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19 April 2017
Mescalero Apache Man Sentenced to 78 Months in Prison for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Michael Ellis Treas-Baca, 31, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this afternoon in federal court in Las Cruces, N.M., to 78 months in prison followed by five years of supervised release for his conviction on a sexual abuse charge. Treas-Baca will be required to register as a sex offender when he completes his prison sentence.
Treas-Baca was arrested on April 7, 2016, on a criminal complaint charging him with sexually abusing a Mescalero Apache woman on Sept. 13, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M.
On Nov. 16, 2016, Treas-Baca pled guilty to a felony information charging him with sexual abuse. In entering the guilty plea, Treas-Baca admitted that on Sept. 13, 2016, he sexually abused the victim while she was unconscious and physically incapable of declining participating in the sexual act.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Man from El Salvador pleads guilty to reentering the U.S. illegally for the second timeRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a citizen of El Salvador pleaded guilty Tuesday to reentering the United States illegally.
Jose Edmundo Martinez-Ortiz, 24, of El Salvador, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry of a removed alien. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Lake Charles police conducted a traffic stop on a vehicle containing illegal aliens on November 15, 2016. Martinez-Ortiz admitted to being in the United States illegally. Upon further investigation, law enforcement agents found that the defendant had been found guilty of armed robbery in Maryland on September 11, 2014 and had been removed from the United States in 2016.
Martinez-Ortiz faces 20 years in prison, three years of supervised release and a $250,000 fine.
United States Immigrations and Customs Enforcement and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Louisiana Man Sentenced to Four Years in Federal Prison for Threatening the President of the United StatesRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Kurt Michael Adams (29, Louisiana) to four years in federal prison for mailing threatening communications. He pleaded guilty on February 9, 2017.
According to court documents, on July 20, 2016, Adams, an inmate at the Coleman Federal Corrections Complex in Sumter County, mailed a letter to the White House containing numerous threats to kill the President of the United States and other federal employees. Inside the envelope, he had placed a harmless white powder that he identified as a “chemical agent.” When confronted by agents, Adams admitted that he had sent the letter and that he had “meant every word.” At the time of this incident, Adams was serving a federal prison sentence for mailing threatening communications to the Vice President.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Las Cruces Woman Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Leticia Maria Rodriguez, 35, of Las Cruces, N.M., was sentenced today in federal court to 51 months in prison for her methamphetamine trafficking conviction. She will be on supervised release for three years after completing her prison sentence.
Rodriguez was arrested in March 2016, and was charged by criminal complaint with possessing methamphetamine and heroin with intent to distribute and conspiracy to possess methamphetamine with intent to distribute on March 4, 2016, in Dona Ana County, N.M. According to the complaint, law enforcement agents located approximately 75.7 grams of methamphetamine, 43.3 grams of heroin and drug paraphernalia during the execution of a search warrant on Rodriguez’s residence.
Rodriguez pled guilty on May 10, 2016, to a felony information charging her with conspiracy to possess methamphetamine with intent to distribute. In entering the guilty plea, Rodriguez admitted that on March 4, 2016, law enforcement located approximately 65.8 grams of methamphetamine and drug paraphernalia in her residence during the execution of a search warrant. Rodriguez further admitted that she obtained the methamphetamine from a source of supply and intended to distribute the methamphetamine to other individuals.
This case was investigated by the Las Cruces offices of Homeland Security Investigations and DEA. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Joint Statement by U.S. Attorney General Jeff Sessions and Mexican Attorney General Raúl Cervantes Andrade on Tomas Yarrington ArrestRead the Press Release
Today, Attorney General Jeff Sessions and Mexican Attorney General Raúl Cervantes Andrade released the following statement on the arrest of Tomas Yarrington:
“The detention of Mexican ex-Governor Tomas Yarrington Ruvalcaba, on April 9, 2017, in Florence, Italy, was the result of law enforcement cooperation between Mexican, Italian and U.S. authorities.
“Yarrington faces serious charges in both the United States and Mexico, which arise out of criminal acts allegedly committed in both countries during Yarrington’s tenure as Governor of the State of Tamaulipas from 1999-2004.
“After careful analysis of the evidence and potential penalties of both the U.S. and Mexican charges against Yarrington, and in accordance with the priority given to competing extradition requests pursuant to Article 13 of the Extradition Treaty between Italy and Mexico, and Article 15 of the Extradition Treaty between Italy and the United States, the governments of the United States and Mexico have agreed that, in the event of a favorable decision by the Italian judicial authorities regarding both the United States’ and Mexico’s extradition requests, as well as a favorable decision on both requests by the Italian Minister of Justice, the United States and Mexican governments have agreed to request that the Italian Minister of Justice grant precedence to the United States’ request and also to seek the authorization of the Italian Minister of Justice for the re-extradition of Yarrington to Mexico in accordance with Article 16 of the U.S.-Italy Extradition Treaty.
“The United States and Mexico have agreed that upon the conclusion of the U.S. prosecution of Yarrington, and upon a determination of extraditability pursuant to the U.S.-Mexico extradition treaty, he will be temporarily surrendered to Mexico so that he may be brought to justice for the offenses charged against him there.
“Both the United States and Mexico have made a further commitment to exchange information and to collaborate with their respective prosecutions against Yarrington, and to utilize all available legal instruments for that purpose.
“The United States and Mexico extend their thanks to the Government of Italy and its law enforcement authorities for their apprehension of Yarrington. We also extend our gratitude to Interpol, the Mexican Attorney General’s Office (PGR), the U.S. Department of Homeland Security Immigration and Customs Enforcement and the Justice Department’s Office of International Affairs for their diligent work in locating and arresting the fugitive. This arrest is another example of the United States’ and Mexico’s shared commitment to combat corruption and transnational organized crime."
Jamie Shantez McNeail Sentenced Following Guilty Plea to a Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Jamie Shantez McNeail of Mobile was sentenced to 37 months imprisonment. McNeail’s sentencing followed entry of a January 2017 guilty plea to conspiracy to possess with intent to distribute cocaine.
McNeail’s guilty plea included his admission that between June 9 and July 1, 2016, he participated in numerous instances in which he conspired to distribute one (1) and two (2) ounce quantities of cocaine. McNeail was held responsible for the distribution of a quantity of cocaine between 400 and 500 grams.
Conspiracy to possess with intent to distribute a controlled substance is a violation of Title 21, United States Code Section 846. McNeail’s imprisonment will be followed by a three year term of supervised release.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Street Task Force. This investigation has previously resulted in the indictment of six (6) other defendants on federal drug conspiracy charges. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.Honduran National Pleads Guilty to Illegal Use of Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JAVIER CANIZALEZ-HERNANDEZ, age 40, from Honduras, pled guilty today to a one-count Indictment charging him with illegal use of a Social Security Number. According to the court documents, CANIZALEZ-HERNANDEZ used a Social Security Number that was not assigned to him to obtain a Louisiana Identification card from the DMV office in Houma.
CANIZALEZ-HERNANEZ faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for May 31, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARLIN CACERES-GUERRERO, age 26, a native of Honduras, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien.
According to the court documents, CACERES-GUERRERO was previously removed from the United States on May 3, 2013. He was later found in the Eastern District of Louisiana on February 21, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
CACERES-GUERRERO faces a maximum term of imprisonment of two years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Ivan L.R. Lemelle set sentencing for June 21, 2017.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Francisco C. Arias and Eder J. Cortez-Zelaya Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants FRANCISCO C. ARIAS and EDER J. CORTEZ-ZELAYA, who were convicted at the trial of U.S. v. Francisco Arias, Eder Cortez-Zelaya and Corinna Concepcion, in the District Court of Guam, were sentenced today.
FRANSISCO ARIAS, age 42, an undocumented alien and citizen from Mexico, was sentenced by Chief Judge Frances Tydingco-Gatewood, to life imprisonment for count one, conspiracy to distribute methamphetamine (ice), after taking into consideration his role of threatening one individual; 20 years for count two, conspiracy to commit money laundering; and five years each for counts 4 and 5, unlawful use of the mail to facilitate the conspiracy to distribute methamphetamine. All sentences are to be served concurrently.
EDER J. CORTEZ-ZELAYA, age 34, a naturalized U.S. Citizen originating from El Salvador, was sentenced by Chief Judge Frances Tydingco-Gatewood to 292 months for count one, conspiracy to distribute methamphetamine (ice), 20 years for count two, conspiracy to commit money laundering; and five years each for counts 4 and 5,unlawful use of the mail to facilitate the conspiracy to distribute methamphetamine. All sentences are to be served concurrently.
Both Francisco ARIAS and CORTEZ-ZELAYA were determined to be organized leaders, who conspired with 15 co-defendants, to have packages of methamphetamine (ice) transported from Las Vegas, Nevada and received on Guam. All of the co-defendants have been sentenced.
This OCDETF case involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS).
The case was prosecuted by Assistant U.S. Attorney Clyde Lemons, Jr.
Fourth Defendant Convicted for Role in Georgia-Based Mexican Sex Trafficking RingRead the Press Release
The Department of Justice announced today that Severiano Martinez-Rojas, also known as “Negro” and “Gato,” of Tenancingo, Tlaxcala, Mexico, has pleaded guilty in federal court to one count of sex trafficking and admitted his participation in the sex trafficking of three victims.
“The defendants preyed on vulnerable young women, placing them in fear and forcing them to sell their bodies to complete strangers all so the defendants could make money,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Today’s conviction demonstrates the Civil Rights Division’s unwavering commitment to bringing human traffickers to justice and the significant impact of our U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, aimed at dismantling transnational trafficking organizations.”
“This defendant’s guilty plea represents another success in this District’s sustained commitment to bilateral anti-trafficking coordination with our Mexican Federal law enforcement counterparts in locating and bringing to justice traffickers who lure victims into prostitution with false promises of a better life and then seek to evade accountability for their crimes,” said U.S. Attorney John A. Horn of the Northern District of Georgia. “Human trafficking remains a top priority of this office, and we will continue to aggressively target and prosecute these horrific crimes.”
“Human Trafficking is often transnational in nature and, as a result, U.S. law enforcement, through its legal attaches and U.S. embassies, count on its partnerships abroad to ensure that individuals such as Martinez-Rojas are not afforded a sanctuary from justice,” said Special Agent in Charge David J. LeValley of the FBI Atlanta Field Office. “This case illustrates the FBI’s commitment toward identifying, apprehending, and repatriating to the U.S. those involved in these types of human trafficking rings that cross international borders.”
“Human trafficking is quite simply, a form of modern-day slavery, and the sexual abuse of the victims in this particular case only adds to the heinous nature of the crime,” said Special Agent in Charge Nick Annan of ICE Homeland Security Investigations in Atlanta. “Over the past two years HSI has rescued nearly 1,000 trafficking victims nationwide with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to the charges and other information presented in court, Martinez-Rojas and his co-defendants used false promises of love, legitimate work and a better life to induce three women to unlawfully enter the United States between 2006 and 2008. Once the women arrived in Atlanta, Georgia, the defendants used violence, threats, intimidation, and other means to compel the young women to engage in prostitution in Georgia and Alabama for the defendants’ profit. The defendants operated a high volume, low cost business, requiring the women to have sex with multiple men a night, sometimes as many as 20 men.
Martinez-Rojas was indicted on May 14, 2013, but remained a fugitive until his arrest in Mexico as part of a coordinated bilateral law enforcement action in November 2015. He is the fourth member of an Atlanta-based Mexican sex trafficking ring convicted for their roles in compelling young women from Mexico and Guatemala to engage in prostitution. A date for sentencing has not yet been determined.
Co-defendants Arturo Rojas-Coyotl, also known as “Taco” and “Jonathan,” and Odilon Martinez-Rojas, also known as “Chino” and “Saul,” pleaded guilty to sex trafficking and alien harboring in October 2014 and were sentenced on January 27, 2015, to prison terms of 16 years and 21 years and 10 months, respectively. The defendants were also ordered to pay $180,000 in restitution to the victims. A third co-defendant, Daniel Garcia-Tepal, also pleaded guilty to alien harboring on April 4, 2014, and received a sentence of time served.
