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13 April 2017
Pike County Man Sentenced to 33 Years in Prison for Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - Senior U.S. District Judge Richard Mills today ordered a New Canton, Ill., man, Ralph David Hathaway, 48, to serve 400 months (33 years, 4 months) in federal prison for transporting a minor with the intent to engage in illegal sexual activity and two counts of travel with intent to engage in illicit sexual conduct. Hathaway was also ordered to pay $4,489 in restitution. Following Hathaway’s release from prison, he was ordered to remain on supervised release for five years.
A jury convicted Hathaway of all counts against him in September 2016. During the weeklong trial, the government presented evidence that over a two-year period, beginning in 2013, Hathaway traveled on several occasions from his home in Pike County, Illinois to South Carolina to have illegal sexual activity with a 13-year-old girl whom Hathaway had met online. In June 2015, Hathaway transported the girl from South Carolina to his camper located in Troy, Mo., where Hathaway was arrested. Hathaway has remained in the custody of the U.S. Marshals Service since his arrest.
The investigation was conducted by the FBI, Springfield, Ill., San Francisco, Calif., Charleston, S.C., and St. Louis, Mo. divisions; the Pike County Illinois Sheriff’s Office; St. Charles County (Mo.) Cyber Crime Task Force; the Lincoln County (Mo.) Sheriff’s Office; Horry County (S.C.) Police Department; San Mateo (Calif.) Police Department; and Daly City (Calif.) Police Department. Assistant U.S. Attorneys Victor Yanz and Gregory M. Gilmore represented the government in the prosecution.
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 the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Philadelphia Pair Charged with Sex TraffickingRead the Press Release
LizMarie Rivera-Torres, 24, and Anthony Ferris, 34, of Philadelphia, Pennsylvania, were charged today by Indictment with conspiracy to engage in sex trafficking of minors, and sex trafficking of minors, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges Rivera-Torres and Ferris conspired with each other to engage in the sex trafficking of minors between July 22, 2016 and January 20, 2017. The Indictment further alleges that Rivera-Torres and Ferris engaged in the sex trafficking of two particular minors, during two different periods alleged in the Indictment.
If convicted as charged, the defendant faces a maximum possible sentence of life imprisonment, a mandatory minimum term of 10 years’ imprisonment, supervised release for a minimum term of five years and a lifetime maximum term, a $750,000 dollar fine, mandatory restitution, and a $300 special assessment.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Seth Schlessinger.
Philadelphia Couple Charged with Hobbs Act RobberyRead the Press Release
Montanez Adams, 22, and Robert Holmes, 19, both of Philadelphia, Pennsylvania were charged today by Indictment[1] with one count of Hobbs Act robbery, one count of using, carrying, and brandishing a firearm during a crime of violence, and aiding and abetting, announced Acting United States Attorney Louis D. Lappen. The charges arise from an armed robbery of a GameStop store located at 4600 Roosevelt Boulevard in Philadelphia, PA on or about January 7, 2017.
If convicted the defendants face maximum possible sentences of life imprisonment.
The case was investigated by the Philadelphia Police Department with the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Katherine Driscoll.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Stock Lending Firm Sentenced to Eight Years in Prison for His Role in a $100 Million Stock-Loan Fraud SchemeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951 or Assistant U.S. Attorney Michael G. Wheat (619) 546-8437
NEWS RELEASE SUMMARY – April 13, 2017
SAN DIEGO – Jeffrey Spanier, former owner of Amerifund Capital Finance, LLC located in Boca Raton, Florida, was sentenced today by U.S. District Court Judge Roger T. Benitez to serve eight years in federal prison and pay approximately $20 million in restitution for his role in a $100 million elaborate stock-loan fraud scheme that bilked victims all over the world.
Spanier was also ordered to forfeit several million dollars in assets that were the proceeds of the fraud, including cash and securities held in brokerage accounts, and a luxury home in Florida. The case was investigated by the Federal Bureau of Investigation (FBI) over an extended period of time.
Following an appeal in a prior criminal case, Spanier was re-indicted in July 2016 and October 2016 and charged with multiple counts of conspiracy, mail fraud, wire fraud, and securities fraud involving a stock-loan fraud scheme that involved two other co-conspirators – Douglas McClain, Jr. and James Miceli. A federal jury returned guilty verdicts on similar charges against McClain on May 31, 2013, and he was later sentenced by U.S. District Judge Roger T. Benitez to serve 15 years in federal prison. Miceli committed suicide shortly before that trial. McClain is currently serving his sentence in federal prison. Upon his release, McClain has been ordered to pay approximately $81.7 million to the victims of the fraud.
Spanier’s re-trial was held in November 2016. After two-weeks of trial testimony, the jury deliberated for several hours and found Spanier guilty on all 16 counts, which included conspiracy, mail fraud, wire fraud, and securities fraud. The jury also returned a special verdict finding in favor of the United States as to the forfeiture of Spanier’s cash, securities, and property.
According to trial testimony, Spanier, through his entity Amerifund Capital Finance, partnered with McClain, Miceli, and Argyll Equities, and together with his partners fraudulently induced corporate executives to pledge millions of dollars’ worth of stock the executives held in publicly traded companies as collateral for loans by falsely representing that the borrowers' stock would not be sold unless there was a default on the loan.
The evidence presented at trial showed that Argyll, the purported lender, had no cash to lend and instead survived for years by immediately selling borrowers stock on the day after the stock was pledged as collateral. The proceeds from the sale of the stock were used to fund the loans creating the appearance that Argyll had plenty of cash to lend.
The evidence also showed that Spanier, McClain, and others fraudulently induced the borrowers to make monthly interest payments on their loans by falsely representing that their collateral was safe and would be returned as long as they did not default. At the end of the loan terms, the borrowers paid off their loans. Instead of returning the stock to the borrowers, Spanier and McClain kept the money and provided false excuses about why they could not return their stock.
The evidence further showed that the unauthorized sales of stock held by insiders of publicly traded companies caused the stock price to plummet which defrauded purchasers of these publicly traded securities who purchased stock through public stock exchanges.
During the trial, the government offered testimony from several executives, many of whom had faithfully paid off their loans over a period of years, completely unaware that their stocks had been sold. All testified about the frustration, emotional stress and grief they experienced when they unsuccessfully attempted to recover their stock once the loan balance was paid, and ultimately realized they were the victims of a massive fraud. Victims were located in the United States, Canada, Mexico, Panama, China, England, and Belgium.
The jury rejected defense claims that Spanier was merely a broker who was unaware of the fraud scheme.
“Today’s significant prison sentence sends a loud and clear message to those engaged in such brazen deception for personal gain that we are committed to working with our law enforcement partners to vigorously pursue and prosecute anyone who commits white-collar crimes,” said Acting U.S. Attorney Alana W. Robinson. “Jeffrey Spanier not only stole tens of millions of dollars from his own clients, but he victimized the public market when his actions caused stock prices to plummet. This significant sentence means Spanier’s days driving a Bentley and living in a gated country club community at the expense of others will soon be a distant memory.”
“Today's sentencing of Mr. Spanier serves as a stark warning to financial predators seeking riches through deceit and fraud,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI remains committed to the zealous pursuit of these criminals and delivering justice to their victims.”
At the conclusion of the sentencing hearing, the Court ordered that Spanier be remanded into custody immediately.
DEFENDANT Criminal Case No. 16CR1545-BEN
Jeffrey R. Spanier Age: 51 Delray Beach, Florida.
SUMMARY OF CHARGES:
Count 1 of the Superseding Indictment – Conspiracy (18 U.S.C. § 371)
Maximum Penalties: 5 years in prison and $250,000 fine
Count 2 of the Superseding Indictment – Securities Fraud (15 U.S.C. §§ 78j(b) and 78ff)
Maximum Penalties: 20 years in prison and $250,000 fine
Counts 2-7 of the Indictment – Mail Fraud (18 U.S.C. § 1341)
Maximum Penalties: 20 years in prison and $250,000 fine
Counts 8-13, 15 and 16 of the Indictment – Wire Fraud (18 U.S.C. § 1343)
Maximum Penalties: 20 years in prison and $250,000 fine
Criminal Forfeiture (real and personal property)
AGENCY
Federal Bureau of Investigation
Operators of Trucking School Charged with Defrauding VA by Collecting Tuition for Veterans who Never Attended ClassesRead the Press Release
LOS ANGELES – An operator of a San Fernando Valley trucking school was arrested this morning by federal authorities after he and the owner were indicted on federal charges that allege they bilked the Department of Veterans Affairs out of well over $4 million in tuition and other payments after falsely certifying that veterans had attended classes, when they never had.
Robert Waggoner, 54, of Canyon Country, was arrested this morning at his residence by special agents with the Department of Veterans Affairs’ Office of Inspector General.
The second defendant named in a nine-count indictment returned by a federal grand jury on April 6 – Emmit Marshall, 50, of Woodland Hills – has agreed to self-surrender on Tuesday.
The case was announced this afternoon after a United States Magistrate Judge unsealed the indictment during Waggoner’s arraignment.
Marshall was owner and president of the Chatsworth-based Alliance School of Trucking (AST), and Waggoner was a director at the school.
The two defendants and another person involved in the scheme recruited eligible veterans to take trucking classes paid under the Post-9/11 GI Bill. AST was certified to offer classes under the Post-9/11 GI Bill that included a 160-hour Tractor Trailer & Safety class and a 600-hour Select Driver Development Program.
Pursuant to the Post-9/11 GI Bill, the VA paid tuition and fees directly to the school at which the veteran was enrolled. The VA also paid a housing allowance to the veteran enrolled full-time in an approved program, and, in some cases, the VA paid a books and supplies benefit directly to the veteran.
According to the indictment, Marshall and Waggoner recruited eligible veterans to enroll at AST by telling the veterans they could collect housing and other fees from the VA without attending the programs.
Knowing that the vast majority of veterans enrolling at AST did not intend to attend any portion of those programs, Marshall and Waggoner created and submitted fraudulent enrollment certifications, according to the indictment. They also created student files that contained bogus documents.
From the end of 2011 through April 2015, as a result of the fraudulent scheme, the VA paid AST approximately $2,351,658 in tuition and fee payments for veterans who purportedly attended approved programs at AST, according to the indictment. During that same period, the VA also paid approximately $1,957,715 in education benefits directly to veterans who purportedly attended approved programs at AST.
“The VA offers generous benefits to veterans who have put their lives on the line to safeguard America,” said Acting United States Attorney Sandra R. Brown. “Fraud schemes, particularly those involving schooling for veterans, compromise the system designed to help veterans after they complete their service. Taxpayers who fund these programs also suffer when benefit programs are subject to waste, abuse and fraud.”
