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21 April 2017
Two District Men Found Guilty of Robbing and Assaulting Women in Separate Attacks Within 35-Minute PeriodRead the Press Release
WASHINGTON – Terrez Crocker, 20, and Andre Walker, 28, both of Washington, D.C., have been found guilty by a jury on charges of robbing and assaulting two women in separate attacks in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
The jury found Crocker guilty of one count each of conspiracy to commit a crime of violence, robbery, assault with intent to commit robbery, fleeing from law enforcement, reckless driving, destruction of property, and receipt of stolen property, as well as three counts of unauthorized use of a vehicle during a crime of violence. The jury found Walker guilty of one count each of conspiracy to commit a crime of violence, robbery, assault with intent to commit robbery, and fleeing from law enforcement.
The verdicts, on April 20, 2017, followed a one-week trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for June 23, 2017.
According to the government’s evidence at trial, at about 6:45 p.m. on Sunday, August 30, 2015, a young woman was walking by herself on 61st Street NE at the intersection of Eads Street NE. She was walking home after work when she noticed a white Volkswagen Jetta parked in the intersection. Unbeknownst to her, Crocker and Walker were waiting in that vehicle, which had been stolen in Maryland approximately three weeks earlier. GPS evidence placed Crocker at the scene of the car theft during the time-frame in which the vehicle was stolen.
As they sat in the stolen Jetta, Crocker and Walker directed their two female accomplices to jump out of the vehicle to steal the woman’s purse and cell phone. The two female accomplices followed Walker and Crocker’s directive, jumped out of the vehicle, and snatched the woman’s purse and cell phone, and then returned to the vehicle where Crocker and Walker were waiting. The four assailants then fled the scene.
Shortly thereafter, at approximately 7:20 p.m., Crocker, Walker, and their two female accomplices spotted their second victim, another young woman walking near the intersection of Southern Avenue and Bass Place SE on her way home from church. The woman also noticed the white Volkswagen Jetta. Unbeknownst to her, as she walked, Crocker and Walker again directed their two female accomplices to jump out of the car to rob her. At the direction of Crocker and Walker, the two female accomplices again jumped out of the vehicle and attempted to take the woman’s purse. However, the woman fought back, fending off her attackers and thwarting the robbery. The two female accomplices then ran back to the Volkswagen Jetta, where Crocker and Walker were waiting.
Both victims were able to provide information to the Metropolitan Police Department (MPD), including the make and model of the vehicle used during the commission of the robberies and a partial license plate tag number.
Members of MPD’s Fifth and Sixth Districts canvased the area in search of the suspects’ vehicle, which was spotted at East Capitol Street and Benning Road NE. Officers attempted to pull over the vehicle. However, Crocker and Walker ignored the directive of the police and sped away. Crocker, the driver, fled from the police, driving at a high rate of speed, driving erratically, and committing multiple traffic violations during the pursuit. Eventually, Crocker crashed the Volkswagen Jetta near the intersection of 57th Place and A Street SE. All four assailants then fled on foot and were apprehended within blocks of the crash site. The two female accomplices, an adult and a juvenile, pled guilty to charges in the case.
In announcing the guilty verdicts, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer Kerkhoff, Paralegal Specialists Richard Cheatham, Lashone Samuels, and Donville Drummond, and Intelligence Research Specialist Zachary McMenamin. Finally, he commended the work of Assistant U.S. Attorneys Alicia Long and Laura Crane, who investigated and prosecuted the case.
Three Men Charged with Alien SmugglingRead the Press Release
HOUSTON – Federal charges have been filed against three Mexican nationals who were allegedly holding five illegal aliens at a residence in Splendora, announced Acting U.S. Attorney Abe Martinez.
A federal criminal complaint was filed this morning against Luis Cesar Avalos-Hernandez, 32, Alvaro Cruz-Suarez, 27, and Giovanni Arrelola-Villalobos, 21, all of Mexico. They are expected to make their initial appearances before U.S. Magistrate Judge Frances Stacy on Tuesday, April 25, 2017, at 2:00 p.m. All are charged with conspiracy to transport and harbor illegal aliens within the United States.
On April 19, 2017, agents responded to the 2700 block of FM 2090 in Splendora and discovered eight individuals at the residence. Three claimed to reside there, while five others were found inside a back bedroom without access to their shoes, according to the charges.
Two of the aliens claimed to have been walking through the brush in Texas near the Mexican border for several days before being picked up in a white pickup truck, according the complaint. Cruz-Suarez allegedly drove that vehicle with Avalos-Hernandez as passenger. The charges further indicate that Cruz-Suarez, Avalos-Hernandez and Arrelola-Villalobos all guarded the aliens at the Splendora residence. Avalos-Hernandez allegedly took their shoes, while Arrelola-Villalobos confiscated a cell phone and threatened at least one alien with a rifle, according to the charges.
The criminal complaint alleges all eight were citizens and nationals of Mexico, Honduras and El Salvador, all of whom were illegally present in the United States. They were administratively arrested and transported to the Houston Immigration Service Processing Center for additional checks and further investigation.
At the time of the arrests, authorities seized three firearms, a stolen rifle, miscellaneous documents and a ledger of names, dollar amounts and locations. A white pickup truck was also found at the residence which authorities determined was reported stolen in October 2016.
Immigration and Customs Enforcement’s Homeland Security Investigations is conducting the investigation along with the Splendora Police Department and Montgomery County Sheriff’s Office. Assistant U.S. Attorney Doug Davis is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Three Arrested and Charged in Multi-Million Dollar Investment SchemeRead the Press Release
In Del Rio, three men face federal charges for their alleged roles in an advanced fee investment scheme through which they obtained in excess of $5 million from their victims announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
The two-count federal grand jury indictment, unsealed this afternoon, charges 56-year-old James Edward Cox of Waxhaw, NC; 49-year-old Kelly Ray Coronado of Del Rio; and, 53-year-old Gordon Richard Moskowitz of Sarasota, FL, with conspiracy to commit wire fraud and conspiracy to commit money laundering.
The indictment alleges that from January 2010 to January 2017, the defendants implemented a high-yield investment scheme to obtain money from multiple victims under false pretenses, promises and representations. The indictment further alleges that the defendants preyed on vulnerable parties – most of whom operated international non-profits – by promising them large-scale financing in exchange for upfront payments. Using a tapestry of deceit involving fake business entities, websites, and aliases, the defendants would induce such upfront payments and then work together to frustrate law enforcement detection and victim redress.
Upon conviction of each charge, the defendants face up to 20 years in federal prison. The indictment also seeks the criminal forfeiture of Cox and Coronado’s residences allegedly used to facilitate the defendants’ scheme.
Earlier today, FBI special agents arrested Cox and Moskowitz in Waxhaw, NC, and Sarasota, FL, respectively. Coronado was arrested in Del Rio on Monday.
Federal Bureau of Investigation special agents in Del Rio, Tampa and Charlotte conducted this investigation. Assistant United States Attorney Paul T. Harle and Daniel S. Lee are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Texas Man Sentenced to Eight Years in Federal Prison for Drug TraffickingRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David E. Haskell, age 28, of DeKalb, Texas, was sentenced today to 100 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.
According to court records, on March 11, 2016, investigators with the Miller County Sheriff’s Office, the Texarkana Police Department, and the Federal Bureau of Investigation utilized a confidential informant to arrange a purchase of methamphetamine from David Haskell. Officers conducted surveillance on the residence of Haskell as the transaction occurred. The confidential informant provided Haskell with $430.00 in exchange for one-half ounce of methamphetamine. The suspected substance was sent to the Arkansas State Crime Lab where it was determined to be a total of 12.8 grams of methamphetamine with a 90.4% purity level.
Haskell was indicted by a federal grand jury in May, 2016 and pleaded guilty to the charge in October, 2016.
This case was investigated by the Federal Bureau of Investigation, Miller County Sheriff’s, and the Texarkana Police Department. Assistant United States Attorney Benjamin Wulff prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Taylor County man sentenced for unlawful possession of a stolen firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Andrew Christopher Shaver, 23, of Grafton, West Virginia, was sentenced today in federal court to 12 months incarceration for a federal firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
In November 2015, Shaver stole a 40 caliber firearm in Harrison County, West Virginia. He pled guilty in November 2016 to one count of “Possession of a Stolen Firearm.”
Shaver’s sentence is to run consecutively to his current state sentence.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Taylor County Sheriff’s Department, and the Veteran Affairs Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Starr County, Texas Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 45-year-old Roma, Texas man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Amador Saldana pleaded guilty on Oct. 5, 2016, to conspiracy to distribute and possession with intent to distribute five kilograms or more of cocaine and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, Saldana, also known as Mustard, because he packaged kilograms of cocaine with mustard because he believed it would defeat drug dog detection, was a large-scale distributor of cocaine based in Roma, Texas. Saldana had status with members of the Gulf Cartel and was able to import hundreds of kilograms from Mexico into Texas for distribution to customers across the Eastern District of Texas and to the Eastern part of the United States.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John A. Craft.
Seven People Plead Guilty to Marriage Fraud in Federal CourtRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Sonia Santaella Vieira, age 55, Adalberto Viera, age 60, Claudia Santaella Ferreira, age 53, Sidnei Ferreira, age 58, all of Myrtle Beach, SC, and Amanda Santaella Ferreira, age 27, of Miami, Florida, and Colby Musser, age 31, of Murrells Inlet, SC, pled guilty in federal court in Florence to Conspiracy to Commit Marriage Fraud, a violation of Title 18, United States Code, Section 371. Nathalia Santaella Ferreira, age 32, also of Miami, Florida, pled guilty in federal court in Florence to Procuring Citizenship Unlawfully, a violation of Title 18, United States Code, Section 1425(b). United States District Judge Bryan Harwell of Florence accepted the pleas and will impose sentences after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that the defendants were involved in a marriage fraud conspiracy involving a number of Brazilian aliens who were paying United States citizens to enter into fraudulent marriages with them in order to gain United States citizenship.In total, there were five (5) fraudulent marriages among these defendants. The U.S. citizen defendants were paid a total of more than $20,000.00 to enter into sham marriages. The purpose of all of these marriages was to obtain immigration benefits in the form of permanent residency and ultimately United States citizenship. In furtherance of the scheme, both the citizen spouses and Brazilian spouses submitted fraudulent forms and false affidavits to Citizenship and Immigration Services (CIS) in which each couple claimed under oath that they were residing together as husband and wife in legitimate marriages.
During live interviews with CIS officials, the couples repeated these false representations again under oath. In all but one of the sham marriages, the fraud was detected before the Brazilian aliens could obtain citizenship. Only Nathalia Ferreira managed to obtain full citizenship before the fraud was detected. However, her conviction of Procuring Citizenship Unlawfully will result in mandatory revocation of her citizenship.
Ms. Drake stated the maximum penalty defendants can receive is imprisonment for 5 years, a fine of $250,000 and/or plus a special assessment of $100.
The case was investigated by agents of the ICE-Homeland Security Investigations and the FDNS (Fraud Detection and National Security) Division of Citizenship and Immigration Services. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Santa Fe Felon Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Joaquin Archuleta, 41, of Santa Fe, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm. The plea agreement includes a recommendation that Archuleta be sentenced to 63 months of imprisonment followed by a period of supervised release to be determined by the court.
Archuleta was arrested on Nov. 9, 2016, on a criminal complaint charging him with being a felon in possession of a firearm on April 7, 2016, in Santa Fe County, N.M. Archuleta was indicted on the same charge on Dec. 7, 2016. According to the indictment, Archuleta was prohibited from possessing firearms or ammunition because he previously had been convicted on two counts of aggravated battery with a deadly weapon, possession of a controlled substance, and attempt to traffic a controlled substance.
During today’s proceedings, Archuleta pled guilty to the indictment and admitted that on April 7, 2016, he threw a handgun into the backyard of a residence while attempting to flee from police. Archuleta also admitted knowing that he was prohibited from possessing firearms or ammunition because of his prior felony convictions. Archuleta remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Santa Fe Police Department. Assistant U.S. Attorney Timothy S. Vasquez is prosecuting the case.
San Antonio Man Sentenced to 20 Years in Federal Prison for Possession and Distribution of Child PornRead the Press Release
In San Antonio this morning, 33-year-old Michael Daniel Lee Kiper was sentenced to 20 years in federal prison followed by 20 years of supervised release for possession and transmission of child pornography announced United States Attorney Richard Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio.
In addition to the prison term, Senior U.S. District Judge David A. Ezra ordered that a hearing be held in approximately 90 days in order to give victims enough time to request restitution in this case.
On November 8, 2016, Kiper pleaded guilty to one count of distribution of child porn and one count of possession of child porn.