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 case is being investigated by the Federal Bureau of Investigations and the Department of Homeland Security’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorney Richard S. Moultrie, Jr., of the Northern District of Georgia, and Deputy Director Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Fourth Defendant Convicted for Role in Atlanta-Based Mexican Sex Trafficking RingRead the Press Release
ATLANTA – Severiano Martinez-Rojas, also known as “Negro” and “Gato,” of Tenancingo, Tlaxcala, Mexico, has pleaded guilty in federal court to one count of sex trafficking and admitted his participation in the sex trafficking of three victims.
“This defendant’s guilty plea represents another success in this District’s sustained commitment to bilateral anti-trafficking coordination with our Mexican Federal law enforcement counterparts in locating and bringing to justice traffickers who lure victims into prostitution with false promises of a better life and then seek to evade accountability for their crimes,” said U.S. Attorney John A. Horn. “Human trafficking remains a top priority of this office, and we will continue to aggressively target and prosecute these horrific crimes.”
“The defendants preyed on vulnerable young women, placing them in fear and forcing them to sell their bodies to complete strangers all so the defendants could make money,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Today’s conviction demonstrates the Civil Rights Division’s unwavering commitment to bringing human traffickers to justice and the significant impact of our U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative, aimed at dismantling transnational trafficking organizations.”
“Human Trafficking is often transnational in nature and, as a result, U.S. law enforcement, through its legal attaches and U.S. embassies, count on its partnerships abroad to ensure that individuals such as Martinez-Rojas are not afforded a sanctuary from justice. This case illustrates the FBI’s commitment toward identifying, apprehending, and repatriating to the U.S. those involved in these types of human trafficking rings that cross international borders,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“Human trafficking is quite simply, a form of modern-day slavery, and the sexual abuse of the victims in this particular case only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “Over the past two years HSI has rescued nearly 1,000 trafficking victims nationwide with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to U.S. Attorney Horn, the charges and other information presented in court: Martinez-Rojas and his co-defendants used false promises of love, legitimate work, and a better life to induce three women to unlawfully enter the United States between 2006 and 2008. Once the women arrived in Atlanta, Georgia, Martinez-Rojas and his co-defendants used violence, threats, intimidation, and other means to compel the young women to engage in prostitution in Georgia and Alabama for the defendants’ profit. The defendants operated a high volume, low cost business, requiring the women to have sex with multiple men a night, sometimes as many as 20 men.
Martinez-Rojas was indicted on May 14, 2013, but remained a fugitive until his arrest in Mexico as part of a coordinated bilateral law enforcement action in November 2015. He is the fourth member of an Atlanta-based Mexican sex trafficking ring convicted for their roles in compelling young women from Mexico and Guatemala to engage in prostitution. A date for sentencing has not yet been determined.
Co-defendants Arturo Rojas-Coyotl, also known as “Taco” and “Jonathan,” pleaded guilty to sex trafficking and alien harboring in October 2014, and was sentenced to 16 years in federal prison. Odilon Martinez-Rojas, also known as “Chino” and “Saul,” pleaded guilty to sex trafficking and alien harboring in October 2014, and was sentenced to 21 years and 10 months in prison. Both defendants were also ordered to pay $180,000 in restitution to the victims. A third co-defendant, Daniel Garcia-Tepal, also pleaded guilty to alien harboring on April 4, 2014, and received a sentence of time served.
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 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.
The case is being investigated by the Federal Bureau of Investigations and the Department of Homeland Security’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorney Richard S. Moultrie, Jr., of the Northern District of Georgia, and Deputy Director Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
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.
Four Men Charged in $800,000 Advance Fee SchemeRead the Press Release
NEWARK, N.J. –Three men from New Jersey and another from Nevada have been arrested for allegedly defrauding two individual victims out of approximately $800,000 through an advance fee scheme, Acting U.S. Attorney William E. Fitzpatrick announced today.
Harold Mignott, 54, of Voorhees, New Jersey, James Adkins, 64, of Hillside, New Jersey, Jerrid Douglas, 43, of Freehold, New Jersey, and Roy Johannes Gillar, 44, of Las Vegas, are each charged by criminal complaint with one count of conspiracy to commit wire fraud.
Mignott, Adkins, and Douglas were arrested this morning and made their initial court appearances this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal Court. Gillar was arrested yesterday and appeared before U.S. Magistrate Judge Nancy J. Koppe in Las Vegas federal court. Gillar was detained. Mignott, Adkins, and Douglas were released on $200,000 unsecured bonds.
According to the complaint:
From March 2016 through June 2016, Mignott, Adkins, Douglas, and Gillar allegedly agreed to defraud an entity identified in the complaint as “Victim Company A” out of approximately $1 million.
As part of the scheme, the defendants fraudulently induced two individuals who ran Victim Company A to have Victim Company A enter a joint-venture agreement with their New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide Victim Company A with a “standby letter of credit” backed by Mexican gold bonds. A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
Victim Company A wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint-venture agreement, Victim Company A agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and convince the victims to approve transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion standby letter of credit to the defendants’ shell company.
However, after Victim Company A transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide Victim Company A with a standby letter of credit or anything of value. Instead, the defendants misappropriated Victim Company A’s money for their personal use on items like luxury cars, expensive watches, mortgage payments on their personal residences, and large cash withdrawals.
At no time since March 2016 have the defendants or any company owned or operated by them provided anything of value to Victim Company A in exchange for Victim Company A’s $800,000. The defendants also have not returned any of the money to Victim Company A.
The conspiracy to commit wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former New York City Police Department Sergeant Sentenced to 28 Years in Prison for Conspiring to Sexually Exploit ChildrenRead the Press Release
Earlier today, Alberto Randazzo, a former sergeant with the New York City Police Department, was sentenced to 28 years in prison, eight years of supervised release and sex offender registration for sexual exploitation and receipt of child pornography. Today’s sentencing took place before United States District Judge Pamela K. Chen at the federal courthouse in Brooklyn, New York.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York, and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“Alberto Randazzo lived a double life, publicly serving as an NYPD police officer while privately engaging in conduct to exploit the most vulnerable members of the community – our children,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners we will continue to strive to protect the most vulnerable among us.”
“Randazzo held a position with the sole purpose to serve and protect the people of this city. Instead, he targeted certain women, persuaded them to sexually abuse their children and had them send him pictures and videos of the acts,” said Special Agent-in-Charge Melendez. “His behavior is no less than deplorable. It is with continued joint law enforcement efforts that we can target these types of offenders and ensure that they are punished for their heinous deeds.”
“Alberto Randazzo’s exploitation of innocent children is unconscionable. I am grateful to our detectives in Internal Affairs, Homeland Security, and the U.S. Attorney’s Office in the Eastern District of New York for their work in bringing Randazzo to justice for these horrific crimes,” said Police Commissioner James P. O’Neill.
On July 12, 2016, the defendant pleaded guilty to two counts of conspiracy to sexually exploit a child and one count of receipt of child pornography. According to court filings, from as early as 2010 through 2013, Randazzo targeted women through websites such as Ashley Madison and Match.com and persuaded them to sexually abuse children to whom they had access, so he could watch the abuse. Randazzo was caught in February 2013, when a witness found disturbing text messages on Randazzo’s phone and uncovered emails from women sending Randazzo pictures of them molesting their children. When the witness confronted him, Randazzo admitted his sexual interest in mothers having sex with their children.
Based on the information obtained from the witness and the photographs, the Internal Affairs Bureau (IAB) of the NYPD obtained a search warrant for Randazzo’s apartment and found numerous images and videos of child pornography, including a number of videos of child pornography that were created by Randazzo himself. Randazzo was arrested and charged in Queens Criminal Court. At the time of his arrest, Randazzo had been a member of the NYPD for 15 years. While on bail in connection with that case, Randazzo was discovered by Special Agents of HSI to be downloading child pornography, which led to the federal investigation and federal charges being filed.
At sentencing the government presented evidence that at least five women complied with Randazzo’s solicitations and sexually abused children in order to satisfy his sexual desires. Randazzo’s victims ranged in age from a few months to eight years old, and he traveled out of state to watch two of them be molested in person. Randazzo arranged to have the eight-year-old victim drugged so that he would not remember the abuse.
Three of the women Randazzo solicited have also been charged in the Eastern District of New York. Two have pleaded guilty, one of whom was sentenced to five years imprisonment, one of whom is awaiting sentencing, and another is awaiting trial.
Ms. Rohde thanked HSI and the NYPD for their joint efforts in bringing Randazzo to justice and thanked the Queens District Attorney’s Office for their continuing assistance.
The government’s case is being prosecuted by Assistant United States Attorneys Tyler Smith and Moira Kim Penza.
The Defendant:
ALBERTO RANDAZZO
Age: 40
Astoria, New York
E.D.N.Y. Docket No. 14-CR-189 (PKC)
Former Mayor of South El Monte Sentenced to over a Year in Prison Plus Home Detention for Taking Cash Bribes from ContractorRead the Press Release
LOS ANGELES – The former Mayor of South El Monte was sentenced today to one year and one day in federal prison for taking bribes from a contractor doing business with the city – in one instance accepting a bribe during an FBI undercover operation.
Luis Aguinaga, 49, of South El Monte, was sentenced late this afternoon by United States District Judge Fernando M. Olguin. In addition to the prison term, the court ordered Aguinaga to serve one year of home detention, to perform 3,000 hours of community service and to pay a $10,000 fine.
Aguinaga pleaded guilty in September to one count of bribery, admitting that he took bribes from a person who performed engineering and construction work for the City of South El Monte and that the payments were rewards in connection with the approval of city contracts for the contractor. Aguinaga accepted the bribes from 2005 until September 2012.
The contractor – identified in court documents as a confidential witness, or CW – made payments to Aguinaga approximately every two to three weeks, shortly after the contractor was paid by the City of South El Monte. If the contractor failed to pay Aguinaga within a few days of being paid by the city, Aguinaga would call and ask for his payment.
The bribe amounts were initially $500, and later they increased to $1,000. According to court documents, the contractor made the bribe payments by placing cash in envelopes that were left in a bathroom at the South El Monte City Hall or were left inside the passenger side pocket of a car.
Aguinaga accepted a $1,000 bribe during a September 12, 2012 meeting that was being monitored by the FBI, and he took the money even though he “was nervous about meeting with CW because Cudahy city officials, including the Mayor, had recently been arrested and charged with accepting bribes.”
Aguinaga admitted receiving at least $45,000 from the city contractor during the final two years of the bribery scheme.
“Mr. Aguinaga was an elected public official who abused the trust of his constituents by engaging in a pay-for-play scheme,” said Acting United States Attorney Sandra R. Brown. “He accepted tens of thousands of dollars in bribes over several years. This deliberate conduct adversely affected the administration of South El Monte and degraded the public’s view of local government.”
“Mr. Aguinaga abandoned the community he was elected to serve by basing his decisions on greed and ill-gotten financial gain rather than good government,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This extensive corruption scheme has thankfully come to an end, and Mr. Aguinaga will pay the price for compromising South El Monte and its residents."
This case was investigated by the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Former Lewiston Man Sentenced to Nine Years for Crack Distribution ConspiracyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Lamar Young, 30, formerly of Lewiston, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to nine years in prison and five years of supervised release for conspiring to distribute 28 grams or more of cocaine base, commonly known as “crack.” He pleaded guilty on November 28, 2016.
According to court records, in late 2012 and early 2013, Young and other conspirators sold cocaine base out of an apartment in Lewiston. The conspirators pooled money to purchase powder cocaine and crack from suppliers in Massachusetts, had it transported to Maine, cooked powder cocaine into crack, and packaged it for distribution from the apartment.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Lewiston Police Department; and the Maine Drug Enforcement Agency.Former HARC CEO Convicted of Conspiracy to Defraud and Making False Statements to the Social Security AdministrationRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Richard Lilliston (70, Brooksville) guilty of conspiracy to defraud the United States, and to make false statements to the Social Security Administration. He faces a maximum penalty of five years in federal prison and a fine of $250,000. A sentencing date has not yet been set.