Lisa Molinar, Assistant Special Agent-in-Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Los Angeles Field Office, stated, “This investigation demonstrates the OIG’s continued commitment to aggressively pursue educational institutions and individuals who prey on veterans and conspire to misuse VA Post-9/11 GI Bill education benefits. The VA OIG will continue to work these cases in order to protect the integrity of the program.”
Waggoner is expected to be arraigned on the indictment this afternoon in United States District Court.
Marshall will be arraigned once he surrenders to federal authorities.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The indictment against Marshall and Waggoner charges each defendant with nine counts of wire fraud. If they are convicted, each defendant would face a statutory maximum sentence of 20 years in federal prison for each count.
The VA’s Office of Inspector General has a hotline where anyone can report information on ongoing fraudulently activities by calling 1-800-488-8244.
The case involving AST is being prosecuted by Assistant United States Attorney Sarah Heidel of the Major Frauds Section.
Operator of Horse Rescue Group Pleads Guilty to Fraud, Filing a False Tax ReturnRead the Press Release
PITTSBURGH - A Butler County resident pleaded guilty in federal court to charges of mail fraud and filing a false tax return, Acting United States Attorney Soo C. Song announced today.
Pamela A. Vivirito, 47, of Valencia pleaded guilty to one count of mail fraud charged in a second superseding indictment and one count of filing a false tax return charged in an information before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Vivirito operated a not-for-profit charity called Equine Angels Rescue, Inc. (EAR) which solicited contributions to rescue and rehabilitate horses. Vivirito fraudulently solicited donations and used them for personal expenses. Additionally, Vivirito caused the filing of a fraudulent and false Return of Organization Exempt from Income Tax wherein it was reported her compensation was $46,877, when in actuality, Vivirito received compensation in the amount of $93,606.
Judge Conti scheduled sentencing for July 20, 2017 at 2 p.m. The law provides for a total sentence of 23 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation conducted the investigation that led to the prosecution of Vivirito.
Ohio Man Charged with Armed Robbery of Essex County, New Jersey, Mobile Communications StoreRead the Press Release
NEWARK, N.J. – A Westerville, Ohio, man was indicted by a federal grand jury today for his alleged role in a June 2016 armed robbery of a retail store in Orange, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Frederick A. White, 43, is charged by indictment with one count of being a felon in possession of a firearm, one count of Hobbs Act robbery, and one count of brandishing a firearm during a crime of violence. He has been in custody since his arrest in June 2016.
According to the indictment and other documents filed in this case:
In the afternoon of June 11, 2016, White allegedly entered a mobile communications company retail store in Orange wearing a wig and brandishing a handgun. White stole cash from an employee of the store and fled.
White was arrested shortly afterwards when he attempted to evade the Orange Police Department on foot and was charged by the Essex County Prosecutor’s Office with robbery and firearms offenses. He was charged by federal criminal complaint on Nov. 10, 2016 in Newark federal court.
White was previously convicted in Newark federal court of armed carjacking and brandishing a firearm during a crime of violence in 1993.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of 25 years in prison based on White’s prior conviction for the same offense, and that sentence must be consecutive to any other sentence imposed. The Hobbs Act charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The felon in possession of a firearm charge carries a statutory maximum of 10 years in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s charges. He also thanked the Orange Police Department for their assistance.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin Carlucci Esq., Newark
New Orleans Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that GRADY W. CLARK, III, age 38, of New Orleans, pled guilty today to possession of child pornography.
According to court documents, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”) executed a federal search warrant at CLARK’S New Orleans residence on January 20, 2017. During the search, HSI agents seized numerous electronic items, including a computer thumb drive that contained over 1,800 images depicting the sexual victimization of prepubescent children. CLARK was arrested by HSI agents during the execution of the search warrant and appeared in federal court where he was detained by a United States Magistrate Judge.
Court records reveal that CLARK was previously convicted on October 30, 2012, in Orleans Parish Criminal District Court for pornography involving juveniles. Due to his prior conviction, CLARK faces a mandatory minimum penalty of ten years imprisonment up to twenty years, followed by up to a life term of supervised release, sex offender registration, and a $250,000 fine. U.S. District Judge Lance M. Africk set sentencing for July 27, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, New Orleans Police Department, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
New Hampshire Company Pleads Guilty to Trafficking Counterfeit Patriots Playoff T-ShirtsRead the Press Release
BOSTON – A New Hampshire company pleaded guilty today in federal court in Boston to trafficking counterfeit New England Patriots AFC Championship and Super Bowl t-shirts during the 2015 NFL playoffs.
CK Productions, Inc., based in Pelham, N.H., pleaded guilty to trafficking in counterfeit goods. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Sept. 6, 2017.
From January through February 2015, CK Productions printed and sold approximately 1,724 counterfeit t-shirts, with a total retail value of approximately $29,405. The playoff t-shirts bore the trademarked words “Patriots” and “Super Bowl” and the Patriots logo:
NEW ENGLAND PATRIOTS LLCThe penalty for trafficking in counterfeit goods against a corporation is a fine of no greater than $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Adam Bookbinder, Chief of Weinreb’s Cyber Crime Unit, is prosecuting the case.
Nashville Return Preparer Indicted for Filing False Tax ReturnsRead the Press Release
Robert J. Spears, 35, of Nashville, Tenn., was indicted yesterday by a federal grand jury in Nashville, Tenn., for preparing false tax returns and for filing his own fraudulent tax returns, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the indictment, Spears worked as a salesperson and manager at a telephone call-center and between 2010 through 2012, Spears prepared and filed false tax returns for his coworkers. The returns fraudulently claimed bogus education credits, student loan interest deductions, and child-care expenses, which the taxpayers did not qualify for. The indictment also alleges that Spears stole a substantial portion of the tax refunds issued in his coworkers’ names by diverting the tax refunds to his own personal bank accounts.
Finally, the indictment alleges that Spears filed his own false tax returns for tax years 2010 through 2012 by substantially understating his income.
If convicted, Spears faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution, and monetary penalties.
The case was investigated by the IRS – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee is prosecuting the case on behalf of the United States.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Nahant Man Indicted on Extortion ChargeRead the Press Release
BOSTON – A Nahant man was indicted today in connection with arranging and paying for a local business owner to be assaulted.
Gary P. DeCicco, 58, was indicted on one count of attempted extortion. DeCicco was initially arrested and charged in March 2017.
According to court documents, in approximately 2004 or 2005, DeCicco sold land to the victim for $750,000. Shortly after construction began on the land in 2013, DeCicco asked the victim to be a partner in a car dealership the victim was building. When the victim refused to give DeCicco an interest in his business, DeCicco paid other individuals to arrange to threaten and assault the victim. On Jan. 11, 2015, the victim was assaulted at his business – an incident that was captured on video surveillance – and suffered several injuries, including a broken jaw.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Weinreb’s Public Corruption Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Muskogee Woman Sentenced to 63 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that SAMANTHA LEE SMITH, age 22, of Muskogee, Oklahoma, was sentenced to 63 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The Superseding Indictment alleged that beginning in or about the end of 2013, the exact date being unknown to the Grand Jury, and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant and others did knowingly and intentionally conspire, confederate and agree with each other, and with others known and unknown to the Grand Jury, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Muhlenberg County Resident Convicted of Possession with Intent to Distribute MethamphetamineRead the Press Release
Jury deliberated 38 minutes before reaching unanimous verdict
OWENSBORO, Ky. – United States Attorney John E. Kuhn, Jr. today announced the conviction of a Muhlenberg County, Kentucky resident, in United States District Court, on a single charge of possession with intent to distribute 50 grams of methamphetamine, a Schedule II controlled substance.
Kenneth Copley, 62, was taken into federal custody following the unanimous jury verdict reached in just 38 minutes, on April 12, 2017, before Chief Judge Joseph H McKinley Jr.
Evidence presented during the three-day trial included 800 grams of a substance, tested and identified as 100% pure methamphetamine. The controlled substance was seized during a traffic stop, and during a consent search by a Kentucky State Police trooper, on February 24, 2015 in Muhlenberg County. Methamphetamine was found in Copley’s vehicle and a subsequent search of Copley’s garage. While consent was given to search the residence and garage, detectives obtained a search warrant.
Copley was charged, in a single count federal indictment on March 9, 2016. Copley is subject to a mandatory minimum sentence of no less than ten years in prison followed by a five year period of supervised release and could be fined up to $10,000,000. Sentencing is scheduled in Owensboro, before Judge McKinley, July 10, 2017, at 9:00 AM CT.
This case was prosecuted by Assistant United States Attorney Larry Fentress and was investigated by the Drug Enforcement Administration (DEA), Kentucky State Police, Hopkinsville Sheriff’s Department, and Madisonville Police Department.
Mount Morris Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Calvin R. Patrick, 35, of Mount Morris, NY, pleaded guilty to receipt of child pornography before Chief U.S. District Judge Frank P. Geraci, Jr. Based on a prior conviction for possession of child pornography, the defendant faces a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in the fall of 2015, Patrick enticed two minor females under the age of 18 to send to him sexually explicit pictures of themselves. The defendant used the application known as “Kik” to communicate with a 14-year-old female in Florida and a female in Pennsylvania who was not quite 12 years-old.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Mount Morris Police Department, under the direction of Chief Kenneth Mignemi; the Livingston County Probation Department, under the direction of Director Lynne C. Mignemi; and the Livingston County District Attorney’s Office, under the direction of Gregory J. McCaffrey.
Sentencing is scheduled for July 12, 2017, at 2:00 p.m. before Judge Geraci.
Missouri Man Sentenced to 120 Months for Using the Internet to Knowingly Attempt to Entice A Minor to Engage in Sexual ActivityRead the Press Release
FRANKFORT, Ky. - A Sikeston, Missouri man, who previously admitted to travelling to Kentucky with the intent to engage in illicit sexual conduct with a minor, has been sentenced to 120 months in federal prison.
Yesterday, U.S. District Court Judge Gregory F. Van Tatenhove sentenced David Bruce Jordan, 42, for using the Internet, with his cellular telephone, to knowingly attempt to persuade, induce, entice, and coerce a minor, to engage in sexual activity for which any person could be charged with a crime.
According to the plea agreement, Jordan previously admitted to travelling to Kentucky, from Missouri, on August 4, 2016, to meet with a person he believed to be a 14-year old female student. He also admitted that he was the person who had been communicating with that person he believed to be a 14 year-old student, and that those communications contained sexually explicit conversations. The “minor” was actually an undercover Kentucky State Police detective.
Jordan pleaded guilty to the charge in December of 2016.
Under federal law, Jordan must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 15 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Steven Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Rick Sanders, Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by Homeland Security Investigations and the Electronic Crimes Branch of the Kentucky State Police. Assistant U.S. Attorney David A. Marye represented the federal government in the case.