On July 28, 2016, FBI agents executed a search warrant at the defendant’s residence and recovered a cell phone and a flash drive. A forensics examination of the seized items revealed the presence of images and videos depicting extremely young children being sexual assaulted. Kiper has remained in federal custody since his arrest on July 28, 2016.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
Russian National Indicted with Multiple Offenses in Connection with Kelihos BotnetRead the Press Release
A federal grand jury in Bridgeport, Connecticut, returned an eight-count indictment yesterday charging a Russian National with multiple offenses stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Deirdre M. Daly of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 36, aka Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, was charged in an indictment returned in the District of Connecticut with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft. The case has been assigned to Judge Robert N. Chatigny in Hartford.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017. The arrest was based upon a criminal complaint and arrest warrant issued in the District of Connecticut on March 24, 2017. Levashov has been detained since his arrest, and the Justice Department is seeking his extradition.
As alleged in the indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorneys Anthony Teelucksingh, Ethan Arenson and Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs is handling the extradition in this matter.
Russian National Charged with Multiple Offenses in Connection with Kelihos BotnetRead the Press Release
A federal grand jury in Bridgeport, Connecticut, returned an eight-count indictment yesterday charging a Russian National with multiple offenses stemming from his alleged operation of the Kelihos botnet – a global network of tens of thousands of infected computers, which he allegedly used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Deirdre M. Daly of the District of Connecticut and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division made the announcement.
Peter Yuryevich Levashov, 36, aka Petr Levashov, Peter Severa, Petr Severa and Sergey Astakhov, of St. Petersburg, Russia, was charged in an indictment returned in the District of Connecticut with one count of causing intentional damage to a protected computer, one count of conspiracy, one count of accessing protected computers in furtherance of fraud, one count of wire fraud, one count of threatening to damage a protected computer, two counts of fraud in connection with email and one count of aggravated identity theft. The case has been assigned to Judge Robert N. Chatigny in Hartford.
Spanish authorities arrested Levashov in Barcelona on April 7, 2017. The arrest was based upon a criminal complaint and arrest warrant issued in the District of Connecticut on March 24, 2017. Levashov has been detained since his arrest, and the Justice Department is seeking his extradition.
As alleged in the indictment, a “botnet” is a network of computers infected with a malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners. Levashov allegedly controlled and operated the Kelihos botnet to, among other things, harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers. To further the scheme, Levashov allegedly disseminated spam and distributed other malware – such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.
The indictment further alleges that during any 24-hour period, the Kelihos botnet was used to generate and distribute more than 2,500 unsolicited spam e-mails that advertised various criminal schemes, including deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes).
On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance of the Spanish National Police. Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut, with the assistance of Senior Trial Attorneys Anthony Teelucksingh, Ethan Arenson and Harold Chun of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Criminal Division’s Office of International Affairs is handling the extradition in this matter.
Russian Cyber-Criminal Sentenced to 27 Years in Prison for Hacking and Credit Card Fraud SchemeRead the Press Release
WASHINGTON – A 32-year-old Vladivostok, Russia, man was sentenced today to 27 years in prison for his computer hacking crimes that caused more than $169 million in damage to small businesses and financial institutions, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Roman Valeryevich Seleznev, aka Track2, was convicted in August 2016, of 38 counts related to his scheme to hack into point-of-sale computers to steal credit card numbers and sell them on dark market websites. U.S. District Judge Richard A. Jones of the Western District of Washington imposed the sentence.
“This investigation, conviction and sentence demonstrates that the United States will bring the full force of the American justice system upon cybercriminals like Seleznev who victimize U.S. citizens and companies from afar,” said Acting Assistant Attorney General Blanco. “And we will not tolerate the existence of safe havens for these crimes – we will identify cybercriminals from the dark corners of the Internet and bring them to justice.”
“Today is a bad day for hackers around the world,” said U.S. Attorney Annette L. Hayes. “The notion that the Internet is a Wild West where anything goes is a thing of the past. As Mr. Seleznev has now learned, and others should take note -- we are working closely with our law enforcement partners around the world to find, apprehend, and bring to justice those who use the internet to steal and destroy our peace of mind. Whether the victims are multi-national banks or small pizza joints, we are all victims when our day-to-day transactions result in millions of dollars ending up in the wrong hands.”
According to evidence presented at trial, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software (malware) that allowed him to steal millions of credit card numbers from more than 500 U.S. businesses and send the data to servers that he controlled in Russia, the Ukraine and McLean, Virginia. Seleznev then bundled the credit card information into groups called “bases” and sold the information on various criminal “carding” websites to buyers who used them for fraudulent purchases, according to evidence introduced during the trial of this case.
Many of the businesses targeted by Seleznev were small businesses, and included restaurants and pizza parlors in Western Washington, including Broadway Grill in Seattle, which was forced into bankruptcy following the cyber assault. Testimony at trial revealed that Seleznev’s scheme caused approximately 3,700 financial institutions more than $169 million in losses.
Seleznev was taken into custody in July 2014 in the Maldives, and the laptop in his custody at that time contained more than 1.7 million stolen credit card numbers, including some from businesses in Western Washington. The laptop also contained additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme. Evidence presented at trial showed that Seleznev earned tens of millions of dollars from his criminal activity.
Seleznev was convicted on August 25, 2016, of ten counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of fifteen or more unauthorized access devices and two counts of aggravated identity theft.
“Mr. Seleznev’s criminal enterprise was both sophisticated and expansive, with transnational implications. This investigation exemplifies the ability of the U.S. Secret Service and our law enforcement partners to hold accountable those who perpetrate such crimes,” said U.S. Secret Service Special Agent in Charge Robert L. Kierstead. “The ultimate success of this case is the result of an extraordinary collaborative effort by the Secret Service, the U.S. Attorney’s Office of the Western District of Washington, the Criminal Division’s Computer Crime and Intellectual Property Section and the Seattle Police Department.”
“Crime has no borders,” said Seattle Police Chief Kathleen O’Toole. “This individual is responsible for defrauding victims out of millions of dollars in Seattle alone, and we are proud to work with our federal partners to bring him to justice.”
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Additionally, Seleznev is charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud and four counts of wire fraud. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service Electronic Crimes Task Force investigated the case. Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorneys Harold Chun and Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. The CCIPS Cyber Crime Lab, and its Director, Ovie Carroll, provided substantial support for the prosecution. The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam also provided assistance in this case.
Russian Cyber-Criminal Sentenced to 27 Years in Prison for Hacking and Credit Card Fraud SchemeRead the Press Release
A 32-year-old Vladivostok, Russia, man was sentenced today to 27 years in prison for his computer hacking crimes that caused more than $169 million in damage to small businesses and financial institutions, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington.
Roman Valeryevich Seleznev, aka Track2, was convicted in August 2016, of 38 counts related to his scheme to hack into point-of-sale computers to steal credit card numbers and sell them on dark market websites. U.S. District Judge Richard A. Jones of the Western District of Washington imposed the sentence.
“This investigation, conviction and sentence demonstrates that the United States will bring the full force of the American justice system upon cybercriminals like Seleznev who victimize U.S. citizens and companies from afar,” said Acting Assistant Attorney General Blanco. “And we will not tolerate the existence of safe havens for these crimes – we will identify cybercriminals from the dark corners of the Internet and bring them to justice.”
“Today is a bad day for hackers around the world,” said U.S. Attorney Annette L. Hayes. “The notion that the Internet is a Wild West where anything goes is a thing of the past. As Mr. Seleznev has now learned, and others should take note – we are working closely with our law enforcement partners around the world to find, apprehend, and bring to justice those who use the internet to steal and destroy our peace of mind. Whether the victims are multi-national banks or small pizza joints, we are all victims when our day-to-day transactions result in millions of dollars ending up in the wrong hands.”
According to evidence presented at trial, between October 2009 and October 2013, Seleznev hacked into retail point-of-sale systems and installed malicious software (malware) that allowed him to steal millions of credit card numbers from more than 500 U.S. businesses and send the data to servers that he controlled in Russia, the Ukraine and McLean, Virginia. Seleznev then bundled the credit card information into groups called “bases” and sold the information on various criminal “carding” websites to buyers who used them for fraudulent purchases, according to evidence introduced during the trial of this case.
Many of the businesses targeted by Seleznev were small businesses, and included restaurants and pizza parlors in Western Washington, including Broadway Grill in Seattle, which was forced into bankruptcy following the cyber assault. Testimony at trial revealed that Seleznev’s scheme caused approximately 3,700 financial institutions more than $169 million in losses.Seleznev was taken into custody in July 2014 in the Maldives, and the laptop in his custody at that time contained more than 1.7 million stolen credit card numbers, including some from businesses in Western Washington. The laptop also contained additional evidence linking Seleznev to the servers, email accounts and financial transactions involved in the scheme. Evidence presented at trial showed that Seleznev earned tens of millions of dollars from his criminal activity.
Seleznev was convicted on Aug. 25, 2016, of 10 counts of wire fraud, eight counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft.
“Mr. Seleznev’s criminal enterprise was both sophisticated and expansive, with transnational implications. This investigation exemplifies the ability of the U.S. Secret Service and our law enforcement partners to hold accountable those who perpetrate such crimes,” said Special Agent in Charge Robert L. Kierstead of the U.S. Secret Service. “The ultimate success of this case is the result of an extraordinary collaborative effort by the Secret Service, the U.S. Attorney’s Office of the Western District of Washington, the Criminal Division’s Computer Crime and Intellectual Property Section and the Seattle Police Department.”
“Crime has no borders,” said Seattle Police Chief Kathleen O’Toole. “This individual is responsible for defrauding victims out of millions of dollars in Seattle alone, and we are proud to work with our federal partners to bring him to justice.”
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Additionally, Seleznev is charged in the Northern District of Georgia with conspiracy to commit bank fraud, one count of bank fraud and four counts of wire fraud. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service Electronic Crimes Task Force investigated the case. Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington and Trial Attorneys Harold Chun and Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) prosecuted the case. The CCIPS Cyber Crime Lab, and its Director, Ovie Carroll, provided substantial support for the prosecution. The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam also provided assistance in this case.
Oregon Promoter Convicted for Making, Passing and Sending Bogus Financial Instruments to U.S. Treasury and Financial Institution and Failing to File Tax ReturnsRead the Press Release
A Hillsboro, Oregon promoter was convicted today following a jury trial of making, passing and submitting fake financial instruments to a financial institution and the U.S. Treasury and failing to file tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the superseding indictment and the evidence presented at trial, from approximately 2008 through 2015, Winston Shrout, 69, formerly of St. George, Utah, created and submitted more than 1000 bogus financial instruments with the intent of defrauding financial institutions and the U.S. Treasury. Shrout held seminars and private meetings to promote and market the use of these fake financial instruments to pay off debts, including federal taxes. Shrout sold recordings of his seminars, templates for fake financial instruments and other materials through his website.
The evidence presented at trial also proved that Shrout failed to file his 2009 through 2014 tax returns despite earning $562,224 from presenting at seminars, licensing fees associated with the sale of his products and annual pension payments.
Sentencing is scheduled for Aug. 1. Shrout faces a statutory maximum sentence of 25 years in prison for each count of making a fake financial instrument and one year in prison for each count of failing to file a tax return. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Omaha Man Sentenced for Falsely Applying for PassportRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Friday, April 21, 2017, United States District Court Judge John M. Gerrard sentenced Kayne Farquharson, 32, of Omaha, Nebraska, to 21 months in federal prison followed by 3 years of supervised release after he pled guilty to making a false statement on a passport application. Farquharson was also ordered to pay $18,809.00 in restitution in connection with some credit he had obtained in a fraudulent identity.
On or about May 28, 2014, the defendant, identifying himself as a person with the initials, T. L. M., submitted an Application for a U.S. Passport at the Passport Acceptance Office, in Grand Island, Nebraska. As proof of identity, Farquharson presented a Nebraska driver’s license in the name of T. L. M. and as proof of citizenship, a Florida birth certificate in the name of T. L. M. Farquharson also listed on the passport application his occupation as a “football player” and his employer as the Nebraska Danger, a professional indoor football team based in central Nebraska. A United States passport was issued on June 3, 2014 in the name of T. L. M. and mailed to the address listed on the passport application in Grand Island, Nebraska. Photos were compared and it was determined that the person who submitted the application for the passport was indeed Farquharson. Further investigation revealed that Farquharson and T.L.M. knew each other at the time Farquharson applied for the passport.
This case was investigated by the U.S. Department of State.