According to court documents, the Hillsborough Achievement and Resource Centers (HARC), formerly the Hillsborough Association for Retarded Citizens, was established in 1953 to positively impact the future for all people living with developmental disabilities, such as Alzheimer’s disease and Down syndrome. HARC opened and operated group homes that served its target client population. HARC also spearheaded various community programs for its clients focused on inclusion activities for youths, adults, and seniors with disabilities.
Many of the HARC clients received SSA benefits due to various developmental disabilities. For certain HARC clients who lacked the capacity to manage their own SSA benefits, SSA approved one or more HARC officials to act as a “Representative Payee” to receive the client’s benefits and to use them exclusively for that client’s benefit. As a Representative Payee, the HARC official was required to complete and submit to the SSA a “Representative Payee Report” that included information about each HARC client’s living situation and the financial benefits received and expended on behalf of that client.
Lilliston began working at HARC in 1997 as the Chief Executive Officer. While working in that capacity, he and others orchestrated a scheme whereby HARC client funds, purportedly saved solely for HARC’s developmentally disabled clients’ needs and use in a HARC bank account (“Endowment Account),” had been and were being wrongfully diverted from the clients to the HARC operating account for other purposes.
In November 2009, in an effort to conceal that HARC client funds were being wrongfully diverted from the clients and to make it appear as if HARC’s Endowment Account had been properly established and maintained, Lilliston directed the former HARC CFO and Controller to secure signatures from the developmentally disabled HARC clients on a document backdated to 2007, titled “Pooled Trust Joinder Agreement.” The CFO and Controller did as instructed, knowing that the HARC clients who signed the Pooled Trust Joinder Agreement document did not have the capacity necessary to understand the importance of the document. Notwithstanding, Lilliston and other HARC employees signed the backdated agreements. Trial testimony further revealed that Lilliston was terminated from his HARC CEO position in November 2011, following a discovery by the HARC Board of Directors that he had wrongfully taken an additional $10,000 in salary ($160,000 rather than the approved $150,000) and had allotted himself a car allowance of $1,850 per month.
In June 2013, the U.S. Attorney’s Office filed a Verified Complaint for Forfeiture Rem in a related case (Case No. 8:13-cv-1601-T-17TBM), seeking the forfeiture of $87,000 held in a Synovus Bank account. That complaint raised like allegations that HARC clients’ SSA benefits had been wrongfully diverted from the clients and used by HARC for other purposes and was supported by facts contained in the sworn affidavit of a special agent with the U.S. Department of Health and Human Services - Office of spector General. On September 30, 2013, the district court entered a Default Judgment of Forfeiture in which the court ordered the forfeiture of the $87,000 to the United States.
This case was investigated by the Social Security Administration - Office of the Inspector General, the U.S. Department of Health and Human Services - Office of Inspector General, and the Florida Department of Law Enforcement, along with the State of Florida’s Department of Financial Services - Office of Fiscal Integrity. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Former Army Staff Sergeant Found Guilty of Conspiracy and Paying Illegal KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Cordera Hill (27, Tampa) guilty of one count of conspiracy and two counts of offering to pay and paying illegal kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison on each count. A sentencing date has not yet been set.
According to evidence presented at trial, in October 2014, Hill, a former member of the United States Army, agreed to become a sales representative for Centurion Compounding, Inc., a marketing firm in Wesley Chapel that utilized sales representatives as independent contractors to market compounded medications, including creams for pain and scars, to TRICARE beneficiaries. These creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Centurion focused its promotional efforts on TRICARE beneficiaries because they knew TRICARE would pay claims for these compounded creams.
Hill paid, and conspired to pay, TRICARE beneficiaries to go to clinics at, among other places, a cosmetics store in a strip mall. Hill also paid for beneficiaries to fly to Tampa from Colorado and Hawaii for the purpose of visiting clinics to obtain compounding creams. The beneficiaries, who had access to free healthcare on base, would visit the cosmetics store after hours and on weekends to obtain prescriptions. Many of the beneficiaries did not need the creams and discarded them in the trash. Hill received in excess of $43,000 in commission payments from Centurion for referring TRICARE beneficiaries to doctors to obtain the creams. TRICARE paid out over $700,000 for claims submitted on behalf of patients that Hill had recruited.
This case was investigated by the Department of Defense, Criminal Investigative Service; the United States Army Criminal Investigation Command, Major Procurement Fraud Unit; the United States Air Force Office of Special Investigations; the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Mandy Riedel, Charles D. Schmitz, Simon Eth, and Rachelle DesVaux Bedke.
Florida Return Preparers Indicted for Using Stolen IDs to File Fraudulent Tax ReturnsRead the Press Release
A federal grand jury sitting in Fort Lauderdale, Florida, returned an indictment on Feb. 23, which was unsealed today, charging three Broward County return preparers with conspiracy, wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to the indictment, Luczor Fertilien, Frantz Petit-Dos and David Joseph owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. The indictment alleges that from approximately December 2009 through March 2016, Fertilien, Petit-Dos and Joseph sought fraudulent refunds from the Internal Revenue Service (IRS) by filing tax returns in the names of people whose IDs had been stolen, including a number of deceased individuals. The indictment further alleges that the three men filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, both by reporting fictitious business income and by claiming dead individuals as dependents.
Fertilien self-surrendered and Joseph was arrested earlier today. Petit-Dos remains a fugitive and is being sought.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Fertilien, Petit-Dos and Joseph face a statutory maximum sentence of five years in prison on the conspiracy count, a maximum sentence of 20 years in prison for each count of wire fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, all three defendants face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS–Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Return Preparers Indicted for Using Stolen Ids to File Fraudulent Tax ReturnsRead the Press Release
A federal grand jury sitting in Fort Lauderdale, Florida, returned an indictment on Feb. 23, which was unsealed today, charging three Broward County return preparers with conspiracy, wire fraud and aggravated identity theft, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Luczor Fertilien, Frantz Petit-Dos and David Joseph owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. The indictment alleges that from approximately December 2009 through March 2016, Fertilien, Petit-Dos and Joseph sought fraudulent refunds from the Internal Revenue Service (IRS) by filing tax returns in the names of people whose IDs had been stolen, including a number of deceased individuals. The indictment further alleges that the three men filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, both by reporting fictitious business income and by claiming dead individuals as dependents.
Fertilien self-surrendered and Joseph was arrested earlier today. Petit-Dos remains a fugitive and is being sought.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Fertilien, Petit-Dos and Joseph face a statutory maximum sentence of five years in prison on the conspiracy count, a maximum sentence of 20 years in prison for each count of wire fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, all three defendants face a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS–Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.
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
Floral Park, NY Man Pleads Guilty to Tax FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today that David Menzies, 51, of Floral Park, NY, pleaded guilty to tax fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of three years in prison, and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti and Tax Division Attorney Jason M. Scheff, who are handling the case, stated that between January 2010 through April 2015, Menzies filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents to claim refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of minors from their parents, and claimed them as dependents on other clients’ returns. Menzies charged his clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money he charged for creating false dependents.
In addition, Menzies concealed his identity as the preparer by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and filing the fraudulent returns using the preparer identification numbers the IRS assigned to these individuals. Menzies admitted that he caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed timely to file his 2009 through 2015 personal tax returns.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office
Sentencing is scheduled for July 26, 2017, at 11:00 a.m. before Judge Vilardo.
Five people indicted for a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Five people have been indicted by a federal grand jury sitting in Wheeling on April 4, 2017 on methamphetamine distribution charges, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Indictments were handed down alleging that a group of individuals from West Virginia, Virginia and California conspired with one another to distribute methamphetamine in Grant County, West Virginia from September 2014 to December 2016.
Those named in the 10-count indictment are:
- Cesar Navarro, 38, Los Angeles, California
- June Catherine Blanchek, 37, Petersburg, West Virginia
- John Wayne Crites, 45, Moorefield, West Virginia
- Kevin L. Navarro, 23, Berryville, Virginia
- Gary Smith, 64, Maysville, West Virginia
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Final defendants sentenced to federal prison for roles in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – Three defendants were sentenced today to federal prison for their roles in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. The defendants sentenced today previously pleaded guilty to conspiracy to distribute more than 50 grams of methamphetamine. Miguel Alejandro Robles-Ibarra, 31, a Mexican national, was sentenced to 11 years and three months in federal prison. Rafael Garcia Serrato, 43, and Cesar Garcia, 20, a father and son from Los Angeles, were also sentenced. Serrato was sentenced to 11 years and three months in federal prison. Garcia was sentenced to six years in federal prison.
Robles-Ibarra admitted that from February 2016 to March 19, 2016, he was involved in a drug conspiracy with multiple individuals. Robles-Ibarra also admitted that near the end of February 2016, he helped package ten pound of crystal methamphetamine in a spare tire in the trunk of a vehicle for transport to Kentucky. Two females involved in the conspiracy drove the vehicle from California to meet Brian Ashby, a codefendant residing in Charleston who traveled to Kentucky to pick up the drugs. Robles-Ibarra also admitted that he received a share of the money paid by Ashby for the drugs. Robles-Ibarra further admitted that in March 2016, he helped package another delivery to Ashby - 10 pounds of crystal methamphetamine concealed in the spare tire of a vehicle, this time for transport from California to Huntington. Robles-Ibarra never received any money for the March drug shipment because he was arrested in West Virginia where he had traveled to pick up more money from Ashby. Law enforcement found a fingerprint matching Robles-Ibarra on the spare tire in which the crystal methamphetamine was packaged.
Serrato and Garcia admitted that in March 2016, they, along with other codefendants, arranged to transport five pounds of crystal methamphetamine from California to West Virginia. Serrato and Garcia further admitted that they packed a vehicle with the drugs. Serrato and Garcia also admitted that they maintained telephone contact with the vehicle as it traveled to West Virginia to keep apprised of the progress of the drug delivery. Garcia admitted that on March 25, 2016, he flew from Los Angeles to Huntington to collect money for the drugs being delivered to West Virginia. On March 26, 2016, law enforcement stopped the vehicle transporting the crystal methamphetamine in South Charleston and recovered the drugs.
“Although my office remains focused on battling the opiates that are plaguing our communities, we have not lost sight of other equally dangerous drugs,” stated United States Attorney Casto. “These prosecutions should affirm our commitment to fighting drug trafficking organizations regardless of the poison that they peddle.”
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating several defendants and resulting in lengthy prison sentences. For conspiracy to distribute more than 50 grams of methamphetamine, Velarian Sylvester Carter, of Beckley, was sentenced to 20 years, Daniel Ortiz-Rivera, a Mexican national, was sentenced to 12 years and seven months, Miguel Tafolla-Montoya, a Mexican national, was sentenced to 10 years and 11 months, and Brian Ashby, of Kanawha County, was sentenced to four and a half years. Kelly Newcomb, of Nevada, and Danielle Dessaray Estrada, of Los Angeles, were both sentenced to a year and a day for interstate travel in furtherance of a drug crime. Marco Antonio Bojorquez-Rojas, a Mexican national residing in California, was sentenced to a year and a half for interstate travel in furtherance of a drug crime.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentences and presided over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Federal Jury Finds a Previously Convicted Black Hat Search Engine Optimizer Guilty of Retaliating Against His Former VictimRead the Press Release
DALLAS — William Laurence Stanley, 53, a self-proclaimed black hat search engine optimizer and reputation manager, was found guilty yesterday following a five-day trial before U.S. District Judge Sidney A. Fitzwater for retaliating against a victim for providing truthful information to law enforcement about Stanley’s prior commission of a federal offense, that being extortion, announced U.S. Attorney John Parker of the Northern District of Texas.
Stanley was convicted of one count of retaliation. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Stanley has been in custody on the retaliation charge since his arrest in November 2016. Sentencing is set for August 4, 2017 at 9:00am.
Stanley was previously sentenced in January 2016 to 37 months in federal prison for extorting money from a Dallas-based business (victim Company) and ordered to pay $174,888 in restitution to the numerous victims of his extortive conduct in U.S. v. William Laurence Stanley, 3:14-CR-113-N. In December 2016, Stanley was indicted for retaliating against the principle victim in the 2014 case.
