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Thursday 2 March 2017
Former Arkansas State Senator and Two Others Charged with Bribery and Fraud SchemeRead the Press Release
A former Arkansas state senator, a college president and a consultant were charged in an indictment filed for perpetrating a bribery and fraud scheme involving tens of thousands of dollars in bribes provided to the senator and another legislator in exchange for directing approximately $600,000 in government funds to two non-profit entities, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Elser of the Western District of Arkansas.
Jonathan E. Woods, 39, of Springdale, Arkansas, was charged with 11 counts of honest services wire fraud, one count of honest services mail fraud and one count of money laundering. Oren Paris III, 49, also of Springdale, and Randell G. Shelton Jr., 37, of Alma, Arkansas, were each charged with nine counts of honest services wire fraud and one count of honest services mail fraud. The defendants’ arraignments will be scheduled at a later date.
As alleged in the indictment, Woods served as an Arkansas state senator from 2013 to 2017. Between approximately 2013 and approximately 2015, Woods used his official position as a senator to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities by, among other things, directly authorizing GIF disbursements and advising other Arkansas legislators – including former state representative Micah Neal – to contribute GIF to the non-profits. Specifically, Woods and Neal authorized and directed the Northwest Arkansas Economic Development District, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities. The indictment further alleges that Woods and Neal received bribes from officials at both non-profits, including Paris, who was the president of a college. The indictment alleges that Woods initially facilitated $200,000 of GIF money to the college and later, together with Neal, directed another $200,000 to the college, all in exchange for kickbacks. To pay and conceal the kickbacks to Woods and Neal, Paris paid a portion of the GIF to Shelton’s consulting company. According to the indictment, Shelton then kept a portion of the money and paid the other portion to Woods and Neal. Paris also bribed Woods, the indictment alleges, by hiring Woods’s friend to an administrative position at the college.
For his part in the scheme, Neal pleaded guilty on Jan. 4, 2017, before U.S. District Judge Timothy L. Brooks of the Western District of Arkansas to one count of conspiracy to commit honest services fraud. Sentencing will be scheduled at a later date.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Internal Revenue Service investigated the case. Trial Attorney Sean Mulryne of the Criminal Division’s Public Integrity Section and U.S. Attorney Elser and Assistant U.S. Attorneys Kyra Jenner and Ben Wulff of the Western District of Arkansas are prosecuting the case.
Any information regarding public corruption can be provided to the FBI in Little Rock through their public corruption hotline, which is 501-221-8200.
Woods IndictmentFlorida Man Pleads Guilty to Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Fort Lauderdale, Fla., man pleaded guilty in federal court today to his role in an international, multi-million-dollar software piracy scheme.
David Reece, 47, of Fort Lauderdale, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays to a federal information that charges him with conspiracy.
Investigators have seized more than $20 million in assets from conspirators in separate but related cases, who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers. Reece admitted today that he received approximately $2.5 million worth of illicit software key cards.
By pleading guilty today, Reece admitted that he conspired with others – including Casey Lee Ross, 30, of Kansas City, Mo., and another individual in the People’s Republic of China – to smuggle illegal merchandise into the United States and distribute it to others. Reece bought and sold illicit and/or unauthorized Microsoft Office product key cards. (Product key cards contain codes that are used to obtain full access to licensed versions of copyrighted Microsoft software programs, in this case, purportedly for Lenovo computers.)
Reece purchased large volumes of Microsoft Office product key cards from Ross and the Chinese co-conspirator. Reece then resold them to other illicit software suppliers and customers. Among Reece’s customers are two co-conspirators identified in court documents as “Individual I” and “Individual J,” who were operating in Texas.
Reece admitted that, between Sept. 21, 2013, and March 14, 2015, he received approximately 20 physical shipments of contraband, with each shipment containing approximately 500 Microsoft Office “Lenovo” product key cards, for a total of approximately 10,000 contraband items. At an estimated loss of $250 per item, this constitutes a total loss of approximately $2.5 million.
Reece is the eighth defendant charged in the software piracy scheme and the seventh defendant to plead guilty.
The investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross, the owner of Software Slashers, had purchased (and redistributed) tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from sources in China. Ross has pleaded guilty to his role in the conspiracy and was sentenced to five years of probation.
Under federal statutes, Reece is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Curt Bohling. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Florence Man Enters Guilty Plea in Federal Court on Drug ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Henry Quaysean Thomas, age 40, of Florence, pled guilty on Monday in federal court in Florence, to possession with intent to distribute marijuana and crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1) and 841(b)(1)(C). United States District Judge R. Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on May 18, 2016, members of the Florence County Sheriff’s Office executed a search warrant on a room at local Florence hotel. Thomas was arrested and officers seized 78 grams of marijuana, 7 grams of crack cocaine, and $930 in cash. The search warrant was based on previous controlled buys of illegal narcotics from Thomas at that location. Thomas later admitted to law enforcement that he was selling illegal drugs from that location.
Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.
The case was investigated by agents of the Florence County Sheriff’s Office. Assistant United States Attorney Buddy Bethea of the Florence office handled the case.
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Felon from Roswell Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Stephen Daniel Sanchez, 41, of Roswell, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to violating the federal firearms laws by unlawfully possessing a firearm.
Sanchez and his co-defendant Melodie Ann Andrews, 29, also of Roswell, were charged by criminal complaint with being felons in possession of firearms and ammunition on July 28, 2016, in Chaves County, N.M. According to the criminal complaint, law enforcement officers executed search warrants on the vehicle and the residence of Sanchez and Andrews on July 28, 2016, and seized approximately 12.1 grams of methamphetamine, 0.4 grams of marijuana, drug paraphernalia, firearms and ammunition, and $3,376 in cash. At the time, Sanchez was prohibited from possessing firearms and ammunition because he previously had been convicted of second degree murder in 1996. Andrews also was prohibited from possessing firearms and ammunition because she previously had been convicted of misprision of a felony in 2008.
During yesterday’s proceedings, Sanchez pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Sanchez admitted that on July 28, 2016, he possessed a firearm despite his prior conviction of second degree murder in Chaves County in 1996. At sentencing, Sanchez faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
Andrews has entered a plea of not guilty to the criminal complaint. If convicted of the charge in the complaint, Andrews faces a maximum penalty of ten years in federal prison. Charges in complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chaves County Metro Narcotics Task Force, and the Roswell Police Department. Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Federal Grand Jury Returns Superseding Indictment Against Bandidos Outlaw Motorcycle Organization LeadershipRead the Press Release
In San Antonio, a federal grand jury has returned a second superseding indictment against the highest ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO), adding four new defendants and additional murder-related charges.
That announcement was made today by United States Attorney Richard L. Durbin, Jr., Western District of Texas; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.
This morning, federal, state and local authorities arrested 47–year-old Bandidos National Sergeant at Arms Johnny Romo (aka “Downtown Johnny”) of San Antonio; 45-year-old Bandidos San Antonio Centro Chapter member Robert Romo of San Antonio; 40-year-old Bandidos San Antonio Centro Chapter Sergeant at Arms Jesse James Benavidez (aka “Kronic”) of San Antonio; and, 35-year-old Bandidos San Antonio Centro Chapter member Norberto Serna, Jr. (aka “Hammer”) of San Antonio for their roles in the 2006 murder of Anthony Benesh. Authorities apprehended Johnny Romo in Waco, TX; the other three, in San Antonio. The 12-count second superseding indictment, unsealed late this afternoon in San Antonio, charges all four with one count of discharging a firearm during a murder in aid of racketeering. Johnny Romo and Robert Romo are also charged with murder in aid of racketeering.
The indictment alleges that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006. Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored. The four then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Included in the indictment are the previous federal charges filed against 61–year-old Bandidos National President Jeffrey Fay Pike of Conroe, TX, and 57–year-old National Vice President John Xavier Portillo of San Antonio. Portillo also faces a new charge (discharging a firearm during a murder in aid of racketeering) for his role in the retaliation murder of Robert Lara in January 2002 in Atascosa County for killing one of their own. Javier Negrete, a member of the same Bandidos OMO chapter as Portillo, was killed outside a San Antonio bar in October 2001.
Pike and Portillo are charged with one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute; one count of conspiracy to commit violent crimes in aid of racketeering (VICAR); and one count of conspiracy to interfere with commerce by extortion.
Portillo is also charged with: one count of VICAR (murder); two counts of aiding and abetting VICAR (assault with a deadly weapon); one count of conspiracy to possess with intent to distribute methamphetamine and cocaine; one count of possession with intent to distribute cocaine; and, one count of felon in possession of a firearm.
Pike and Portillo are accused of directing, sanctioning, approving and permitting members of the Bandidos organization to carry out racketeering acts including murder, attempted murder, robbery, assault, intimidation, extortion and drug trafficking to protect and enhance the organization’s power, territory, reputation and profits.
According to court records, the Bandidos OMO declared it was “at war” with the Cossacks OMO. The indictment specifically alleges a number of violent acts committed by Bandidos OMO members in furtherance of this “war.” The indictment also alleges that Portillo and other members of the Bandidos OMO were engaged in trafficking methamphetamine and cocaine and maintained an agreement with the Texas Mexican Mafia wherein Bandidos OMO members were not required to pay the 10-percent “dime” to the Texas Mexican Mafia in exchange for permission to traffic narcotics.
Pike is currently out on bond pending trial. Portillo remains incarcerated pending trial. Jury selection is currently scheduled for August 7, 2017. The other defendants remain in custody pending detention hearings next week before United States Magistrate Judge John Primomo in San Antonio. Upon conviction, the defendants face up to life in federal prison.