Mexican National Sentenced to Prison for Participating in Marijuana Trafficking and Money Laundering Ring Operating in Southeastern New Mexico and West TexasRead the Press Release
ALBUQUERQUE – Christian Hugo Contreras, 34, a Mexican national residing in El Paso, Tex., was sentenced yesterday in federal court in Las Cruces, N.M., to 97 months in prison for his role in a marijuana trafficking and money laundering ring operating in southeastern New Mexico and west Texas. Contreras will be deported after completing his prison sentence.
Contreras was one of twelve defendants facing drug trafficking and money laundering charges as the result of a multi-agency investigation targeting marijuana traffickers and money launderers operating in southeastern New Mexico and west Texas. The charges against the defendants, which are contained in three separate federal indictments, were the result of an investigation that began in Oct. 2014, and initially targeted a marijuana trafficking organization allegedly led by Rodolfo Lopez, 33, of El Paso, that transported marijuana from El Paso to Chaves County, N.M., and Lubbock, Tex. The investigation expanded to include two smaller drug trafficking organizations that transported marijuana to Lubbock through Chaves County and Eddy County, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
In one case, ten of the members of the marijuana importation and distribution ring, including Contreras, were charged in a 42-count indictment with drug trafficking and money laundering conspiracies and a series of drug and money laundering substantive offenses. The indictment charged all ten defendants with participating in a marijuana trafficking conspiracy between Nov. 2014 and April 2015 that distributed more than 100 kilograms of marijuana in Chaves County and other places. It also charged six of the defendants with participating in a conspiracy to launder the proceeds of their marijuana trafficking activities. Two defendants were charged with maintaining premises in Roswell, N.M., for the purpose of storing marijuana, and three defendants were charged with using a communications facility, telephones, to further the commission of drug trafficking crimes. The indictment also included 26 counts charging certain defendants with drug trafficking crimes and two counts charging certain defendants with money laundering.
In a separate case, Contreras and four other defendants were charged in another marijuana trafficking conspiracy. The indictment in that case charged the defendants with participating in a marijuana trafficking conspiracy between March 1, 2015 and March 24, 2015, in Chaves County. It also charged four of the defendants with possessing marijuana in Eddy County on March 23, 2015, with the intention of distributing it to others.
A third case charged three defendants with conspiracy to commit a marijuana trafficking crime in Eddy County between Feb. 12, 2015 and Feb. 26, 2015. Two of the defendants were also charged with possession of marijuana in Eddy County on Feb. 26, 2015, with the intention of distributing it to others.
On Nov. 13, 2015, Contreras entered guilty pleas in the two cases in which he was charged. With respect to the first case, Contreras pled guilty to conspiracy to distribute marijuana, conspiracy to commit money laundering, eight counts of using a communication device to facilitate drug trafficking crimes, and 11 counts of possession of marijuana with intent to distribute, and money laundering. In the second case, Contreras pled guilty to two counts of possession of marijuana with intent to distribute. In entering the guilty pleas, Contreras admitted that from Nov. 24, 2015 through April 11, 2015, he conspired with his co-defendants to transport between 100 and 400 kilograms of marijuana through New Mexico.
To date, ten of the 12 defendants charged in the three cases have entered guilty pleas and nine have been sentenced. Rodolfo Lopez, 31, of El Paso, and Emmanuel Lopez-Tellez, 33, a Mexican national have yet to be arrested and are considered fugitives. Charges in indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
These cases are the result of an investigation by the Las Cruces offices of the DEA and IRS Criminal Investigation, the Hatch Police Department, the Sunland Police Department, the Chaves County Metro Narcotics Task Force, the Pecos Valley Drug Task Force, the Eddy County Sheriff’s Office. The El Paso office of the U.S. Attorney’s Office for the Western District of Texas and the Lubbock office of the U.S. Attorney’s Office for the Northern District of Texas assisted in the investigation. Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office is prosecuting these cases.
The Chaves County Metro Narcotics Task Force is comprised of officers and investigators from the Chaves County Sheriff’s Office and the Roswell Police Department, and the Pecos Valley Drug Task Force is comprised of officers and investigators from the Artesia Police Department, Carlsbad Police Department, Eddy County Sheriff’s Office, FBI, HSI, the Probation and Parole Division of the New Mexico Corrections Department and the 5th Judicial District Attorney’s Office. Both Task Forces are part of the New Mexico HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mercer County, New Jersey, Man Sentenced to 20 Years in Prison for Enticing Minor to Engage in Sexually Explicit ConductRead the Press Release
NEWARK, N.J. – A Lawrenceville, New Jersey, man was sentenced today to 240 months in prison for paying a minor to engage in sexually explicit conduct and stream it online, Acting U.S. Attorney William E. Fitzpatrick announced.
Curtis E. Thompson, 32, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of production of child pornography. Thompson was charged by complaint on Nov. 10, 2015, and has been in custody since that date. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Thompson admitted that from May 2015 through September 2015, he used Facebook Messenger and FaceTime on his iPhone to communicate with an individual, referred to in the information as “Victim 1,” and Victim 1’s friends. Thompson also admitted that based on those communications, he learned that Victim 1 was less than 18 years old.
Thompson admitted using Facebook Messenger and FaceTime to encourage Victim 1 and Victim 1’s friends to engage in sexually explicit activity and either record the conduct or stream it online. Thompson also admitted that he offered and made payments to the victim for recording and streaming the sexually explicit conduct.
In addition to the prison term, Judge Vazquez sentenced Thompson to lifetime supervised release.
Acting U.S. Attorney Fitzpatrick credited Special Agents with the FBI, under the direction of Special agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David A. Holman Esq., Assistant Federal Public Defender, Newark
McAlester Woman Pleads Guilty to Indian Casino TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BILLIE JEAN STAPP, age 46, of McAlester, Oklahoma, pled guilty to THEFT FROM GAMING ESTABLISHMENTS ON INDIAN LANDS, in in violation of Title 18, United States Code, Section 1167, punishable by not more than 1 year imprisonment, and up to a $100,000.00 fine or both.
The Information alleged that on or about January 28, 2012, in the Eastern District of Oklahoma, the defendant, did abstract, purloin, willfully misapply, take and carry away with the intent to steal, monies, funds and assets of a value less than $1,000.00 belonging to the Cherokee Casino in Tahlequah, Oklahoma, an establishment operated by the Cherokee Nation of Oklahoma, an Indian Tribe pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge arose from an investigation by the Cherokee Nation Marshal Service.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Edward Snow represented the United States.
Massachusetts Man Sentenced on Drug Conspiracy ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Julio Santiago, age 23, from Holyoke, Massachusetts was sentenced in federal court in Florence, South Carolina, for Conspiracy to Possess with Intent to Distribute and to Distribute a Quantity of Heroin and Fentanyl in violation of 21 U.S.C. §§ 841(a)(1) and 846. United States District Judge R. Bryan Harwell of Florence sentenced Burgess to 84 months imprisonment followed by 3 years of supervised released.
Evidence presented at the change of plea on November 29, 2016 and sentencing hearing established that in early 2016, members of the Drug Enforcement Administration (DEA) Florence, South Carolina, the Federal Bureau of Investigation (FBI) and the Fifteenth Circuit Drug Enforcement Unit (DEU) Conway, South Carolina were investigating a heroin distribution organization in the Horry County, South Carolina area. As part of that investigation, agents arranged a controlled buy of a quantity of heroin from Santiago in March 2016. On May 20, 2016, a second controlled purchase of heroin was made from Santiago, who was arrested shortly thereafter. Several thousand dollars were seized from Santiago at the time of his arrest. Agents executed a search warrant at an apartment where Santiago lived. Agents seized a quantity of heroin and a firearm in the apartment.
The case was investigated by agents of the Drug Enforcement Administration (DEA) Florence, South Carolina, the Federal Bureau of Investigation (FBI) and the Fifteenth Circuit Drug Enforcement Unit (DEU) Conway, South Carolina. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Man Sentenced to 10 Years for Using an Improvised Explosive Device to Damage A BuildingRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that Larry Dean Bowlsby, 49, of Warrenton, Missouri, was sentenced by U.S. District Judge Martin Reidinger to 10 years in prison for detonating an improvised explosive device inside a Walmart store in 2007. Bowlsby was arrested in Missouri on May 24, 2016, and pleaded guilty to the charges in the Western District of North Carolina on October 2016.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; Chief Davis Woodard of the Sylva Police Department; and Sheriff Chip Hall of the Jackson County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, sometime prior to September 26, 2007, Bowlsby constructed a destructive device, that being a pipe bomb. Court records indicate that on September 26, 2007, Bowlsby entered the Walmart in Sylva, N.C., accompanied by two minors. Once inside, Bowlsby took and used a shopping cart. He had placed the pipe bomb in the bag of one of the minors, but removed it once he was inside the store. According to court records, Bowlsby separated from the minors and took the cart and the pipe bomb to the camping supplies section of the store. He placed the pipe bomb among the small propane cylinders for camp stoves, ignited the device, and left the area. The device detonated and caused an explosion. Court records show that five people were nearby when the device exploded and had to be taken to the hospital for minor injuries inflicted by the explosion. Also, the Walmart store and some merchandise were damaged by the bomb. Bowlsby and the two minors drove away in Bowlsby’s vehicle.
According to court records, investigators captured video footage from the store security cameras that depicted Bowlsby and the two minors inside the store, and his vehicle in the parking lot. Law enforcement were also able to recover Bowlsby’s fingerprint from the shopping cart. Law enforcement ran the print against national databases in 2007 with no success; however, they ran it again in 2016 and the print matched Bowlsby.
According to court records, on January 9, 2008, the Colorado State Patrol stopped Bowlsby’s vehicle, which was the same as the one driven by Bowlsby during the 2007 incident in Sylva. Law enforcement located four incendiary devices made from tennis balls, black powder, electrical tape, and fuses. Bowlsby was arrested and eventually pleaded guilty to charges relating to the tennis ball bombs. Bowlsby’s fingerprints were entered into the national database, which enabled the successful fingerprint search in 2016.
Bowlby is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose praised the work the ATF, SBI, the Sylva Police Department and the Jackson County Sheriff’s Office, which handled the investigation.
Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
MS-13 Member Pleads Guilty to Attempted Murder of Rival Gang MemberRead the Press Release
BOSTON – A member of MS-13’s East Boston Loco Salvatrucha (EBLS) clique pleaded guilty yesterday in connection with the assault of a rival gang member in East Boston.
Christian Alvarado, a/k/a “Catracho,” 28, of East Boston, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as racketeering or RICO conspiracy, and conspiracy to distribute 100 grams or more of heroin. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 6, 2017.