According to evidence presented at trial, Stanley began planning his retaliation while serving his prison sentence on the extortion conviction. From at least September 6 through sometime in October 2016, Stanley, knowingly and with the intent to retaliate against a person for providing law enforcement information about the commission of a federal offense, posted false or derogatory comments or reviews online about the victim Company.
Stanley first extorted the victim Company in 2009 and 2010, and received a final bulk payment of approximately $80,000 from the victim company to stop the harassment and go away. Stanley reappeared in December 2013, and began extorting the company a second time, this time demanding a payment of approximately $30,000. In December 2013 through February 2014, Stanley and his sister, Lynn Faust harassed the victim Company by emails and on the telephone, threatening to ruin the reputation of the victim Company if it did not pay the extortion fee. Stanley threatened to post negative things online about the victim Company that had the potential to cause significant revenue losses. Stanley’s search engine optimization skills threatened to cause any items he posted online to rank high on the various search engines. During the early stages of the extortion in 2014, the victim Company notified the FBI in Dallas, which opened an investigation. Several victim Company officers and employees subsequently provided truthful information to the FBI regarding Stanley’s commission of a federal offense – the offense to which he ultimately pled guilty in July 2015.
In early August 2016, Stanley was transferred by the Bureau of Prisons (BOP) to a halfway house in Houston. In early September 2016, the BOP placed Stanley on home confinement at his daughter’s residence in Angleton, Texas.
Between September 8, 2016 and October 10, 2016 , Stanley posted derogatory online articles/blogs/complaints intended to portray the victim Company in a negative light. Stanley posted the retaliatory data on Facebook.com, Glassdoor.com, ShaggyTexas.com, 800notes.com, callsreceived.com, Yelp.com, Blogspot.com, and Wordpress.com. Several of the articles/blogs/complaints had titles and photographs added to place the victim Company in an even more negative light. Stanley also encouraged others to duplicate the negative content in as many places as possible.
Stanley attempted to claim that the First Amendment protected his postings. The court instructed the jury that “[e]xpression is not protected by the First Amendment if the speaker intends his words to become, and the tendency of his words do become, an integral part of conduct that violates a valid criminal statute.” Evidence during the trial established that the victim Company’s reputation is based on the hard work, integrity, and dedication of more than hundreds of associates nationwide. The victim Company repeatedly earns and receives top honors and awards in its industry, and Stanley’s retaliatory conduct caused extensive harm to its reputation.
The FBI investigated the case. Assistant U.S. Attorneys C.S. Heath and Sid Mody are in charge of the prosecution.
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Federal Jury Convicts Man for Illegal Reentry After Previous Removal from the United StatesRead the Press Release
DALLAS — Ignacio Arellano-Banuelos, 36, of Dallas, Texas was found guilty today following a two-day trial before U.S. District Judge David C. Godbey for illegal reentry after removal from the United States, announced U.S. Attorney John Parker of the Northern District of Texas.
Arellano-Banuelos faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. He has been in custody since his arrest in June 2016. Sentencing is set for July 31, 2017. Arellano-Banuelos will be deported after serving his sentence.
According to evidence presented at trial, on May 8, 2015 Arellano-Banuelos was found in the United States after having been deported and removed on September 10, 2009, without receiving consent from the United States Attorney General or the Secretary of the Department of Homeland Security to reapply for admission since the time of the previous deportation and removal.
Immigration and Customs Enforcement (ICE) investigated the case. Assistant U.S. Attorney Shane Read and Special Assistant U.S. Attorney Lynn Javier are in charge of the prosecution.
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Federal Inmate Sentenced to 15 Additional Years in Prison for Attack on Correctional OfficersRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Todd Shepard (49, Missouri) to 15 years in federal prison for the forcible assault of a federal officer, inflicting bodily injury, and using a deadly weapon. This new penalty term must be served in addition to his other currently active sentences. Shepard pleaded guilty on January 27, 2017.
According to the facts presented at sentencing, Shepard is imprisoned at FCC-Coleman until 2029 on a federal drug distribution conviction. He also has a separate state sentence of life imprisonment for the 2008 murder of a Missouri law enforcement officer. On the evening of September 18, 2015, Shepard ambushed and stabbed two federal correctional officers with a sharpened piece of metal. Before being subdued, Shepard repeatedly shouted threats to kill the officers. During a subsequent interview with federal agents, Shepard admitted that he had attacked the officers in an attempt to draw attention to a recent loss of prisoner recreation time.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Federal Court Issues Order in Lawsuit Against the Twin Cities of Colorado City, Arizona and Hildale, Utah, Finding Widespread Police Misconduct and Religious DiscriminationRead the Press Release
A federal judge yesterday found that the Town of Colorado City and the City of Hildale engaged in a decades-long pattern or practice of police misconduct and housing discrimination, and ordered expansive relief to remedy the violations and prevent further violations in the future, announced the Department of Justice.
U.S. District Judge H. Russell Holland’s order, issued yesterday, adopts findings made by a jury last year that the Colorado City Marshals Office engaged in a long-standing pattern of abuses that included false arrests, unreasonable seizures of property, discriminatory policing on the basis of religion, and violating the Establishment Clause of the First Amendment. “The constitutional right to free exercise of religion, on the one hand, and the statutory right to housing and constitutional policing, on the other hand, are vitally important to a viable, peaceful community,” U.S. District Judge Holland wrote.
“Religious discrimination threatens the Founders’ vision of a society based firmly on principles of liberty and freedom of conscience,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “No individual in the United States should be treated differently by a town or its police officers because of his or her religion. No religious leaders should be permitted to use the power of sworn law enforcement officers to hide their misdeeds and enforce their decrees.
The adjoining towns of Colorado City and Hildale are located on the border of Arizona and Utah and are populated primarily by members of a faction of the Fundamentalist Church of Jesus Christ of Latter Day Saints (FLDS) that remains loyal to its imprisoned prophet, Warren Jeffs. Jeffs is currently serving a prison term in Texas of life plus 20 years for aggravated sexual assault of a minor.
The advisory verdict made permanent by U.S. District Judge Holland’s order came after a seven-week trial during which the United States presented evidence from over thirty witnesses that the governments of Colorado City and Hildale are controlled the FLDS Church and Warren Jeffs. Among other things, Judge Holland concluded that Marshals “officers turned a blind eye to criminal activity involving FLDS Church leaders or members,” including supporting a fugitive and ignoring underage marriages, unauthorized distribution of prescription drugs, and food-stamp fraud.
In addition to its verdict on the police-misconduct claim, the jury found that the defendants engaged in a pattern or practice of housing discrimination against persons who were not members of Warren Jeffs’ faction of the FLDS. The jury found that the defendants had used their municipal authority to coerce, intimidate, or interfere with individuals seeking housing, discriminated in the provision of municipal services, and denied housing to non-FLDS members. The United States settled the damages portion of the case shortly before the verdict for $1.6 million.
The Court’s findings are accompanied by a comprehensive order designed to remedy the police misconduct and housing discrimination. Under the terms of the order, which lasts for ten years, the defendants must revise the policies of the Marshal’s Office, adopt new internal affairs and hiring practices, hire two new officers, and hire both a police-practices consultant and a mentor for the Chief of Police. The defendants must submit to training and revise numerous municipal policies and procedures, including their water policies and water impact fees. The order also requires the defendants work to subdivide the land in Colorado City, an issue that has long been a point of contention between the defendants and the religiously neutral land trust that took over control of the property in the area from the FLDS Church over a decade ago. Judge Holland will appoint a monitor to track the defendants’ compliance with the order and report to the Justice Department and the court.
The opinion marks the end of five years of Justice Department litigation to address widespread discrimination in Colorado City and Hildale.
The Marshal’s Office currently has seven sworn officers. Arizona’s Police Officer Standards and Training Board (POST) recently voted to revoke the peace officer certifications of six of those officers, including the certification of the current Chief Marshal Jerry Darger. POST officials recently refused to approve the certification of the seventh officer on the grounds that he had been engaged in a pattern of criminal activity, including felony conduct. Since 2003, six other members of the Marshal’s Office have been decertified by Arizona state officials, including three officers who refused to cooperate with state law-enforcement efforts.
This matter was litigated by attorneys from the Housing and Civil Enforcement Section and the Special Litigation Section of the Department of Justice’s Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. If you have any information regarding this matter, please contact the Department at 1-800-896-7743 or e-mail the Justice Department at [email protected].
Even Though Tax Day is behind us, a Reminder to be Vigilant about Tax FraudRead the Press Release
ATLANTA – The deadline for individuals to file their tax returns passed yesterday. Most will breathe a sigh of relief that their tax returns were filed on time. However, some may encounter an unexpected impediment – an unscrupulous return preparer who took advantage of them, or their identity was stolen and a tax refund has already been claimed in their name by a thief.
The U.S Attorney’s Office for the Northern District of Georgia, along with IRS-Criminal Investigations and other law enforcement partners, is actively engaged in combating tax preparing cheats and identity thieves. The following cases highlight some of the work done by the U.S. Attorney's Office and its law enforcement partners in recent months relating to tax fraud.
Frazier B. Todd, Jr., Cozzie Walker and Roberta Sheffield
Frazier B. Todd, Jr. was sentenced to eighteen years, six months in prison on March 29, 2017, in connection with his conviction for preparing over $5.5 million in fraudulent tax returns on behalf of clients. Todd was found guilty following a four-day jury trial in December, 2016. Todd owned and operated Diverse Resource Business and Tax Firm in Union City, Georgia, along with Cozzie Walker and Robert Sheffield. Walker and Sheffield were also charged in the case and previously pleaded guilty.
“Mr. Todd represents a small but very harmful segment of the tax return preparation industry that takes advantage of our tax system,” said U.S. Attorney John Horn. “By falsely claiming that his clients were entitled to the American Opportunity Tax Credit and other tax credits, Todd and other fraudulent return preparers like him cause real financial damage to the government’s fiscal health and our economy as a whole. We urge the citizens in our district to be careful about who they entrust with the preparation of their tax returns.”
“IRS Criminal Investigation has a zero-tolerance policy for refund fraud. Return Preparer fraud is a top priority for the agency and our special agents work year round to bring return preparers who lack integrity and engage in illegal activities to justice,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “The prison time received by Frazier Todd and his co-conspirators should serve as a strong warning that tough punishments await those who embark on a similar criminal path.”
According to U.S. Attorney Horn, the charges and other information presented in court: Todd conspired with Cozzie Walker and Roberta Sheffield to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for certain college expenses such as tuition and related costs. Marketing the AOTC as a “stimulus” available to almost anyone, Todd and his business partners prepared false tax returns for thousands of clients, many of whom were disabled, elderly, or low-income.
Todd was also convicted for a much broader fraud scheme in which he exploited not only the AOTC but other tax credits as well to maximize his clients' refunds. For example, he filed dozens of corporate tax returns falsely claiming that the businesses purchased tens of thousands of gallons of gasoline for "off-highway business use," and were entitled to the Fuel Tax Credit. He also falsely claimed that clients had installed solar panels on their homes in order to claim the Residential Energy Credit, which is designed for taxpayers who make green energy upgrades to their homes.On December 8, 2016, a jury found Todd guilty of conspiracy to commit mail and wire fraud, obstructing the internal revenue laws, and ten counts of presenting false claims for refund to the IRS. Cozzie Walker pleaded guilty on March 2, 2016, to conspiracy to commit mail and wire fraud. Roberta Sheffield pleaded guilty on March 21, 2016, to conspiracy to commit mail and wire fraud, and 14 counts of presenting false claims for refund to the IRS.
During his sentencing hearing before U.S. District Court Judge Mark H. Cohen, Todd, 58, of Atlanta, Georgia, was ordered to serve eighteen years, six months in prison, followed by three years of supervised release, and pay restitution to the IRS in the amount of $3,631,466. Judge Cohen stated that the conduct of Todd and his co-conspirators was “an abuse of the tax credit system” in this country. The sentencings of Cozzie Walker, 42, of Atlanta, Georgia, and Roberta Sheffield, 43, also of Atlanta, Georgia, are scheduled for May 16, 2017, before Judge Cohen.
Assistant United States Attorneys Lynsey M. Barron and Steven D. Grimberg prosecuted the case.