This ongoing investigation is being conducted by the FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
United States Attorney Beth Drake stated today that on February 28, 2017, a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Conway Man Indicted on Federal Gun Charge. Benjamin Thomas Samuel McDowell, age 30, of Conway, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty McDowell could receive is a maximum fine of $250,000.00 and/or imprisonment of 10 years. The case was investigated by agents of the Federal Bureau of Investigation (FBI), Myrtle Beach Police Department and Horry County Police Department. The case is assigned to Assistant United States Attorney Brad Parham of the Florence office for prosecution.
Illegal Alien Charged with Possession with Intent to Distribute Cocaine. William Rodriguez-Alarcon, age 39, of North Myrtle Beach, South Carolina, was charged in a four-count indictment with possession with intent to distribute and distributing cocaine, a violation of Title 21, United States Code, Section 841(A)(1). The maximum penalty Rodriguez-Alarcon could receive for each count is a maximum fine of $250,000.00 and/or imprisonment of 40 years. The case was investigated by agents of the ICE - Homeland Security Investigations and is assigned to Assistant United States Attorney Alfred W. Bethea, Jr. of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Eight Indicted for Drug Trafficking and Firearms Offenses in Fox Valley RegionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 28, 2017, a federal grand jury returned a nine-count indictment against eight individuals involved in drug trafficking in the Fox Valley area of Northeastern Wisconsin. The indictment named the following individuals:
- Brady Pomeroy (Age: 38), of Fox Crossing, Wisconsin
- Omar Sanchez (Age: 24), of Los Angeles, California
- Curtis Whitaker (Age: 24), of Appleton, Wisconsin
- Zoey Scott (Age: 20), of Fox Crossing, Wisconsin
- Zachary Hietpas (Age: 31), of Kaukauna, Wisconsin
- Teng Her (Age: 32), of Waupun, Wisconsin
- David Ly (Age: 31), of Sacramento, California; and
- Zachary Kryzaniak (Age: 23), of Green Bay, Wisconsin
All eight defendants are charged in Count One with Conspiracy to Distribute Greater Than 50 Grams of Methamphetamine in violation of Title 21, United States Code, Section 846. Each defendant faces a sentence on this count of a minimum of 10 years, and up to life, in prison; up to a $10,000,000 fine; and between 5 years and a lifetime of supervised release. Additional drug charges were issued against Sanchez, Whitaker, Scott, Pomeroy, and Hietpas. Pomeroy also faces additional firearms charges.
According to the indictment, the defendants conspired amongst themselves and with others to obtain and distribute more than 1500 grams of methamphetamine in the Fox Valley area of Northeastern Wisconsin. Multiple search warrants were executed at residences in Appleton and Fox Crossing, and a business in Fox Crossing.
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group - Drug Unit, Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force, Oshkosh Police Department, Appleton Police Department, Outagamie County Sheriff’s Department, Winnebago County Sheriff’s Department, Fox Crossing Police Department, Grand Chute Police Department, Winnebago County District Attorney’s Office, Outagamie County District Attorney’s Office, Wisconsin State Crime Laboratory, and United States Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Andrew J. Maier.
An indictment is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Eagle Butte Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 21, 2017, by U.S. District Judge Roberto A. Lange.
Duciana Eagle Chasing, a/k/a Duciana Ranay Comes Flying, age 40, was sentenced to 6 months in custody, 3 years of supervised release, a $500 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Eagle Chasing was indicted by a federal grand jury on July 19, 2016, for Distribution of a Controlled Substance between May 10, 2016, and May 27, 2016. Eagle Chasing pled guilty on November 8, 2016, admitting that she distributed methamphetamine, a Schedule II controlled substance, in South Dakota on May 10, 12, and 27, 2016.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Eagle Chasing was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Distribution of Methamphetamine and EscapeRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Distribution of a Controlled Substance and Escape was sentenced on January 3, 2017, by U.S. District Judge Roberto A. Lange.
Tyson Curtis LeCompte, a/k/a Tyson Garreaux, age 22, was sentenced for Distribution of a Controlled Substance, to 15 months in custody, 3 years of supervised release, a $1,000 fine, and the forfeiture of $1,520.00 in U.S. currency seized by law enforcement. LeCompte was sentenced to 10 months in custody for Escape, the sentence to run concurrently with the Distribution sentence. He was further ordered to pay a special assessment of $200 to the Federal Crime Victims Fund.
LeCompte was indicted by a federal grand jury on August 16, 2016, for Distribution of a Controlled Substance. He pled guilty to Distribution of a Controlled Substance on October 4, 2016. LeCompte was also indicted by a federal grand jury on November 9, 2016, for Escape, and pled guilty to that charge on December 20, 2016.
LeCompte admitted to distributing methamphetamine, a Schedule II controlled substance, on June 25, 2016, in South Dakota, and that U.S. currency seized by law enforcement on another date was proceeds of a criminal offense.
In the Escape case, LeCompte requested and was granted a one-day furlough to attend a funeral in Eagle Butte on October 19, 2016. LeCompte admitted that he failed to return to the Hughes County Jail in Pierre that evening, as ordered by the Court. LeCompte was arrested in Cherry Creek on the evening of October 20, 2016.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the U.S. Marshals Service. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
LeCompte was immediately turned over to the custody of the U.S. Marshals Service.
Dual Citizen Convicted by Federal Jury of International Parental KidnappingRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Salih Zeki Uces (39) guilty of international parental kidnapping. Uces, a dual Turkish/United States citizen, faces a maximum penalty of three years in federal prison. His sentencing hearing is scheduled for June 5, 2017.
Uces was indicted on December 1, 2016, after being arrested at the Miami International Airport on November 10, 2016.
According to testimony and evidence presented at trial, Uces asked his estranged wife for an overnight visit with their two-year-old child at a Jacksonville hotel on September 16, 2016, and promised to return the child on the following day or the day after. Instead, he took the child to the Jacksonville International Airport and boarded a series of three flights bound for Adana, Turkey.
Two days before taking the child, Uces had gone to his estranged wife’s apartment, rifled through her personal items, and stolen her passport. While in her apartment, he also viewed a draft divorce petition in his wife’s email.
Three days before leaving, Uces signed a power of attorney over to his brother, allowing his brother to sell his car while he was in Turkey. On the day of the kidnapping, Uces closed out his safety deposit box at a local bank branch.
Uces refused his estranged wife’s requests to return the child until after he learned that a state court had issued an authorization for his arrest. Ultimately, on November 10, 2016, he returned to the United States with the child and was arrested by FBI agents. The child was immediately returned to her mother.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.
District of Columbia man pleads guilty to federal gun crimeRead the Press Release
BECKLEY, W.Va. – A District of Columbia man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Nicholas Loukas, 31, entered his guilty plea to conspiracy to make false statements on records kept by licensed firearms dealers.
Loukas admitted that in September 2015, he directed others to purchase firearms for him so that he would not be named in records required to be maintained by federally-licensed firearms dealers. When the purchases were made, the buyers listed their names on the forms required by the Bureau of Alcohol, Tobacco, Firearms and Explosives, instead of Loukas’ name. Loukas further admitted that four handguns were purchased for him by others at Shooter’s Roost in Beckley. Loukas also admitted that another handgun was purchased for him by an individual at J & S Pawn in Beckley. As part of the investigation, law enforcement additionally recovered another handgun and a shotgun that Loukas unlawfully possessed. Loukas was prohibited from possessing any firearm under federal law because of a 2002 robbery conviction in Maryland.
Loukas faces up to five years in federal prison when he is sentenced on June 7, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Dillon Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Florwer Carlin Lizano, age 31, of Dillon, pled guilty on Monday in federal court in Florence, to possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge R. Bryan Harwell of Florence accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established on August 5, 2016, an officer with the Dillon Police Department found Lizano asleep in a vehicle at 5:00am. When the officer approached the vehicle, he observed a hand gun in Lizano’s waist band. It was determined that Lizano was a previously convicted felon and was legally prohibited from possessing a firearm. The firearm was a 9mm pistol which had previously traveled in interstate commerce which gave federal agents jurisdiction over the case.Ms. Drake stated the maximum penalty the defendant faces is imprisonment for up to 10 years and a fine of $250,000.
The case was investigated by officers with the Dillon Police Department and agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Buddy Bethea of the Florence office handled the case.
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Colorado Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Colorado Springs, Colorado, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 13, 2017, by U.S. District Judge Roberto A. Lange.
James Andrew Boswell, age 29, was sentenced to 48 months in custody, 3 years of supervised release, a $1,000 fine, the forfeiture of two firearms, $1,408.85 in United States currency seized by law enforcement, and a $100 special assessment to the Federal Crime Victims Fund.
Boswell was indicted by a federal grand jury on June 14, 2016. He pled guilty on November 22, 2016.
On May 9, 2016, Boswell was stopped by law enforcement in Lower Brule, South Dakota, on a traffic violation. Law enforcement determined that Boswell had an active arrest warrant for attempted murder out of Colorado. Inside Boswell’s vehicle was found 160 grams of methamphetamine and a cutting agent, heroin, drug paraphernalia, and two firearms. As part of his guilty plea, Boswell admitted that, since April of 2016, he had received distributable quantities of methamphetamine, a Schedule II controlled substance, from other individuals who knew that he intended to engage in further distribution of methamphetamine, and that he distributed methamphetamine to other individuals in South Dakota. Boswell further admitted that the methamphetamine, cash, and firearms found in his vehicle belonged to him, and that it was reasonably foreseeable to him that more than 50 grams of methamphetamine would be distributed over the course of the conspiracy.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Agency, the South Dakota Department of Criminal Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Boswell was immediately turned over to the custody of the U.S. Marshals Service.