After a three-year investigation, Alvarado was one of 61 persons named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. As alleged in court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
On May 11, 2008, Alvarado and other MS-13 members, including fellow EBLS member Edgar Pleitez, also known as “Cadejo,” attempted to murder a gang rival by beating him near a soccer stadium in East Boston. Alvarado also allegedly conspired with Santos Portillo-Andrade, also known as “Flaco,” the leader of the EBLS clique, and Pleitez to distribute 100 grams or more of heroin. On several occasions in August 2015, Alvarado and Pleitez were recorded selling heroin to a cooperating witness. In addition, using a court-authorized wiretap, federal agents intercepted telephone calls between Alvarado and Portillo-Andrade in which the two men allegedly discussed selling a half-kilogram of heroin for $26,000. On Oct. 26, 2015, agents followed Alvarado and Portillo-Andrade to the sale, after which, the agents stopped Alvarado and Portillo-Andrade’s car and seized $26,000 in cash as well as a loaded firearm and a machete.
The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of conspiracy to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $8 million.
Alvarado is the thirteenth defendant to plead guilty in this case. Other defendants have pleaded guilty to RICO conspiracy, drug trafficking, document fraud, and immigration offenses.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kingstree Man Sentenced on Weapons ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Brian Burgess, age 41, from Kingstree was sentenced yesterday in federal court in Florence, South Carolina, for Possession of a Stolen Firearm in violation of 18 U.S.C. § 922(j). United States District Judge R. Bryan Harwell of Florence sentenced Burgess to 108 months imprisonment followed by three years of supervised released.
Evidence presented at the change of plea on November 28, 2016 and sentencing hearing established that on November 4, 2015, officers with the Myrtle Beach Police Department (MBPD) responded to a hotel in Myrtle Beach as part of a heroin overdose investigation. MBPD searched a room in the hotel pursuant to a search warrant. Burgess and several others were inside the room. A stolen 9mm firearm was located in the hotel room. Burgess claimed possession of the pistol. Burgess was previously convicted of a felony offense and prohibited from possessing a firearm.
The case was investigated by agents of the Myrtle Beach Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Jacksonville Man Indicted for Wire and Tax Fraud After Stealing More Than $150,000 from His EmployerRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Albert Jason Miller (46, Jacksonville) with wire fraud and filing a false tax-related document. If convicted, he faces up to 20 years in prison on the fraud charge, and up to 3 years’ imprisonment on the false filing charge. The indictment also notifies Miller that the United States is seeking a money judgment in the amount of $162,282.96, which represents the proceeds of the offenses.
According to the
indictment , Miller was an employee of CEVA Logistics, a Netherlands–based contract logistics and freight/transportation management company that has offices in Jacksonville. From 2008 through March 2013, he worked in the company’s procurement department. In May 2010, Miller created a fictitious business named “CEVA” and told vendors to make checks payable to CEVA because CEVA Logistics was undergoing a legal name change. He then began diverting those checks and depositing them into a bank account he had opened in the name of CEVA, where he was the sole authorized signor. Miller diverted a total of $162,282.96 and failed to disclose the stolen proceeds as income on his 2010, 2011, 2012, and 2013 tax returns. Miller used the stolen proceeds to pay for personal expenses.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Department of Law Enforcement, as part of the IRS-Criminal Investigation’s Northeast Florida Financial Task Force. It will be prosecuted by Assistant United States Attorney Beatriz Gonzalez.
International Businessman Pleads Guilty to Financing Racketeering Enterprise in San Diego Card RoomRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 or Assistant U.S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – April 13, 2017
SAN DIEGO – Swedish businessman Petter Magnus Karlsson, who had recently been living in Asia, pleaded guilty today to engaging in an international racketeering conspiracy that used the Lucky Lady Casino and Card Room in El Cajon as a legitimate front for illegal sports bookmaking and related criminal activity. Karlsson voluntarily travelled to the United States last week to face the charges that had been pending since July 2016.
As set out in his plea agreement, Karlsson helped provide financing to lead defendant Sanders Bruce Segal in order to bankroll Segal’s bookmaking operation, which took illegal sports bets from customers across the Southern District of California and in the District of Arizona. Karlsson also provided Segal and others in the enterprise with access to offshore sports gaming websites hosted in Costa Rica, the U.K., Hong Kong, and Curacao, so that they could place large illegal sports bets online while shielding their unlawful activity from U.S. authorities.
According to the plea agreement, the enterprise’s primary offshore sports gambling website, betmex.net, was owned and operated by co-defendant David Gregg Leppo. Karlsson supervised co-defendant Pablo Ballestero Frech in managing accounts for Segal at Leppo’s website and others. Frech returned from Canada to face charges and pleaded guilty to unlawful transmission of wagering information last October.
Karlsson, Segal, and others in the enterprise regularly used runners and other means to transfer large sums of cash between themselves to fuel their operation. On one occasion, according to the plea agreement, Karlsson and Frech personally picked up a shoebox full of $90,000 in cash proceeds directly from Segal on his front doorstep. As part of his plea, Karlsson agreed to forfeit $139,834, which represented direct proceeds of his participation in the offense.
Seven defendants in addition to Karlsson have thus far pleaded guilty to gambling charges as part of cases stemming from the investigation of the Lucky Lady: Pablo Ballestero Frech, Minh Triet Dinh Nguyen, James Heng Tear, Ken Pheng Keo, Jason D. Taylor, Jeffrey Alan Burke, and Ryan Richard Buchardt.
Acting U.S. Attorney Alana Robinson commented, “For too long, transnational criminal organizations have attempted to skirt United States laws by using offshore servers, networks of illicit cash couriers and complex financial transactions. But tycoons in the lucrative world of international sports gambling now have one sure bet: If your conduct violates American law, you will find yourself in a United States courtroom and be held to account.”
“Sophisticated racketeering organizations continually rely on the mistaken notion that they can move beyond the reach of the law by spreading their operations across international borders,” stated FBI Special Agent in Charge Eric S. Birnbaum. “Today’s guilty plea demonstrates that there are no safe havens. The FBI will work tirelessly with our international partners to ensure that criminals are brought to justice no matter where they hide.”
Karlsson’s sentencing is currently set for July 17, 2017 at 9 a.m. The remaining defendants are set for a motion hearing June 26, 2017 before Judge Roger T. Benitez.
DEFENDANTS—Case Number: 16CR1695-BEN Next Court Date
Sanders Bruce Segal Motion Hearing June 26, 2017
Stanley Samuel Penn Motion Hearing June 26, 2017
Petter Magnus Karlsson Sentencing
David Greg Leppo Motion Hearing June 26, 2017
Pablo Ballestro Frech Sentencing
Sydney Bruce Segal Motion Hearing June 26, 2017
Joseph Edward Spatafore Motion Hearing June 26, 2017
Minh Triet Dinh Nguyen Sentencing
James Heng Tear Sentencing
Ken Pheng Keo Sentencing
Jason D. Taylor Sentencing
Jeffrey Alan Burke Sentencing
SUMMARY OF CHARGES
Count 1: Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of Title 18, United States Code, Sections 1962(c) & (d)
Maximum penalties: 20 years in prison, 3 years supervised release, and a $250,000 fine
Defendants 1-6
Count 2: Illegal Gambling Business, in violation of Title 18, United States Code, Section 1955
Maximum Penalties: 5 years in prison, 3 years supervised release, and a $250,000 fine
All defendants
Count 3: Transmitting Wagering Info, in violation of Title 18, United States Code, Section 1084(a)
Maximum Penalties: 2 years in prison, 1 year supervised release, and a $250,000 fine
Defendants 7 and 11
DEFENDANT—Case Number: 16CR1696-BEN Next Court Date
Robert Jay Zaben Motion Hearing June 26, 2017
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service – Criminal Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Bharatkumar Patel, aka Bharat Patel, 43, an Indian national who had resided in Midlothian, Illinois, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. He also agreed to deportation following his sentence. Sentencing is currently set for July 7, 2017.
According to admissions made in connection with the plea, Patel and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, beginning in or about July 2013, Patel worked as a member of a crew of runners operating in the Chicago area and elsewhere throughout the country. Patel admitted to purchasing reloadable cards or retrieving wire transfers and using the misappropriated personal identifying information of U.S. citizens. Patel also admitted to opening personal bank accounts in order to receive scam proceeds and payments from defrauded victims as well as creating limited liability companies in his name to further the conspiracy. According to his plea, Patel opened one bank account that received more than $1.5 million in deposits over a one-year period and another bank account that received more than $450,000 in deposits over a five-month period.
Patel was charged for his role in the fraud and money laundering scheme alongside 55 other individuals and five call centers in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Illegal Alien Sentenced for Participation in Cocaine Conspiracy, Illegal Possession of a Firearm, and False Identification DocumentsRead the Press Release
Defendant will be Subject to Deportation Proceedings after a 51 Month Prison Sentence
SYRACUSE, NEW YORK – Chanel Garcia-Enrique, 37, a citizen of the Dominican Republic residing in Utica, New York, was sentenced yesterday to be imprisoned for 51 months, to be followed by 3 years of supervised release, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA). The sentence followed Garcia-Enrique’s October 7, 2016 guilty pleas to conspiracy to distribute cocaine, possession of a firearm by a convicted felon, possession of a false identification document, and making a false statement.
As part of his guilty pleas, Garcia-Enrique admitted that: In early 2016, Garcia-Enrique conspired with others to distribute over 500 grams of cocaine in the Utica area. At the time of his arrest, Garcia-Enrique was lying in bed with a loaded 20-gauge shotgun. When first questioned by law enforcement officers, Garcia-Enrique said his name was “Avelino Vargas” and that he was a United States citizen, born in Puerto Rico, when in fact, he was a citizen of the Dominican Republic and was in the United States illegally. Garcia-Enrique also possessed, at the time of his arrest, false identification documents, including a New York State driver’s license and two New York State identification cards, all in the name of “Avelino Vargas” and bearing the defendant’s photograph. Garcia-Enrique previously was convicted in Oneida County of criminal possession of a controlled substance in the fifth degree, a felony.
United States Attorney Richard S. Hartunian said, “The serious crimes committed by this cocaine conspirator with a loaded shotgun who abused our immigration system underscore the importance of vigorous enforcement of these offenses to preserving public safety. The close collaboration of federal, state, and local law enforcement agencies that led to this sentence is the most effective way to secure justice.”
DEA Special Agent in Charge James Hunt stated, “The fact that Garcia-Enrique slept in his bed with a loaded 20-gauge shotgun is a reminder to the public that drug dealers are dangerous for more reasons than just distributing poison. Violent crime goes hand in hand with drug trafficking in every city. And in our city, DEA, along with our state, local and federal partners, have collaborated to remove these threats that lead to drug addiction and drug-related crimes.”