Tauya Muteke
Frazier Todd, Jr. is not the first return preparer to be sentenced to prison this year. On January 9, 2017, Tauya Muteke, 35, of Douglasville, Georgia, was sentenced to four years, nine months in prison, followed by one year of supervised release, after a jury convicted him on August 19, 2016, on two counts of preparing and filing false income tax returns and one count of failure to appear for trial. Muteke owned and operated Icon Tax Service, a tax preparation business located in Norcross, Georgia. According to U.S. Attorney Horn, the charges and other information presented in court: Muteke prepared and filed tax returns that made up businesses and falsified business expenses to make it appear as if the businesses had lost money, resulting in larger refunds for his clients. Muteke was originally scheduled to go to trial in March 2010, but three weeks before his trial date Muteke fled to Johannesburg, South Africa, and did not return to the United States for five years. He was arrested upon his return on July 13, 2015.
Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly prosecuted the case.
Kim A. Earlycutt, Shannon King and Marcia Farmer
The United States Attorney’s Office is also actively prosecuting numerous tax fraud cases. For example, on March 1, 2017, Kim A. Earlycutt, 54, of Covington, Georgia, and Shannon King, 37, of Lithonia, Georgia were indicted by a federal grand jury in the Northern District of Georgia and charged with conspiracy and filing false claims with the United States. In a related case, Marcia Farmer, 50, of Snellville, Georgia, pled guilty to a criminal information charging her with conspiracy to file false claims on October 28, 2016. According to U.S. Attorney Horn, the charges and other information presented in court: the three alleged co-conspirators obtained identity documents of foreign nationals, which they then used to manufacture and file false and fraudulent tax claim forms. These fraudulent tax returns were submitted to the IRS, resulting in more than $5 million in fraudulent refunds being paid.
Members of the public are reminded that the indictment against Earlycutt and King only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
Assistant U.S. Attorney Christopher H. Huber is prosecuting these cases.
All of the above cases were investigated by the Internal Revenue Service Criminal Investigation.
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.
District Man Sentenced to Nine Years in Prison for Stalking, Threatening and Posting Sexual Images of VictimRead the Press Release
WASHINGTON - Lamont Delrico Roberts, 46, of Washington, D.C., was sentenced today to approximately nine years in prison for stalking, threatening, and assaulting a woman, and unlawfully disclosing graphic, sexual images of her, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
This case marked the first trial involving the new “Criminalization of Non-Consensual Pornography Act of 2014” (22 D.C.C. 3052), which became effective on May 7, 2015. The law codifies the offense of “unlawful disclosure” and prohibits the publication or disclosure of naked photos without the consent of the person depicted in them, even if the photos were taken or given to the defendant consensually by the victim.
A jury found Roberts guilty in November 2016 of five counts of unlawful disclosure, one count of stalking, three counts of making felony threats, and one count of simple assault. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna sentenced Roberts this morning to a total of 30 months in prison on the unlawful disclosure charges; 12 months on the stalking charge; 66 months on the threats offenses, and one month on the assault charge. Upon completion of his prison term, Roberts will be placed on three years of supervised release. While on supervised release, Roberts will be required to get counseling for domestic violence issues and must stay away from the victim and her family.
“Lamont Roberts subjected the victim in this case – his ex-girlfriend – to months of threats and harassment. As a result, the victim’s entire life was altered and she felt like she always had to look over her shoulder,” said U.S. Attorney Phillips. “He humiliated the victim by displaying sexually explicit photos of her in public places. This case demonstrates the benefit of a District of Columbia law that expressly prohibits such unlawful disclosures. The law provided our Office with an additional valuable tool to hold Lamont Roberts accountable for his reprehensible acts.”
According to the government’s evidence, Roberts and the victim were romantically involved for about four years. During the course of their relationship, Roberts became controlling, often dictating to the victim what she could wear and with whom she could spend time. The victim finally ended the relationship in May 2015.
However, Roberts refused to accept that the relationship was over. He telephoned and texted the victim hundreds of times a day and showed up unannounced and uninvited at her job and home countless times. At a certain point, Roberts learned that the victim was romantically involved with someone new and consequently, his behavior escalated dramatically. Roberts began leaving threatening voicemails and texts on the victim’s phone in which he threatened to kill or hurt the victim and her family, he tattooed the victim’s face on his back, and he persistently followed the victim, often holding up graphic, sexual images of the victim that the two had taken during their relationship.
When the victim changed her phone numbers so that Roberts could no longer text her, he emailed her, threatening to share the graphic images with her children, mother, and the rest of the world. Roberts followed through on these threats over the course of October 2015, and posted these images, along with the victim’s name, on her car, her front door, and throughout her neighborhood. Roberts also continued to stalk the victim with these photos in hand. The victim managed to photograph Roberts holding up the graphic images in public places, such as at her workplace and on the street. In fact, the victim photographed Roberts in one instance, when he stood in front of her car holding the image up and in another instance, as he drove by her with the graphic photo hanging out the window of his car.
In an unrelated case, Roberts was sentenced in November 2016 to six years in prison on a drug distribution charge. Roberts pled guilty in August 2016 to distribution of cocaine in the U.S. District Court for the District of Columbia. According to the government’s evidence in that case, Roberts repeatedly sold crack cocaine in quantities that suggested it would be re-distributed. His sentence in this federal case will run consecutively to the sentence imposed today.
In announcing the sentence, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Patricia A. Riley and Renata Cooper, Special Counsels to the U.S. Attorney; Paralegal Specialists Donhue Troy Griffith, T. J. McPhail, and Angelina Slagle; David Foster, La June Thames, Tracey Hawkins, Tracy Owuso, and Meshall Thomas, all of the Victim/Witness Assistance Unit; Litigation Technology Specialists Ron Royal and Aneela Bhatia, and former Interns Molly Lovell and Wendy Acquazzino. They also commended the efforts of Assistant U.S. Attorney Nihar Mohanty, who prosecuted the narcotics case in the U.S. District Court.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Jessica Brooks and Youli Lee, who investigated and prosecuted the case.
Desoto Parish brothers sentenced to 46 months in prison for roles in cocaine distribution conspiracyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two DeSoto Parish brothers were each sentenced Tuesday to 46 months in prison for selling crack and powder cocaine.
Tyquario Derell Adams, 26, and Johnny Leroy Adams Jr., 28, of Mansfield, La., were sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to possess with intent to distribute cocaine and one count of distribution of cocaine. They were also sentenced to three years of supervised release. According to the guilty pleas, between April 2015 and November 2015, Tyquario Adams and Johnny Adams conspired with brothers Antonio Tawarn Robertson, 36, Makeith Ladale Robertson, 33, and Terrance D. Woods, 43, as well as Ashton Bernard Shelton, 25; and Amanda Marie Garner, 33, all of Mansfield, La., to sell the drugs. They were recorded making plans to obtain and sell cocaine in the Mansfield area. Approximately 1.5 kilograms of cocaine were involved in the conspiracy.
See the list below for sentencing details:
Defendants Prison term Probation Supervised release Count* Date M. Robertson 30 months — 3 years 1 Nov. 9, 2016 Shelton 46 months — 3 years 1 Nov. 9, 2016 Garner — 1 year — 3 Jan. 30, 2017 Woods 70 months — 3 years 1 March 7, 2017 A. Robertson 36 months — 3 years 1 March 27, 2017*Count 1 is conspiracy to distribute and possess with intent to distribute cocaine and Count 3 is distribution of cocaine.
The FBI Northwest Louisiana Violent Crimes Task Force and the DeSoto Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Defendant Who Escaped Pending Sentencing on a Gun Charge is Sentenced on Both ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Allen J. Butler, III of Theodore, Alabama was sentenced to 9 years in prison by United States District Court Senior Judge Callie V.S. Granade for the charges of Possession of a Firearm by a Prohibited Person (a felon) and Escape.
On November 14, 2016, Allen Butler, III plead guilty to the offense of Possession of a Firearm by a Prohibited Person (a felon) in violation of 18 U.S.C. Section 922(g)(1) before Senior Judge Granade in the Federal District Court for the Southern District of Alabama. Upon completion of his guilty plea to that charge, Butler was ordered to remain in custody of the U.S. Marshal Service until his sentencing hearing that was to be held within 90 days.
On January 6, 2017, Allen Butler was transported by the Mobile County Sheriff’s Office to the University of Southern Alabama hospital in Mobile after complaining of pains from swallowing a piece of metal. While at the hospital, Butler used a partial handcuff key to unlock his handcuffs and he fled the hospital. A large-scale manhunt ensued that included local media networks who covered the search for Butler.The Gulf Coast Regional Fugitive Task Force discovered information that Butler had traveled to New Orleans, Louisiana, upon his escape, and was possibly back in the Mobile area. Law enforcement officers tracked Butler to an apartment in Wilmer, Alabama. When officers arrived, they found Butler hiding inside the residence. Allen Butler was taken back into custody after eluding capture for nearly 5 days.
Butler was subsequently charged with Escape, and ultimately sentenced, along with his original firearm charge, to 109 months in Federal Prison.
Possession of a Firearm by a Prohibited Person (a felon) is a violation of Title 18, United States Code § 922(g) (1) and is punishable by a maximum term of imprisonment of 10 years. Butler’s Escape charge was a violation of Title 18, United States Code § 751(A) and is punishable by a maximum term of imprisonment of 5 years.
Federal Bureau of Investigation, Mobile Field Office, the United States Marshal Service, in conjunction with the Mobile County Sheriff’s Department, referred these cases for prosecution. Officers of the Gulf Coast Regional Fugitive Task Force also participated in this investigation.
These cases were prosecuted in the United States Attorney’s Office by Assistant United States Attorney Christopher Baugh.
Dallas Man Guilty in Connection with Denton County Highway Expansion FraudRead the Press Release
SHERMAN, Texas – A 34-year-old Dallas man has pleaded guilty to fraud in connection with a Denton County highway expansion project in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Wade Wylie Blackburn, 33, pleaded guilty to conspiracy to commit mail fraud today before U.S. Magistrate Judge Christine A. Nowak.
According to information presented in court, from 2008 to 2011, Blackburn conspired with Kevin James Bollman to defraud the Texas Department of Transportation (TXDOT.) Blackburn and Bollman raised investment money and purchased Right-of-Way (ROW) along Interstate Highway 35 East in Denton County with the intent of quickly re-selling the ROW land tracts to TXDOT.
TXDOT acquired ROW through one of three methods: (1) Condemnation (normal acquisition); (2) Early Acquisition (EAQ); and (3) Advanced Acquisition (AAQ) through option contracts. The first two methods required environmental clearances before TXDOT was permitted to acquire the ROW and pay the landowner. The timing on these acquisitions, including the timing of the environmental clearance issued by the federal government, is unpredictable and often takes years to accomplish. The third method – the AAQ method through option contracts – permitted TXDOT to execute an option contract before environmental clearances were obtained, then pay the landowners a significant up-front option fee designed to keep the landowner from transferring or developing the property on the ROW that would later result in TXDOT likely having to pay more for the ROW. The landowner agreed not to develop the property in exchange for the up-front option fee, then closed on the sale and received the remainder of the purchase money after the environmental clearances were obtained.
As part of the scheme, Blackburn and Bollman intentionally caused false material information to be submitted to the TXDOT appraiser regarding, among other things, their development plans for the various properties. Blackburn and Bollman made these representations to the TXDOT appraiser even though they knew they had no intent to develop any of the properties. Blackburn also wrote a letter with material false statements to individuals at TXDOT. It claimed they were being forced to forego imminent development plans for the tracts, had been unable to successfully secure building permits, and were experiencing financial hardships as a result. Blackburn and Bollman also made false material oral misrepresentations to officials of TXDOT when they told them that they were experiencing financial hardships as a result of not being able to proceed with immediate development of the tracts, and that TXDOT should use the AAQ method to immediately purchase the tracts. Blackburn and Bollman made the material misrepresentations to TXDOT so they could ultimately benefit from the up-front option fee rather than wait for TXDOT acquisition by their usual course of condemnation. TXDOT used option contracts to purchase the tracts for higher prices than what Blackburn and Bollman paid for the tracts. Blackburn was indicted by a federal grand jury in April 2016.
