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10 April 2017
Franklin, Pennsylvania Man Sentenced to 7+ Years in Prison for Illegally Possessing Gun, HeroinRead the Press Release
ERIE, Pa. - A former resident of Franklin, Pennsylvania, has been sentenced in federal court to 92 months in jail on his conviction of violating federal drug and firearm laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Raheem Hasan Carney, 40.
According to information presented to the court, Carney possessed with intent to distribute more than an ounce heroin at a residence in Erie, Pennsylvania. In addition, Carney unlawfully possessed a stolen .40 caliber Glock pistol, a .12 gauge shotgun, and ammunition while being prohibited from firearm possession because he is a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Carney.
Franklin Man Convicted of Producing Child PornographyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that late on Friday (April 7, 2017), a federal jury found Brad Smith, age 33, of Franklin, New Hampshire, guilty of six counts of producing child pornography after a three-day trial.
Evidence presented at trial showed that in January of 2016, law enforcement officers in Lafayette, Louisiana received a tip that an email address associated with the defendant was distributing child pornography. Officers traced the email address to a farm in Breaux Bridge, Louisiana, where the defendant was living at the time. With the defendant’s consent, officers conducted an analysis of a hard drive owned by the defendant and uncovered a series of videos apparently created by the defendant. The investigation determined that the defendant had filmed himself engaging in multiple sexual acts with a three-and-half-year-old child in Loudon, New Hampshire. The defendant saved the videos to a hard drive and took them with him to Louisiana.
Acting United States Attorney Farley commended the jury’s verdict, saying “The evidence in this trial demonstrated that the defendant committed horrific acts upon a defenseless young child. Even more terribly, he filmed these acts in order to create child pornography. The United States Attorney’s Office and our law enforcement partners will work tirelessly to prosecute individuals who steal the innocence of young victims. I commend the performance of the law enforcement officers and prosecutors whose work secured this conviction. I hope that the jury’s verdict provides some comfort to the victim and the victim’s family.”
Sentencing is scheduled for July 18, 2017.
The investigation in this case was led by Homeland Security Investigations in Lafayette, Louisiana and Manchester, New Hampshire, the Louisiana State Police, and the Concord, New Hampshire Police Department with the assistance of the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorneys Seth Aframe and Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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 www.projectsafechildhood.gov.
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Former Prison Guard Sentenced for Taking Bribes from InmatesRead the Press Release
KANSAS CITY, KAN. - A former federal prison guard was sentenced Monday to three years in federal prison for taking bribes to smuggle tobacco to inmates, U.S. Attorney Tom Beall said.
Marc Buckner, 47, Kansas City, Kan., pleaded guilty to one count of a public official accepting bribes. In his plea, he admitted the crimes occurred while he worked as a guard at Leavenworth Penitentiary. Buckner said he was paid each time he smuggled tobacco into the prison. He hid tobacco and rolling papers in two handmade insoles in his shoes.
Inmates paid Buckner $750 for each can of Bugler brand tobacco and rolling papers he smuggled. He said he smuggled tobacco once or twice a month for years.
Beall commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former Pit Boss, Two Blackjack Dealers, and a Player Indicted for Cheating Conspiracy at Dakota Sioux CasinoRead the Press Release
United States Attorney Randolph J. Seiler announced that four individuals have been indicted by a federal grand jury for Conspiracy and Theft by Employees of a Gaming Establishment on Indian Land.
Lito Banbilla Bolocon, age 44, and Fern Freya Gill, age 52, appeared before U.S. Magistrate Judge William D. Gerdes on March 30, 2017, and pled not guilty to the Superseding Indictment. Jeremy Kris Brown, age 43, appeared before Magistrate Judge Gerdes on February 23, 2017, and pled not guilty to the Indictment. Jordan Anthony Rondell, age 29, appeared before Magistrate Judge Gerdes on April 4, 2017, and pled not guilty to the Superseding Indictment.
