkingRead the Press Release
Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.
Further, according to a federal criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Jeff Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director James Comey of the Federal Bureau of Investigation. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“This Department will lend its full support to law enforcement officers and communities so we can fight violent crime, including threats like these,” said Acting Associate Attorney General Jesse Panuccio. “These threats terrorized our communities, and we will continue to enforce this nation’s laws.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Kenneth E. Blanco of the Justice Department’s Criminal Division. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and Using Electronic Communications to IntimidateRead the Press Release
WASHINGTON – Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal
criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.Further, according to a federal
criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director Comey. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Blanco. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Richard S. Hartunian Remembers Sol Greenberg, Former Albany County District AttorneyRead the Press Release
ALBANY, NEW YORK – Upon the passing of former Albany County District Attorney Sol Greenberg, United States Attorney Richard S. Hartunian today paid tribute to his former boss as one of the giants of the legal profession and someone who exemplifies public service:
“Sol Greenberg established the gold standard for district attorneys. He was a devoted husband and father and cared deeply about people, and especially his assistant district attorneys and support staff, the residents of the county he served, crime victims, and those involved in securing justice for them. Sol pioneered the use of DNA to identify perpetrators of crimes and was ahead of his time in embracing the idea of crime prevention through education, recognizing even then that we cannot merely prosecute and imprison our way to safe communities. As we remember his life well lived, we give thanks for Sol’s decades of distinguished public service to our nation, our profession, and our community; for a legacy of lawyers who learned to serve the law in his office, by his words and example; and for his unwavering dedication to the fair administration of justice.”
Hon. Richard S. Hartunian, United States Attorney for the Northern District of New York, with Former Albany County District Attorney Sol Greenberg at an Albany County Bar Association Tribute Luncheon, April 2, 2015 in Albany, NY.
Two men admit to synthetic marijuana distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA –Nicholas Graziano, 53, of Melville, New York, and Stephen Graziano, 25, of Morgantown, West Virginia, were convicted of distributing synthetic marijuana, Acting United States Attorney Betsy Steinfeld Jividen announced.
In July 2012 through April 2014, Nicholas and Stephen Graziano, owner and operators of X Hale Hookah Lounge in Morgantown, West Virginia, were allegedly distributing synthetic cannabinoids, commonly referred to as spice, K2, incense, or fake weed. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
The Grazianos each pled guilty on March 27, 2017 to one count of “Conspiracy to Distribute a Controlled Substance Analogue.”
They each face up to twenty years in prison and a fine up to $1,000,000. 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 defendant.
Assistant U.S. Attorney Zelda E. Wesley is handling the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Two Sentenced for Roles in International Cocaine Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A Charlotte woman was sentenced today to 20 years in prison for her role in an international drug trafficking conspiracy.
Tammie D. Diggs, 48, pleaded guilty on January 13. According to the statement of facts filed with the plea agreement, on March 12, 2016, Diggs traveled from Charlotte, North Carolina to Charleston, South Carolina, to receive 22 kilograms of cocaine from a Panamanian drug trafficking organization (DTO) for domestic distribution. On the same day, law enforcement intercepted 22 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the Panamanian DTO. The next day, Diggs obtained a bag containing 22 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement, and upon taking possession of the cocaine, Diggs traveled to Spartanburg, South Carolina. Later that day, law enforcement executed a traffic stop on the vehicle driven by Diggs and seized the bag containing the 22 kilograms of cocaine.
Diggs’s co-conspirator, Lamar Gayle, 34, of Brooklyn, was sentenced to 10 years in prison on Wednesday. According to the statement of facts filed with the plea agreement, on Feb. 12, 2016, Gayle traveled from Brooklyn to Charleston to receive 15 kilograms of cocaine from a Panamanian drug trafficking organization (DTO) for domestic distribution. On the same day, law enforcement intercepted 15 kilograms of cocaine on a commercial shipping vessel at the Port of Charleston sent by the Panamanian DTO. The next day Gayle obtained a bag containing 15 kilograms of cocaine in Charleston from a co-conspirator while under surveillance of law enforcement, and upon taking possession of the cocaine, Gayle boarded a commercial bus and traveled to the Eastern District of Virginia. The next day law enforcement executed a drug interdiction operation in Sussex County on the commercial bus on which Gayle was traveling. During the stop of the bus, law enforcement surveillance observed Gayle hide the bag containing the cocaine under a seat inside the bus, and shortly thereafter seized the bag containing the 15 kilograms of cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Daniel Salter, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Atlanta Division; Nick Annan, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charleston; Colonel W. Steven Flaherty, Superintendent, Virginia State Police; and Humberto I. Cardounel, Jr., Chief of Henrico County Police, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik Siebert and Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-108 (Gayle), and 3:16-cr-117 (Diggs).
Two Individuals Convicted at Trial in Marriage Fraud ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Cameroonian nationals were convicted today for their roles in a marriage fraud conspiracy dubbed “Operation Evasive Immigration,” by the organizers of the conspiracy.
According to court records and evidence presented at trial, Carine Kojia Aleah Epse Mbendeke, 27, of New Carrollton, Maryland, and Irene Marie Mbono, 35, of Washington, D.C., conspired with Landry Mbendeke, who is currently serving time in federal prison for leading this marriage fraud conspiracy. The evidence presented at trial showed that beginning in December 2013, and continuing through August 2015, the Mbendekes operated a marriage fraud ring that recruited United States citizens to marry Cameroonian nationals for the promise of $5,000. Carine Mbendeke traveled with United States citizen co-conspirators to Cameroon on two occasions. While in Cameroon, Carine Mbendeke orchestrated their fraudulent marriages, acted as a translator, and collected immigration-related documents. One conspirator, who was denied a United States passport and thus could not travel to Cameroon, entered into a sham marriage with Mbono in Washington, D.C.
The Mbendekes recruited, or attempted to recruit, approximately 18 United States citizens. Six of their co-conspirators previously pleaded guilty for their participation in the fraudulent scheme. Those defendants included Marcus Carlye Brooks, Benjamin Franklin Minkins, Jr., Kenneth Cornelius Lewis, Alecia Angelita Portillo, Keonna Lakata Lynch, and James Settles III.
Mbono faces a maximum penalty of 10 years in prison, and Carine Mbendeke faces a maximum penalty of five years in prison. Both defendants will be sentenced on July 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Richard Ingram, Special Agent in Charge of Diplomatic Security Service, U.S. Department of State’s Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the verdict for Carine Mbendeke and delivered the verdict for Irene Mbono. Assistant U.S. Attorney Carina A. Cuellar and Special Assistant U.S. Attorney Michelle R. Pascucci are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-272.