“Government programs are designed to benefit the citizens, in this case, to build critical infrastructure to be used by all,” said Acting U.S Attorney Featherston. “Taxpayers must trust that state and federal funds for building roads and highways are being used and expended in a judicious manner, and not lost to greed and manipulation. Blackburn and others used a complex scheme to defraud the taxpayers, and in doing so, corrupted the process designed to build roads for our citizens.”
Under federal statutes, Blackburn faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams.
Dalia Valencia Sentenced to Federal PrisonRead the Press Release
In El Paso this morning, 44-year-old Dalia Valencia was sentenced to federal prison announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
On May 27, 2016, Valencia pleaded guilty to one count of theft of government property and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, namely acts of kidnapping, drug trafficking and money laundering.
Today, Senior United States District Judge David Briones imposed a 120-month sentence on the theft of government property charge and a 180-month sentence on the RICO charge. Both sentences are to run concurrent. In addition to the prison terms, Judge Briones ordered that Valencia pay over $80,000 in restitution to the families of her victims and $49,897 to the Social Security Administration; and, a money judgment for $12,480,000, to be paid joint and several with her brothers Emmanuel Velasco Gurrola and Samuel Velasco Gurrola. Judge Briones also ordered that Valencia forfeit to the Government real estate properties she owned in El Paso.
On March 23 and 24, 2017, Emmanuel Velasco Gurrola and Samuel Velasco Gurrola, respectively, were sentenced to life in federal prison for their roles in a murder-for-hire plot.
According to evidence presented during Samuel Velasco’s trial, in 2008, Samuel Velasco was married to Ruth Sagredo Escobedo. At the time, he was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Evidence further revealed that from September 2008 until November 2008, Samuel initiated a plot, with Dalia and Emmanuel’s help, to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that with Emmanuel’s help, Samuel also arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Samuel’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo and her friend Roberto Martinez were ambushed and murdered.
According to court records, Dalia, Emmanuel, and Samuel were part of a criminal organization that ran a cross-border car theft ring and imported and distributed tons of marijuana. The organization also engaged in an international kidnapping scheme whereby victims were kidnapped and held in Juarez, Mexico, while they and other criminal associates located in El Paso extorted ransom payment from the victims’ families.
Dalia, Emmanuel, and Samuel’s sister, 43-year-old Monica Velasco, remains a fugitive in this case. Monica Velasco is charged with conspiracy to violate the RICO statute, two money laundering counts and conspiracy to possess with intent to distribute and import over 1,000 kilograms of marijuana. If you have information as to Monica Velasco’s whereabouts, contact the United States Marshals Service in El Paso at (915) 534-6779.This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service, the Social Security Administration Office of the Inspector General, and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
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Cruise Line Ordered to Pay $40 Million for Illegal Dumping of Oil Contaminated Waste and Falsifying RecordsRead the Press Release
Princess Cruise Lines Ltd. (Princess) was sentenced to pay a $40 million penalty – the largest-ever for crimes involving deliberate vessel pollution – related to illegal dumping overboard of oil contaminated waste and falsification of official logs in order to conceal the discharges, announced Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida in Miami, Florida. The sentence was imposed today by U.S. District Judge Patricia A. Seitz in Miami.
Judge Seitz also ordered that $1 million be awarded to a British engineer, who first reported the illegal discharges to the British Maritime and Coastguard Agency (MCA), which in turn provided the evidence to the U.S. Coast Guard. The newly hired engineer on the Caribbean Princess reported that a so-called “magic pipe” had been used on Aug. 23, 2013, to illegally discharge oily waste off the coast of England without the use of required pollution prevention equipment. The evidence gathered by the whistleblower, including photographs of the magic pipe, led to an inspection of the cruise ship both in England and then when it reached New York on Sept. 14, 2013. During each of the separate inspections certain crew members concealed the illegal activity by lying to the authorities in accordance with orders they had received from Caribbean Princess engineering officers.
The sentence imposed by Judge Seitz also requires that Princess remain on probation for a period of five years during which time all of the related Carnival cruise ship companies trading in the U.S. will be required to implement an environmental compliance plan that includes independent audits by an outside company and oversight by a court appointed monitor. As a result of the government’s investigation, Princess has already taken various corrective actions, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.
According to papers filed in court, the Caribbean Princess had been making illegal discharges through bypass equipment since 2005, one year after the ship began operations. The August 2013 discharge approximately 23-miles off the coast of England involved approximately 4,227 gallons within the country’s Exclusive Economic Zone. At the same time as the discharge, engineers ran clean seawater through the ship’s monitoring equipment in order to conceal the criminal conduct and create a false digital record for a legitimate discharge.
The case against Princess included illegal practices which were found to have taken place on five Princess ships – Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess. One practice was to open a salt water valve when bilge waste was being processed by the oily water separator and oil content monitor. The purpose was to prevent the oil content monitor from going into alarm mode and stopping the overboard discharge. This was done routinely on the Caribbean Princess in 2012 and 2013. The second practice involved discharges of oily bilge water originating from the overflow of graywater tanks into the machinery space bilges. This waste was pumped back into the graywater system rather than being processed as oily bilge waste, and then pumped overboard anytime the ship was more than four nautical miles from land. As a result, discharges within U.S. waters were likely. None of the discharges were recorded in the oil record books that are required to be maintained on board the ships.
“These violations of law were serious, longstanding and designed to conceal illegal discharges,” said Acting Assistant Attorney General Wood. “The sentence in this case should ensure that these crimes do not take place in the future and should also send a strong message to others that illegally polluting U.S. waters will not be tolerated.”
“Today's large criminal penalty makes it clear that businesses that operate in our oceans will be held accountable for violating their obligation to safeguard the marine environment,” stated Acting U.S. Attorney Greenberg. “The U.S. Attorney’s Office for the Southern District of Florida and our maritime partners are committed to ensuring that all vessel operators adhere to recognized standards in order to protect our open seas and coasts. We will continue to use the U.S. courts to pursue those who circumvent the law for their own personal gain.”
“Without the courageous act of a junior crewmember to alert authorities to these criminal behaviors of deliberately dumping oil at sea, the global environmental damage caused by the Princess fleet could have been much worse,” said Rear Admiral Scott Buschman, Commander of the U.S. Coast Guard Seventh District. “The selflessness of this individual exposed five different ships that embraced a culture of shortcuts and I am pleased at this outcome.”
As set forth in papers filed in court, Princess admitted to the following:
-
After suspecting that the authorities had been informed, senior ship engineers dismantled the bypass pipe and instructed crew members to lie.
-
Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.” The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident.
-
A perceived motive for the crimes was financial – the chief engineer that ordered the dumping off the coast of England told subordinate engineers that it cost too much to properly offload the waste in port and that the shore-side superintendent who he reported to would not want to pay the expense.
-
Graywater tanks overflowed into the bilges on a routine basis and were pumped back into the graywater system and then improperly discharged overboard when they were required to be treated as oil contaminated bilge waste. The overflows took place when internal floats in the graywater collection tanks got stuck due to large amounts of fat, grease and food particles from the galley that drained into the graywater system. Graywater tanks overflowed at least once a month and, at times, as frequently as once per week. Princess had no written procedures or training for how internal gray water spills were supposed to be cleaned up and the problem remained uncorrected for many years.
Ten million of the $40 million criminal penalty imposed by the court is earmarked for community service projects to benefit the maritime environment; $3 million of the community service payments will go to environmental projects in South Florida; $1 million will go for projects to benefit the marine environment in United Kingdom waters. Additionally, $1 million of the criminal penalty will be deposited in the Abandon Seafarer's Fund, a fund established to provide a mechanism for the U.S. Coast Guard to offer humanitarian relief and support of seafarers who are abandoned in the United States and are witnesses to maritime-related crimes.
The investigation was conducted by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard 7th District Legal Office, U.S. Coast Guard’s Office of Maritime and International Law and U.S. Coast Guard Office of Investigations and Analysis. In announcing the case, Acting Assistant Attorney General Wood and Acting U.S. Attorney Benjamin G. Greenberg expressed their appreciation to the U.S. Coast Guard and to the U.K.’s MCA. The case is being prosecuted by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice, Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida, and Special Assistant U.S. Attorney Lieutenant Commander Brendan Sullivan, U.S. Coast Guard.
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Cruise Line Ordered to Pay $40 Million for Illegal Dumping of Oil Contaminated Waste and Falsifying RecordsRead the Press Release
Princess Cruise Lines Ltd. (Princess) was sentenced to pay a $40 million penalty – the largest-ever for crimes involving deliberate vessel pollution – related to illegal dumping overboard of oil contaminated waste and falsification of official logs in order to conceal the discharges, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida in Miami, Florida and Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division. The sentence was imposed today by U.S. District Judge Patricia A. Seitz in Miami.
Judge Seitz also ordered that $1 million be awarded to a British engineer, who first reported the illegal discharges to the British Maritime and Coastguard Agency (MCA), which in turn provided the evidence to the U.S. Coast Guard. The newly hired engineer on the Caribbean Princess reported that a so-called “magic pipe” had been used on Aug. 23, 2013, to illegally discharge oily waste off the coast of England without the use of required pollution prevention equipment. The evidence gathered by the whistleblower, including photographs of the magic pipe, led to an inspection of the cruise ship both in England and then when it reached New York on Sept. 14, 2013. During each of the separate inspections certain crew members concealed the illegal activity by lying to the authorities in accordance with orders they had received from Caribbean Princess engineering officers.
The sentence imposed by Judge Seitz also requires that Princess remain on probation for a period of five years during which time all of the related Carnival cruise ship companies trading in the U.S. will be required to implement an environmental compliance plan that includes independent audits by an outside company and oversight by a court appointed monitor. As a result of the government’s investigation, Princess has already taken various corrective actions, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.
According to papers filed in court, the Caribbean Princess had been making illegal discharges through bypass equipment since 2005, one year after the ship began operations. The August 2013 discharge approximately 23-miles off the coast of England involved approximately 4,227 gallons within the country’s Exclusive Economic Zone. At the same time as the discharge, engineers ran clean seawater through the ship’s monitoring equipment in order to conceal the criminal conduct and create a false digital record for a legitimate discharge.
The case against Princess included illegal practices which were found to have taken place on five Princess ships – Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess. One practice was to open a salt water valve when bilge waste was being processed by the oily water separator and oil content monitor. The purpose was to prevent the oil content monitor from going into alarm mode and stopping the overboard discharge. This was done routinely on the Caribbean Princess in 2012 and 2013. The second practice involved discharges of oily bilge water originating from the overflow of graywater tanks into the machinery space bilges. This waste was pumped back into the graywater system rather than being processed as oily bilge waste, and then pumped overboard anytime the ship was more than four nautical miles from land. As a result, discharges within U.S. waters were likely. None of the discharges were recorded in the oil record books that are required to be maintained on board the ships.
“Today’s large criminal penalty makes it clear that businesses that operate in our oceans will be held accountable for violating their obligation to safeguard the marine environment,” stated Acting U.S. Attorney Greenberg. “The U.S. Attorney’s Office for the Southern District of Florida and our maritime partners are committed to ensuring that all vessel operators adhere to recognized standards in order to protect our open seas and coasts. We will continue to use the U.S. courts to pursue those who circumvent the law for their own personal gain.”
“These violations of law were serious, longstanding and designed to conceal illegal discharges,” said Acting Assistant Attorney General Wood. “The sentence in this case should ensure that these crimes do not take place in the future and should also send a strong message to others that illegally polluting U.S. waters will not be tolerated.”
“Without the courageous act of a junior crewmember to alert authorities to these criminal behaviors of deliberately dumping oil at sea, the global environmental damage caused by the Princess fleet could have been much worse,” said Rear Admiral Scott Buschman, Commander of the U.S. Coast Guard Seventh District. “The selflessness of this individual exposed five different ships that embraced a culture of shortcuts and I am pleased at this outcome.”
As set forth in papers filed in court, Princess admitted to the following:
- After suspecting that the authorities had been informed, senior ship engineers dismantled the bypass pipe and instructed crew members to lie.
- Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.” The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident.