Nigerian National Convicted of Marriage Fraud to Evade Deportation, False Statements to a Federal Officer, Failure to Appear for TrialRead the Press Release
PROVIDENCE – Rasheed Abiodun Akanni, 42, a Nigerian national residing in Pawtucket, R.I., on Thursday was found guilty at trial by U.S. District Court Judge John J. McConnell, Jr., of entering into a marriage with a U.S. citizen for the purpose of evading deportation, false statements to a federal officer and failure to appear before the U.S. District Court as required by conditions of release. Akanni was found guilty as charged in indictments returned by federal grand juries on September 13, 2016, and April 6, 2017. He is scheduled to be sentenced on July 17, 2017.
Rasheed Abiodun Akanni’s conviction is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Denis Riordan, District Director of U.S. Citizenship and Immigration Services.
According to the government’s evidence presented during a three-day bench trial, Akanni entered the United States from Nigeria on June 3, 2003, on a six-month visitor for pleasure visa. He never left the United States and made several unsuccessful attempts to gain legal status.
On July 13, 2007, Akanni filed for lawful permanent resident status as the spouse of an American woman. The woman later withdrew her support for Akanni’s application. On November 23, 2010, Akanni filed a petition for asylum, which stayed removal proceedings.
According to the government’s evidence, in the fall of 2012 Akanni began a relationship with an American woman, whom he later married in a civil ceremony on February 14, 2013. Akanni and his wife continued to live in separate residences until jointly renting an apartment in June 2013. However, Akanni’s wife told investigators that he only stayed at their joint residence on average three or four nights a week. After two months, Akanni’s wife instructed Akanni to move out of their joint residence.
According to the government’s evidence, in October 2013 Akanni informed his wife that he would be filing an application for lawful permanent residence based on their marriage. His wife testified she was unaware that her husband was not a legal resident of the United States, but that she agreed to support his application for legal status. In September 2014, U.S. Citizenship and Immigration Services (USCIS) officers interviewed Akanni and his wife separately. On May 6, 2015, USCIS officers again interviewed both individuals separately. Further investigation determined that Akanni and his wife gave conflicting answers during the second interview as to the state of their marriage. While Akanni’s wife told USCIS investigators that her marriage to Akanni was not good and that she would be seeking a divorce, Akanni made false statements to the officers as to the state of his marriage and his residence. Akanni claimed that he resided with his wife and that the residence he was at on the day he was interviewed was his sisters. The investigation determined that Akanni actually shared the residence with a woman with whom he fathered a child. The child was born on February 13, 2016.
On September 13, 2016, a federal grand jury indicted Rasheed Abiodun Akanni on charges of entering into a marriage with a U.S. citizen for the purpose of evading deportation and making false statements to a federal officer. Akanni was arraigned on September 14, 2016, and released on unsecured bond. Among the conditions set by the court for his release, Akanni was ordered to appear for trial in U.S. District Court on a trial date to be set by the court. The court scheduled the trial to begin on January 30, 2017. Akanni failed to appear in court for his trial. An arrest warrant was issued by the court.
In the early morning hours of January 31, 2017, Akanni was stopped attempting to enter Canada by officers from the Canada Border Service Agency. At the border, Akanni provided an American passport in another person’s name. Canadian officers returned him to the U.S. Customs and Border Patrol checkpoint in Lewiston, N.Y. U.S. Marshals later returned Akanni to Rhode Island where he remained in federal custody. On April 6, 2017, a federal grand jury returned an indictment charging Rasheed Abiodun Akanni with failure to appear before the U.S. District Court for trial.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the U.S. Customs & Border Protection Service in Buffalo, N.Y. for their assistance in this matter.
Assistant U.S. Attorney Zechariah Chafee prosecuted the case. On April 11, 2017, pursuant to a memo from Attorney General Jeff Sessions, Assistant U.S. Attorney Zechariah Chafee was appointed Border Security Coordinator for the United States Attorney’s Office for the District of Rhode Island. Attorney General Sessions instructed each United States Attorney’s Office to designate a Border Security Coordinator to coordinate the District’s commitment to criminal immigration enforcement.
Nampa Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BOISE – Joe Angel Trujillo, 24, of Nampa, Idaho, pleaded guilty yesterday to possession of methamphetamine with intent to distribute, Acting U.S. Attorney Rafael Gonzalez announced. A federal grand jury indicted Trujillo on September 14, 2016. The superseding information alleges that Trujillo possessed with the intent to distribute over fifty grams of actual methamphetamine.
According to statements made at the hearing, officers arrested Trujillo on July 19, 2016, on outstanding felony warrants at a residence in Nampa, Idaho. Officers had surveilled the residence prior to arresting Trujillo and observed him entering the residence wearing a grey coat and carrying a black backpack. At the time of his arrest, officers observed Trujillo standing near the grey coat he had been wearing and the backpack he had been seen carrying. Officers searched the backpack and found over 1,000 grams of pure methamphetamine, a Smith & Wesson .380 caliber pistol, ammunition, and digital scales. Officers also searched and found over $4,000 in the pocket of the grey coat and over $500 on Trujillo’s person. Sentencing is set for June 29, 2017, before Chief U.S. District Judge B. Lynn Winmill.
Possession with intent to distribute methamphetamine is punishable by at least ten years and up to life imprisonment, at least five years of supervised release, a $10,000,000 fine, and a $100 special assessment.
The case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Nampa Police Department.
Myrtle Beach Man Sentenced on Child Pornography ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Daniel James Crutchfield, age 27, from Myrtle Beach, SC, was sentenced in federal court in Florence, South Carolina, for possession of child pornography, in violation of 18 U.S.C. § 2252A(a)(5)(B)1326(a)(2). United States District Judge R. Bryan Harwell of Florence sentenced Crutchfield to 120 months imprisonment followed by supervised release for life and restitution payment of $6,000.00. During his term of supervised release, Crutchfield will be required to register as a sex offender, attend sex offender treatment, refrain from contact with children or use the internet without approval, and submit to polygraph examinations.
Evidence presented at the change of plea on March 1, 2016 established that federal agents executed a search warrant at Crutchfield’s residence on July 1, 2015 based on information that he had been receiving child pornography on the Internet. During the search, agents found numerous videos of child pornography on Crutchfield’s Play Station 3 and on a flash storage device.
The case was investigated by agents with ICE-Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Myron Bernard, aka “Hood,” and Kevin “Kyle” Forman Indicted for Conspiracy to Distribute Heroin and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Myron Bernard, aka “Hood,” of Philadelphia, Pennsylvania, and Kevin “Kyle” Forman of Burlington, Vermont were indicted by the federal grand jury yesterday, and charged with conspiring to distribute and distributing heroin and cocaine base in Vermont.
According to Court documents, the United States alleges that both Bernard and Forman engaged in the sale of heroin near the corner of South Willard and Buell Streets in Burlington, Vermont. Forman also distributed heroin in various parking lots in Winooski and Burlington. After one of these distributions of heroin, law enforcement surveillance followed Forman back to his residence on Austin Drive in Burlington.
Both Forman and Bernard appeared earlier this week before United States Magistrate Judge John M. Conroy in Burlington. Forman was ordered detained pending trial. Bernard was ordered held pending a detention hearing, scheduled for Monday, April 24, 2017.
The United States Attorney emphasizes that the charges contained in the Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If either Bernard or Forman is convicted, each faces a maximum possible term of imprisonment of twenty years.
The United States is represented in this matter by Assistant U.S. Attorney Jon Ophardt. Bernard is represented by the Federal Public Defender for the District of Vermont. Forman is represented by Richard R. Goldsborough, Esq. The investigation was conducted by the Vermont State Police, the Burlington Police Department, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Montegut Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TYLER DAVIS, age 22, of Montegut, Louisiana, pled guilty yesterday for crimes involving the sexual exploitation of children.
According to court documents, beginning at an unknown time to on or about July 13, 2015, DAVIS knowingly possessed images and videos depicting the sexual victimization of minors. DAVIS entered a plea of guilty to possessing a Samsung Galaxy cell phone that contained pre-pubescent images and videos of children less than twelve-years-old.
DAVIS faces a maximum sentence of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine. U.S. District Judge Mary Ann Vial Lemmon set sentencing on July 20, 2017.
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."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations (HSI Houma), HSI Ottawa, and the York Regional Police Special Victim’s Unit, Ottawa, Canada in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Monroe County Physician Sentenced to One Year in Prison for Illegally Prescribing Pain MedicationsRead the Press Release
BOWLING GREEN, Ky. – A Monroe County, Kentucky physician was sentenced by Senior Judge Thomas B. Russell, in U.S. District Court, yesterday to serve one year and one day in prison for prescribing pain medications outside the course of professional medical practice to five patients during a more than six year period, announced United States Attorney John E. Kuhn, Jr.
Clella Louise Hayes, whose medical practice was located in Tompkinsville, Kentucky, pleaded guilty to five counts of a grand jury indictment on September 14, 2016. Hayes was charged with dispensing and distributing Schedule II controlled substances and Schedule III controlled substances outside the course of her professional medical practice.
Further, Hayes, age 41, of Glasgow, Kentucky, authorized prescriptions for fentanyl, morphine, Oxycodone, Demerol, hydrocodone and Klonopin. The illegal activities occurred between March 2008 through March 2014.
Specifically, between June 2009 and September 2011, Hayes intentionally dispensed Schedule II controlled substances to the same patient, outside the course of professional medical practice, by issuing and authorizing prescriptions for fentanyl, morphine, Oxycodone, and Demerol. During the same time period, Hayes failed to establish a legitimate diagnosis of A.R.’s (the patient) pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion. On September 19, 2011, Dr. Hayes prescribed fentanyl to A.R. On September 23, 2011, at age 55, A.R. died as a result of a fentanyl overdose, with post-mortem toxicology reports reflecting fentanyl at five times the therapeutic range in A.R.’s blood. a similar instance, Between November 2011 and November 2012, A.H. was Dr. Hayes’s patient.
During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II controlled substances to A.H. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and Demerol.
Dr. Hayes failed to establish a legitimate diagnosis of A.H.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On November 27, 2012, A.H. died at age 48 as a result of a poly-pharmacy overdose, with post-mortem toxicology reports reflecting high blood concentrations of medications Dr. Hayes prescribed to A.H., including Oxycodone and Klonopin. Between June 2010 and January 2014, K.S. was Dr. Hayes’s patient.
During that time period, Dr. Hayes knowingly and intentionally dispensed Schedule II and Schedule III controlled substances to K.S. outside the course of professional medical practice, by issuing and authorizing prescriptions for Oxycontin and hydrocodone.
Dr. Hayes failed to establish a legitimate diagnosis of K.S.’s pain complaints, failed to establish an individualized treatment plan, failed to take into account significant risk factors for abuse, and failed to take into account multiple inconsistent urine drug screens which reflected drug abuse and diversion.
On January 1, 2014, K.S. died at age 53 as a result of a poly-pharmacy overdose, with post-mortem toxicology results reflecting oxycodone, and hydrocodone at ten (10) times the therapeutic dose, both of which Dr. Hayes prescribed to K.S in December 2013.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Kentucky State Police (KSP) Drug Enforcement/Special Investigations West, and the Federal Bureau of Investigation (FBI) with assistance from the Tompkinsville Police Department.
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Mississippi Tax Preparers Sentenced to Prison for Filing Fradulent ReturnsRead the Press Release
WASHINGTON – Two Gulfport, Mississippi men were sentenced to prison today for charges related to preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
Allen Brice was sentenced to serve 63 months in prison. He was convicted at trial of seven counts of aiding in the preparation of false tax returns. Jeremi Washington was sentenced to serve 46 months in prison. He previously pleaded guilty to conspiring to defraud the United States.
According to court documents and proceedings, Washington was a tax return preparer who owned and operated Flash Financial, and Brice was Washington’s sole employee. From 2009 through 2011, the two men filed fraudulent tax returns for multiple clients with the Internal Revenue Service (IRS) that included bogus education expenses and retirement contributions, which they never discussed with their clients. As a result, the clients received refunds they were not entitled to.
In addition to the terms of prison imposed, Brice and Washington were ordered to serve one and three years of supervised release. Brice was ordered to pay restitution to the IRS in the amount of $1,919,820.20 and Washington was ordered to pay $1,954,352.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Christopher Wansley and Jay Golden and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Miami-Dade Resident Sentenced to 22 Years in Prison for Being a Felon in Possession of a Firearm After Shooting a Man in Miami GardensRead the Press Release
A Miami-Dade resident was sentenced to 22 years in federal prison for being a felon in possession of a firearm, after he shot a man in front of a convenience store in Miami Gardens.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Cynthia Dawson Machanic, Acting Chief, Miami Gardens Police Department, made the announcement.
James Benjamin Bell, 52, previously pled guilty before U.S. District Judge Donald L. Graham for being a felon in possession of a firearm. Yesterday, U.S. District Judge Graham sentenced Bell to 264 months in prison, to be followed by 5 years of supervised release.