The maximum term of imprisonment upon conviction is up to 5 years for Conspiracy and up to 20 years for Theft by an Employee of a Gaming Establishment on Indian Land. Each offense also carries a $250,000 fine, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Dakota Sioux Casino (“DSC”) is a gaming establishment located approximately five miles north of Watertown, in Codington County, South Dakota. The DSC is also located on the Lake Traverse Indian Reservation and is operated by the Sisseton Wahpeton Oyate Sioux Tribe.
According to the Superseding Indictment, Bolocon worked at the DSC as a pit boss, and Brown and Gill worked as blackjack dealers. Rondell was a customer of the DSC whom frequently played blackjack.
As alleged, in December 2015 and through January 1, 2016, Bolocon, Brown, Gill, and Rondell conspired to enrich themselves by unlawfully obtaining gaming chips and money from the DSC. Specifically, in December 2015, Defendants devised a plan to cheat the DSC of monies derived during the gambling operations taking place on New Year’s Eve 2015 and into January 1, 2016. The agreement was for Rondell to unlawfully make a large sum of money from illegitimate winnings paid by Brown and Gill, and Rondell would then pay-off the other defendants for their participation. Rondell cashed-out approximately $10,000 from the DSC after playing at Brown’s and Gill’s respective blackjack tables, which were supervised by Bolocon.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Sisseton-Wahpeton Oyate Sioux Tribe’s Gaming Commission. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bolocon, Gill, and Brown were released pending trial. Rondell was detained. A trial date has been set for June 6, 2017 for Bolocon, Gill, and Brown. A trial date for Rondell has not been set.
Former Orcas Island Bookkeeper Pleads Guilty to Wire Fraud for Embezzling from EmployerRead the Press Release
A former resident of Eastsound, Orcas Island, Washington pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with her scheme to steal from her employers, announced U.S. Attorney Annette L. Hayes. SARAH ELIZABETH COFFELT, 42, who now resides in Seattle, worked for a retired couple and their business and non-profit entities as a bookkeeper from 2003 until she was terminated for theft in 2016. COFFELT admits in her plea agreement that she stole more than $755,000 from the couple’s accounts by transferring money from their accounts to her own, by forging checks and by using business credit cards for her family’s personal expenses. U.S. District Judge Thomas S. Zilly scheduled sentencing for July 13, 2017.
According to the facts admitted in the plea agreement, in 2003 COFFELT was hired to handle bookkeeping duties for the couple and various entities they owned including Apogee Flight Incorporated, L.L.C. (Apogee) which owned aircraft and hangars, and the non-profit Heritage Flight Museum (HFM). COFFELT’S duties included handling the payroll for the house, Apogee and HFM employees as well as the bills for Apogee, HFM and other entities. Even as she worked as a bookkeeper, COFFELT and her husband owned Moon Glow Arts and Crafts, a store in Eastsound. COFFELT admits that she used money from her employers’ accounts to pay the expenses of the business, as well as other expenses such as trips for her family, her mortgage, her taxes and more than $30,000 in fuel charges.
COFFELT was able to hide her embezzlement by having the couple’s bank and business credit card statements sent to her home so that she was the only person reviewing them. She used a company credit card that was supposed to be for moderate unusual fuel charges by a maintenance worker to charge more than $30,000 for her family’s expenses and allowed the maintenance worker to charge a similar amount.
COFFELT has agreed to pay $755,378 in restitution. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. This is the maximum penalty allowed by law. The actual sentence imposed in any case will reflect the specific facts of the crime, including the impact on any victims and the defendant.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Susan Roe.
Five RGV Residents Charged with Medicare Fraud and Illegal KickbacksRead the Press Release
McALLEN, Texas – Five local residents have been charged following an operation conducted by the Rio Grande Valley (RGV) health care fraud task force targeting Medicare fraud and the payment of illegal kickbacks, announced Acting U.S. Attorney Abe Martinez.