- A perceived motive for the crimes was financial – the chief engineer that ordered the dumping off the coast of England told subordinate engineers that it cost too much to properly offload the waste in port and that the shore-side superintendent who he reported to would not want to pay the expense.
- Graywater tanks overflowed into the bilges on a routine basis and were pumped back into the graywater system and then improperly discharged overboard when they were required to be treated as oil contaminated bilge waste. The overflows took place when internal floats in the graywater collection tanks got stuck due to large amounts of fat, grease and food particles from the galley that drained into the graywater system. Graywater tanks overflowed at least once a month and, at times, as frequently as once per week. Princess had no written procedures or training for how internal gray water spills were supposed to be cleaned up and the problem remained uncorrected for many years.
Ten million of the $40 million criminal penalty imposed by the court is earmarked for community service projects to benefit the maritime environment; $3 million of the community service payments will go to environmental projects in South Florida; $1 million will go for projects to benefit the marine environment in United Kingdom waters. Additionally, $1 million of the criminal penalty will be deposited in the Abandon Seafarer's Fund, a fund established to provide a mechanism for the U.S. Coast Guard to offer humanitarian relief and support of seafarers who are abandoned in the United States and are witnesses to maritime-related crimes.
The investigation was conducted by the U.S. Coast Guard Investigative Service with assistance from the U.S. Coast Guard 7th District Legal Office, U.S. Coast Guard’s Office of Maritime and International Law and U.S. Coast Guard Office of Investigations and Analysis. In announcing the case, Acting U.S. Attorney Benjamin G. Greenberg and Acting Assistant Attorney General Wood expressed their appreciation to the U.S. Coast Guard and to the U.K.’s MCA. The case is being prosecuted by Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida, Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice and Special Assistant U.S. Attorney Lieutenant Commander Brendan Sullivan, U.S. Coast Guard.
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
Criminal Defense Attorney Sentenced to Prison for Tax EvasionRead the Press Release
WASHINGTON – A Louisiana criminal defense attorney was sentenced to 30 months in prison today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Michael Thiel, 66, a resident of Baton Rouge, Louisiana, operated a criminal defense practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel evaded paying approximately $1 million in income and employment taxes, including interest and penalties. From 2003 through 2013, Thiel did not timely file income or employment tax returns and did not make timely payments of the taxes he owed. Though Thiel had the ability to make payments towards his tax obligations, he concealed his income and assets using trusts and nominees. In 2001, he created the Thiel Family Trust, of which he was the beneficiary, fiduciary and trustee. He created two additional trusts in 2008 in the names of family members.
Thiel used these three trusts to evade the payment of federal income and employment taxes. In January 2007, Thiel used nominees to purchase his primary residence for $435,000 and entered into a phony lease agreement with the nominees to conceal his ownership of the property and shield it from IRS collection efforts. Between January 2007 and January 2014, Thiel deposited $416,283 into the nominee account that was used to secure and pay the mortgage on the property. These funds came from the nominee trusts and other accounts not held in his name.
“As a result of today’s sentence, criminal defense attorney Michael Thiel’s decade-long effort to evade paying his income and employment taxes is over, and he will begin serving time in prison,” said Acting Deputy Assistant Attorney General Goldberg. “Each April, the vast majority of Americans follow the tax law and pay their fair share. They have the right to expect that taxpayers who spurn these obligations will be held fully to account -- no matter their profession, wealth or position in the community.”
“Today’s sentencing of Michael Thiel is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” said Chief Richard Weber of Internal Revenue Service Criminal Investigation (IRS-CI). “When Mr. Thiel made the decision to evade paying taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share.”
In addition to the term of prison imposed, Thiel was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $998,352. Thiel pleaded guilty in December 2016 to evading the payment of federal income and employment taxes.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis 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.
Criminal Defense Attorney Sentenced to Prison for Tax EvasionRead the Press Release
A Louisiana criminal defense attorney was sentenced to 30 months in prison today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Michael Thiel, 66, a resident of Baton Rouge, Louisiana, operated a criminal defense practice in Hammond, Louisiana. Despite earning substantial income through his law practice, Thiel evaded paying approximately $1 million in income and employment taxes, including interest and penalties. From 2003 through 2013, Thiel did not timely file income or employment tax returns and did not make timely payments of the taxes he owed. Though Thiel had the ability to make payments towards his tax obligations, he concealed his income and assets using trusts and nominees. In 2001, he created the Thiel Family Trust, of which he was the beneficiary, fiduciary and trustee. He created two additional trusts in 2008 in the names of family members.
Thiel used these three trusts to evade the payment of federal income and employment taxes. In January 2007, Thiel used nominees to purchase his primary residence for $435,000 and entered into a phony lease agreement with the nominees to conceal his ownership of the property and shield it from IRS collection efforts. Between January 2007 and January 2014, Thiel deposited $416,283 into the nominee account that was used to secure and pay the mortgage on the property. These funds came from the nominee trusts and other accounts not held in his name.
“As a result of today’s sentence, criminal defense attorney Michael Thiel’s decade-long effort to evade paying his income and employment taxes is over, and he will begin serving time in prison,” said Acting Deputy Assistant Attorney General Goldberg. “Each April, the vast majority of Americans follow the tax law and pay their fair share. They have the right to expect that taxpayers who spurn these obligations will be held fully to account -- no matter their profession, wealth or position in the community.”
“Today’s sentencing of Michael Thiel is a strong reminder that payment of individual and business taxes is an obligation, not a choice,” said Chief Richard Weber of Internal Revenue Service Criminal Investigation (IRS-CI). “When Mr. Thiel made the decision to evade paying taxes for himself and his business, he also made the decision to cheat his employees and other honest taxpayers. Investigation of employment tax fraud is a priority for the special agents of IRS-CI as our system of taxation depends on everybody paying their fair share.”
In addition to the term of prison imposed, Thiel was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $998,352. Thiel pleaded guilty in December 2016 to evading the payment of federal income and employment taxes.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Michael Hatzimichalis 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.
Court Sentences Final of Nine-Defendant Kalamazoo Heroin Investigation to 15 Years' ImprisonmentRead the Press Release
GRAND RAPIDS, MICHIGAN — Today, U.S. District Court Judge Gordon J. Quist sentenced defendant Quintin Howell, of Kalamazoo, Michigan, to 15 years’ imprisonment, concluding a multi-defendant joint investigation conducted by the Drug Enforcement Administration (DEA), Kalamazoo Valley Enforcement Team (KVET), Michigan State Police’s Southwestern Enforcement Team (SWET), Federal Bureau of Investigation (FBI), and Berrien County Sheriff’s Department. Howell conceded that his conduct involved over 100 grams of heroin and the use of a Hi-Point, ACP Model 4595 assault rifle, with an obliterated serial number, in furtherance of his drug trafficking efforts. Additionally, the Court found that Howell was a manager in the heroin trafficking conspiracy, recruiting and directing others to further the distribution of the drug. The conspiracy Howell pleaded guilty to joining took place from 2013 through August of 2015.
Heroin distribution has been a scourge in our country and in Michigan. The Center for Disease Control reports that there were 47,055 drug overdose deaths in the United States in 2014, and that 61% involved the use of opioids, which includes heroin and the prescription narcotics that have caused an explosion of heroin use in recent years. Specifically, in Michigan, the CDC reports that 1,762 people died of drug overdoses in 2014, which is 18 people for every 100,000 of our population, a 13.2% increase over the previous year. In 2015, it rose again to 1,980 drug overdose deaths—one of the highest drug overdose death rates in the nation – 20.4 per 100,000 people See, http://www.cdc.gov/mmwr/preview/mmwrhtml/mm6450a3.htm#tab. In 2014, the Michigan Department of Community Health reported that drug overdose deaths have tripled in Michigan between 1999 and 2012. In 2015, over 33,000 Americans died of opioid overdoses.
Howell’s sentence was the final term handed down by the Court for nine total defendants charged as a result of the Kalamazoo based investigation. The investigation involved two courtordered wiretaps and 11 months of investigation by the law enforcement agencies involved.
In addition to Howell, the federal court sentenced the following individuals to the following terms of imprisonment in three related cases:
Case no. 15-cr-118
Timothy Bloodworth, 151 monthsCase no. 15-cr-119
Dion Branch, 96 months
Tyshaun Robinson, 60 months
Charles Campbell, 46 monthsCase no. 15-cr-120
Quintin Howell, 180 months
Kyle Lewis, 36 months
Maurice Streeter, 24 months
Justin Jenkins, 180 months
Henry Hall, 42 months“The successful outcome to this investigation should be credited to an extraordinary coordinated law enforcement effort to use as many investigative tools at our disposal as possible to dismantle organized drug trafficking in West Michigan,” said Acting U.S. Attorney Andrew Birge. “Heroin remains a plague upon our society. My office will continue to direct investigations that root out and hold accountable those who would profit from spreading this poison in our communities. However, we will not end this epidemic through prosecution alone. My office has been and will continue to meet with education and health care professionals and those who may be able to make a difference to raise awareness of the danger of opioids and to discuss what they can do to save others from the awful consequences of spiraling addiction.
Please contact us if you are interested in learning more.”
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Pictured in the attached photographs are four loaded firearms, and more than 100 grams of heroin seized by law enforcement in the course of the investigation.
Convicted Sex Offender Sent back to Prison After Possessing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Byerly Birge announced today that Benjamin Franklin Miklusicak, 41, of Dorr, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 124 months in prison for possessing child pornography. Miklusicak pled guilty to the charge in December. Because of a 2004 conviction for criminal sexual conduct, second degree (person under thirteen), he faced a ten-year mandatory minimum term of imprisonment.
During the investigation, Miklusicak admitted to a sexual interest in girls who are nine to thirteen years old and to viewing child pornography on a weekly basis. The images found on his laptop included some depicting prepubescent children engaging in sexual acts.
“There is perhaps no better indicator of the impending danger posed by a known pedophile than his decision to seek out images of children being abused,” Acting U.S. Attorney Birge said. “Incapacitation of recidivist sex offenders is critical to the protection of the kids in our community.”
“Miklusicak’s repeat sexual offenses make him an extreme danger to our youth. This sentencing will ensure that he no longer has access to children in any way,” said Steve Francis, Acting Special Agent in Charge of Homeland Security Investigations (“HSI”) Detroit. “The combined efforts of HSI and our partners continue to form a formidable barrier between predators and our children.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutors’ offices, the Internet Crimes Against Children task force, and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
HSI developed the investigation, and Assistant U.S. Attorney Justin M. Presant prosecuted the matter.
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Cedar Hill, Texas, Man Sentenced to 24 Months in Federal Prison for Making a False Statement in a Bankruptcy FilingRead the Press Release
DALLAS — Haywood Bernard Hall, 35, of Cedar Hill, Texas, was sentenced today by U.S. District Judge Barbara M.G. Lynn to serve 24 months in federal prison for making a false statement under penalty of perjury in a filing in a bankruptcy document, announced U.S. Attorney John Parker of the Northern District of Texas. Judge Lynn ordered Hall to surrender to the Bureau of Prisons on June 20, 2017.
On April 22, 2014, Hall was charged with four felony counts all related to the filing of a bankruptcy case in November 2010. The indictment also included allegations that Hall made false statements about his employment and used a false social security number in another bankruptcy case filed in July 2007. In May 2016, Hall pleaded guilty to Count Two of the indictment which charged Hall with making a false statement under penalty of perjury. According to documents filed in the case, Hall filed several bankruptcy related documents in November 2010 with the U.S. Bankruptcy Court in the Northern District of Texas. When Hall filed these bankruptcy papers, he knowingly and fraudulently made a material false statement under the penalty of perjury when Hall caused a “Statement of Social Security,” (Form B21) to be filed that falsely represented that the social security number listed on the Form B21 was Hall’s lawfully assigned social security number. At the conclusion of the evidence at today’s sentencing hearing, Judge Lynn stated that defendant Hall had demonstrated a repeated history of making false statements and that defendant Hall’s explanations for his criminal conduct were not credible.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. This defendant is the 16th defendant convicted since August 2013 as part of that initiative.