According to the court record, including evidence presented during the defendant’s trial, prior to his guilty plea, on May 31, 2016, Bell argued with another man outside of a Miami Gardens convenience store before shooting him in the face. A bystander called 911 and provided a description of the shooter and the getaway car. Police officers quickly found the car and Bell exited the passenger side of the vehicle wearing clothing that matched the description of the shooter. Bell’s girlfriend was the driver. Officers located a firearm in Bell’s girlfriend’s purse. A ballistics test linked the firearm found in Bell’s girlfriend’s purse to the casing left on scene. At the time of the shooting, Bell was a convicted felon who was prohibited from possessing a firearm.
Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for their assistance. Mr. Greenberg commended the investigative efforts of ATF and the Miami Gardens Police Department. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney?s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Men Sentenced to Federal Prison and Ordered to Pay over $6 Million Restitution for Tax Fraud at Hope HospitalRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that two men were sentenced this week on one count each of Failure to Collect or Pay Over Tax. James R. Cheek, age 68, of Waleska, Georgia and Herschel J. Breig, Sr., age 69, of Nixa, Missouri were each sentenced to 36 months in federal prison followed by three years of supervised release. Restitution of $6,000,000 is ordered jointly and severally between the two defendants. Judge Susan O. Hickey presided over the sentencing hearings in the United States District court in Texarkana.
According to court records, as principals of Hope Medical Park Hospital, both Cheek and Breig were responsible to collect, truthfully account for, and pay over the hospital’s payroll taxes to the Internal Revenue Service during the calendar years 2009, 2010, 2011, and 2012. They failed to pay approximately $6,000,000 in payroll taxes as was required.
Both men were indicted by a federal grand jury in July, 2015 and both pleaded guilty in September, 2016.
"Corporate executives have a responsibility to withhold federal income taxes for their employees and then remit those taxes to the IRS on their behalf. Employment tax evasion not only results in the loss of tax revenue to the United States government, employees also lose future social security or Medicare benefits” stated Tracey D. Montaño, Special Agent in Charge. "Failure to pay over withheld taxes is a serious offense, and continues to be an investigative priority for IRS Criminal Investigation."
This case was investigated by the Internal Revenue Service - Criminal Investigation Division and the Federal Bureau of Investigation. Assistant United States Attorneys Candace Taylor and Jonathan D. Ross prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Media Advisory: Press Conference to Announce Federal Gun-Related Charges and ArrestsRead the Press Release
CEDAR RAPIDS, IA – There will be a press conference held on Monday, April 24, 2017, at 2:00 p.m. at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids. Acting U.S. Attorney Sean R. Berry and representatives from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Cedar Rapids, Waterloo, and Marion Police Departments will be present at the press conference. The purpose of the press conference is to announce recent federal gun-related charges and arrests in Eastern Iowa.
Event Details
When: April 24, 2017
Where: United States Attorney’s Office, 111 Seventh Ave SE
Time: 2:00 p.m.
A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Man Who Falsely Claimed to Receive the Purple Heart Award to Receive Financial Benefits is Sentenced to 21 Months in Federal PrisonRead the Press Release
DALLAS — A 35-year-old man, Brandon Ryan Blackstone, who admitted fraudulently representing the receipt of a military decoration for financial gain, has been sentenced by Chief U.S. District Judge Barbara M.G. Lynn to serve 21 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Blackstone pleaded guilty in September 2016 to a felony information charging one count of wire fraud and one count of fraudulent representation about the receipt of a military decoration for financial gain. Blackstone has been in custody since February 2017 for violations of his pretrial conditions.
“Falsely claiming military honors is disgraceful by itself,” said U.S. Attorney Parker. “But to do so for financial gain is particularly despicable.”
“Any fraudulent claim of military valor is disturbing and disrespectful to the brave men and women who earned their honors through courage and sacrifice. Brandon Blackstone’s fraudulent claims, made repeatedly with the purpose of defrauding the government and obtaining personal enrichment, are not only especially egregious, but criminal. The FBI will not stand by in these situations,” said FBI Dallas Special Agent in Charge Eric K. Jackson. “We will investigate these cases to ensure justice is reached. We will do our part to uphold the integrity of the U.S. government and military institutions and to honor those courageous individuals who truly deserve their military honors.”
“This conviction demonstrates the VA Office of Inspector General’s unwavering commitment to protect the programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge James Werner, VA Office of Inspector General.
According to plea documents, Blackstone served in the United States Marine Corps from 2004 until 2006. Between August 28, 2004, and September 30, 2004, Blackstone was deployed with the Marines to Iraq.
On July 28, 2006, Blackstone submitted an application for compensation and/or pension to the Department of Veterans Affairs (VA). In the application, the defendant falsely claimed to have sustained multiple physical blast injuries while deployed to Iraq, when his Humvee vehicle struck an anti-tank mine. When Blackstone was examined at the Dallas VA Medical Center in October 2006 he falsely claimed that he sustained multiple lacerations and physical injuries as a result of an explosion when his Humvee passed over an anti-tank mine which exploded. Also in October 2006, in support of his application for benefits, Blackstone submitted to the VA, two forged and falsified witness statements, purporting to be signed by Marines who witnessed the explosion.
In November 2006, the VA awarded Blackstone disability benefits in the form of monthly compensation payments.
In February 2012, the defendant submitted an online application to the Military Warrior Support Foundation (MWSF), to fraudulently obtain a residence. MWSF is a nonprofit organization dedicated to helping injured veterans. Included in the benefits provided to combat wounded veterans, MWSF provides mortgage free residences to eligible veterans who were wounded during combat. In the application, Blackstone falsely claimed to have sustained blast injuries, resulting from an explosion, when his vehicle struck an anti-tank mine while on patrol. In the application, Blackstone also falsely claimed that, as a result of his injury, he was awarded the Purple Heart Medal. Because he held himself out to have been awarded the Purple Heart Medal, Blackstone received from MWSF, a mortgage free residence in Fort Worth, Texas in November 2012, and was scheduled to receive the title of the residence in November 2015.
The Federal Bureau of Investigation and the Department of Veteran Affairs, Office of Inspector General investigated the case. Special Assistant U.S. Attorney Dan Cole was in charge of the prosecution.
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Louisville Brothers Charged in the Shooting of A United States Postal CarrierRead the Press Release
Charged with attempted murder of a federal employee
LOUISVILLE, Ky. – Two Louisville men have been charged in a Superseding Indictment with conspiracy to murder and attempted murder of a federal employee, that is a United States Postal Carrier (while engaged in the performance of his official duties), and with forcible assault of a federal employee. One defendant, Eric Bennett, faces additional charges, including discharge of a firearm during a crime of violence, possession of a firearm by a convicted felon, and use or possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney John E. Kuhn, Jr.
Marcus Bennett, 40, was arrested Wednesday, April 19, 2017, and appeared before Magistrate Judge Dave Whalin, facing four of seven charges in a Superseding Indictment. The Superseding Indictment was unsealed yesterday during his initial appearance in federal court. Marcus Bennett remains in federal custody with a detention hearing scheduled for Wednesday, April 26, 2017 at 3:00 pm.
Eric Bennett, 38, was arrested Monday, February 27, 2017, and was initially charged in a grand jury indictment with attempted murder of a federal employee, forcible assault of a federal employee, and discharge of a firearm during a crime of violence. The superseding indictment includes those charges and adds four new charges. Those charges are: conspiracy to murder and attempted murder of a federal employee; the two firearms charges (possession of a firearm by a convicted felon, and use or possession of a firearm in furtherance of a drug trafficking crime); and a drug trafficking charge. Eric Bennett remains in federal custody.
The charges are in connection with the shooting of United States Postal Carrier Da’Ron Lester on February 10, 2016.
A third defendant, Juliyah Young, of Louisville, is charged in the Superseding Indictment, along with Marcus and Eric Bennett, with conspiracy to distribute heroin and marijuana. According to the indictment, beginning in June of 2015, and continuing to April 19, 2017, in Jefferson County, the three defendants conspired with each other to possess with the intent to distribute one kilogram or more of heroin and marijuana.
If convicted of the charges, Eric Bennett and Marcus Bennett face a sentence of any number of years in prison including life for conspiracy to murder a federal employee, no more than 20 years for each count of attempted murder of a federal employee and forcible assault of a federal employee.
Eric Bennett faces an additional 10 years in prison for the charge of discharging of a firearm during a crime of violence, no more than 10 years in prison for possession of a firearm by a convicted felon, and no less than 25 years in prison for possession of a firearm in furtherance of a drug trafficking crime. Further, Eric and Marcus Bennett could be sentenced to a five-year term of supervised release and ordered to pay a fine.
If convicted of conspiracy to distribute heroin and marijuana, all three defendants could be sentenced to no less than 10 years in prison and no more than life, fined, and ordered to serve 5 years of supervised release.
This case is being prosecuted by Assistant United States Attorneys Scott Davis and Marisa Ford, and the United States Postal Inspection Service (USPIS) is conducting the investigation.
The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
bennett_et_al_indictment_4-19-17.pdfKevin Darnell Williams Convicted of Robbery, Drug, and Firearms OffensesRead the Press Release
Williams shot victim at drug deal in Ames, Iowa
DES MOINES, IA – On April 20, 2017, Kevin Darnell Williams, also known as “Splash,” 23, was convicted by a federal jury of conspiracy to possess with intent to distribute marijuana, robbery, discharge of a firearm during and in relation to a drug trafficking crime and a crime of violence, and felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Williams’ sentencing is scheduled for September 12, 2017, at 11:00 a.m., at the United States Courthouse in Des Moines before United States District Court Chief Judge John A. Jarvey.
According to evidence presented at trial, Williams set up a marijuana deal with the victim in Ames. Once the two met, on August 9, 2016, the drug deal turned into a robbery, and Williams shot the victim four times. Williams was apprehended by law enforcement in Chicago several days after the shooting.
This matter was investigated by the Federal Bureau of Investigation's Central Iowa Gang Task Force, the Ames Police Department, the Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Jamaican National Pleads Guilty to Making False StatementsRead 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 LaTanya Notice, 42, of Mt. Vernon, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to the crime of making a false statement to a federal officer. The charge carries a maximum penalty of 5 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on January 23, 2013, the defendant, a Jamaican citizen with legal permanent resident status in the United States, attempted to cross into the United States from Canada at the Peace Bridge with a man in possession of a valid United States Passport. The defendant claimed that her traveling companion was her brother and they were returning to their home in New York City. Standard database checks revealed that the man was in fact Horace Tajah, an aggravated felon from Jamaica. In 2010, Tajah was convicted in the Southern District of New York of multiple offenses including drug, gun, and conspiracy to commit murder charges. Tajah was sentenced to 72 months in prison, and after serving his sentence, he was deported to Jamaica in 2012 and banned from the United States for life.
Ms. Notice admitted to agents that Tajah was not her brother, but her husband, that he did not own the United States Passport he presented to officials, and that she was aware that he was deported to Jamaica in 2012 and barred from entering the United States for life.
The plea is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for July 27, 2017, at 9:30 am before Judge Vilardo.
Inmate Pleads Guilty to Escaping from Atlanta’s Federal PenitentiaryRead the Press Release
ATLANTA – Federal inmate Justin B. Stinson has pleaded guilty to escaping from the United States Penitentiary minimum security camp in Atlanta, Georgia.
“Stinson escaped from Atlanta’s federal prison solely to smuggle contraband back inside it,” said U. S. Attorney John A. Horn. “This case shines a light on a recurring problem with prisoners leaving the camp, which creates safety concerns in the surrounding neighborhoods as well as within the camp itself when inmates return with contraband to feed a thriving black market.”
“The safety of our communities is the department’s number one priority, and escaped inmates clearly have the ability to threaten the well-being of unsuspecting residents, including the numerous children who live in proximity to the prison. The department is extremely grateful to U.S. Attorney John Horn and his staff for making this case a priority, and sending a strong message to other inmates who may be inclined to attempt escape that additional sentencing will be forthcoming,” said Chief of Police Erika Shields, Atlanta Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: the United States Penitentiary in Atlanta, Georgia (“USP Atlanta”) is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. USP Atlanta also has a detention center for pre-trial inmates and a satellite prison camp for minimum-security male inmates. In March 2015, Stinson pleaded guilty to Possession of a Firearm by a Convicted Felon in a Florida federal court. From August 2016 to February 2017, Stinson was assigned to serve his time at USP Atlanta’s minimum security camp.