Cocaine Smuggler Convicted on Federal ChargesRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Brownsville man has entered a guilty plea in Corpus Christi federal court to possession with the intent to distribute 14 kilograms of cocaine, announced U.S. Attorney Kenneth Magidson.
Authorities arrested Luis Alberto Cisneros Dec. 9, 2016, at the Border Patrol (BP) checkpoint near Sarita. On that date, he approached the primary inspection lane where a canine alerted to the presence of narcotics. He and his vehicle were sent to secondary inspection, at which time agents noticed inconsistencies with the rear differential, which was cold and had visible tool marks. Upon further inspection, they located a black bundle. A total of 14 bundles were ultimately found concealed inside the rear axle containing a total of approximately 14 kilograms of cocaine.
At today’s hearing, Cisneros admitted he knew drugs were hidden in the vehicle and that he was going to be paid for delivering them to the Houston area.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and has set sentencing for June 8, 2017. At that time, Cisneros faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine.
The Drug Enforcement Administration conducted the investigation with the assistance of BP. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Cleveland man faces drug and firearms chargesRead the Press Release
A Cleveland man was indicted on federal firearms and drug charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Terrell Howard, 47, was indicted on four counts: being a felon in possession of two firearms and ammunition; possessing with the intent to distribute crack cocaine; possessing with the intent to distribute marijuana and maintaining a drug house.
Howard possessed with the intent to distribute crack cocaine base and marijuana on Oct. 19, 2016, according to the indictment.
He also a residence on West 9th Street in Cleveland for the purpose of distributing marijuana, according to the indictment.
Howard possessed a .45 caliber pistol, a .40 caliber pistol, and ammunition on Oct. 19, 2016, despite having multiple felony convictions, according to the indictment.
The Drug Enforcement Agency conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Ranya Elzein.
If convicted, the court will determine Terrell Howard’s sentence after a review of factors unique to this case, including his prior criminal record, if any, his role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cherry Creek Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 27, 2017, by U.S. District Judge Roberto A. Lange.
Delano White Face, age 41, was sentenced to 33 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Face was indicted by a federal grand jury on June 14, 2016. He pled guilty on December 13, 2016.
The conviction stems from White Face failing to register as a sex offender as required by federal law between August 1, 2015, and June 14, 2016. White Face had previously been convicted of a sex offense in federal court, which requires him to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
White Face was immediately turned over to the custody of the U.S. Marshals Service.
Chemical Company and Its Owner Sentenced for Rebate Scheme, False Statements to U.S. CustomsRead the Press Release
COLUMBUS, Ohio – Alden Leeds, Inc., a New Jersey swimming pool and spa chemicals company, and its president, Mark Epstein, were sentenced in U.S. District Court for convictions related to customs and import violations. The case was unsealed today. Epstein was sentenced to serve eight months in prison and four months of home confinement for his role in an elaborate rebate scheme which involved false statements to U.S. Customs, followed by inflated payments for imported chemicals and then rebates paid back to Alden Leeds, Inc. The company was also sentenced, receiving three years of probation and ordered to pay restitution to Customs in the amount of $2.25 million.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, the Environmental and Natural Resources Division of the Department of Justice, Steve Francis, Acting Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI), Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and John K. Gauthier, Acting Special Agent in Charge, U.S. Environmental Protection Agency (EPA) criminal enforcement program announced the sentences handed down on February 1 by Senior U.S. District Judge James L. Graham.
Epstein and Alden Leeds, Inc. had an agreement with a middleman to establish two prices for the imported chlorine – an “actual price” that the company was paying and a higher “invoice price” that would be used for documentation at U.S. Customs to avoid suspicions of dumping.
Dumping occurs when foreign merchandise is sold in the United States for less than fair market value, which prevents fair competition between United States companies and foreign industry.
According to court documents, from 1998 through at least June 2012, various businesses in Columbus, Ohio served as the American representative for domestic companies seeking to import swimming pool sanitizing agents from China.
As the middleman, Caiwei Sheng operated the Columbus businesses and engaged in a scheme that involved using a shell corporation in Vietnam to make it appear that the chlorine was manufactured there instead of China. This was done to avoid a 286 percent anti-dumping duty or tax that was ordered by the Department of Commerce beginning in 2005. No such anti-dumping duty existed for Vietnam as it did China.
As part of the rebate scheme, the price of the chlorine was deliberately overstated at Customs. the time the chlorine was imported. Sheng would receive payment for the inflated, invoice price and he would then wire the lesser actual price for the chlorine to the originating companies in Vietnam and China before wiring a rebate to Alden Leeds, Inc.
At the request of Alden Leeds, Inc., the rebate was labeled a “consulting fee” and sent to one of the company’s sister corporations in another state.
“The Alden Leeds company and its president, Mark Epstein, conspired with others to make false statements to Customs about the price of the chlorine they were buying from China and Vietnam, in order to avoid potentially higher duties aimed at ensuring fair competition between United States companies and foreign industry,” U.S. Attorney Glassman said. “Now, not only do they have to pay Customs $2.5 million and fines and forfeiture of $500,000, but Epstein must serve time in federal prison and Alden Leeds will spend three years on probation. Those who import goods from overseas must tell the truth to Customs and play fair with American companies.”
Epstein pleaded guilty on February 1 to one count of conspiracy to make false statements and violate United States’ customs and importation laws and one count of entry of goods by means of false statement. As part of the plea agreements, Epstein is paying $500,000 in restitution and forfeiture and Alden Leeds, Inc. is paying $2.25 million in restitution. Alden Leeds, Inc. also agreed to donate 2,765 gallons of hospital grade disinfectant to the Ministry of Public Health and Population of Haiti.
Sheng pleaded guilty to violating Customs laws as well as USEPA laws requiring truthful statements concerning the importation of chemicals into the United States, and on August 21, 2015, was sentenced to a prison term of 12 months and one day in prison and ordered to pay restitution of $100,000.
U.S. Attorney Glassman commended the investigation of this case by HSI, IRS Criminal Investigation, FBI and U.S.EPA, as well as Assistant United States Attorneys J. Michael Marous and Jessica W. Knight and Department of Justice Senior Trial Attorney Christopher J. Costantini who are representing the United States in this case.
Charlottesville Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Charlottesville, VIRGINIA – A Charlottesville man, who distributed crack cocaine throughout the Charlottesville Region, pled guilty yesterday in the United States District Court for the Western District of Virginia in Charlottesville, Acting United States Attorney Rick A. Mountcastle announced.
Ricco Jamel Harris, 35, of Charlottesville, pled guilty yesterday to one count of distributing and possessing with the intent to distribute 280 grams or more of cocaine base.
According to evidence presented at yesterday’s guilty plea by Assistant United States Attorney Ronald M. Huber and University of Virginia Third-Year Law Student Elizabeth Douglas, Harris distributed crack cocaine throughout Central Virginia between late 2012 and November 2015. The evidence established that Harris was a major supplier of cocaine in Charlottesville. He also supplied the drug to members of a cocaine distribution ring operating out of the Culpeper area and who’s members were previously prosecuted in Federal court.
During the time frame at issue, agents with the Jefferson Area Drug Task Force [JADE] made a series of controlled buys from Harris and seized over 75 grams of crack cocaine during a traffic stop. Ultimately it was determined that Harris was responsible for the distribution of over 4 kilograms of crack cocaine between late 2012 and November 2015.
The investigation of the case was conducted by the Jefferson Area Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration and the City of Charlottesville Police Department. Assistant United States Attorney Ronald M. Huber and University of Virginia Third-Year Law Student Elizabeth Douglas prosecuted the case for the United States.
Buffalo/Jamaican Drug Dealer Pleads Guilty to Bribery of Postal CarrierRead 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 Rudolph Dwight Hanchard, 39, a Jamaican national living in Buffalo, NY, pleaded guilty to bribery of a public official and attempt to possess with intent to distribute marijuana, before U.S. District Judge Lawrence J. Vilardo. The charges carry a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Hanchard received mail parcels from California and Arizona that contained marijuana for sale in Buffalo. Among his associates was then-postal carrier Briana Fugate who ensured the delivery of the defendant’s packages. In addition to receiving his own parcels containing marijuana, Hanchard paid Fugate for more marijuana worth approximately $30,000. Fugate stole the marijuana from other mail parcels that were part of her delivery route. This arrangement spanned August to October 2015.
Fugate was convicted for accepting bribes to help deliver shipments of illegal drugs, distribution of marijuana, and delay of mail.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in Charge Adam S. Cohen; the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski; and the United States Postal Service, Office of the Inspector General, under the direction of Special Agent-in-Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.Sentencing is scheduled for June 5, 2017, at 1:00 p.m. before Judge Vilardo.
Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Ronald Lallatin, 60, of Boise, pleaded guilty yesterday in United States District Court to possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, in June of 2016, agents with the Department of Homeland Security served a search warrant on Lallatin’s residence in Boise, Idaho, based upon evidence that a computer at the residence had accessed and downloaded a video containing child pornography. Lallatin was present at the residence, and admitted to agents that they would find “child porn” on his computer, as he had viewed images of child pornography for at least the past five years. A laptop computer and nine electronic storage devices belonging to Lallatin were seized. When agents examined the devices, they discovered 6,484 still images and 937 videos containing child pornography, including images of prepubescent minors, images showing sadistic and masochistic conduct with minors, and images of the sexual abuse or exploitation of an infant or toddler.
Sentencing is set for May 22, 2017, before Chief U.S. District Judge B. Lynn Winmill. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,000 special assessment. As part of his plea, Lallatin also agreed to forfeit the computer and electronic storage devices used in the commission of the charged offense.