Social Security Administration, Office of the Inspector General investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Canadian Man Pleads Guilty in Connection with Trafficking $120,000,000.00 Worth of CocaineRead 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 Harinder Dhaliwal, 47, of Brampton, Ontario, Canada, pleaded guilty to conspiracy to export from the United States five kilograms or more of cocaine before Senior U.S. District Judge William M. Skretny. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2006 and May 2011, Dhaliwal conspired with others to smuggle cocaine into Canada from the United States and marijuana and ecstasy into the United States from Canada via several international bridges including those in the Buffalo-Niagara region. As part of his plea agreement, Dhaliwal admitted to being part of an international conspiracy that trafficked more than 3,000 kilograms of cocaine, most of it through the Western District of New York, worth an estimated $120,000,000.00.Through the course of the investigation, United States law enforcement officers recovered a combined 230 kilograms of cocaine. Of that amount, 123 kilograms of cocaine, which represents the largest seizure arising from a single investigation in the District’s history, were obtained through two separate seizures occurring at the Lewiston-Queenston Bridge and in Geneva, NY. The remaining 107 kilograms were seized in California.
Also charged in the conspiracy were Ravinder Arora, Michael Bagri, Parminder Sidhu, Alvin Randhawa, Gursharan Singh, and Huy Hoang Nguyen. All defendants have been convicted.
The defendants utilized tractor-trailers that contained false compartments within the floor of tractor-trailers. Dhaliwal and others purchased steel tubing, kick plates and other supplies to fabricate the false compartments in several tractor-trailers. In addition to cocaine, the tractor-trailers were used to transport ecstasy and hundreds of pounds of marijuana into the United States from Canada. Drug ledgers seized during the investigation detailed approximately a dozen smuggling trips, during late 2009 to September 2010, involving approximately 1,617 kilograms of cocaine being transported from the United States, through the Western District of New York, into Canada.
The plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; Officers from the United States Customs and Border Protection, under the direction of Rose Hilmey, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
Sentencing is scheduled for August 16, 2017, at 2:00 p.m. before Judge Skretny.
Burneyville Man Pleads Guilty to Possession of Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACOB RHETT HOLLAND, age 24, of Burneyville, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 120 months imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about December 25, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charge arose from an investigation by the Love County Sherriff’s Office, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Bureau of Prisons Employee Admits to Providing Marijuana to PrisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cody Tyler Layman of Terra Alta, West Virginia, pled guilty to providing an inmate with marijuana, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Layman, age 32, pled guilty to one count of “Introduction of a Prohibited Object - Marijuana.” Layman admitted to providing an inmate with marijuana at the United States Penitentiary Hazelton on August 27, 2016.
Layman resigned from his position at the USP during the investigation.
Layman faces up to five years and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Justice, Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Broken Arrow Man Sentenced to 51 Months for Possession of Materials Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CODY LANE PAX, age 20, of Broken Arrow, Oklahoma, was sentenced to 51 months imprisonment, and 10 years of supervised release for POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The Indictment alleged that between in or about November 2015 and on or about March 9, 2016, in the Eastern District of Oklahoma, the defendant, did knowingly possess, attempt to possess and access with intent to view matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), the production of said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charge arose from an investigation by the Federal Bureau of Investigation.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Edward Snow represented the United States.
Aurora Oregon Man Sentenced to 39 Months in Prison for Mail TheftRead the Press Release
PORTLAND, Ore. – On April 12, 2017, Gregory Allen Rathkey, 38, was sentenced by U.S. District Court Judge Michael W. Mosman to 39 months in federal prison for conspiracy to steal mail, possession of a counterfeit postal service "arrow" key, unauthorized use of a credit card and aggravated identity theft. Upon his release from prison, Rathkey will be on supervised release for three years.
Beginning in November 2015 and continuing until April 1, 2016, Rathkey and others engaged in a conspiracy to steal over 100 pieces of mail, including credit cards, checks and packages delivered to 77 victims in the greater Portland area. Rathkey used counterfeit postal arrow keys and other tools to access locked mailboxes in various neighborhoods. He then activated victims’ credit cards stolen from the mail and used them to purchase goods, gift cards and other preloaded debit cards.
This case was investigated by the United States Postal Inspection Service and was prosecuted Quinn P. Harrington, Assistant United States Attorney for the District of Oregon.
Albuquerque Man Facing Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., yesterday found probable cause to support a criminal complaint charging Isaac Joseph Dodge, 41, of Albuquerque, with armed bank robbery offenses. During the proceedings, Dodge waived his right to a detention hearing and was ordered to remain in custody pending trial.
Dodge was arrested on April 13, 2017, on a criminal complaint charging him with committing two armed bank robberies in Bernalillo County, N.M. The complaint alleges that Dodge robbed the BBVA Compass Bank located at 1201 San Pedro Drive NE in Albuquerque on March 7, 2017. According to the complaint, Dodge robbed the bank by brandishing a handgun, restraining a bank customer against her will while holding a gun to her head, and demanding money from two bank tellers. The complaint also alleges that Dodge robbed the US Bank branch located at 1418 Carlisle Boulevard NE in Albuquerque on April 4, 2017.
If convicted, Dodge faces a maximum penalty of 25 years in federal prison on each armed bank robbery charge. If the court determines that Dodge is subject to the three strikes enhancement based on his prior felony convictions, he faces a mandatory term of life imprisonment upon conviction. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Additional Charge Against Maryland Man for Enticing a Minor for SexRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Maryland man previously charged with enticing a minor to engage in illicit sexual activity was indicted by a federal grand jury today.
William Lee Dela Cruz, 22, of Maryland, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Dela Cruz on April 10, 2017, and includes an additional charge. Dela Cruz remains in federal custody pending a detention hearing.
Today’s indictment charges Dela Cruz with traveling across state lines to engage in illicit sexual conduct with a minor. The indictment also contains the original charge of enticing a minor to engage in illegal sexual activity.
According to an affidavit filed in support of the original criminal complaint, an Amber Alert was issued for the 12-year-old victim, identified in court documents as “Jane Doe,” on Sunday, April 9, 2017. Members of the public contacted law enforcement in response to the Amber Alert and she was recovered in Wentzville, Mo., the same day. Dela Cruz was arrested by Wentzville police officers.
Jane Doe told investigators she had been involved in an online relationship with Dela Cruz since November 2016 (when she was 11 years old). They communicated through telephone, Skype, Facebook Messenger and Discord (an application that provides free voice and text options, especially for communications between individuals involved in the gaming culture). Jane Doe stated she met Dela Cruz online through the computer game Onigiri, a multi-player fantasy online role-playing game.
On Saturday, April 6, 2017, Dela Cruz and his brother (who has not been charged) drove from Maryland to Missouri to pick up Jane Doe with the intent of driving her back to Maryland, according to the affidavit.
During the drive back to Maryland, the affidavit says, an argument between the brothers occurred. As a result, Dela Cruz’s brother dropped them off at a service station and drove away. Dela Cruz and Jane Doe attempted to obtain a room at the Hampton Inn in Wentzville but did not have sufficient funds for a room. Instead, they slept on a couch in the lobby of the hotel.
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 Teresa Moore. It was investigated by the FBI, the Blue Springs, Mo., Police Department and the Wentzville, Mo., Police Department.
18 April 2017
Wilmington Man Sentenced to 12 Years for Heroin and Fentanyl DistributionRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that on April 12, 2017 in Federal court, Senior United States District Judge Malcolm J. Howard sentenced TROY AHKEEM WILSON, 38, of Wilmington to 144 months imprisonment, followed by 5 years of supervised release.
WILSON was named in a two-count Superseding Indictment filed on September 21, 2016, and pled guilty to Possess with the Intent to Distribute a Quantity of Heroin and Possess with the Intent to Distribute 40 Grams of More of Fentanyl on January 12, 2017.
The basis of his charges stemmed from two incidents in February and April of 2016. On February 3, 2016, officers from the Duplin County Sheriff’s Office conducted a traffic stop on a vehicle driven by WILSON. WILSON and a passenger in the vehicle gave consent for the vehicle to be searched. During the search of the vehicle, officers observed an off-white powdery substance on WILSON’s hands and coat and seized an open plastic bag containing .81 gram of heroin on the ground where WILSON had been sitting. WILSON and the passenger were arrested and transported to jail.
Upon being searched at the jail, a small plastic package containing 16.73 grams of heroin was located in the passenger’s bra. She told law enforcement officers that she and WILSON drove to New York where WILSON met a man in order to purchase heroin. On the trip back from New York to Wilmington, WILSON possessed three glove “fingers” of heroin and gave her one. Law enforcement officers later searched the police vehicle used to transport WILSON to jail and located another small plastic package containing 13.18 grams of heroin.
On April 29, 2016, officers from the Brunswick County Sheriff’s Office conducted a traffic stop on a vehicle driven by WILSON. Upon approach, the officer smelled marijuana coming from the vehicle. A search of the vehicle resulted in the seizure of three small bags of marijuana, five bags of heroin banded together, and a large bag containing several individual bags of fentanyl, and other drug paraphernalia. The amount of drugs seized from the vehicle was 95.70 grams of fentanyl and 3.48 grams of a fentanyl and heroin mixture. WILSON was arrested and transported to jail.
Fentanyl is an extremely dangerous drug to law enforcement officers and, if improperly handled, it has deadly consequences. According to the DEA, it is 40 to 50 times stronger than street-level heroin. A very small amount ingested or absorbed through the skin can kill. For more information about this dangerous drug, you can go to this link https://ndews.umd.edu/sites/ndews.umd.edu/files/DEA%20Fentanyl.pdf.
Based on the investigation, WILSON is accountable for approximately 99.18 grams of fentanyl, 30.94 grams of heroin, 14 grams of marijuana, and 0.4 gram of crack cocaine.
This case was investigated by the FBI’s Coastal Carolinas Criminal Enterprise Task Force consisting of the FBI’s Wilmington Resident Agency, the Brunswick County Sheriff’s Office, the New Hanover County Sheriff’s Office, and the North Carolina State Bureau of Investigation. Additional assistance was provided by the Duplin County Sheriff’s Office. Assistant U.S. Attorney Laura Howard prosecuted the case on behalf of the government.
Upshur County Woman Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 38-year-old Gilmer, Texas woman has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Shanna Peek Tidwell pleaded guilty on Dec. 6, 2016, to conspiracy to commit offenses against the United States and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, six automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, her husband, Jeremy Chad Tidwell, 41, of Gilmer, and brother-in-law, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in cash, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
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.
The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Upshur County Woman Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 38-year-old Gilmer, Texas woman has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeremy Chad Tidwell pleaded guilty on Dec. 6, 2016, to conspiracy to commit offenses against the United States and was sentenced to 30 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, six automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, her husband, Jeremy Chad Tidwell, 41, of Gilmer, and brother-in-law, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in cash, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
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.
The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Two Local People Sentenced on Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Charles Johnson and Shayne Kier Jones were both sentenced to 141 months in prison each for their involvement in the April 4th, 2016 armed robbery of a Dunbar Armored truck.
According to court documents, Johnson and Jones robbed Dunbar Armored Company shortly after a money pickup. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and his duty was to exit the armored truck to do the pickup and delivery of US currency. A second employee (CT) was assigned as the driver. At the end of the day’s route CT was told by Jones that he, Jones, would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted as if he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. Jones threw the money bags out the back door to Johnson and another man (JB). CT said that there was a white Buick vehicle right next to the armored car. CT and Jones then drove the truck from the scene of the armed robbery.
On April 14th, the owner of the white vehicle, JB, which was used in the robbery was interviewed and admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told JB that he had a cousin who worked for the armored truck company and would assist in the robbery. JB’s role was to be the driver of the getaway car, the white car. On April 4th, JB and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location and got out of the truck which allowed JB and Johnson to approach and demand money. Jones was the inside employee. After the robbery, JB and Johnson drove the white car loaded with the stolen money to JB’s residence where the money was transferred to another car. They then drove to JB’s mother’s house and divided the stolen money into three shares. As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money for himself and Jones.
Johnson, 36, and Jones, 30, both of St. Louis City, pled in December to one count each of conspiracy to interfere with commerce by threats of violence and use of firearm to commit that offense, and appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by the St. Louis Metropolitan Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
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