On February 3, 2017, law enforcement officers conducted surveillance along the USP Atlanta’s prison fence line near New Town Circle. Just after 9:00 p.m., Stinson escaped from USP Atlanta by climbing through a hole in one prison fence and then climbing over USP Atlanta’s outer prison fence. Thereafter, Stinson retrieved a large black duffel bag from the occupant of a stopped car on New Town Circle and began walking back toward USP Atlanta. The FBI then arrested Stinson from a location outside of USP Atlanta’s confines. The FBI also recovered from Stinson a cellular telephone, a pair of scissors, two 1.75 liters of Jose Cuervo tequila, two cartons of Newport cigarettes, four boxes of Black and Mild cigars, and various food items.
On February 14, 2017, Stinson, 37, was indicted by a federal grand jury on escape and contraband smuggling charges. Stinson pleaded guilty to one count of escape.
The sentencing hearing for Stinson has been scheduled for June 28, 2017, at 2:30 p.m., before U.S. District Judge Charles A. Pannell, Jr.
This case is being investigated by the Federal Bureau of Investigation and the Atlanta Police Department.
Assistant United States Attorneys Jeffrey W. Davis and Timothy Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Illegal Alien Enters Guilty Plea in Federal CourtRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Edgar Rolando Castro Soc, age 37, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Illegal Re-Entry into the United States, a violation of Title 18, United States Code, Section 1326(a). United States District Judge Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on September 1, 2016, ICE-ERO Officers discovered Castro Soc while he was in custody in the Myrtle Beach City jail on state charges. The officers determined that he was an alien who was unlawfully in the United States.Records checks revealed that Castro Soc, a native and citizen of Guatemala, had previously been deported from the United States on five (5) occasions. Castro Soc has never received permission to enter or remain in the U.S.
Ms. Drake stated the maximum penalty the defendant can receive is imprisonment for 2 years, a fine of $250,000 and a special assessment of $100.
The case was investigated by agents of the ICE-ERO Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Hope Initiative Partners, City of Albuquerque, Bernalillo County and HAC Collaborate with DEA to Promote 13th National Prescription Drug Take-Back DayRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office and UNM’s Health and Sciences Center are encouraging the public to participate 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 the nationwide event on April 29, 2017, 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. This promotional event will provide City and County employees and others who work in the downtown Albuquerque area with a safe, convenient and responsible way of disposing of unused, unwanted or expired medications.
During the last National Prescription Drug Take-Back Day in October 2016, Americans turned in 731, 269 pounds – almost 366 tons – of prescription drugs at almost 5,200 sites staffed by DEA and more than 4,000 of its state, local and tribal law enforcement partners. Here in New Mexico, DEA and 50 law enforcement partners collected almost 4,400 pounds of medication at 79 collection sites throughout the state. Overall, in its 12 previous Take Back events, DEA and its partners have taken in over 7.1 million pounds – more than 3,500 tons – of pills.
“Many individuals are lured into believing that taking a prescription pill is a safe way to get high. But many prescription drugs are highly addictive and just as dangerous as any street drug, and just as deadly,” said Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division. “The death toll from prescription painkillers has tripled in the last decade, and the problem is getting worst. More people die each year from prescription painkiller overdoses than from heroin, cocaine or any other illegal drug. Proper disposal of your unwanted prescription drugs is a simple way to help prevent overdose deaths.”
“Teens and young adults are especially vulnerable because they begin abusing prescription drugs and turn to heroin for a cheaper high,” said Acting U.S. Attorney James D. Tierney. “Every day, 2,500 teens take a prescription drug to get high for the first time, and 65% of teens get their drugs from a medicine cabinet at home or from a friend or relative. Too many kids are dying young. Protect our kids by properly disposing of your unused, unwanted and expired medicine.”
“The UNM Health Sciences Center enthusiastically supports National Prescription Drug Take-Back Day and thanks the Drug Enforcement Administration for its leadership in this important initiative,” said Dr. Paul B. Roth, Chancellor of UNM Health Sciences Center. “UNM Hospital and the UNM Police Department will do their part on April 29th by hosting a drive-thru take-back site in the shuttle lanes at UNMH, 2211 Lomas Blvd NW. We encourage community members to take this opportunity to dispose of unused prescription drugs to protect themselves, their families and our community.”
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused prescription drugs in 2015, including almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers. Almost 30,000 people – 78 a day – died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
“Unused, unsecured prescription drugs, particularly opiates and benzodiazepines, can be stolen and diverted for illegal sale. This is not good for law enforcement and not good for our communities as we work to stem the tide of addictions,” said Bernalillo County Commissioner Maggie Hart Stebbins. “Local governments are very grateful to DEA for their "take-back" initiative and other efforts to keep these illegal drugs off our streets.”
“Having unused medicines in your house is unsafe and dangerous as you never know who might get their hands on them,” said HAC Executive Director Jennifer Weiss-Burke. “There's no reason to hang on to leftover medicines, so take advantage of this opportunity to spring clean your medicine cabinet!”
Members of the public 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, 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. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Guo Hua Lu Sentenced for False Statement to Federal OfficerRead the Press Release
SHAWN ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant GUO HUA LU (age 54) was sentenced on Thursday, April 20, 2017, in the U.S. District Court by Chief Judge Ramona V. Manglona, to six months incarceration, a $5,500.00 fine, $750.00 restitution, one year of supervised release after incarceration, and a $100 special assessment fee, for False Statement to a Federal Officer.
LU was a document preparer who obtained a fraudulent notarial certificate on behalf of a Chinese national seeking a passport for her U.S. citizen infant. When interviewed by an agent from the U.S. Department of State’s Diplomatic Security Service, LU denied his involvement in obtaining the fraudulent document. On October 28, 2016, LU was indicted by a federal grand jury for one count of False Statement to a Federal Officer. LU pled guilty on December 22, 2016.
This investigation was conducted by the Department of State’s Diplomatic Security Service (DSS) and the case was prosecuted by Assistant U.S. Attorney James J. Benedetto.
Government Contractors Indicted in $11 Million Veteran Set-Aside Fraud SchemeRead the Press Release
Assistant U.S. Attorneys Rebecca S. Kanter (619-546-7304) and Aaron P. Arnzen (619-546-8384)
NEWS RELEASE SUMMARY – April 21, 2017
SAN DIEGO, CA – Owners of local construction and telecommunications companies were arraigned in federal court today on charges that they fraudulently obtained more than $11 million in federal contracts specifically set aside for service-disabled veteran-owned businesses.
Andrew Otero, Roger Ramsey, and their companies – A&D General Contracting, Inc. (“A&D”) and Action Telecom, Inc. (“Action”) – were named in a fourteen-count indictment returned April 7 by a federal grand jury in San Diego.
The indictment alleges that the defendants participated in a conspiracy to defraud the government by forming a joint venture – Action-A&D, A Joint Venture (“the JV”) – and falsely representing that Action and the JV qualified as service-disabled veteran-owned small businesses (“SDVOSB”). Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veteran Affairs (“VA”) and the Army Corps of Engineers (“ACE”).
According to the indictment, the fraudulent conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D. To appear qualified, Otero (on behalf of A&D) and Ramsey (on behalf of Action) initially executed an agreement to create the JV (“the JV Agreement”), which stated that Ramsey’s company (Action) would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the JV’s profits.
However, six months later, Otero and Ramsey signed a secret side agreement that made clear the JV was ineligible under the SDVOSB program. For example, the side agreement said the parties created the JV so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement also stated that A&D – not Action – would run the construction jobs. They also agreed that “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”
In addition to the secret side agreement, the indictment describes a variety of ways in which the JV did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D. For example, although Ramsey (a service-disabled veteran) nominally served as president of Action and the JV, he actually worked full-time for another telecommunications company. Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the JV. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order. Consistent with their side agreement, Action received just a small fee for using Rasmey’s status as a disabled veteran.
The indictment also alleges several examples of the conspirators deceiving government agencies about the true nature of the JV. For example, on two separate occasions, A&D submitted the JV Agreement to (and withheld the side agreement from) the government in response to requests for information about the joint venture – despite the fact that the side agreement said on its face that it superseded the original JV Agreement.
Today’s indictment cites three contracts or task orders which the VA or ACE awarded to the JV, each worth over a million dollars, and one as high as $8.2 million. In addition to the conspiracy charge, all defendants were also charged with three counts of wire fraud relating to the payment of invoices on the three contracts or task orders, and with one or more counts of major government program fraud and false statements in connection with fraudulent certifications to the government. Today’s indictment also contains forfeiture allegations, which would require the defendants to forfeit to the government any property derived from the proceeds of the fraud scheme.
Acting United States Attorney Robinson said “One important way in which our country tries to repay the debt of gratitude we owe to our veterans is by setting aside some government contracts for those who have been disabled during their service. But unscrupulous contractors have abused this program through ‘rent-a-vet’ schemes, such as the one described in today’s indictment. The Department of Justice will work to ensure that criminals who abuse important contracting programs such as the SDVOSB are held to account.”
Rebeccalynn L. Staples, Resident Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, San Diego Resident Agency, stated, “This investigation demonstrates the OIG’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as Service-Disabled Veteran-Owned Small Businesses and deny legitimate disabled veterans the opportunity to be awarded VA set-aside contracts. The VA OIG will continue to work these cases in order to protect the integrity of the program. I urge anyone with knowledge of such an ongoing fraud to call the VA OIG’s Hotline at 1-800-488-8244.”
All four defendants are also facing civil charges in United States v. Otero, et al., Case No. 15CV0441-JAH, a case alleging violations of the false claims act based on the similar misconduct.
All defendants were ordered to appear before U.S. District Judge Roger T. Benitez for a motion hearing at 2 p.m. on June 5.
CORPORATE DEFENDANTS
A&D General Contracting, Inc., Santee, California
Action Telecom, Inc., Santee, California
INDIVIDUAL DEFENDANTS
Andrew Otero Age: 54 El Cajon, CA
Roger Ramsey Age: 57 Spring Valley, CA
Criminal Case No. 17CR0879-BEN
SUMMARY OF CHARGES
Count 1 (All): Conspiracy to defraud and commit offenses (18 U.S.C. § 371)
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10
Count 2 (Otero and A&D)
and Counts 3-4 (All): Major fraud against the United States (18 U.S.C. § 1031)
Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100
Counts 5-7 (All): Wire fraud (18 U.S.C. § 1343)
Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100
Counts 8-9 and 11-13
(Ramsey and Action),
10 (All), 14 (A&D): False statements (18 U.S.C. § 1001)
Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100
AGENCIES
Department of Veteran Affairs, Office of Inspector General
*The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Fraudsters Convicted of Operating Nationwide Home Mortgage ScamRead the Press Release
ALEXANDRIA, Va. – Three co-conspirators who operated a nationwide, multi-year “home mortgage modification” fraud that scammed hundreds of victims out of at least $10 million were convicted today by a federal jury.
“These defendants scammed hundreds of individuals and families who were trying desperately to save their homes,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Their crimes were rooted in dishonesty and greed, and they shamelessly enriched themselves at their victims’ expense. I am very pleased with the convictions and want to commend the efforts of the Assistant United States Attorneys and our investigative partners for their terrific work on this important and complex case.”
According to court records and evidence presented at trial, Sammy Araya, Michael Henderson, and Jen Seko, all from the greater Los Angeles area, operated a large-scale “home mortgage modification” scam that victimized vulnerable individuals and families across the country for several years. The conspirators sent targeted mass mailers to homeowners facing foreclosure through Seko’s company, Seko Direct Marketing. The mailers referenced real federal programs designed to help struggling homeowners, such as the Home Affordable Modification Program (HAMP), and were titled “Notice of HUD Relief,” “Notice of Mortgage Relief,” and “New HAMP Benefits,” among other misleading titles. The mailers listed various toll-free telephone numbers for the homeowners to call for assistance. When a victim homeowner who had been solicited via a mass mailing called the toll-free number listed on the mailer, a member of the conspiracy posing as a “customer service representative” would answer the phone and collect financial information from the victim, as well as inquire about the victim’s mortgage and how far behind the victim was on his or her mortgage payments. The victims were told the information would be reviewed to determine if they qualified for a mortgage modification. Instead, the information was used by the conspirators to determine how much money could be stolen from the victim. Henderson served as one of the purported “customer service representatives” and helped to distribute the money collected by the scam, while Araya was the mastermind and principal beneficiary of the entire fraudulent operation.
“Today justice was served to three scam artists who preyed upon hundreds of desperate homeowners taking money in exchange for empty promises of admission into the HAMP program,” said Christy Goldsmith Romero, Special Inspector for the Troubled Asset Relief Program (TARP). “This was a scheme of deception and thievery: the defendants pocketed the homeowner dollars but did nothing to help their victims. I thank U.S. Attorney Boente and his team for their hard work and commitment protecting homeowners getting help through HAMP.”
According to court records and evidence presented at trial, after being contacted by another member of the conspiracy and told that their mortgage modification had been approved, the victim homeowner would be told that their lender required a “reinstatement fee,” usually in the amount of thousands of dollars. Victims were also told that they were required to make several “trial” mortgage modification payments. After these so-called “trial payments” were completed, their modification would be complete and their new lower mortgage payment would become permanent for the life of the loan.