The case was investigated by the Department of Homeland Security, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Bishopville Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Eric Holloway, age 42, of Bishopville, pled guilty on Monday in federal court in Florence, to possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge R. Bryan Harwell of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that prior to the March 8, 2016 offense date, ATF agents, based on information that Holloway was involved in illegal gun sales, was able to introduce an undercover informant to Holloway. On March 8, 2016, in Hartsville, South Carolina, the undercover informant met with Holloway and purchased a 9mm Taurus pistol and 22 rounds of ammo from Holloway. The sale was recorded on audio and video. Holloway is a convicted felon and is legally prohibited from possessing a firearm or ammunition. The firearm had previously travelled in interstate commerce which gave federal agents jurisdiction over the offense.Ms. Drake stated the maximum penalty the defendant can receive is a fine of $250,000 and/or imprisonment for 10 years, plus a special assessment of $100.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Buddy Bethea of the Florence office handled the case.
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Berkeley County man admits to illegal possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Scott Castle, 24, of Falling Waters, West Virginia, was convicted today in federal court for illegal possession of a firearm, Acting United States Betsy Steinfeld Jividen announced.
Castle, who had previously been convicted of second degree assault in Washington County Maryland, admitted to having in his possession a 12-guage, double-barrel shotgun in Berkeley County, West Virginia in May 2016.
Castle pled guilty to one count of “Felon in Possession of a Firearm.” He faces up to ten years in prison and a fine 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 Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Berkeley County Sheriff’s Office investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Bell Gardens Man Associated with Mexican Mafia Sentenced to over 13 Years in Federal Prison for Distributing Meth to Street GangsRead the Press Release
LOS ANGELES – A gang member with ties to the Mexican Mafia prison gang has been sentenced to more than 13 years in federal prison for distributing methamphetamine to street gangs in Bell Gardens.
Guillermo Ruiz, known on the street as “Weasel,” 42, of Bell Gardens, was sentenced Monday to 160 months in prison by United States District Judge Michael W. Fitzgerald.
In October, Ruiz pleaded guilty to all six criminal charges contained in two indictments, each of which alleged narcotics distribution. Ruiz was charged pursuant to a large-scale investigation into Bell Gardens street gangs by special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The investigation led to a total of 15 defendants being federally prosecuted narcotics and/or firearms offenses.
Ruiz “participated in the total distribution of nearly 550 grams of methamphetamine that was seized by the government, and he is suspected of distributing even more methamphetamine based on defendant’s intercepted calls and recorded statements,” according to a sentencing memorandum filed by prosecutors. “However, defendant’s criminal activities extend beyond the drug trafficking conduct that gives rise to the underlying charges and instant convictions.”
According to the sentencing memorandum, Ruiz was affiliated with a Mexican Mafia member who was trying to exert control over a Bell Gardens street gang. The Mexican Mafia member and Ruiz made threats of assault and murder to members of that street gang in an attempt to collect money and extend influence, according to prosecutors.
“Illegal narcotics sales are a scourge that damage neighborhoods with addiction and violence, as this defendant’s history of drug trafficking and violent crimes illustrates,” said United States Attorney Eileen M. Decker. “Criminal gangs like the Mexican Mafia and the Bell Gardens street gang involved in this case rely on drug sales to function, so my office will continue to attack their ability to make such sales.”
Ruiz has a 25-year criminal history, including a 1997 manslaughter conviction, according to court documents. Federal grand juries returned indictments against Ruiz in 2013 and 2014 while he was a fugitive after fleeing while on trial in state court in 2011. Ruiz was taken into custody in 2015.
“This case should leave no doubt about our resolve to attack and dismantle the criminals and street gangs that are terrorizing our neighborhoods,” said Joseph Macias, special agent in charge for HSI Los Angeles. “HSI is committed to using every tool at its disposal to combat gang-related crime and violence here and in communities across the country.”
Ruiz had three codefendants in the 2013 case – Willie Lopez, also known as “Wino;” Miguel Angel Calderon, also known as “Speedy;” and Juan Carlos Rodriguez, also known as “Shorty” – each of whom pleaded guilty to narcotics offenses and received sentences ranging from 10 to 20 years in prison.
In the 2014 case, Ruiz had one co-defendant – Mario Arciniega Jr., also known as “Osito” – who pleaded guilty and was sentenced to seven years in prison.
Once he is released from prison, Ruiz will be on supervised release for five years, during which he will be subject to suspicionless searches at any time by authorities.
This case was prosecuted by Assistant United States Attorney Jennifer Chou of the Violent and Organized Crime Section.
Bath County Man Convicted of Obstructing Justice and Selling Misbranded ProductsRead the Press Release
LEXINGTON, Ky. – Samuel A. Girod, from Owingsville, Kentucky, has been convicted by a federal jury of conspiracy to impede an officer of the United States, obstruction of proceedings before an agency of the United States, witness tampering, failure to appear, and nine violations of the Food, Drug, and Cosmetic Act, in connection with three products he made and distributed.
On Wednesday afternoon, the jury, sitting in Lexington, delivered a guilty verdict on all thirteen counts against Mr. Girod. The verdict came after two and half days of trial.
The evidence at trial established that in September 2013, Mr. Girod and his company Satterfield Naturals were ordered by a federal judge in Missouri to stop manufacturing and distributing three products he made: TO-MOR-GONE, Chickweed Healing Salve, and R.E.P. Mr. Girod advertised the products as curing skin cancer, removing tumors, and helpful for other conditions, including poison ivy, diaper rash, psoriasis, sinus infections, and headaches. Despite the federal court order, Mr. Girod continued to sell his products to customers in Wisconsin, Indiana, and Illinois, making the same claims about them. Mr. Girod was convicted of selling misbranded products with the intent to defraud and failing to register with the Food and Drug Administration (FDA) with the intent to defraud, in violation of the Food, Drug, and Cosmetic Act.
He was also convicted of conspiracy to impede an officer of the United States and obstruction of proceedings before the FDA in connection with events that arose in November 2013, when two FDA Consumer Safety Officers attempted a court-ordered inspection of Mr. Girod’s manufacturing facility. Further, once the criminal case began, Mr. Girod instructed a witness not to respond to a federal grand jury subpoena and violated his bond conditions when he failed to appear in the criminal case.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Mark McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, jointly announced the verdict. The case was investigated by the FDA, Office of Criminal investigations, and the United States Marshals Service. Assistant U.S. Attorneys Kate K. Smith and Todd Bradbury prosecuted the case on behalf of the federal government.
Girod is scheduled to be sentenced on June 16, 2017. Any sentence will be imposed only after the Court has considered the U.S. Sentencing Guidelines and the applicable statutes.
Attorney General Sessions Statement on RecusalRead the Press Release
Attorney General Jeff Sessions today issued the following statement:
“During the course of the confirmation proceedings on my nomination to be Attorney General, I advised the Senate Judiciary Committee that ‘[i]f a specific matter arose where I believed my impartiality might reasonably be questioned, I would consult with Department ethics officials regarding the most appropriate way to proceed.’
“During the course of the last several weeks, I have met with the relevant senior career Department officials to discuss whether I should recuse myself from any matters arising from the campaigns for President of the United States.
“Having concluded those meetings today, I have decided to recuse myself from any existing or future investigations of any matters related in any way to the campaigns for President of the United States.
“I have taken no actions regarding any such matters, to the extent they exist.
“This announcement should not be interpreted as confirmation of the existence of any investigation or suggestive of the scope of any such investigation.
“Consistent with the succession order for the Department of Justice, Acting Deputy Attorney General and U.S. Attorney for the Eastern District of Virginia Dana Boente shall act as and perform the functions of the Attorney General with respect to any matters from which I have recused myself to the extent they exist.”
Anoka County Resident Sentenced to Six Months in Prison for Threatening Two Clinics that Provide Reproductive Health ServicesRead the Press Release
On, Feb. 27, 2017, Michael John Harris, 34, was sentenced to six months imprisonment and one year of supervised release for making telephonic threats to two medical clinics in Minneapolis, Minnesota, that provide reproductive health services.
On March 2, 2016, Harris pleaded guilty to two violations of 18 U.S.C. § 248(a)(1). During his plea hearing, Harris admitted that on May 12, 2014, he made telephonic threats to two different health clinics in Minneapolis that provide reproductive health services. In a call to the first clinic, Harris threatened to kill the recipient of the call with his bare hands and to cut the recipient’s head off with a band saw. In a call to the second clinic, Harris told the recipient that he was going to kill the recipient and the recipient’s co-workers, and that he was going to travel to the clinic and shoot everyone present. Harris further admitted that he made these threats because the recipient was and has been, and in order to intimidate the recipient and any other person from, obtaining and providing reproductive health services.
“This defendant threatened these clinic workers with death and brutality,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department is pleased that the defendant accepted responsibility and will face consequences for his actions. The Department is committed to vigorously enforcing the civil rights of all individuals in this country.”
“The violence threatened by this defendant against health care workers is unacceptable,” said United States Attorney Andrew M. Luger of the District of Minnesota. “This sentence should serve as a reminder to individuals who would engage in such threats that the federal government will prosecute these crimes.”
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division of the United States Department of Justice and Assistant U.S. Attorney Manda M. Sertich of the U.S. Attorney’s Office for the District of Minnesota.
American Falls Man Pleads Guilty to Child EnticementRead the Press Release
POCATELLO – Jesus Nieto, 21, of American Falls, Idaho, pleaded guilty on March 2, 2017, to coercion and enticement of a minor, Acting U.S. Attorney Rafael Gonzalez announced. Nieto was initially indicted by a federal grand Jury in Pocatello on May 24, 2016. Additional charges were filed in a superseding indictment in December 2016.