This case was investigated by the Drug Enforcement Administration (“DEA”), the Oneida County Drug Task Force, the Department of Homeland Security - U.S. Customs and Border Protection, and the Central New York Drug Enforcement Task Force, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius and Oneida County Assistant District Attorney Grant Garramone, a Special Assistant U.S. Attorney.
Husband and Wife Charged with Filing False Tax ReturnsRead the Press Release
HONOLULU -- A federal grand jury returned an indictment yesterday charging Lorraine Yamauchi, 70, and Jiitsu Yamauchi, 64, residents of Honolulu, Hawaii, with five counts of filing false tax returns in violation of Title 26, United States Code, Section 7206(1).
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that according to the indictment, the Yamauchis are charged with filing false tax returns for tax years 2010, 2011, 2012, 2013, and 2014. The indictment alleges that the Yamauchis reported amounts of income that was far less than the amounts they knew they had actually received.
The Yamauchis’ initial appearance and arraignment will be held on April 18, 2017, at 2:00 p.m., before the Honorable Richard L. Puglisi, United States Magistrate Judge. If convicted of the charges in the indictment, the Yamauchis face a maximum of three years in prison as to each of the five counts. The charges in the indictment are merely accusations, and the Yamauchis are presumed innocent until proven guilty.
The charges resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael Nammar.
Hopkins County, Kentucky, Convicted Felon Charged with Possession and Attempted Distribution of Methamphetamine and CocaineRead the Press Release
Charges include being a felon in possession of firearms and ammunition
BOWLING GREEN, Ky. – A Hopkins County, Kentucky, convicted felon was charged by grand jury indictment this week with possession with intent to distribute methamphetamine and cocaine base, and with being a felon in possession of firearms and ammunition, announced United States Attorney John E. Kuhn, Jr.
Tyslen J. Baker, 39, of Madisonville was charged in a three count indictment with two counts of possession with intent to distribute Schedule II controlled substances including 50 grams or more of methamphetamine and 28 grams or more of a mixture containing cocaine base. The alleged criminal activity took place in Hopkins County, Kentucky on January 25, 2017.
Further, Baker is charged with being a felon in possession of firearms and ammunition. At the time of his arrest, Baker allegedly possessed a Ruger, .380 caliber pistol, Model LCP; a Mossberg, .22 caliber long rifle, Model 715T; and a Charter Arms, .38 special, model Undercover Lite; and ammunition.
Baker has five previous convictions for First-Degree Trafficking in a Controlled Substance in Muhlenberg Circuit Court and Hopkins Circuit Court.
If convicted at trial, Baker could be sentenced to no less than 10 years in prison, fined $50,000,000 and serve a five-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth A. Hancock and is being investigated by the Drug Enforcement Administration (DEA), and the Madisonville Police Department.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Home Health Care Owners Indicted for FraudRead the Press Release
A Houston couple is set to appear in federal court on charges they fraudulently billed more than $24 million to Medicare through several home health companies, announced Acting U.S. Attorney Abe Martinez. Oluyemisi Amos, 35, and her husband Felix Amos, 66, are charged in an eight-count indictment with conspiracy to commit health care fraud, health care fraud and money laundering.
They are set to appear before U.S. Magistrate Judge Nancy Johnson today at 10:00 a.m.
According to the indictment, returned April 5, 2017, the couple took over Advanced Holistic Healthcare Services Inc. in 2011 and allegedly submitted claims to Medicare for home health services for beneficiaries that did not receive any services. Additionally, physicians did not order these services for the beneficiaries, according to the charges.
The indictment alleges the defendants continued the same pattern of fraudulent billing with other companies - Access Practical Solutions, GetUpandWalk Inc. and Guarranty Home Health Agency. As soon as they took ownership of these companies, there was a dramatic increase in the billing for services, some of which had been performed prior to the change in ownership, according to the charges. They would allegedly bill a high volume to Medicare for a short period of time, then stop.
Internal Revenue Service - Criminal Investigation, Department of Health and Human Services-Office of Inspector General, Secret Service and the Medicaid Fraud Control Unit of the Texas Attorney General’s Office conducted the joint investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Julie Redlinger are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Henry County Man Sentenced to 40 Years for Child Exploitation OffensesRead the Press Release
FRANKFORT, Ky. – A Henry County, Ky., man, who was previously convicted of several child exploitation offenses, has been sentenced to 40 years in federal prison.
On April 11, U.S. District Judge Gregory Van Tatenhove sentenced Joseph David Martin, 43, for producing child pornography, distribution of child pornography, and possession of child pornography. Under federal law, Martin must serve at least 85 percent of his prison sentence.
Martin was convicted of the offenses in 2016. The evidence at trial established that Martin had sexually exploited a teenager, repeatedly, starting when the victim was 13 years old. The evidence further established that Martin videotaped some of the sexual encounters.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Rick Sanders, Kentucky State Police Commissioner, jointly announced the sentence.
The investigation was conducted by the FBI and the KSP. Assistant U.S. Attorney David Marye prosecuted this case on behalf of the federal government.
Hartford Attorney Sentenced to 3 Years in Federal Prison for Role in Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COREY BRINSON, 37, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for his involvement in a securities fraud scheme.
According to court documents and statements made in court, between approximately October 2010 and July 2016, BRINSON, a licensed attorney, served as the nominal “securities counsel” for several companies whose securities were marketed and sold to the investing public by Christian Meissenn and Meissenn’s business associates in a stock “pump and dump” scheme. Meissenn and his associates induced investors to purchase securities by making false and misleading representations about the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. After selling their own shares at a profit, the scheme’s participants allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
As part of the scheme, BRINSON, who did not have any experience with securities and securities markets, signed, or permitted others to affix his signature to, false and misleading attorney opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. Among other things, the opinion letters falsely certified that BRINSON, as an attorney, had adequately reviewed corporate records and filings and was satisfied with the adequacy of the companies’ public disclosures. The opinion letters were then provided to securities transfer agents and prospective investors.
BRINSON also received deposits of millions of dollars in proceeds of securities transactions into his Interest on Lawyer Trust Account (“IOLTA”). Rather than use the proceeds to purchase securities and fund operations at the underlying companies, Meissenn and others directed BRINSON to distribute nearly all the money to relatives, associates and shell companies associated with Meissenn and his associates.
BRINSON knew that approximately $3 million that passed through his IOLTA were the proceeds of this illegal securities scheme. In exchange for providing his services, BRINSON received approximately five percent of the proceeds that passed through his IOLTA. BRINSON also received payment for preparing the false opinion letters. As a result of these activities, BRINSON’s personal gain was a total of approximately $200,000.
Judge Meyer ordered BRINSON to pay restitution in the amount of $1,417,810.
On January 20, 2017, BRINSON pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity.
BRINSON surrendered his law license in November 2016.
On November 8, 2016, Meissenn pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Gravette Woman Pleads Guilty to Embezzlement of Government Funds and Tax FraudRead the Press Release
Fayetteville, AR – Kenneth Elser, United States Attorney for the Western District of Arkansas, Tracey D. Montaño, Special Agent in Charge for IRS Criminal Investigation, and L. Diane Upchurch, Special Agent in Charge for the Federal Bureau of Investigation announced today that Connie Guild, age 52, of Gravette, Arkansas, has pleaded guilty to a 2-count Information charging her with Theft Concerning Programs that Receive Federal Funds and Filing a False Income Tax Return. Judge Timothy L. Brooks accepted the plea in the United States District Court in Fayetteville.
According to court records, beginning in 2005, Guild began working in the Benton County accounting department as an Accounting Specialist, and most recently as the Accounts Payable Manager until she was terminated in September 2016. Starting in 2007, Guild was in charge of the Benton County Travel Fund. This fund consisted of cash stored in a vault and was used to advance cash to county employees for approved travel. To receive the cash, county employees submitted approved travel request forms to Guild. Once the travel was completed, the employee would submit receipts to Guild that were reconciled with the travel request forms, and any unspent cash was returned to Guild to be placed back into the Travel Fund.
Periodically, Guild would compile the reconciled travel request forms and submit a claim to the Benton County Treasurer, who would issue a check to Guild payable to the Travel Fund. Guild would then cash the check, and the cash was supposed to be deposited into the Travel Fund vault, reimbursing the Travel Fund for the previously advanced cash.
Beginning in 2007, Guild began submitting false claims for the Travel Fund to the Treasurer, inflating the amount of money dispersed from the Travel Fund. As a result, the Treasurer issued checks payable to the Travel Fund in amounts that exceeded the amount necessary to reimburse the Travel Fund. Guild cashed the checks and deposited the excess funds into her personal bank account, where she used the funds to pay personal expenses.
From 2007 to 2015, Guild also failed to report the embezzled funds as income on her personal federal income tax returns. Count 2 of the Information charges Guild with underreporting the income reported on her 2010 IRS Form 1040, by approximately $118,560.00 in embezzled funds, resulting in a tax loss of $33,505.00. In total, Guild agreed that the total tax loss for all years was greater than $250,000.00 but less than $550,000.00.
As part of the plea agreement, Guild has agreed to a money judgment of $1,033,762.20, which represents the proceeds of her illegal conduct. Guild will be sentenced at a later date. As to Count 1, Guild faces a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. As to Count 2, Guild faces a maximum penalty of 3 years imprisonment and a maximum fine of $100,000.
The investigation was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Brice R. White prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Grand Jury Returns More Charges Against Lindsborg Man in Foreign Travel for Sex CaseRead the Press Release
KANSAS CITY, KAN. - A federal grand jury here today returned additional charges against a Lindsborg man accused of traveling to a foreign country to have sex with minors, U.S. Attorney Tom Beall said.
Anthony Shultz, 54, Lindsborg, Kan., is accused of traveling to the Philippines, where he engaged in sex with minors, produced videos of sex acts with minors and distributed them on the internet. The case began in April 2016 when the FBI received a tip that a U.S. citizen was sexually abusing minors in the Philippines, producing live-streaming videos and distributing videos via the internet to users who paid to see them. Investigators followed an electronic trail to Shultz, who was a commercial pilot and owned a home in Lindsborg. He initially was charged in July 2016.
Schultz is charged with the following counts:
Count one: Engaging in illicit sexual conduct in a foreign place with a minor victim (victim 1).
Count two: Production of child pornography (victim 1).
Count three: Sex trafficking of children (new count, victim 1).Count four: Engaging in illicit sexual conduct in a foreign place with a minor victim (new count, victim 2).
Count five: Production of child pornography (new count, victim 2).
Count six: Sex trafficking of children (new count, victim 2).
Count seven: Production of child pornography (new count, victim 3).
Count eight: Selling or buying of children (new count, victim 3).
Count nine: Distribution of child pornography.
Count 10: Possession of child pornography (new count).