Brenda de la Cruz, 39, and Francisco Rangel, 59, both of Mission; Sonia Garcia, 51, of McAllen; Aurora de la Garza, 54, of Harlingen; and Luis Manuel Garza, 39, of Brownsville, are all charged in separate, but similar criminal informations.
According to the charging documents, each of the five individuals engaged in conspiracies to refer Medicare beneficiaries to a home health agency in exchange for illegal kickback payments. In many instances, the referred Medicare beneficiaries allegedly did not need or qualify for home health services, resulting in the submission of fraudulent claims to Medicare, according to the charges.
Conspiracy to commit health care fraud, carries a maximum punishment of 10 years in federal prison and up to a $250,000 maximum fine. Conspiracy to make or receive illegal kickbacks carries a possible five-year prison term and a maximum $25,000 fine, upon conviction.
The FBI, U.S. Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission-Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the cases.
A criminal information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Executive Office for Immigration Review Swears in 14 Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of 14 new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held April 7, 2017, at EOIR headquarters in Falls Church, Va.
After a thorough application process, former Attorney General Loretta E. Lynch appointed Justin F. Adams, Edward M. Barcus, Paula J. Donnolo, Lauren T. Farber, Paul M. Habich, Cara O. Knapp, Maria Lurye, Anthony E. Maingot, Sarah B. Mazzie, Matthew E. Morrissey, An Mai Nguyen, Sean D. Santen, Stuart A. Siegel, and Gwendylan E. Tregerman to their new positions.
“We are happy to welcome these 14 appointees to our growing immigration judge corps,” said Keller. “These new immigration judges will enhance the agency’s ability to process detained cases, our highest priority, while also strengthening the agency’s capacity to address its broader pending caseload.”
Biographical information follows.
Justin F. Adams, Immigration Judge, San Antonio Immigration Court
Former Attorney General Loretta E. Lynch appointed Justin F. Adams to begin hearing cases in April 2017. Judge Adams earned a Bachelor of Science degree in 1999 from the U.S. Air Force Academy and a Juris Doctor in 2004 from Suffolk University Law School. He served as deputy chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security from February 2011 to March 2017, and as an assistant chief counsel from 2007 to 2011. From 2004 through 2007, he was an attorney for the U.S. Air Force. Judge Adams is a member of the State Bar of Texas.
Edward M. Barcus, Immigration Judge, Imperial Immigration Court
Former Attorney General Loretta E. Lynch appointed Edward M. Barcus to begin hearing cases in April 2017. Judge Barcus earned a Bachelor of Arts degree in 1984 from Austin College and a Juris Doctor in 1988 from the University of Texas School of Law. He has been the interim executive director of Iron Gate in Tulsa, Okla., since November 2016. From 2015 through 2016, he was a conflict consultant for Concord Consultants Inc. From 2012 through 2015, he was a district judge for the Tulsa County District Court. From 2003 to 2012, he was a special judge for the State of Oklahoma, serving as Vice Chief Judge of the Family Division, Tulsa County District Court, from 2010 to 2012. From 2000 through 2003, he served as the first Family Court Referee for Tulsa County. Judge Barcus is a member of the Oklahoma Bar.
Paula J. Donnolo, Immigration Judge, New York City Immigration Court
Former Attorney General Loretta E. Lynch appointed Paula J. Donnolo to begin hearing cases in April 2017. Judge Donnolo earned a Bachelor of Arts degree in 1968 from St. John’s University and a Juris Doctor in 1980 from New York Law School. From 2001 to January 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in New York, N.Y. From 1991 through 2001, she served as general corporate counsel for ATC Real Estate Development Corporation. From 1981 to 1983, she was a litigation attorney at the Teamster Local 237 Legal Services Plan. Judge Donnolo is a member of the New York State Bar.
Lauren T. Farber, Immigration Judge, Varick Street Immigration Court
Former Attorney General Loretta E. Lynch appointed Lauren T. Farber to begin hearing cases in April 2017. Judge Farber earned a Bachelor of Arts degree in 1999 from Washington University in St. Louis and a Juris Doctor in 2003 from the American University Washington College of Law. From 2010 through 2017, she served as a senior attorney for the Office of the Chief Counsel (OCC), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS) in New York, N.Y. From 2003 to 2010, she served as an assistant chief counsel for OCC, ICE, DHS. Judge Farber is a member of the New York and New Jersey State Bars.