According to the plea agreement, Nieto utilized Internet-based social media to communicate with two girls, ages 11 and 15, for the purpose of soliciting sexually explicit pictures and persuading and coercing the girls into engaging in sexual intercourse with him. Nieto communicated with the girls from approximately November 2015 to January 2016.
The charge of coercion and enticement of a minor is punishable by up to life in prison, a maximum fine of $250,000, and a term of supervised release of at least five years, up to life.
Sentencing is set for May 17, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the American Falls Police Department, with the assistance of the Power County Prosecutor’s Office and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI). The agencies are southern Idaho members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icactaskforce.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Amarillo Convicted Felon Pleads Guilty to Possessing 91 FirearmsRead the Press Release
AMARILLO — Pat Jarrett Helton, 43, of Amarillo, Texas, appeared in federal court yesterday and pleaded guilty before U.S. District Judge Sidney A. Fitzwater to one count of convicted felon in possession of a firearm, announced U.S. Attorney John Parker of the Northern District of Texas.
Helton faces a maximum statutory penalty of ten years in federal prison, and a $250,000 fine. Helton will remain on bond pending sentencing set for June 6, 2017. As part of the plea, Helton signed a forfeiture agreement waiving his right to a number of items seized, including $24,783 in currency, a 1992 Lamborghini Diablo, 2012 Kawasaki Ninja motorcycle, 2016 Polaris Razor, multiple vehicles and trailers.
According to documents filed in the case, on November 7, 2016, a federal search warrant was executed at Helton’s property in Mobeetie, Texas. The property included Helton’s residence and surrounding buildings. During the search, law enforcement agents located 91 firearms and large quantities of ammunition. The firearms included one shotgun with a barrel less than 18 inches, one semiautomatic rifle with a barrel of less than 16 inches, three stolen firearms, and at least four semiautomatic firearms that are capable of accepting large capacity magazines.
Before Helton possessed the 91 firearms, he had been convicted in 2003 of a felony offense for possession of a firearm not registered. Helton was sentenced to 46 months in federal prison.
The case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Sean Taylor is in charge of the prosecution.
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All 12 Convicted in Health Care Fraud Conspiracy Involving Area Mental Health CentersRead the Press Release
HOUSTON – A federal jury has convicted the final defendant of 12 involved in a conspiracy to pay and receive kickbacks relating to the Medicare program, announced U.S. Attorney Kenneth Magidson. The jury deliberated for four hours following a three-day trial before convicting Cheryl Waller, 70, of Houston, of one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks.
The other 11 defendants had previously pled guilty for their respective roles in the conspiracy. David Edson, 68, of Palm Harbor, Florida, and Jeffery Parsons, 57, of Crockett, each pleaded guilty to conspiracy to pay and receive kickbacks as well as two counts of money laundering. Aretha Johnson, 64, of Wimberley, also pled to the conspiracy and to one count of money laundering, while Inger Michelle Pace, 54, of Missouri City, and Ronald Turner, 56, of Fresno, each pleaded guilty to the conspiracy and to one count of paying and receiving kickbacks. The remaining defendants - Deborah Davis, 54, of Atlanta, Georgia; James Bobino, 48, Ernestine Johnson, 58, Jackie Harris, 54, and Vermon Lacy III, 32, all of Houston; and Mary Browning, 68, of Beasley – were convicted of the conspiracy.
Edson and Parsons were the vice presidents of Development and Operations, respectively, for Continuum Healthcare LLC. which owned Westbury Community Hospital in Houston. Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum.
During trial, the jury heard that Continuum owned and operated three community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City. Each location operated a partial hospitalization program (PHP) which is supposed to be a treatment program for individuals with mental illness. A PHP was intended to closely resemble a highly structured, short-term hospital inpatient program but was a distinct and organized intensive treatment program that offered less than 24-hour daily care. In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers and continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.
Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. The vast majority of the people referred in exchange for payment did not qualify for PHP services either because they were not experiencing an acute psychotic episode or because they were suffering from mental retardation, dementia or Alzheimer’s.
At the trial, the jury heard that Waller owned several personal care homes which housed individuals with severe mental illnesses like schizophrenia. Waller was paid $132,000 by Continuum to send her residents to the Continuum PHP. Edson testified that Waller was paid $6,000 per month to send her patients to Continuum.
During their pleas, Edson and Parsons admitted to paying co-defendants to bring patients to Continuum. Ernestine Johnson, Aretha Johnson, Pace, Bobino, Harris, Lacy, Turner, Browning and Davis each admitted receiving payment to do so, receiving $498,000, $2.6 million, $329,000, $499,000, $328,000, $140,000, $447,000, $155,000 and $250,000, respectively. Edson admitted to causing Continuum to fraudulently bill Medicare $50.5 million and causing Medicare to pay $18.8 million based on the false and fraudulent claims associated with the patients the co-defendants delivered.
U.S. District Judge Gray Miller accepted the pleas and presided over the trial. He has set sentencing for all 12 defendants on June 16, 2017. Everyone was permitted to remain on bond pending those hearings. At that time, everyone faces up to five years in prison and a possible $250,000 fine for the underlying conspiracy charge. Pace and Turner also face an additional five years for paying and receiving kickbacks, while Edson, Parsons and Aretha Johnson could receive up to 10 years in a federal prison for each of the respective money laundering convictions.
The FBI, U.S. Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit, Railroad Retirement Board - Office of Investigations and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Al Balboni and Tina Ansari are prosecuting the case.
Albuquerque Man Pleads Guilty to Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Kevin Scott Gordon, 59, of Albuquerque, N.M., pled guilty today in federal court to violating the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Gordon was arrested in March 2016, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. According to the complaint, Gordon was convicted in May 1983, of rape, sexual deviate conduct, robbery and confinement, and was sentenced to 22 years in prison. In 1983, Gordon escaped from the Indiana State Reformatory, was apprehended in 1990, and remained in custody in Indiana until his release in May 2006.
According to court documents, Gordon was arrested for violating SORNA in Dec. 2007, in Colorado, and has a pattern of non-compliance with registration requirements. On Feb. 22, 2016, law enforcement officers in N.M., received information that Gordon was residing in Albuquerque and was not registered as a sex offender in New Mexico.
Gordon was subsequently indicted on March 23, 2016, and charged with violating SORNA by failing to update his sex offender registration between May 2015 and March 2016, in Bernalillo County, N.M.
During today’s proceedings, Gordon pled guilty to the indictment. In his plea agreement, Gordon admitted that he was convicted in Dec. 1982, of a criminal offense that required him to register under SORNA. Gordon further admitted that before May 15, 2015, he traveled from Colorado to New Mexico, and that he resided in New Mexico between May 2015 and March 2016, but failed to update his sex offender registration in New Mexico as required.
At sentencing, Gordon faces a maximum penalty of ten years in federal prison followed by a minimum of five years to a lifetime of supervised release. Gordon will also be required to register as a sex offender when he completes his prison sentence. Gordon remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
Akron felon indicted for having methamphetamine and a firearmRead the Press Release
An Akron man was indicted on federal drug and firearms charges, said U.S. Attorney Carole S. Rendon.
Robert E. Evans, 39, was indicted on one count of being a felon in possession of a firearm and one count of possession with the intent to distribute methamphetamine.
Evans, on Jan. 26, had approximately an ounce of methamphetamines in his home as well as a Colt .45 caliber pistol, despite felony convictions which prohibited him from possessing firearms, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Akron Police Department’s Gun Violence Reduction Unit.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Aggravated Felon Pleads Guilty to Reentering the United StatesRead 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 Horace Garfield Tajah, 35, of Kingston, Jamaica, pleaded guilty to reentering the United States after a conviction for an aggravated felony before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque who is handling the case, stated that on January 23, 2013, the defendant attempted to enter the United States from Canada at the Peace Bridge Port of Entry. Tajah was in possession of a valid United States passport belonging to another individual and claimed to be an American citizen. Standard database checks revealed that Tajah was an aggravated felon. In 2010, Tajah was convicted in the Southern District of New York of multiple charges including drug, gun, and conspiracy to commit murder charges. The defendant was sentenced to 72 months in prison, and after serving his sentence was deported to Jamaica on December 28, 2012, and banned from the United States for life.
The plea is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Sentencing is scheduled for June 5, 2017, at 10:00 a.m. before Judge Vilardo.
Wednesday 1 March 2017
Youngstown man pleads guilty to selling heroin that caused fatal overdoseRead the Press Release
A Youngstown man pleaded guilty to selling heroin that resulted in a fatal overdose, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Shayne Mascarella, 23, is scheduled to be sentenced June 21. He distributed heroin that directly resulted in the July 19, 2015 death in Youngstown of a person identified in the court documents as L.Z.
“Heroin has caused an unprecedented wave of death, pain and destruction in Ohio,” U.S. Attorney Carole S. Rendon said. “No corner of the state is immune. Only though aggressive law enforcement -- combined with education and prevention efforts, changes in prescribing practices and making treatment available to those who want help -- can we turn the tide on the opioid epidemic.”
The case is being prosecuted by Assistant United States Attorneys Jason M. Katz and David M. Toepfer. The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Mahoning Valley Violent Crimes Task Force and the Mahoning Valley Law Enforcement Task Force, which includes representatives from the Boardman Police Department, the Youngstown Police Department, the Mahoning County Sheriff's Office, the Ohio Adult Parole Authority, and others.
Wichita Woman Gets 3 1/2 Year Sentence for Defrauding Social SecurityRead the Press Release
WICHITA – A woman who continued to receive her grandmother’s Social Security payments after the grandmother died was sentenced Monday to 45 months in federal prison, U. S. Attorney Tom Beall said.