Count 11: Identity theft
Upon conviction, the crimes carry the following penalties:
Counts one and four: Not less than five years and not more than 30 years in federal prison and a fine up to $250,000.Counts two and five: Not less than 15 years and not more than 30 years and a fine up to $250,000.
Counts three and six: Not less than 15 years and a fine up to $250,000.Count seven: Not less than 15 and not more than 30 years and a fine up to $250,000.
Count eight: Not less than 30 years and a fine up to $250,000.Count nine: Not less than five years and not more than 20 years and a fine up to $250,000.
Count 10: Not more than 10 years and a fine up to $250,000.
Count 11: Up to five years and a fine up to $250,000.
The FBI and investigated. Assistant U.S. Attorney Jason Hart and Elly Pierson, a trial attorney with the Justice Department’s Child Exploitation and Obscenity Section, are prosecuting.
OTHER INDICTMENTS
Cesar Humberto Melandez-Morales, 28, a citizen of Mexico, is charged with unlawful possession of a firearm while in the United States. The crime is alleged to have occurred April 5, 2017, in Lincoln County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Kansas Highway Patrol and ICE Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Franklin County Man Pleads Guilty to Production of Child Pornography Involving an Infant and ToddlerRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Evan Matthew Lawbaugh, age 33, of Waynesboro, Pennsylvania, pleaded guilty today before United States District Judge Sylvia H. Rambo to production of child pornography.
According to United States Attorney Bruce D. Brandler, Lawbaugh admitted that he sexually assaulted an infant boy and a four-year-old girl and recorded and distributed the videos depicting such assaults. Lawbaugh also possessed thousands of images and hundreds of videos of suspected or previously identified child pornography. Lawbaugh was previously convicted of possession of child pornography on April 8, 2015, in Franklin County, Pennsylvania.
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.”
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Daryl Bloom is prosecuting the case.
The maximum penalty under federal law for each offense is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Each count carries a mandatory term of imprisonment of 25 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Founder of Wind Energy Company Charged in Multi-Million Dollar Fraud SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging SHAWN ROBERT DOOLING, 50, founder of a renewable energy company, with three counts of mail fraud, one count of wire fraud, and one count of engaging in a monetary transaction in criminally derived property.
As alleged in the indictment, in 2009, DOOLING founded Renewable Energy SD, LLC (“RESD”), a wind energy company headquartered in Excelsior, Minn. From 2010 through 2013, DOOLING executed a scheme to defraud RESD customers by falsely representing that for an agreed-upon contract price, his company would build and maintain wind energy turbines on customers’ land. DOOLING marketed the electricity-generating wind turbines as a way for customers to save money by generating enough electricity to supply their needs and eventually sell excess electricity to utility companies.
As alleged in the indictment, DOOLING told customers that he would send a portion of their money to a third-party manufacturer as a down payment to reserve a specific wind turbine. Then, when the wind turbine was completed and ready to be shipped, he would send the remaining portion of the money to the manufacturer to complete the wind turbine purchase In reality, instead of reserving and purchasing wind turbines for his customers, DOOLING often took customers’ money out of RESD bank accounts for his own personal use and benefit. As part of the scheme, DOOLING also used some customers’ money to pay for other customers’ wind turbine projects.
As alleged in the indictment, DOOLING furthered his scheme by lying to customers about the status of their orders and told customers that RESD’s failure to deliver the wind turbines was due to manufacturer delays. As a result of this scheme, more than 60 customers paid a combined total of more than $13 million to DOOLING and his company and never received the promised wind turbines or a refund of their money. In total, DOOLING used approximately $2 million from RESD’s bank accounts for his own personal benefit.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Surya Saxena and John Kokkinen are prosecuting the case.
Defendant Information:
SHAWN ROBERT DOOLING, 50
Excelsior, Minn.
Charges:
- Mail fraud, 3 counts
- Wire fraud, 1 count
- Engaging in a monetary transaction in criminally derived property, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Fort Edward Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Michael R. Bush, age 48, of Fort Edward, New York, pled guilty today to three counts of receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea, Bush admitted that in October 2016 he used his phone to download from the Internet over 20 image files containing child pornography. The images depicted sexual abuse of children as young as 3 years old.
Bush, who has been in custody since his arrest on October 21, 2016, is scheduled to be sentenced on August 9, 2017 by United States District Judge Mae A. D’Agostino. He faces at least 5 years and up to 20 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine. He will also have to register as a sex offender when he is released from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by the FBI, New York State Police, and the Warren County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Former UPS Employee Sentenced for Drug TraffickingRead the Press Release
BOSTON – A former United Parcel Service (UPS) employee was sentenced today in federal court in Boston in connection with his role in a cocaine trafficking organization that shipped cocaine concealed in UPS packages from Puerto Rico to Massachusetts.
Jorge Carrasquillo-Ortiz, 41, of Toa Baja, Puerto Rico, was sentenced by U.S. District Court Senior Judge Rya Zobel to three years in prison and two years of supervised release. In January 2017, Carrasquillo-Ortiz pleaded guilty to one count of attempted distribution of 500 grams of cocaine.
Carrasquillo-Ortiz, a UPS employee in Puerto Rico, worked on behalf of a drug trafficking organization that shipped cocaine laden packages from Puerto Rico to Massachusetts via UPS. Carrasquillo-Ortiz was paid $1,200 for each kilogram of cocaine that he shipped on behalf of the drug trafficking organization. In June 2016, a cooperating witness began placing recorded telephone calls to Carrasquillo-Ortiz in which they made plans for a six-kilo shipment. The telephone calls culminated in the delivery of a box containing six kilos of “sham” cocaine to Carrasquillo-Ortiz in Puerto Rico, who then snuck the package through UPS security, which was then placed on a UPS airplane and delivered to Massachusetts. Carrasquillo-Ortiz then called back the cooperating witness, expecting payment for his services; instead, Carrasquillo-Ortiz was arrested at his home in August 2016.
United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Former Correctional Officer Sentenced to Imprisonment for Accepting Bribes from InmatesRead the Press Release
WAYCROSS, GA - Mathew Stone, 28, a former correctional officer from Kingsland, Georgia, was sentenced to 18 months in prison by Chief U. S. District Judge Lisa Godbey Wood for accepting a bribe from inmates at Correctional Institution D. Ray James, a privately operated facility which houses federal inmates through a contract with the Federal Bureau of Prisons, in Folkston, Georgia.
Stone pleaded guilty to one count of bribery for accepting $1,100 from inmates and their associates in exchange for cellphones, tobacco, and other contraband. According to court documents and statements made in court, Stone accepted money in 2015 for smuggling contraband items into Correctional Institution D. Ray James on multiple occasions.
Acting United States Attorney James Durham said, “This officer betrayed the public’s trust by using his official position to commit criminal acts. This U. S. Attorney’s Office will continue to hold accountable those public officials who abuse the public’s trust for their own greedy purposes.”
“This defendant joins a growing list of correctional officers across the United States who have been convicted in recent years for accepting bribes to help smuggle contraband into the federal prison system,” said Robert A. Bourbon, Special Agent in Charge of the Miami Field Office of the Department of Justice Office of the Inspector General. “This kind of crime not only threatens the safety of other correctional officers, and inmates, it corrupts a system designed to rehabilitate inmates and educate them about the benefits of following the law.”
The case was investigated by special agents of the U. S. Department of Justice Office of the Inspector General. Assistant U. S. Attorney Marcela C. Mateo prosecuted the case on behalf of the United States. For questions, please call the United States Attorney’s Office at (912) 201-2522.
Final Two Defendants Sentenced for 2013 Burglary of Macon Bass Pro ShopsRead the Press Release
United States Attorney G. F. “Pete” Peterman, III, announces that the final two of the four defendants who broke into the Macon Bass Pro Shops in 2013 have been sentenced. On April 12, 2017, Kenneth Atwater, 35, of McDonough, Georgia, was sentenced to serve 45 months in prison and Jabari Walters, 24, of East Point, Georgia, was sentenced to serve 48 months in prison. On March 14, 2017, Dante Thomas, 32, of Atlanta, Georgia, was sentenced to 60 months in prison, to run consecutive to an unrelated state sentence. On March 17, 2017, Tabari Walters, 24, of East Point, Georgia was sentenced to 33 months in prison. All defendants were also ordered to jointly and severally pay $14,619.83 in restitution to Bass Pro Shops. The Honorable Judge Marc T. Treadwell handed down the sentences in Macon.
All four men previously entered guilty pleas to conspiracy to commit theft from a federal firearms licensee. Through their pleas, the men admitted that on September 29, 2013, after discussing the idea of stealing firearms, they drove to the Bass Pro Shops in Macon, Georgia and parked along the side of Interstate 75 northbound, in the proximity of the Bass Pro Shops. All four men then ran up the hill and approached the Bass Pro Shops on foot near the glass window where boats are displayed. At approximately 11:49 p.m., Mr. Thomas broke and cleared the glass from the window of an emergency door using a yellow crowbar to gain access.
All four men then entered the store and ran to the firearms section where they broke the bar holding the rifles. In total, the men stole 17 firearms. They then left the store through the same door they through which they had entered and returned to Mr. Thomas’ vehicle. Mr. Thomas drove all four men back to the Atlanta area. Upon arriving in Atlanta, each of the four defendants retained possession of the firearms he personally had taken from the Bass Pro Shops.
Agents later obtained a search warrant for Mr. Thomas’ residence, where they found a yellow crowbar that matched the one used to break into the Bass Pro Shops. Agents also obtained records from Thomas’ cell phone which revealed that his cell phone pinged off cell phone towers in the vicinity of the Bass Pro Shops around the time of the burglary.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Beth Howard is handling the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Fifteen Arrested in Three New England States as Mexico to Rhode Island, Massachusetts and Connecticut Heroin and Cocaine Supply Chain BrokenRead the Press Release
PROVIDENCE, RI – Attorney General Jeff Sessions, Acting United States Attorney for the District of Rhode Island Stephen G. Dambruch, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, today announce the dismantling of a significant drug trafficking organization importing substantial quantities of heroin and cocaine shipped from Mexico via the Southwest border of the United States directly into Rhode Island.
Acting U.S. Attorney Stephen Dambruch noted in court documents that the Valdez Drug Trafficking Organization, run by three brothers, Hector Valdez, 47 and Claudio Valdez, 44, Dominican nationals living in Woonsocket, R.I., and Juan Valdez, 50, also a Dominican national living in Milton, Mass. The three brothers, who allegedly reentered the county after having been previously convicted of felony drug crimes and deported, arranged for several shipments of multi-kilograms of heroin and cocaine to be brought from Mexico to stash houses in Cranston and Woonsocket, Rhode Island. The drugs were then distributed to mid-level drug dealers and street dealers in the greater Providence and greater Boston areas and in Hartford, Connecticut.