“These defendants preyed upon innocent homeowners when they were at their most vulnerable, and simply trying to save their homes,” said Leslie DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General. “These egregious schemes victimize homeowners and entire communities, and today a jury held them accountable for their actions. We are proud to work with our law enforcement partners on this case, and will continue to work with them to bring to justice all individuals who attempt to defraud unwitting victims.”
Throughout this process, the members of the conspiracy represented themselves to homeowners in mass mailings, phone calls, emails, and other communications using a laundry list of aliases and fictitious entity names. Some of those fictitious entities included “Equity Restoration Group,” “Neighborhood Counseling Services of America,” and “Home Retention Center,” among many others. The conspirators changed their aliases and entity names regularly, in an effort to evade detection by law enforcement. The conspirators also falsely represented themselves as a “non-profit” organization or as affiliated with the federal government or the victims’ lenders, and they directed the victims to make their checks and money orders payable to other fake entities, such as “Payment Processing Services,” “Default Servicing,” and “Trust Funding.” They then opened bank accounts using those false entity names, and used those bank accounts to briefly deposit victim payments before withdrawing the funds and distributing the proceeds among the members of the conspiracy.
The victims of this scheme dutifully sent their payments to the fraudulent entities as instructed by the conspirators, only to discover that they had not been granted a mortgage modification by their lenders. When victims confronted the members of the conspiracy about this fact, the conspirators would make lulling statements designed to reassure the victims, such as telling them that the mortgage modification process takes time, and that they were dealing with individuals at a higher level at the bank than the lender representatives with whom the victims had spoken. In reality, however, the members of the conspiracy were simply diverting the victims’ payments for their own personal benefit, without doing anything to assist in modifying the victims’ mortgages. Araya, the ringleader of the scheme, used the proceeds of the fraud to purchase expensive vehicles, a racehorse, and a variety of luxury goods, as well as to fund his personal travel and a reality television show he produced called “Make It Rain.TV.”
This scheme had devastating consequences for the victim homeowners, all of whom were already in a precarious financial position. Many victims suffered substantially greater financial hardship after falling victim to this conspiracy than they were already facing when they entered into the bogus agreements with the conspirators. In many cases, the lenders ultimately foreclosed on the victims’ homes, after the victims had been induced to make their “trial” mortgage payments to the members of the conspiracy rather than to their lenders.
Twelve defendants have been convicted in the Eastern District of Virginia in this case and a related case. They include the following individuals:
Name, Age
Hometown
Result
Sentencing
Sammy Araya, 41
Santa Ana, California
Convicted on Counts 1-11 of superseding indictment at trial today
Faces maximum penalty of 20 years in prison on each count of conviction
Michael Henderson, 49
Costa Mesa, California
Convicted on Counts 1-6 and 9-11 of superseding indictment at trial today
Faces maximum penalty of 20 years in prison on each count of conviction
Jen Seko, 36
Anaheim, California
Convicted on Counts 1-6 and 9-11 of superseding indictment at trial today
Faces maximum penalty of 20 years in prison on each count of conviction
Roscoe Umali, 38
Santa Ana, California
Pleaded guilty March 22, 2016
220 months in prison on Aug. 18, 2016
Joshua Sanchez, 37
Las Vegas, Nevada
Pleaded guilty July 8, 2015 in case 1:15cr147
151 months in prison on Oct. 29, 2015
Kristen Ayala, 32
Las Vegas, Nevada
Pleaded guilty August 4, 2015 in case 1:15cr147
135 months in prison on Oct. 29, 2015
Isaac Perez, 33
Los Angeles
Pleaded guilty March 30, 2016
130 months in prison on Sept. 1, 2016
Joshua Johnson, 36
Huntington Beach, California
Pleaded guilty March 30, 2016
121 months in prison on July 7, 2016
Jefferson Maniscan, 34
Los Angeles
Pleaded guilty March 29, 2016
120 months in prison on Aug. 18, 2016
Raymund Dacanay, 47
Newport Beach, California
Pleaded guilty March 29, 2016
60 months in prison on July 21, 2016
Nicholas Estilow, 34
Mission Viejo, California
Pleaded guilty January 18, 2017
Faces maximum penalty of 20 years in prison on June 1.
Sabrina Rafo, 24
Garden Grove, California
Pleaded guilty January 19, 2017
Faces maximum penalty of 20 years in prison on June 1.
Araya faces a maximum penalty of 220 years in prison, and Henderson and Seko each faces a maximum penalty of 180 years in prison when sentenced on July 19. 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; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); William Hedrick, Acting Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service; Leslie DeMarco, Special Agent in Charge for the Federal Housing Finance Agency (FHFA-OIG); and James Todak, Special Agent in Charge, U.S. Housing and Urban Development, Office of Inspector General, Los Angeles Field Office, made the announcement after Senior U.S. District Judge James C. Cacheris accepted the verdict. Assistant U.S. Attorneys Samantha P. Bateman and Ryan S. Faulconer are prosecuting the case. Assistant U.S. Attorneys Zach Terwilliger and James Gillis formerly 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. 1:15-cr-301.
Four Former Corrections Officers Indicted for Civil Rights ViolationsRead the Press Release
The Department of Justice announced today that four former corrections officers at the Jackson County Detention Center (“JCDC”) have been indicted by a federal grand jury for their roles in a conspiracy to physically assault an inmate in violation of his Constitutional protection against unreasonable force.
Travis Hewitt, 27, Dakota Pearce, 24, Terrance Dooley, Jr., 36, and Jen-I Pulos, 36, all of Kansas City, Missouri, were charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Missouri, on Wednesday, April 19, 2017. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hewitt and Pulos.
“The Civil Rights Division will continue to prosecute corrections officers who exploit their position and violently assault individuals in their custody,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “The Department will continue to hold accountable those who act under color of law for the purpose of harming individuals in their custody.”
“The Constitution provides every citizen the right of due process, and protects every citizen from the use of unreasonable force,” said Acting U.S. Attorney Tom Larson for the Western District of Missouri. “Correctional officers who physically assault a shackled inmate in violation of his civil rights will be held accountable for their actions.”
“The FBI is charged with investigating any violation of an individual's civil rights, no matter where that violation may occur,” said Special Agent in Charge Darrin E. Jones of the FBI Kansas City Division. “Correctional officers are entrusted with the power and needed authority to protect our community, but they do not have the right to abuse that authority. The FBI will continue to work aggressively to pursue any and all allegations of civil rights violations.”
According to the indictment, Hewitt and Pearce served as acting sergeants at the JCDC. Dooley and Pulos served as members of the Disturbance Control Team, which is responsible for intervening in inmate altercations and neutralizing threats posed by inmates.
The indictment charges in Counts One and Two that on July 4, 2015, Hewitt, Pearce, Dooley and Pulos conspired to and did assault “J.R.,” an inmate awaiting resolution of allegations that he violated probation, in retaliation for a prior altercation that J.R. had with another corrections officer. According to the indictment, the defendants, defying the orders of a superior officer, forcibly removed J.R. from his cell in the Medical Housing Unit and brought him to another holding cell down the hall in order to facilitate their assault on him. There, as the indictment charges, all four defendants struck, punched and otherwise assaulted J.R., who was handcuffed, shackled, confined to a cell, suffering from disorientation and confusion, and not posing a threat to anyone. The indictment further alleges that the defendants ensured their actions would go undetected by having one of them serve as a lookout, and by sending other nearby corrections officers to another part of the JCDC so those corrections officers would not witness the assault.
In addition to the conspiracy and the assault in the holding cell, Count Three charges Hewitt and Pearce with a separate assault on J.R., when they allegedly struck and punched J.R. while J.R. was restrained and not posing a physical threat to anyone. Related to that assault, Count Four charges Hewitt with falsifying his departmental report with the intent to impede or obstruct the federal investigation. The indictment alleges that Hewitt falsely wrote that J.R. bit his right hand, when in fact, Hewitt knew that he injured his hand by striking and punching J.R. about the head and face while J.R. was restrained and not posing a physical threat to anyone.
The charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney David Ketchmark of the U.S. Attorney’s Office of the Western District of Missouri, and Special Litigation Counsel Fara Gold of the Civil Rights Division, Criminal Section, U.S. Department of Justice. It was investigated by the Kansas City Division of the FBI.
Four Former Corrections Officers Indicted for Civil Rights ViolationsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, and Tom Wheeler, Acting Assistant Attorney for the Civil Rights Division of the Department of Justice, announced today that four former corrections officers at the Jackson County Detention Center (“JCDC”) have been indicted by a federal grand jury for their roles in a conspiracy to physically assault an inmate in violation of his Constitutional protection against unreasonable force.
Travis Hewitt, 27, Dakota Pearce, 24, Terrance Dooley, Jr., 36, and Jen-I Pulos, 36, all of Kansas City, Mo., were charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, April 19, 2017. The indictment was unsealed and made public today upon the arrests and initial court appearances of Hewitt and Pulos.
“The Constitution provides every citizen the right of due process, and protects every citizen from the use of unreasonable force,” Larson said. “Correctional officers who physically assault a shackled inmate in violation of his civil rights will be held accountable for their actions.”
“The FBI is charged with investigating any violation of an individual's civil rights, no matter where that violation may occur,” said Special Agent in Charge Darrin E. Jones of the FBI Kansas City Division. “Correctional officers are entrusted with the power and needed authority to protect our community, but they do not have the right to abuse that authority. The FBI will continue to work aggressively to pursue any and all allegations of civil rights violations.”
According to the indictment, Hewitt and Pearce served as acting sergeants at the JCDC. Dooley and Pulos served as members of the Disturbance Control Team, also known as the Cell Extraction Response Team, which is responsible for intervening in inmate altercations and neutralizing threats posed by inmates.
The indictment charges in Counts One and Two that on July 4, 2015, Hewitt, Pearce, Dooley and Pulos conspired to and did assault “J.R.,” an inmate awaiting resolution of allegations that he violated probation, in retaliation for a prior altercation that J.R. had with another corrections officer. According to the indictment, the defendants, defying the orders of a superior officer, forcibly removed J.R. from his cell in the Medical Housing Unit and brought him to another holding cell down the hall in order to facilitate their assault on him. There, as the indictment charges, all four defendants struck, punched and otherwise assaulted J.R., who was handcuffed, shackled, confined to a cell, suffering from disorientation and confusion, and not posing a threat to anyone. The indictment further alleges that the defendants ensured their actions would go undetected by having one of them serve as a lookout, and by sending other nearby corrections officers to another part of the JCDC so those corrections officers would not witness the assault.
In addition to the conspiracy and the assault in the holding cell, Count Three charges Hewitt and Pearce with a separate assault on J.R., when they allegedly struck and punched J.R. while J.R. was restrained and not posing a physical threat to anyone. Related to that assault, Count Four charges Hewitt with falsifying his departmental report with the intent to impede or obstruct the federal investigation. The indictment alleges that Hewitt falsely wrote that J.R. bit his right hand, when in fact, Hewitt knew that he injured his hand by striking and punching J.R. about the head and face while J.R. was restrained and not posing a physical threat to anyone.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney David Ketchmark of the U.S. Attorney’s Office of the Western District of Missouri, and Special Litigation Counsel Fara Gold of the Civil Rights Division, Criminal Section, U.S. Department of Justice. It was investigated by the Kansas City Division of the FBI.
Former San Angelo Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Jeffrey Neal Cuddington, 38, formerly of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in December 2016 to one count of receipt and distribution of a visual depiction of a minor engaging in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Cuddington, who most recently resided in Maryland, Virginia, used his computers to search on the Internet for images and videos depicting minors engaged in sexually explicit conduct, and saved the images that he downloaded from the Internet. On October 11, 2012, Cuddington distributed three images and received one image, all of which depict prepubescent female children under the age of 18 years engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecutions.
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Former Payroll Specialist Sentenced to 21 Months in Prison for Embezzling from Global Consulting FirmRead the Press Release
WASHINGTON – KaShaun Perkins, 43, of Upper Marlboro, Md., was sentenced today to 21 months in prison on a federal charge of wire fraud for embezzling from his employer, causing a loss in excess of $275,000, announced U.S. Attorney Channing D. Phillips.
Perkins pled guilty to the charge in February 2017 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Christopher R. Cooper. Following his prison term, Perkins will be placed on three years of supervised release. He also is required to pay $249,096 in restitution, and a forfeiture money judgment in the same amount.
According to a statement of the offense, signed by the defendant as well as the government, Perkins worked as a payroll specialist from December 2014 to July 2015 at a global consulting firm. As a payroll specialist, he managed external payroll provider services in order to ensure salaries were accurately and timely processed for payments. Perkins also updated the payroll and human resources information systems with bank account numbers, Social Security numbers, addresses, and names of employees and maintained these employee records.