Verlarina Ruth Collins, 49, Wichita, pleaded guilty to defrauding the Social Security Administration (SSA) between 2007 and 2013 of more than $40,000 and to aggravated identity theft in connection with the fraud. In addition, Collins was ordered to repay money she stole.
Collins was sentenced by U.S. District Judge Eric Melgren, who sentenced Collins to 21 months on the fraud charge and a statutorily required 24 months on the aggravated identity theft charge. By law, the terms must run consecutively.
Because the grandmother was receiving the benefits on her late husband’s Social Security account as his survivor, the SSA did not connect her death to her husband’s account and continued to make the payments, which Collins converted to her own use.
Beall praised the SSA’s Office of Inspector General for its investigation of the case and Assistant U.S. Attorney Brent Anderson for his prosecution.
Wheeling man indicted on possession of a firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man was arrested over the weekend for one count of unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Christopher Louis Park, age 45, was charged by a federal grand jury on February 7, 2017 for allegedly possessing a .9mm caliber pistol illegally. The crime is alleged to have occurred in Wheeling in January 2017. Park had previously been convicted of possession and distribution of cocaine in federal court in April 1999.
Park faces up to ten years in prison 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 Randolph J. Bernard is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Secret Service Officer Pleads Guilty to Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland resident pleaded guilty today in federal court to one count of enticement of a minor to engage in sexual activity and one count of attempting to transfer obscene materials to a minor, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Lee Robert Moore, 38, pleaded guilty today before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida and Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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.
U.S. Secret Service Officer Pleads Guilty to Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland resident pleaded guilty today in federal court to one count of enticement of a minor to engage in sexual activity and one count of attempting to transfer obscene materials to a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Lee Robert Moore, 38, pleaded guilty today before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
U.S. Attorney Sues Developer, Builder, and Architect for Disability Discrimination in Design and Construction of Mount Kisco CondominiumRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a lawsuit against BEDFORD DEVELOPMENT LLC (“BEDFORD”), CARNEGIE CONSTRUCTION CORP. (“CARNEGIE”), JOBCO INC. (“JOBCO”), ROBERT PASCUCCI (“PASCUCCI”), the sole shareholder of BEDFORD and CARNEGIE and the president of JOBCO, and WARSHAUER MELLUSI WARSHAUER ARCHITECTS, P.C. (“WMW ARCHITECTS”), for violating the Fair Housing Act. The Government alleges that these defendants discriminated against disabled residents of the Sutton Manor condominium in Mount Kisco, New York, by failing to design and construct Sutton Manor so as to be accessible to persons with disabilities.
Manhattan U.S. Attorney Preet Bharara said: “The Fair Housing Act mandates accessibility in design and construction. Through this lawsuit – like the many other similar suits brought by this Office – we intend to hold these defendants accountable for their failure to adhere to the laws that ensure equal access to housing for New Yorkers with disabilities.”
As alleged in the Complaint filed in White Plains federal court:
The Fair Housing Act’s accessible design and construction provisions require new multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities.
Sutton Manor is a residential condominium building located in Mount Kisco, New York, that was built and advertised as a “55+ Adult Community” and as being “[Americans with Disabilities Act] compliant.” But the building, a three-story elevator building with 47 units, a community room, and underground and outdoor parking, was designed and constructed with numerous inaccessible features, including insufficient clear opening width at, and excessive force required to operate, the doors to the elevator lobbies, excessively high thresholds at the entrances to the patios or balconies from within individual units and from the community room, insufficient clear opening width of each panel of the double-leaf doors leading to the patio or balcony in individual units, excessively high thresholds at the entrances to showers, and insufficient clear floor space in the hallways and kitchens for maneuvering by persons who use wheelchairs.
Michael and Linda Tracey, Mark and Gloria Koller, and Ina Grober (“Complainants”) each purchased and moved into units at Sutton Manor in 2007. One of the reasons the Kollers, Traceys, and Ms. Grober purchased units at Sutton Manor was because the defendants advertised Sutton Manor as being accessible to persons with disabilities. Ms. Tracey, Ms. Koller, and Ms. Grober each has a disability that limits her mobility. Ms. Tracey uses an electric wheelchair and Ms. Koller and Ms. Grober each use a walker. Between August 2007 and April 2010, the Traceys, Kollers, and Ms. Grober, along with several other unit owners, repeatedly notified the defendants about numerous inaccessible features in the common areas and individual units at Sutton Manor and requested that the accessibility problems be remedied. Despite direct complaints from the residents, demands for a response to their complaints made by Westchester Residential Opportunities, Inc., and a lawsuit filed against the defendants by the Westchester County Human Rights Commission, the defendants failed to adequately correct many of the inaccessible features.
The Traceys, Kollers, and Ms. Grober initially filed an administrative complaint with the Department of Housing and Urban Development (“HUD”). Upon investigation, HUD determined that there was reasonable cause to believe that the Fair Housing Act had been violated by BEDFORD, CARNEGIE, and WMW ARCHITECTS. Thereafter, the Traceys, Kollers, and Ms. Grober elected, pursuant to the Fair Housing Act, to have HUD’s determination resolved in federal court.
In these circumstances, the Fair Housing Act authorizes the Department of Justice to commence an action in United States District Court on behalf Complainants. The United States may also assert other claims as warranted. The Complaint is brought on behalf of the Traceys, Kollers, and Ms. Grober against BEDFORD, CARNEGIE, and WMW ARCHITECTS, and on behalf of the United States against BEDFORD, CARNEGIE, WMW ARCHITECTS, JOBCO, and PASCUCCI, and seeks declaratory and injunctive relief and monetary damages for Complainants and other individuals injured by the defendants’ discriminatory conduct.
Mr. Bharara thanked HUD for its efforts in the investigation.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Christine S. Poscablo is in charge of the case.
U.S. Attorney Carol Casto announces forfeiture of over $1 million in structured funds from First National Bank of WilliamsonRead the Press Release
CHARLESTON, W.Va. – United States Attorney Carol Casto announced the filing of a substantial forfeiture action yesterday involving First National Bank of Williamson for violations of the Bank Secrecy Act.
The Bank Secrecy Act requires financial institutions to maintain programs that detect and report suspicious activity to prevent money laundering. Under this law, banks must report all cash transactions over $10,000 in Currency Transaction Reports. The Bank Secrecy Act also helps prevent structuring, a federal crime that involves the breaking down of cash banking transactions in amounts of $10,000 or less to avoid triggering a bank’s reporting requirements. Whenever structuring is detected, banks are additionally required to file Suspicious Activity Reports.
Between April 2006 and November 2008, Arthur White, Jr., and other individuals, structured $1.36 million in withdrawals of exactly $10,000 cash from First National Bank of Williamson in order to avoid the mandatory reports. In March 2013, Arthur White pleaded guilty in the United States District Court for the Southern District of West Virginia to tax evasion and structuring. White admitted that he cashed checks made payable to his companies that held accounts at First National Bank of Williamson. According to the complaint, First National Bank permitted White to pay cash for cashier's checks made payable to himself, without first depositing the money into any account.
White and other individuals would receive exactly $10,000 in cash each time they cashed a check. Then they would purchase a new cashier’s check without depositing any of the money, repeating the process until the entire check had been converted to cash. The cash obtained through this structuring was used to pay wages for some of White’s employees. White, and others at his direction, intentionally conducted these transactions to avoid the bank’s reporting requirements and to evade taxes.
This pattern of structuring should have triggered First National Bank’s reporting requirements. As set forth in the complaint, despite First National Bank's knowledge, it permitted this structuring and failed to report these transactions as required by law. As part of its settlement agreement, First National Bank has agreed not to contest the forfeiture of $1,360,000 to the United States.
The investigation of First National Bank of Williamson was conducted by special agents and law enforcement officers of the Federal Deposit Insurance Corporation Office of the Inspector General, the Federal Bureau of Investigation, and the West Virginia State Police Bureau of Criminal Investigation. Assistant United States Attorneys Eumi Choi and Eric Bacaj handled the forfeiture action. The Money Laundering and Asset Recovery Section of the Department of Justice also provided valuable assistance during the course of the investigation.
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Two Charged in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – One Pennsylvania resident and one New York resident have been indicted by a federal grand jury in Pittsburgh on charges of federal narcotics trafficking violations, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on February 28, named Raymontell Cooper, 42, of West Mifflin, Pa., and Derek Williams, 46, of the Bronx, NY, as the defendants.
According to the indictment, from in or around the beginning of February 2017, and continuing until February 16, 2017, in the Western District of Pennsylvania and elsewhere, Raymontell Cooper and Derek Williams conspired to distribute and attempted to possess with intent to distribute five kilograms or more of cocaine.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rachael L. Dizard is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Toledo man indicted for sex trafficking and exploitation of a minorRead the Press Release
A Toledo man was indicted on charges of sex trafficking and sexual exploitation of a child after taking and advertising sexually explicit photos of a minor on the Internet and facilitating dozens of commercial sex acts, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Lawrence Jones, 29, met via social media a minor who had run away from home. Jones transported the girl to a home on Coventry Avenue in Toledo, where he took nude photographs of her and posted them online, offering commercial sex acts in the Toledo area in January, according to court documents.
The minor performed approximately 25 commercial sex acts, with all the money going to Jones. The minor told Jones several times that she was not yet 18 years old, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation’s Toledo office and the Northwest Ohio Violent Crimes Against Children Task Force. The case is being handled by Assistant U.S. Attorneys Alissa M. Sterling and Daniel R. Hurley.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo man charged with trafficking heroin and cocaineRead the Press Release
A 45-count indictment was unsealed charging a Toledo man with conspiring to traffic heroin and cocaine, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Cornelius Henry, 43, conspired with others from 2011 through 2016 to possess with intent to distribute large amounts of heroin and cocaine.