Based on information developed by the FBI Safe Streets Task Force during the investigation dubbed “Operation Triple Play,” a reference to the three Valdez brothers, the FBI, assisted by federal, state, and local law enforcement agents and officers in three states, executed 15 federal arrest warrants and 13 search warrants issued by the U.S. District Courts. Immigration detainers have been lodged against 9 of the defendants charged in this matter, identified as Dominican nationals, most living in the United States with what are alleged to be stolen identities. Additionally, Immigration and Customs Enforcement agents assisting in the execution of the arrest and search warrants detained two individuals on administrative warrants for removal who they encountered but who were not criminally charged as a result of Operation Triple Play.
During the course of the investigation that began in September 2016, and as a result of search warrants executed this week, the FBI Safe Streets Task Force seized nearly 4 kilograms of heroin, 1.5 kilograms of fentanyl, 2 kilograms of cocaine, 155 grams of crack cocaine, more than 100 pounds of cutting agents, approximately 12 kilograms of powdery substances that have been sent for laboratory analysis, approximately $95,000 in cash and 9 vehicles. 5 of the vehicles had hidden compartments allegedly used for transporting drugs and money.
This announcement comes two days after Attorney General Jeff Sessions sent a memo to United States Attorneys directing them to focus on charging and prosecuting criminal aliens who profit by smuggling poison into our country and bringing death and violence to our streets.
“The President has made the dismantlement and destruction of drug cartels a top priority, and cases like these are integral in that effort,” said Attorney General Jeff Sessions. “When law enforcement – federal, state and local – work together like these partners in Rhode Island, we will be one step closer to fulfilling this goal and protecting our communities.”
"As alleged, the Valdez brothers trafficked in all types of drugs and profited from the addictions that have destroyed lives and torn apart families here in New England. This case illustrates that drug cartels based in foreign countries will go anywhere to distribute their deadly products,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division. “The FBI’s Safe Streets Task Force will do everything it can to disrupt and dismantle drug trafficking organizations that threaten the safety and stability of our neighborhoods."
Operation Triple Play is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation include the Drug Enforcement Administration (Providence and Boston Resident Agencies); Immigration and Customs Enforcement; Rhode Island State Police; Providence Police Department; Woonsocket Police Department; Central Falls Police Department; Cranston Police Department; Warwick Police Department and; the Rhode Island Department of Corrections.
Acting United States Attorney Stephen G. Dambruch and FBI Special Agent in Charge Harold H. Shaw thank Michael J. Ferguson, Special Agent in Charge of the DEA for New England, and the DEA, for their financial and technical support during Operation Triple Play, the U.S. Department of State, and the United States Attorney’s Offices in the Districts of Massachusetts and Connecticut for their assistance.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorneys William J. Ferland, Ronald A. Gendron and Richard W. Rose.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Felon Pleads Guilty to Firearm PossessionRead the Press Release
Contact Person: Jamie Lea Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated that Otis Macklin, age 27, of Greenville, SC entered a guilty plea in federal court in Anderson to Possessing a Firearm after Receiving a Felony Conviction, in violation of Title 18 U.S.C. § 922(g). United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose the 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 June 26, 2016, a woman called 911 and stated that Otis Macklin had threatened to kill her and her young son, and had assaulted her with a gun. The woman related that she was only able to escape the house after Macklin fell asleep. When law enforcement arrived at the house, Macklin fled, but was eventually restrained by a K-9. During the execution of a search warrant at the house, law enforcement located a black 9mm semiautomatic firearm, matching the woman’s description of the gun used to assault her. Macklin denied harming the woman, threatening her, or even possessing the firearm that day, but admitted at the guilty plea that he had possessed the firearm at some point around that time. Macklin has a prior felony conviction for which he could have received more than one year in prison and has not received a pardon.
Ms. Drake stated that the maximum penalty Macklin could receive is 10 years imprisonment and a fine of $250,000 dollars. The case was investigated by agents of the ATF and the Greenville City Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Federal Jury Convicts Memphis Man for Illegal Possession of Firearm and AmmunitionRead the Press Release
Memphis, TN – A jury has convicted a Memphis man of illegally possessing ammunition while a convicted felon. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented at trial, on the evening of February 5, 2016, the Memphis Police Department responded to an aggravated assault call at Riverside Community Center on 1891 Kansas Street. The community center’s recreation leader informed law enforcement that around 6 p.m., he was overseeing a scrimmage basketball game that was set to begin in the gymnasium between boys ranging in ages 6 to 10. Before the game began, Marcus Dotson, 27, and 14-year old nephew, entered the gym in search of a 16-year old victim.
Dotson, a convicted felon at the time of the incident, became embroiled in an argument with patrons on the bleachers, brandished the firearm at the crowd, and fired one shot into the ceiling. Both Dotson and Freeman fled the scene. An arrest warrant was issued for Dotson. He was apprehended two weeks later.
As a result of the Memphis Police Department’s investigation, one Speer .40 caliber shell casing was recovered from the gymnasium. The investigation also yielded surveillance of Dotson and Freeman running from the gymnasium after the shooting, as well as witness identification of the defendant from a photo line-up.
The guilty verdict followed a jury trial before the Honorable Samuel H. Mays, U.S. Senior District Judge. For the one count, the maximum penalty is 10 years in prison and a $250,000 fine. Sentencing is set for July 14, 2017 at 10 a.m.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Unit. Assistant U.S. Attorneys Karen Hartridge and Jerry Kitchen prosecuted this case on the government’s behalf.
Federal Inmate Found Guilty at Trial of Assault of Other Inmates and Possession of Contraband in PrisonRead the Press Release
DENVER – A jury today found Daniel Thomas, an inmate in the U.S. Bureau of Prisons system, guilty of Assault with a Dangerous Weapon, Possession of Contraband in Prison, and Assault Resulting in Serious Bodily Injury following a three-day trial before U.S. District Court Judge Raymond P. Moore, the U.S. Attorney’s Office announced. The jury deliberated for approximately 90 minutes before returning its guilty verdicts.
Thomas was first charged by Criminal Complaint on January 11, 2016. He was indicted by a federal grand jury in Denver on February 10, 2016. He was convicted yesterday, April 12, 2017.
According to public documents and evidence presented during the trial, in June 2015 the defendant, while housed at the United States Penitentiary in Florence, Colorado, attacked another inmate from behind at another inmate and stabbed him in the cheek and torso with a homemade knife, otherwise known as a shank. While housed at the Federal Correctional Facility in Englewood, Colorado in September 2016, Thomas attacked another inmate from behind, throwing him down concrete stairs, and then stomping on him. That inmate suffered serious bodily injury as a result.
Thomas faces not more than 10 years in prison for Assault with a Dangerous Weapon. He faces not more than 5 years in prison for Possession of Contraband in Prison, and not more than 10 years in prison for Assault Resulting in Serious Bodily Injury. Each of the three counts also carries a fine of up to $250,000.
Acting U.S. Attorney Bob Troyer wanted to recognize the BOP and FBI for their investigation of this matter, as well as Assistant U.S. Attorneys Judith Smith and Edwin Garreth Winstead for their prosecution of the defendant.
Federal Grand Jury Indicts Kirby Cleveland on Charges Arising Out of Murder of Tribal Police OfficerRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., has filed an indictment charging Kirby Cleveland, 32, an enrolled member of the Navajo Nation from Prewitt, N.M., with charges arising out of the murder of Houston James Largo, a tribal police officer of the Navajo Nation Division of Public Safety. Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety announced the filing of the indictment.
Cleveland is scheduled to be arraigned on the eight-count indictment at 9:30 a.m. on April 20, 2017 in the federal courthouse in Albuquerque. The indictment charges Cleveland with the following offenses:
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Count 1, murdering an officer and employee of the United States who was engaged in the performance of his official duties;
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Count 2, committing felony murder while escaping from an institution of confinement;
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Count 3, first-degree murder;
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Count 4, escaping from an institution of confinement where he was confined after his conviction on a felony offense;
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Count 5, using a firearm during and in relation to a crime of violence, the murder an officer and employee of the United States as charged in Count 1;
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Count 6, using a firearm during and in relation to a crime of violence, felony murder as charged in Count 2;
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Count 7, using a firearm during and in relation to a crime of violence, first-degree murder as charged in Count 3; and
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Count 8, being a felon in possession of a firearm and ammunition.
The charges in the indictment arise out of the alleged murder of Officer Largo on the night of March 11, 2017, while the Officer was responding to a domestic violence call on the Navajo Indian Reservation in McKinley County, N.M. The charges also arise from Cleveland’s alleged escape between Feb. 26, 2017 and March 11, 2017, from a halfway house in Albuquerque in Bernalillo County, N.M., where he was confined by order of the U.S. Bureau of Prisons.
Counts 1, 2, 5 and 6 of the indictment each carry a maximum penalty of death or life imprisonment upon conviction, and the indictment includes “Special Findings” under 18 U.S.C. § 3591 with respect to these four death-eligible offenses. The Special Findings preserve the United States’ ability to seek the death penalty. The Attorney General of the United States will decide whether or not to seek the death penalty based on the recommendation of the U.S. Attorney and after carefully considering the defendant’s background and the circumstances of the crime.
The maximum penalties upon conviction for the other offenses charged in the indictment are: Count 3, the first-degree murder charge, life imprisonment; Count 4, the escape charge, five years of imprisonment; Count 7, using a firearm during and in relation to first-degree murder charge, imprisonment for a minimum of ten years and a maximum of life; and Count 8, the felon in possession charge, ten years of imprisonment. The sentence imposed on Count 7 must be served consecutive to any sentence imposed on the other charges.
Cleveland was arrested on tribal charges on March 12, 2017, by the Navajo Nation Division of Public Safety and remained in tribal custody until March 20, 2017, when the tribal charges against him were dismissed. Immediately upon dismissal of the tribal charges, the FBI arrested Cleveland on a federal criminal complaint charging him with killing Officer Largo. Cleveland has been in federal custody since that time and will remain in custody pending trial on the indictment.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Gallup and Albuquerque offices of the FBI and the Crownpoint, Shiprock and Chinle offices of the Navajo Nation Division of Public Safety investigated this case, with assistance from the New Mexico State Police, McKinley County Sheriff’s Office, Albuquerque Police Department and Burlington Northern Santa Fe Railroad. Assistant U.S. Attorneys Niki Tapia-Brito and Michael Murphy are prosecuting the case.