From January to July 2015, according to the statement of offense, Perkins caused his employer to pay out approximately $275,000 in bogus salary and tax withholding payments for “ghost” employees. Perkins altered a terminated employee’s payroll profile, repeatedly changing entries such as name, Social Security number, bank account number, address, and salary payments. In fact, none of the altered data corresponded to an actual employee. Through these changes to the payroll system, Perkins caused the unauthorized salary payments to be directly deposited into accounts in his name, accounts with his joint ownership, and accounts under his control. By directing the payroll provider service to make these payments, Perkins obtained “salary” payments of “ghost” employees totaling $249,096. The employer paid an additional $26,092 in tax withholdings, for a total loss of $275,188.
In announcing the sentence, U.S. Attorney Phillips expressed appreciation for the work performed by Forensic Accountant Jean Luc Guerrier of the Fraud and Public Corruption Section of the U.S. Attorney’s Office, as well as Paralegal Specialist Christopher Toms, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Former Ithaca College Student Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Nicholas Feminella, age 21, of Ithaca, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of transportation of child pornography, and one count of possession of child pornography, announced United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation. Feminella, who was detained pending his sentencing, faces at least five years of imprisonment and up to 20 years of imprisonment on the transportation count and up to 20 years of imprisonment on the possession count. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court will also impose a term of supervised release of between five (5) years and life, and Feminella will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his guilty plea, Feminella admitted that he transported videos of child pornography by uploading them from his computer to a Drop Box account. On November 3, 2015, investigators searched Feminella’s residence, and recovered thousands of images and hundreds of videos depicting child pornography. Sentencing is scheduled for September 11, 2017, in Albany, New York.
This case is being investigated by Federal Bureau of Investigation, the New York State Police-Computer Crime Unit and the New York State Police, Troop C, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Executive Director of Birmingham Volunteer Lawyer Program Charged with Misapplication of Federal Program FundsRead the Press Release
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 Defense Contractor Sentenced for Mail Fraud, Making False Claims While Supplying Non-Conforming Parts to the MilitaryRead the Press Release
COLUMBUS, Ohio – Stephan D. Boggs, 64, of Columbus, was sentenced in U.S. District Court here today to 24 months in prison and ordered to pay nearly $280,000 in restitution for supplying non-conforming military parts to the Department of Defense.
A United States District Court jury convicted Boggs of four counts of mail fraud and 21 counts of false claims in July 2016.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Brian J. Reihms, Special Agent in Charge, Defense Criminal Investigative Services (DCIS), Central Field Office, announced the sentence handed down by U.S. District Judge James L. Graham.
According to court documents and testimony, Boggs served as the president of Boggs & Associates, Inc., a Department of Defense (DoD) contractor who sold and supplied a variety of parts used by the military.
From approximately April 2010 through January 2014, the DoD issued purchase orders to Boggs & Associates for a variety of military parts and components used on various military items including aircraft, vehicles and vessels. The parts were required to meet certain military specifications. The majority of these parts are considered critical application items. A critical application item is defined as an item essential to weapon system performance or operation, or the preservation of life or safety of operating personnel, as determined by military services.
Boggs was convicted for supplying non-conforming parts to the DoD through purchase orders issued by the Defense Logistics Agency in Columbus for parts used around the world.
The Agency’s testing center found that parts from 46 different purchase orders were non-conforming. Specifically, the parts were made from unauthorized substituted material, were dimensionally defective, used unauthorized inferior fittings, not heat treated properly, not plated properly and/or did not pass specified testing requirements.
During trial, the evidence showed that the inspection reports and certifications signed by Boggs and submitted to the government contained false and fraudulent representations.
“Defense contract fraud is extremely serious business,” U.S. Attorney Glassman said. “This kind of crime not only defrauds the government, but also jeopardizes our national security and puts at risk the lives of the men and women who serve in the military. I hope that Stephan Boggs serving time in federal prison will deter others who might be tempted to cheat on defense contracts.”
U.S. Attorney Glassman commended the investigation of this case by DCIS, and Assistant United States Attorneys Jessica W. Knight and J. Michael Marous, who prosecuted the case.
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Florence Man and Myrtle Beach Woman Enter Guilty Pleas in Federal Court on Fraud ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Urban Oshea, II, age 48, of Florence, SC and Madgelyn Kirton, age 31, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Conspiracy to Manufacture and Pass Counterfeit Securities, a violation of Title 18, United States Code, Section 371. United States District Judge Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that during the period from August 2015 through January of 2016, Oshea, Kirton and others were involved in a conspiracy to manufacture and pass counterfeit securities (checks) of organizations.The co-conspirators would make counterfeit checks using genuine bank account and routing numbers they obtained from checks they stole out of mailboxes in Horry and Georgetown Counties.
The defendants would then use fraudulent driver's licenses bearing their photographs but in other persons' names which matched the names on the counterfeit checks, to pass these counterfeit checks at various businesses.
The defendants would use the checks to purchase merchandise at one store, then they would go to another store in the same chain and exchange the merchandise for cash.
Ms. Drake stated the maximum penalty the defendants can receive is imprisonment for 5 years and/or a fine of $250,000, plus a special assessment of $100.
The case was investigated by agents of the U.S. Postal Inspection Service. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Felon in Possession Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Steven Demote King, 50, of Mobile, was sentenced to 235 months imprisonment on his conviction for being a convicted felon in possession of a firearm. The indictment was returned in April of 2016. The single count indictment charged that King illegally possessed a Jimenez 9 mm handgun on May 19, 2015, after he had been previously convicted of seven prior robbery first degree convictions, one prior robbery second degree conviction, one prior theft first conviction, one prior receiving stolen property conviction, and two prior escape first degree convictions. King pled guilty to the charge in June of 2016. Court documents reflect that his appointed attorney requested that he undergo an examination to determine his competency. District Court Judge Kristi K. Dubose ordered that King undergo the examination, which was conducted within the United States Bureau of Prisons. In January of 2017, Judge Dubose conducted a competency hearing and found that King was legally competent. His sentencing hearing was set for April 17.
At that hearing, the prosecution offered testimony that King had kidnapped a Mobile woman and her three children using the handgun described in the indictment. Evidence from the hearing established that the children were eventually dropped off at a relative’s residence. King and the woman were located by Mobile police officers at an abandoned house in Prichard after they obtained an emergency court order to locate her cell phone. King was in physical possession of the gun when he was arrested. The woman was transported to a local hospital where she was treated and discharged. The prosecutor informed the judge that numerous felony charges were pending against King in Mobile County.
Judge Dubose imposed a sentence of 235 months, to be followed by a supervised release term of 5 years. She did not order that King pay a fine, but she imposed the special mandatory assessment of $100. She also entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.Felon Who Threatened to Kill a Woman Convicted of Illegally Possessing a FirearmRead the Press Release
A man who threatened to kill a Cedar Rapids woman was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Darrell Junior Sims, age 29, of Cedar Rapids, Iowa, was convicted of one count of being a felon in possession of a firearm. The verdict was returned this morning following about an hour and a half of jury deliberations.
The evidence at trial showed that during a phone call on January 27, 2017, Sims threatened to kill a female companion. When the woman asked what he planned to kill her with, Sims told her to look under her mattress. The woman looked under the mattress and found a loaded revolver and a loaded pistol. The woman contacted the United States Marshals Service, and two Deputy Marshals arrived and collected the firearms. While the deputies were collecting the firearms, Sims called the woman again. A deputy recorded the conversations, during which Sims accused the woman of allowing his guns to be stolen.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Sims remains in custody of the United States Marshal pending sentencing. Sims faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case was investigated by the United States Marshals Service and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-5-LTS.
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Federal Correctional Officer Pleads Guilty to Federal Civil Rights Offense for Kicking Inmate in Head and Lying about IncidentRead the Press Release
RIVERSIDE, California – A correctional officer with the U.S. Bureau of Prisons at the Victorville Federal Correctional Complex pleaded guilty today to two counts relating to an incident in which she kicked a restrained female inmate in the head.
Cynthia Flores, 34, of Victorville, pleaded guilty to one count of deprivation of rights under color of law and one count of falsification of records.
Flores assaulted the victim at the women’s prison camp in Victorville on June 2, 2013. During the evening count, when correctional officers ensure that all inmates are present, Flores initiated a physical altercation with the victim. According to a plea agreement filed in this case, Flores “kicked [the victim]’s head after another BOP correctional officer had handcuffed [the victim] and was restraining [her] with [the victim]’s chest pressed to the hallway floor.”
Following the incident, Flores submitted a written incident report and a videotaped oral report in which she described an altercation with the inmate. Flores falsely stated that the inmate unilaterally had assaulted her and failed to disclose using force against the victim “with the intent to impede, obstruct, and influence the BOP’s investigation into the incident,” according to the plea agreement.
Flores pleaded guilty before United States District Judge Jesus G. Bernal, who scheduled a sentencing hearing for July 21, 2017. At sentencing, Flores will face a statutory maximum sentence of 30 years in custody for both offenses, but pursuant to the plea agreement the government will recommend a sentence of no more than 18 months in this case. Judge Bernal will make the final determination as to the appropriate sentence in this case.
This case was investigated by the Justice Department Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Sean D. Peterson and Julius J. Nam of the Riverside Branch Office.
Fairfax Man Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – Roger Wheaton Webb, 53, of Fairfax, was sentenced today to five years in prison for receipt of child pornography.
Webb pleaded guilty on January 18. According to court documents, between February and March 2015, the FBI identified an Internet Protocol address accessing child pornography from a Fairfax business. Law enforcement officers later executed a federal search warrant at that business where Webb worked. During the search, several electronic devices were located and reviewed, including a Dell computer and a flash drive. Forensic analysis revealed that these two devices contained approximately 5,500 image files and 362 video files of child pornography. The analysis of the computer further confirmed that it had been used to download child pornography using peer-to-peer software. When interviewed, Webb admitted that he had used the business’s computer to access, receive, and download child pornography and that he had transferred and stored child pornography to an external drive or flash drive he possessed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Department of Justice Trial Attorney Leslie Fisher of the Criminal Division’s Child Exploitation and Obscenity Section 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. 1:16-cr-298.
Eight Members of Mexican Sex Trafficking Enterprise Plead Guilty to Racketeering, Sex Trafficking, and Related CrimesRead the Press Release
Eight members of an international criminal organization, known as the Rendon-Reyes Trafficking Organization, entered guilty pleas in federal district court in Brooklyn, New York, this month to Racketeering and other federal charges arising from their scheme to force young women and girls from Mexico and Latin America into prostitution. For over a decade, the defendants smuggled their victims into the United States, then used force, threats of force, fraud, deception, and coercion to compel them to engage in prostitution for the defendants’ profit, generating criminal proceeds which the defendants laundered back to Mexico.
The eight defendants were charged in July 2015 in a 27-count indictment in the Eastern District of New York with Racketeering and Racketeering Conspiracy involving predicate acts of sex trafficking by force, fraud, or coercion, sex trafficking of minors, money laundering, alien smuggling, and interstate transportation for prostitution, in addition to parallel substantive charges.
The defendants were arrested simultaneously in the United States and Mexico in November 2015 as part of bilateral enforcement action. Five of the defendants were apprehended in Mexico by Mexican authorities and later extradited, and three were arrested in the United States by the specialized Trafficking in Persons Unit of the New York Office of the Department of Homeland Security’s Homeland Security Investigations.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations made the announcement.
In a series of guilty pleas entered between April 5 and April 21, 2017, all eight of the defendants pleaded guilty to charges of Racketeering involving predicate acts of sex trafficking by force, fraud, or coercion and sex trafficking of minors. The defendants are Jovan Rendon-Reyes, aka Jovani, 33, of Mexico; Saul Rendon-Reyes, aka Satanico, 39, of Queens; Guillermina Rendon-Reyes, 46, of Mexico; Francisco Rendon-Reyes, aka Pancho, 28, of Queens; Jose Rendon-Garcia, aka Gusano, 34, of Mexico; Felix Rojas, 47, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 45, of Mexico; and Severiano Martinez-Rojas, 52, of Mexico.
In addition to the Racketeering charges, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas each pleaded guilty to substantive offenses of sex trafficking by force, fraud, or coercion; defendant Jose Rendon-Garcia also pleaded guilty to sex trafficking of a minor; and defendant Francisco Rendon-Reyes pleaded guilty to interstate transportation for the purpose of prostitution.