Henry also possessed at least two firearms despite multiple felony convictions that made it illegal for him to have a firearm. He used the residence at 2214 Airport Highway in Toledo to store and distribute the drugs, according to the indictment.
Prosecutors are seeking to forfeit two properties on Airport Highway, three firearms and ammunition, five automobiles, one motorcycle and $4,020 in cash seized as part of the investigation, as well as a money judgement of at least $182,000, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation’s Toledo office, the Internal Revenue Service and the Toledo Metro Drug Task Force. The case is being handled by Assistant United States Attorneys Alissa M. Sterling and Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Quad City Area Men Charged with Home Invasion Robbery and Related Gun OffensesRead the Press Release
ROCK ISLAND, Ill. – Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois, announced today that three area men are scheduled for trial in April after a federal grand jury returned an indictment charging them with a January 2017 home invasion robbery and related gun offenses. Those charged are: Deaunta Tyler, 29 of East Moline; Ledell Tyler, 35 of Silvis, and Dalvent Jackson, 24, of East Moline, Ill.
The indictment alleges that on Jan. 7, 2017, the three men robbed and attempted to take illegal drugs and U.S. currency from other persons in Rock Island County. The men are also charged with possession of firearms, a .22 caliber semi-automatic handgun, a .22 caliber rifle and ammunition, which were allegedly discharged, in furtherance of the robbery, and with being a felon in possession of firearms and ammunition.
Trial for the three men is scheduled on April 17, 2017. The men were previously arrested on state charges on Jan. 8, 2017, and have remained in law enforcement custody. During a court appearance yesterday, before U.S. District Judge Sara L. Darrow, Deaunta and Ledell Tyler were ordered to remain detained in the custody of the U.S. Marshals Service; Jackson remains detained pending a detention hearing scheduled on March 2.
If convicted, the statutory maximum penalty for the robbery offense is 20 years in prison. The statutory penalty for possessing firearms in furtherance of the robbery and discharging those firearms requires a sentence of at least 10 years in prison up to a maximum of life imprisonment, which must be served consecutively to any other sentence awarded in the case. The statutory maximum penalty for possession of firearms and ammunition by a felon is 10 years in prison. Each offense is also punishable by a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorneys Don Allegro and Ryan Finlen. The charges are the result of an investigation by the Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Texas Man Pleads Guilty to Multiple Charges for Stealing from Dead Man’s Retirement FundRead the Press Release
BIRMINGHAM – A Texas man pleaded guilty Tuesday in federal court to charges related to his scheme to steal more than $545,000 from a retirement account after the account owner and his designated beneficiary both died, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
DWAYNE ELLIS BAPTISTE, 43, pleaded guilty before U.S. District Court Judge L. Scott Coogler to four counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.
Baptiste lived in Huntsville in 2011 and was acquainted with Ralph Swinehart, who along with his father, Ronald Swinehart, also lived in Huntsville. Ronald Swinehart was a retired employee of Lockheed Martin Corporation and had a retirement savings account through the company. The retirement account was held at ING Institutional Plan Services.
In September 2011, according to Baptiste’s indictment and plea agreement, Ronald Swinehart signed and executed a durable power of attorney naming his son, Ralph Swinehart, as his agent. Ronald Swinehart died on Oct. 11, 2011; his son died twelve days later, on Oct. 23, 2011.
According to the court documents, Baptiste’s fraud scheme proceeded as follows:
Baptiste filed a fraudulent power of attorney with the Madison County Probate Court in October appointing himself as Ronald Swinehart’s agent. He also fraudulently created a company, Swinehart Investment Solutions, in which he claimed Ronald and Ralph Swinehart — both deceased — were members.
Next, in December 2011, Baptiste opened two commercial accounts in the name of Swinehart Investment Solutions at BBVA Compass Bank. Baptiste also changed the beneficiary designation on Ronald Swinehart’s retirement account from Ralph Swinehart to himself, and the bank account information to one of the BBVA accounts he controlled. Baptiste then contacted ING, pretending to be Ronald Swinehart, and received instructions on how to withdraw money from Ronald Swinehart’s retirement account. Baptiste used Ronald Swinehart’s name, Social Security number, and address — committing mail fraud and aggravated identity theft.
Baptiste then committed wire fraud by directing four transfers, totaling $545,669, from the retirement account to his BBVA account. Subsequently, Baptiste moved the money through different accounts using withdrawals and cashier’s checks.
The maximum penalty for wire fraud and mail fraud is 20 years in prison and a $250,000 fine. The penalty for aggravated identity theft is two years in prison, which must be served after completion of any other sentence imposed for an associated crime.
The FBI investigated the case, which Assistant U.S. Attorneys John B. Ward and Manu Balachandran are prosecuting.
St. Thomas Man Pleads Guilty to Possessing with Intent to Distribute Crack CocaineRead the Press Release
St. Thomas, USVI –Tomolah Foy, 23, of St. Thomas pleaded guilty in federal court today to possessing with intent to distribute crack cocaine, announced United States Attorney Ronald W. Sharpe.
According to the plea agreement, undercover agents purchased crack cocaine from Foy in December 2016 and on three separate occasions in November 2016. All purchases occurred in the Red Hook area of St. Thomas.
District Court Judge Curtis V. Gomez remanded Foy into the custody of the United States Marshals Service. Sentencing is scheduled for July 6, 2017.
Foy faces a maximum sentence of no more than twenty years in prison, a fine of up to $1,000,000, and three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Everard E. Potter.
St. Thomas Man Pleads Guilty to Burglarizing a Post OfficeRead the Press Release
St. Thomas, USVI –Selmo Watts, 34, of St. Thomas pleaded guilty in federal court today to breaking into a Post Office, announced United States Attorney Ronald W. Sharpe.
According to the plea agreement, on November 27, 2016, Watts was seen on video surveillance entering the Arthuro A. Watlington, Sr. Post Office in French Town after he forced open a locked door. Watts was then seen carrying at least eight packages from the post office.
Sentencing for Watts is scheduled before District Court Judge Curtis V. Gomez on July 6, 2017. Watts faces a sentence of no more than five years in prison, and a fine of up to $250,000.
This case was investigated by the United States Postal Inspection Service and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Southern California Man Pleads Guilty to Bank Fraud, Embezzlement, and Making False Statements in Connection with Position as Trustee for Pension PlansRead the Press Release
SAN FRANCISCO –Alan Weissman pleaded guilty today to committing bank fraud, embezzlement from an employee pension benefit plan, and making false statements in documents required by the Employee Retirement Income Security Act (ERISA), announced United States Attorney Brian J. Stretch and the Employee Benefits Security Administration of the Department of Labor. The guilty plea follows charges filed by a federal grand jury in February of 2016, including that the defendant stole assets from ERISA plans for which he was supposed to be acting as a trustee.
According to the plea agreement, Weissman, 71, of Rancho Palos Verdes, Calif., served as a professional trustee and fiduciary of pension plans. Weissman admitted that he embezzled money from bank accounts belonging to two of the pension plans for which he was a trustee. Specifically, Weissman admitted he moved money from plan bank accounts to bank accounts under his control, and then used the money for his own purposes. The defendant admitted he did so without the authorization or knowledge of the pension plan owners, their plan sponsors, or their participants. Further, Weissman admitted that he attempted to hide the illegal transactions by falsely recording payments to himself in such a way as to make the payments look like legitimate plan expenses. Weissman also admitted he altered account statements to conceal missing funds. In sum, Weissman admitted embezzling over $750,000 of plan funds.
A grand jury indicted Weissman on February 11, 2016, charging him with five counts of bank fraud, in violation of 18 U.S.C. § 1344; six counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of theft or embezzlement from an employee benefit plan, in violation of 18 U.S.C. § 664; and one count of making false statements and concealment of facts in relation to documents required by ERISA, in violation of 18 U.S.C. § 1027. Pursuant to today’s plea agreement, Weissman pleaded guilty to one count of bank fraud, the two embezzlement counts, and the false statements and concealment count.
The guilty plea was accepted by the Honorable Charles R. Breyer, U.S. District Judge. Weissman is scheduled to appear for sentencing on June 7, 2017, at 10:00 a.m. The maximum statutory penalty for bank fraud is 30 years’ imprisonment and a fine of $1,000,000 or twice the gross gain or loss resulting from the offense. The maximum statutory penalty for each count in violation of 18 U.S.C. § 664 and 18 U.S.C. § 1027 is 5 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss resulting from the offense. Additional periods of supervised release and restitution also apply. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with assistance from Bridget Kilkenny. The prosecution is the result of an investigation by the San Francisco Field Office of the Employee Benefits Security Administration of the Department of Labor.
South Carolina Staffing Company Owner Sentenced for Temporary Worker FraudRead the Press Release
BOSTON – The owner of a South Carolina temporary staffing company was sentenced yesterday in U.S. District Court in Boston in connection with a multi-year visa fraud conspiracy that placed unauthorized foreign workers at multiple Cape Cod businesses.
Mavadene Thomas, 42, of Myrtle Beach, S.C., was sentenced by U.S. District Court Chief Judge Patti B. Sarris to three years of probation, the first year to be served in home confinement, forfeiture of $37,000 and a fine of $4,000. In June 2016, Thomas pleaded guilty to one count of conspiracy to commit visa fraud and one count of encouraging and inducing illegal immigration for private financial gain.
“By securing H-2B visas for foreign workers through fraud, Thomas created a permanent labor pool of unauthorized immigrants, who took jobs that should have gone to American citizens or authorized immigrants,” said Acting U.S. Attorney William D. Weinreb.