Cleveland Indictment-
El Paso Drug Trafficker Sentenced to Federal PrisonRead the Press Release
In El Paso this afternoon, a federal judge sentenced 38-year-old Adan Reyes to 35 years in prison followed by five years of supervised release for his leader ship role of an organization responsible for trafficking thousands of kilograms of marijuana announced United States Attorney Richard Durbin, Jr.; Interim Special Agent in Charge Scott Brunner, Federal Bureau of Investigation, El Paso Division; Special Agent in Charge Will Glaspy, U.S. Drug Enforcement Administration, El Paso Division; Special Agent in Charge William “Bill” Cotter, Internal Revenue Service-Criminal Investigation; and, Special Agent in Charge Waldemar Rodriguez, Homeland Security Investigations, El Paso.
In addition to the prison term, United States District Judge Frank Montalvo ordered that Reyes pay a $36,975,000 money judgment. He also ordered that Reyes forfeit to the Government seized assets valued at more than $3 million including multiple real estate properties in El Paso and Ruidoso (NM), vehicles, and firearms—all of which were purchased with proceeds derived from drug trafficking activities—and over $23,000 in U.S. Currency.
On July 28, 2016, Reyes pleaded guilty to a ten-count superseding indictment, which contained both conspiracy and substantive charges of possession of a controlled substance with intent to distribute and money laundering. By pleading guilty, Reyes admitted that from August 2006 to November 2015, he employed a network of individuals (the Reyes Drug Trafficking Organization) to traffic multiple thousands of kilograms of marijuana from El Paso to the Dumas, Texas area where it was warehoused before it was delivered to locations primarily in the Midwest portion of the United States. Proceeds from the distribution of marijuana were subsequently delivered to Reyes and used to further the criminal organization.
To date, 14 members of the Reyes DTO have been convicted and sentenced to federal prison for their role in the drug trafficking and money laundering scheme. Sentences handed down range from one year to 35 years in federal prison.
“Investigating and combating transnational criminal organizations, like the Adan Reyes drug trafficking organization, is one of the top criminal priorities of the El Paso FBI. This investigation is an outstanding example of joint cooperation between federal, state and local law enforcement agencies,” stated Scott Brunner, Acting Special Agent in Charge of the El Paso Division of the FBI.
This prosecution resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by agents with the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), U.S. Border Patrol, El Paso Police Department, Dumas Police Department, Texas Rangers, Arizona Financial Crimes Task Force and the El Paso County Sheriff’s Office.
“This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those involved in smuggling and distribution of dangerous drugs to our communities,” stated DEA Special Agent in Charge Will R. Glaspy.
“Today’s sentencing of Adan Reyes shows that defendants who attempt to launder their drug money through the purchase of real estate and a lavish lifestyle will pay a hefty price,” said Special Agent in Charge William Cotter, IRS Criminal Investigation, San Antonio Field Office. “This investigation sends a strong message about the financial investigative capabilities of IRS Criminal Investigation Special Agents and their law enforcement partners.”
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
East Helena Man Sentenced to Prison for Child Pornography ChargeRead the Press Release
HELENA - The United States Attorney's Office announced that Richard Charles Saari, 33, of East Helena, was sentenced to a term of 135 months in prison, lifetime supervised release, and a special assessment of $100 during a federal court hearing in Helena, Montana, on April 12, 2017, before Senior U.S. District Judge Charles C. Lovell. In addition, the defendant was also required to pay a $5,000 assessment for the Justice for Victims of Trafficking Act of 2015.
Saari was sentenced in connection with his November 16, 2016, guilty plea to receipt of child pornography. This case stemmed from an investigation initiated in August 2015 by a Helena Police Detective assigned to the Montana Internet Crimes Against Children Task Force. Investigators determined that Saari met a minor female online and then enticed the child into sending him sexually explicit images of herself via cell phone. Following the interview of the child, agents seized an electronic storage device from Saari’s East Helena home and found multiple images of child pornography. The images were organized in electronic subfolders on the storage device, each labeled with the first and last name of the female. Agents determined Saari received the images via his cell phone and then downloaded the files to the external hard drive. Agents identified several of the females depicted in the files and determined eleven of them were under the age of 18. Saari received the images of child pornography between approximately December of 2013 and September of 2015.
Federal Bureau of Investigation Supervisory Senior Resident Agent Rick Shelbourn stated: “The Helena Montana Internet Crimes Against Children Task Force works tirelessly to ensure communities are safe from offenders who prey on our children. This case reflects the success of that collaborative effort and the commitment to protect society’s most vulnerable from those who exploit them.”
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that Saari will likely serve all of the time imposed by the court. In the federal system, Saari does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Helena Police Department, the Montana Internet Crimes Against Children (ICAC) Task Force, Federal Bureau of Investigation, Lewis and Clark County Sheriff’s Office, East Helena Police Department, DHS-Homeland Security Investigation and the Montana Division of Criminal Investigation.
Eagle County Colorado Businessman Indicted for Tax EvasionRead the Press Release
WASHINGTON – A federal grand jury sitting in the District of Colorado returned an indictment, unsealed today, charging a Colorado resident with tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bob Troyer for the District of Colorado.
According to the indictment, Sergio Murillo owned and operated Mountain High Window Cleaning, which provided window cleaning and snow removal services. The indictment alleges that from 2007 through 2010, Murillo concealed hundreds of thousands of dollars in income earned through his business by instructing Mountain High’s clients to write checks payable to him and depositing the funds into his personal bank account instead of his business bank account. He then allegedly filed false tax returns that did not report this income. The indictment also charges that Murillo falsely told Internal Revenue Service (IRS) employees that his clients decided whether to make checks payable to him or Mountain High, and that he had only a business bank account into which he deposited all of Mountain High’s income.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Murillo faces a statutory maximum sentence of five years in prison for each of the four counts in which he is charged, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Troyer commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Peter Hautzinger of the District of Colorado and Trial Attorney Benjamin Weir of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Detroit Podiatrist Charged for Role in $13.9 Million Medicare Fraud SchemeRead the Press Release
A Detroit podiatrist was charged in an indictment unsealed today for his alleged participation in a $13.9 million health care fraud scheme involving fraudulent claims for unnecessary foot surgeries and other podiatric services that were never rendered.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Lawrence Young, D.P.M., of Bloomfield Hills, Michigan, was charged with six counts of health care fraud in an indictment filed in the Eastern District of Michigan. Young was arrested this morning and made his initial appearance before U.S. Magistrate Judge Anthony P. Pattiof the Eastern District of Michigan.
According to the indictment, Young owned Dearborn Podiatric Services and Georgetown Podiatric Services, located in Dearborn, Michigan, and Sterling Heights, Michigan, respectively. The indictment alleges that between January 2010 through 2016, Young falsely conveyed to his podiatry patients that they needed weekly or bi-weekly shots and minor surgeries to prevent hammertoe, which were allegedly medically unnecessary. As a result, these patients returned to his practice on a regular basis every month for shots and minor surgeries. Additionally, Young allegedly billed Medicare for other podiatry services, such as Unna Boots, which were never given.
According to the indictment, Young submitted false and fraudulent claims to Medicare in the amount of approximately $13.9 million.An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorney Amy Markopoulos of the Fraud Section is prosecuting the case.
Any patient of Dr. Young’s concerned about their treatment, or who needs access to his/her patient file can reach out to Nicole McGee, FBI Victim Specialist, at (313) 496-4348.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Detroit Emergency Room Doctor Arrested and Charged with Performing Female Genital MutilationRead the Press Release
A Detroit Emergency Room physician was charged by complaint for performing female genital mutilation (FGM) on minor females.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Jumana Nagarwala, M.D., 44, of Northville, Michigan, is charged with performing FGM on minor girls out of a medical office in Livonia, Michigan. According to the complaint, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The complaint alleges that Nagarwala performed FGM on girls who were approximately 6 to 8 years old. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM. Nagarwala was arrested and will appear in federal court in Detroit this afternoon.
“According to the complaint, despite her oath to care for her patients, Dr. Nagarwala is alleged to have performed horrifying acts of brutality on the most vulnerable victims,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to stopping female genital mutilation in this country, and will use the full power of the law to ensure that no girls suffer such physical and emotional abuse.”
“Female genital mutilation constitutes a particularly brutal form of violence against women and girls. It is also a serious federal felony in the United States. The practice has no place in modern society and those who perform FGM on minors will be held accountable under federal law,” stated Acting United States Attorney Daniel Lemisch.
“The allegations detailed in today’s criminal complaint are disturbing. The FBI, along with its law enforcement partners, are committed to doing whatever necessary to bring an end to this barbaric practice and to ensure no additional children fall victim to this procedure”, said Special Agent in Charge David Gelios.
“The allegations against the defendant in this investigation are made even more deplorable, given the defendant’s position as a trusted medical professional in the community,” said Francis. “My sincere hope is that these charges will give support to those who have allegedly suffered both physically and emotionally.”
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Detroit Division and HSI investigated the case with the assistance of the Livonia Police Department and with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the Eastern District of Michigan, Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.
The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala. Please call 1-800-CALL-FBI (225-5984) or file an e-tip at FBI.GOV/FGM.
Detroit Emergency Room Doctor Arrested and Charged with Performing Female Genital MutilationRead the Press Release
A Detroit Emergency Room physician was charged by complaint for performing female genital mutilation (FGM) on minor females.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Jumana Nagarwala, M.D., of Northville, Michigan, is charged with performing FGM on minor girls out of a medical office in Livonia, Michigan. According to the complaint, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The complaint alleges that Nagarwala performed FGM on girls who were approximately six to eight years old. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM. Nagarwala was arrested and is scheduled to appear in federal court in Detroit this afternoon.
“According to the complaint, despite her oath to care for her patients, Dr. Nagarwala is alleged to have performed horrifying acts of brutality on the most vulnerable victims,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to stopping female genital mutilation in this country, and will use the full power of the law to ensure that no girls suffer such physical and emotional abuse.”
“Female genital mutilation constitutes a particularly brutal form of violence against women and girls. It is also a serious federal felony in the United States,” said Acting U.S. Attorney Lemisch. “The practice has no place in modern society and those who perform FGM on minors will be held accountable under federal law.”
“The allegations detailed in today’s criminal complaint are disturbing,” said Special Agent in Charge Gelios. “The FBI, along with its law enforcement partners, are committed to doing whatever necessary to bring an end to this barbaric practice and to ensure no additional children fall victim to this procedure.”
“The allegations against the defendant in this investigation are made even more deplorable, given the defendant’s position as a trusted medical professional in the community,” said Special Agent in Charge Francis. “My sincere hope is that these charges will give support to those who have allegedly suffered both physically and emotionally.”
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Detroit Division and HSI investigated the case with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the Eastern District of Michigan and Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case.
The FBI’s Detroit Field Division has set up a tip line for anyone who has information pertaining to the illegal practice of FGM or Dr. Jumana Nagarwala. Please call 1-800-CALL-FBI (225-5324) or file an e-tip at FBI.GOV/FGM.
Nagarwala Complaint