Defendants Odilon Martinez-Rojas and Severiano Martinez-Rojas were also charged in a separate bilateral sex trafficking prosecution in the Northern District of Georgia in 2013. Odilon Martinez-Rojas was convicted in October 2014 and sentenced to 262 months’ imprisonment in January 2015 in that case. Defendant Severiano Martinez-Rojas had remained a fugitive from that prosecution until apprehended during the November 2015 bilateral enforcement operation. On April 18, 2017, he pleaded guilty to one count of sex trafficking charged in the Northern District of Georgia case, in proceedings transferred to the Eastern District of New York for entry of the defendant’s guilty plea.
According to documents filed in court and the defendants’ admissions during the plea proceedings, the Rendon-Reyes Trafficking Organization operated as a family-based enterprise that profited by prostituting young women and girls. According to their admissions during plea proceedings, the defendants and their associates recruited young women and girls from Mexico on false promises, smuggled them into the United States, prostituted them in New York, Georgia, and other locations, and retained the prostitution proceeds for members of the family-based criminal organization. During their guilty plea hearings, the eight defendants collectively admitted to participating in the sex trafficking of nine women and two minor girls, as well as the prostitution of a twelfth woman.
“The Department of Justice is committed to bringing to justice anyone who engages in the abominable crime of human trafficking,” said Attorney General Sessions. “The defendants in this case preyed on vulnerable young women and girls, and brought them to the United States with the sole purpose of subjecting them to degradation that no person should have to endure. Now these criminals will face justice for their acts, which brazenly disregarded the humanity of the victims, the integrity of our borders, and the rule of law. I am grateful for the efforts of our investigators and prosecutors, and the strong collaboration between the Eastern District of New York, the Human Trafficking Prosecution Unit, and the federal agents from the New York Office of Homeland Security Investigations. I also thank our Mexican partners for working closely with us to dismantle trafficking networks and protect innocent lives.”
“These convictions bring a measure of justice on behalf of the victims the defendants held in sexual servitude. We will continue to work tirelessly to dismantle human trafficking networks and to condemn all forms of modern-day slavery” said Acting Assistant Attorney General Wheeler. “The U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has proven instrumental in countering transnational trafficking threats, and we look forward to building on the momentum of this highly effective engagement with Mexican authorities.”
“This case demonstrates our Office’s continuing commitment to seeking justice for the victims of modern day slavery,” said Acting U.S. Attorney Rohde. “As demonstrated by our efforts over the last decade to bring sex traffickers to justice, the Eastern District of New York remains steadfast in its resolve to eradicate organizations that enslave young women and girls, and to bring trafficking victims out of the shadows. I sincerely hope that these pleas bring some measure of closure for the victims of these heinous crimes.”
Acting U.S. Attorney Rohde also expressed thanks to the members of HSI-New York’s Trafficking in Persons Unit for their leadership on the multi-year investigation of this case, and their continued partnership with the Eastern District of New York in the effort to end human trafficking.
“U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) remains committed to disrupting and dismantling transnational criminal organizations willing to do anything, including victimizing women and girls, to make money,” said HSI Executive Associate Director Edge. “Human trafficking is modern-day slavery, and HSI will continue collaboration with our local, state, federal, and global partners, as well as the NGO community, to bring justice to those impacted by this terrible crime and to assist the victims in their recovery.”
When sentenced, each defendant faces a maximum sentence of life imprisonment. In addition, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas face mandatory minimum sentences of fifteen years of imprisonment pursuant to their convictions for sex trafficking by force, fraud, or coercion, and defendant Jose Rendon-Garcia faces a mandatory minimum sentence of ten years of imprisonment resulting from his conviction for sex trafficking of a minor. As part of the plea agreements, the defendants will also be ordered to pay restitution to the victims identified in the indictment, in an amount to be determined at the time of sentencing.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants, assisted more than 135 victims, including 39 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
In announcing the convictions, Attorney General Sessions, Acting Assistant Attorney Wheeler, and Acting U.S. Attorney Rohde commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Rendon-Reyes Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Eight Members of Mexican Sex Trafficking Enterprise Plead Guilty to Racketeering, Sex Trafficking, and Related CrimesRead the Press Release
WASHINGTON – Eight members of an international criminal organization, known as the Rendon-Reyes Trafficking Organization, entered guilty pleas in federal district court in Brooklyn, New York, this month to Racketeering and other federal charges arising from their scheme to force young women and girls from Mexico and Latin America into prostitution. For over a decade, the defendants smuggled their victims into the United States, then used force, threats of force, fraud, deception, and coercion to compel them to engage in prostitution for the defendants’ profit, generating criminal proceeds which the defendants laundered back to Mexico.
The eight defendants were charged in July 2015 in a 27-count indictment in the Eastern District of New York with Racketeering and Racketeering Conspiracy involving predicate acts of sex trafficking by force, fraud, or coercion, sex trafficking of minors, money laundering, alien smuggling, and interstate transportation for prostitution, in addition to parallel substantive charges.
The defendants were arrested simultaneously in the United States and Mexico in November 2015 as part of bilateral enforcement action. Five of the defendants were apprehended in Mexico by Mexican authorities and later extradited, and three were arrested in the United States by the specialized Trafficking in Persons Unit of the New York Office of the Department of Homeland Security’s Homeland Security Investigations.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Executive Associate Director Peter T. Edge of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations made the announcement.
In a series of guilty pleas entered between April 5 and April 21, 2017, all eight of the defendants pleaded guilty to charges of Racketeering involving predicate acts of sex trafficking by force, fraud, or coercion and sex trafficking of minors. The defendants are Jovan Rendon-Reyes, aka Jovani, 33, of Mexico; Saul Rendon-Reyes, aka Satanico, 39, of Queens; Guillermina Rendon-Reyes, 46, of Mexico; Francisco Rendon-Reyes, aka Pancho, 28, of Queens; Jose Rendon-Garcia, aka Gusano, 34, of Mexico; Felix Rojas, 47, of Mexico; Odilon Martinez-Rojas, aka Chino or Saul, 45, of Mexico; and Severiano Martinez-Rojas, 52, of Mexico.
In addition to the Racketeering charges, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas each pleaded guilty to substantive offenses of sex trafficking by force, fraud, or coercion; defendant Jose Rendon-Garcia also pleaded guilty to sex trafficking of a minor; and defendant Francisco Rendon-Reyes pleaded guilty to interstate transportation for the purpose of prostitution.
Defendants Odilon Martinez-Rojas and Severiano Martinez-Rojas were also charged in a separate bilateral sex trafficking prosecution in the Northern District of Georgia in 2013. Odilon Martinez-Rojas was convicted in October 2014 and sentenced to 262 months’ imprisonment in January 2015 in that case. Defendant Severiano Martinez-Rojas had remained a fugitive from that prosecution until apprehended during the November 2015 bilateral enforcement operation. On April 18, 2017, he pleaded guilty to one count of sex trafficking charged in the Northern District of Georgia case, in proceedings transferred to the Eastern District of New York for entry of the defendant’s guilty plea.
According to documents filed in court and the defendants’ admissions during the plea proceedings, the Rendon-Reyes Trafficking Organization operated as a family-based enterprise that profited by prostituting young women and girls. According to their admissions during plea proceedings, the defendants and their associates recruited young women and girls from Mexico on false promises, smuggled them into the United States, prostituted them in New York, Georgia, and other locations, and retained the prostitution proceeds for members of the family-based criminal organization. During their guilty plea hearings, the eight defendants collectively admitted to participating in the sex trafficking of nine women and two minor girls, as well as the prostitution of a twelfth woman.
“The Department of Justice is committed to bringing to justice anyone who engages in the abominable crime of human trafficking,” said Attorney General Sessions. “The defendants in this case preyed on vulnerable young women and girls, and brought them to the United States with the sole purpose of subjecting them to degradation that no person should have to endure. Now these criminals will face justice for their acts, which brazenly disregarded the humanity of the victims, the integrity of our borders, and the rule of law. I am grateful for the efforts of our investigators and prosecutors, and the strong collaboration between the Eastern District of New York, the Human Trafficking Prosecution Unit, and the federal agents from the New York Office of Homeland Security Investigations. I also thank our Mexican partners for working closely with us to dismantle trafficking networks and protect innocent lives.”
“These convictions bring a measure of justice on behalf of the victims the defendants held in sexual servitude. We will continue to work tirelessly to dismantle human trafficking networks and to condemn all forms of modern-day slavery” said Acting Assistant Attorney General Wheeler. “The U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has proven instrumental in countering transnational trafficking threats, and we look forward to building on the momentum of this highly effective engagement with Mexican authorities.”“This case demonstrates our Office’s continuing commitment to seeking justice for the victims of modern day slavery,” said Acting U.S. Attorney Rohde. “As demonstrated by our efforts over the last decade to bring sex traffickers to justice, the Eastern District of New York remains steadfast in its resolve to eradicate organizations that enslave young women and girls, and to bring trafficking victims out of the shadows. I sincerely hope that these pleas bring some measure of closure for the victims of these heinous crimes.”
Acting U.S. Attorney Rohde also expressed thanks to the members of HSI-New York’s Trafficking in Persons Unit for their leadership on the multi-year investigation of this case, and their continued partnership with the Eastern District of New York in the effort to end human trafficking.
“U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) remains committed to disrupting and dismantling transnational criminal organizations willing to do anything, including victimizing women and girls, to make money,” said HSI Executive Associate Director Edge. “Human trafficking is modern-day slavery, and HSI will continue collaboration with our local, state, federal, and global partners, as well as the NGO community, to bring justice to those impacted by this terrible crime and to assist the victims in their recovery.”
When sentenced, each defendant faces a maximum sentence of life imprisonment. In addition, defendants Jovan Rendon-Reyes, Saul Rendon-Reyes, Felix Rojas, Odilon Martinez-Rojas and Severiano Martinez-Rojas face mandatory minimum sentences of fifteen years of imprisonment pursuant to their convictions for sex trafficking by force, fraud, or coercion, and defendant Jose Rendon-Garcia faces a mandatory minimum sentence of ten years of imprisonment resulting from his conviction for sex trafficking of a minor. As part of the plea agreements, the defendants will also be ordered to pay restitution to the victims identified in the indictment, in an amount to be determined at the time of sentencing.
The investigation, prosecution, bilateral enforcement action, and extraditions of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative. Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 170 defendants in multiple cases in Georgia, New York, Florida, and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers. The convictions in this case are also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants, assisted more than 135 victims, including 39 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.
In announcing the convictions, Attorney General Sessions, Acting Assistant Attorney Wheeler, and Acting U.S. Attorney Rohde commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Rendon-Reyes Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.
The case against the Rendon-Reyes Trafficking Organization was investigated by HSI New York’s Trafficking in Persons Unit, and is being prosecuted by Assistant U.S. Attorneys Taryn A. Merkl and Margaret Lee of the Eastern District of New York and Deputy Director Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Download: Rendon-Reyes et al Indictment
Dubuque Man Convicted of Selling Heroin and Fentanyl Analogue that Killed One and Injured Two OthersRead the Press Release
A man who distributed drugs that caused an overdose death and two serious injuries was convicted by a judge on April 19 after a four-day trial in federal court in February in Cedar Rapids.
Antrell Desharron Lewis, age 23, of Chicago, Illinois, was convicted of one count of conspiracy to distribute heroin and furanylfentanyl resulting in death and serious bodily injury, and one count of distributing heroin and furanylfentanyl resulting in death and serious bodily. The verdict was returned on April 19.
The evidence at trial showed that Lewis sold heroin to multiple customers in the Dubuque, Iowa, area in 2015 and 2016. His customers knew him as “Lucky” or “Five Star.” In early March 2016, four men from Maquoketa, Iowa, drove to Dubuque to purchase heroin from Lewis. Lewis and another man met with one of the Maquoketa men, and Lewis sold him a substance Lewis represented to be heroin. The Maquoketa men then drove to an apartment in Dubuque, where two of them met with another man and distributed some of the purported heroin to him. The two men who did not enter the apartment simultaneously used and overdosed on the purported heroin while sitting in the car. Emergency responders arrived at the scene and saved their lives using Narcan, an opiate reversal agent. The man inside the apartment used the purported heroin after emergency responders left the area. He was found deceased of a drug overdose approximately 18 hours later.
Drugs seized from the car and from the apartment tested positive for heroin and a substance called furanylfentanyl. Furanylfentanyl is a powerful synthetic opioid, and is an analogue of fentanyl. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is illegal to distribute them just as it is to distribute substances such as cocaine, heroin, and marijuana.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Lewis remains in custody of the United States Marshal pending sentencing. Lewis faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $200 in special assessments, and up to a lifetime term supervised release following any imprisonment.
The case is being investigated by the Dubuque Drug Task Force and Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being prosecuted by Assistant United States Attorney Dan Chatham and Special Assistant United States Attorney Drew Inman.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-5-LTS.
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