“This joint investigation with our law enforcement partners uncovered a fraudulent scheme that manipulated the H2B visa process and took advantage of visa beneficiaries and U.S. businesses,” said David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security Service, Boston Field Office. “The Diplomatic Security Service is committed to protecting the integrity of the visa process, the security of the homeland, and protecting the American work force.”
Thomas owned and operated Zippi Help LLC – a labor staffing company located in Myrtle Beach, S.C. Zippi Help had staffing contracts with businesses – primarily in the service and hospitality industry – for which it provided temporary and seasonal workers. From 2011 through 2014, secured H-2B visas for numerous foreign workers by submitting fraudulent visa petitions on behalf of several Cape Cod area businesses. The petitioning businesses often times were unaware that had applied for H-2B visas on their behalf. As part of the fraud, even created fake companies solely to be able to petition for the foreign worker visas.
Among the false statements Thomas included in her H-2B filings were misrepresentations about the details of the petitioning business, the efforts made by the business to recruit American workers, the number of employment vacancies available, and the type of work to be completed. Thomas also created and submitted false tax returns and other business documentation in support of the H-2B petitions.
The H-2B visa program allows U.S. companies to hire foreign nationals to fill employee vacancies that the company is unable to fill with U.S. citizens or others legally authorized to work in the country. The visa program is not intended for permanent work, and is designed to help U.S. businesses that have temporary, seasonal, peak load, or intermittent needs. As part of the application process, petitioning businesses must demonstrate that (i) the need for the foreign worker’s services is only temporary, (ii) that there is not a sufficient number of U.S. citizen workers who are willing, able, and qualified to perform the temporary work, and (iii) that the employment of the foreign workers will not adversely affect the wages or working conditions of similarly situated U.S. citizen workers.
Through Thomas’s false filings, she represented to multiple federal agencies involved in the approval process that the foreign nationals were going to work temporarily at the Cape Cod area businesses. However, once the workers entered the U.S., they were sent to work for other businesses with which Thomas and Zippi Help had staffing contracts. After the H-2B workers’ authorized stay expired, Thomas frequently filed false documentation on their behalf to convert their immigration status to that of a visitor, which specifically forbade them from working. Thomas knew these workers were not allowed to work at her company, but nevertheless continued to employ them.
Acting U.S. Attorney Weinreb and DSS SAC Hall made the announcement. Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, New York Regional Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service assisted with the investigation. Assistance was also provided by U.S. Citizenship and Immigration Services, Fraud Detection and National Security Unit, Vermont Service Center. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Economic Crimes Unit prosecuted the case.
Six indicted for drug conspiracy that resulted in the seizure of 17 kilograms of cocaine and $511,000Read the Press Release
Six people were indicted in federal court for their roles in a drug conspiracy that resulted in the seizure of 17 kilograms of cocaine and more than $500,000 in cash, law enforcement officials said.
Named in the seven-count indictment are: Marty V. McCaulley, 42, of Lyndhurst; Carl D. Penny, 50, of Oldsmar, Florida; Adolfo Maya Magadan, 58, of Glenn Heights, Texas; Renee Ballin Serna, 24, of Chicago; Omar S. Williams, 41, of South Euclid, and Paul V. Cramer, 44, of Willowick.
All six are charged with conspiracy to possess with the intent to distribute and distribution of cocaine. McCaulley and Williams are also charged with being felons in possession of firearms.
Magadan brought cocaine to Ohio and Serna sold it to McCaulley for further distribution. McCaulley met with Serna on Feb. 3 at the Courtyard by Marriott hotel in Willoughby Hills and give him $110,000 in cash. Magadan then gave six kilograms of cocaine to Serna, who gave the drugs to McCaulley. McCaulley then distributed a kilogram of cocaine to Cramer, according to the indictment
McCaulley and Serna then met with Penny at an apartment in Willoughby Hills. Penny had digital scales, plastic bags, rubber bands and $103,100 in cash.
Williams had nearly eight kilograms of cocaine and $210,041 in cash at a residence in South Euclid on Feb. 4, according to the indictment.
Prosecutors are seeking for forfeit $511,734 in cash, four firearms and a 2011 Jeep Wrangler seized during the investigation.
“The amount of cocaine, cash and guns taken off this group is remarkable,” U.S. Attorney Carole S. Rendon said. “It demonstrates they were serious drug traffickers, but law enforcement from across Northeast Ohio was able to work together to stop them.”
Special Agent in Charge Timothy J. Plancon said: “The seizure of 17 kilograms of cocaine and over half a million dollars from this group indicates that they were part of a large, multi-state conspiracy. Putting an end to their activities makes everyone in the region a little bit safer. The success of the investigation up to this point has been made possible thanks to the significant cooperation among all of our law enforcement partners.”
“The fact that several people from out of state are among those facing federal charges should send a strong message that Ohio is looking beyond the local drug dealers to identify suspects higher up in the supply chain,” said Ohio Attorney General Mike DeWine. “These defendants allegedly worked together to distribute drugs throughout northeast Ohio, and I commend everyone involved in this effort who worked to intercept these narcotics.”
“Through the combined efforts, hard work and dedication of agents from the Medina County Drug Task Force, Ohio Bureau of Criminal Investigation and Cleveland DEA, what began as a 'community impact' investigation centered on Medina County evolved into an investigation of a much larger scale,” said Gary Hubbard, director of the Medina County Drug Task Force. “Each of the investigators involved worked countless hours to bring this investigation to a successful resolution. The impact on Medina County and all of northeastern Ohio will be significant.”
This case was investigated by the Drug Enforcement Agency, the Ohio Bureau of Criminal Investigation, the Medina County Drug Task Force and the Ohio State Highway Patrol with assistance from members of the Lake County Narcotics Agency, Cuyahoga Sheriff’s Office, Cleveland Heights Police Department, Cleveland Division of Police, Lorain County Drug Task Force, Ashtabula County Sheriff’s Office and Customs and Border Protection. The case is being prosecuted by Assistant United States Attorney Henry F. DeBaggis.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Six Defendants with Gang Ties Charged as Additional Members of an Interstate Gun Trafficking OperationRead the Press Release
A third superseding indictment was unsealed today in United States District Court in Brooklyn charging Richard Almarez, also known as “Rated R,” Terrell Brown, also known as “Rellz,” Tislam Cato, also known as “Vietnam,” Shaheem Evans, also known as “Sha,” Joseph Isar Ras, also known as “Bada Boom,” and Elvin Sanabria, also known as “Rico,” as members of a conspiracy to deal in firearms, along with six other defendants who were previously charged. The indictment was returned under seal by a federal grand jury on February 23, 2017, and relates to the defendants’ alleged participation in a gun-trafficking operation that was responsible for transporting more than 70 firearms from Georgia to New York between October 2015 and June 2016. At least seven of the firearms that were illegally acquired and distributed by the operation have been recovered by law enforcement officers in the New York area.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and James O’Neill, Commissioner, New York City Police Department.
The gun-trafficking operation was run by members and associates of the Gangsta Killa Bloods (GKB), a set of the Bloods street gang, who relied on “straw buyers” (individuals who were lawfully able to purchase firearms) to purchase firearms in Georgia that were then transported to New York, where the newly charged defendants illegally sold them to criminal associates for profit.
Previously, on June 16, 2016, a grand jury in the Eastern District of New York returned an indictment in this case charging straw buyers Micah Isaiah Desuze, Dominique Chanel Fairnot, Jeremy Sanchez, Ashanti Sease-Matthews, and Omar Jermaine Walker with conspiracy to deal in firearms and to make false statements to acquire firearms, as well as substantive counts of making false statements to acquire firearms. The government’s investigation revealed that the straw buyers, several of whom were current or former members of the United States military, lied on Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Forms 4473 by certifying that they were not purchasing the firearms on behalf of other people.
On June 22, 2016, a superseding indictment was filed charging the same straw purchasers and Marquez Bridges, also known as “Tega,” an Atlanta-based GKB member and gun-trafficking facilitator, with conspiracy to deal in firearms and to make false statements to acquire firearms. On November 22, 2016, a second superseding indictment was filed charging the previously-charged defendants (with the exception of Fairnot, who pled guilty before the second superseding indictment was filed) and Bonnay Benford, also known as “Popalot,” a New York-based GKB member and gun trafficking facilitator, with conspiracy to deal in firearms and to make false statements to acquire firearms.
For their role as gun distributors in the gun-trafficking operation, the six newly charged defendants face a maximum sentence of five years’ imprisonment for conspiring to deal in firearms, the sole count with which they are charged in the third superseding indictment. The defendants who acted as straw buyers face maximum sentences of five years’ imprisonment on each of the two conspiracy counts, and maximum sentences of ten years’ imprisonment on each of the substantive counts of making a false statement to acquire firearms with which they are charged. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Rena Paul and Margaret E. Gandy.
The Defendants:
RICHARD ALMAREZ
Age: 42
Westchester, New York
BONNAY BENFORD
Age: 30
Brooklyn, New York
MARQUEZ BRIDGES
Age: 26
Atlanta, Georgia
TERRELL BROWN
Age: 34
Miami, Florida
TISLAM CATO
Age: 35
Brooklyn, New York
MICAH ISAIAH DESUZE
Age: 25
Atlanta, Georgia
SHAHEEM EVANS
Age: 41
Bronx, New York
JOSEPH ISAR RAS
Age: 35
Brooklyn, New York
ELVIN SANABRIA
Age: 29
Englewood, New Jersey
JEREMY SANCHEZ
Age: 27
Lancaster, Pennsylvania
ASHANTI SEASE-MATTHEWS
Age: 23
Atlanta, Georgia
OMAR JERMAINE WALKER
Age: 29
Savannah, Georgia
E.D.N.Y. Docket No. 16-CR-326 (ARR)