Paul M. Habich, Immigration Judge, Imperial Immigration Court
Former Attorney General Loretta E. Lynch appointed Paul M. Habich to begin hearing cases in April 2017. Judge Habich earned a Bachelor of Arts degree in 2004 from The University of Wisconsin–Madison and a Juris Doctor in 2008 from the Arizona State University Sandra Day O’Connor College of Law. From June 2009 to March 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2008 to 2009, he was an associate attorney with the law firm Lathrop & Clark LLP, in Madison, Wis. From 1996 through 2000, he served in the U.S. Marine Corps. Judge Habich is a member of the State Bar of Wisconsin.
Cara O. Knapp, Immigration Judge, Florence Immigration Court
Former Attorney General Loretta E. Lynch appointed Cara O. Knapp to begin hearing cases in April 2017. Judge Knapp earned a Bachelor of Arts degree in 1997 from the University of Arizona and a Juris Doctor in 2001 from the Arizona State University Sandra Day O’Connor College of Law. From September 2002 through March 2017, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2001 to 2002, she clerked for Arizona Supreme Court Justice Michael D. Ryan. Judge Knapp is a member of the State Bar of Arizona.
Maria Lurye, Immigration Judge, New York City Immigration Court
Former Attorney General Loretta E. Lynch appointed Maria Lurye to begin hearing cases in April 2017. Judge Lurye earned a Bachelor of Science degree in 2001 from Rutgers University–New Brunswick and a Juris Doctor in 2007 from the Rutgers School of Law–Newark. From 2008 to January 2017, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in New York, N.Y. She was previously an associate attorney with the Kuba Law Firm in New York City. Judge Lurye is a member of the New Jersey and New York State Bars.
Anthony E. Maingot, Immigration Judge, Miami Immigration Court
Former Attorney General Loretta E. Lynch appointed Anthony E. Maingot to begin hearing cases in April 2017. Judge Maingot earned a Bachelor of Arts degree in 1981 from the University of Texas at Austin and a Juris Doctor in 1991 from The University of Miami School of Law. From September 2008 through March 2017, he served as an assistant U.S. Attorney for the District of Arizona, Tucson, Department of Justice. From 1997 to January 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in Miami, Fla. From 1991 through 1997, he served as an assistant public defender in the Miami-Dade County Public Defender’s Office. Judge Maingot is a member of the Florida Bar.
Sarah B. Mazzie, Immigration Judge, Miami Krome Immigration Court
Former Attorney General Loretta E. Lynch appointed Sarah B. Mazzie to begin hearing cases in April 2017. Judge Mazzie earned a Bachelor of Science degree in 2002 from The University of Wisconsin–Madison and a Juris Doctor in 2006 from the DePaul University College of Law. From 2014 to March 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Fort Snelling, Minn., and from 2011 to 2014 in Lumpkin, Ga. Judge Mazzie practiced law in Madison, Wis., as a partner in her own firm Gennerman, Mazzie-Briscoe Law Group from 2008 through 2011, and as an associate attorney with Sipsma, Hahn & Brophy from 2007 to 2008. From 2006 through 2007, she served as an immigration attorney for the Wisconsin Coalition Against Domestic Violence. Judge Mazzie is a member of the State Bar of Wisconsin.
Matthew E. Morrissey, Immigration Judge, Omaha Immigration Court
Former Attorney General Loretta E. Lynch appointed Matthew E. Morrissey to begin hearing cases in April 2017. Judge Morrissey earned a Bachelor of Arts degree in 2001 from Saint Louis University and a Juris Doctor in 2004 from the Creighton University School of Law. From 2008 to March 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Omaha, Neb. From January 2004 to 2008, he was an associate attorney with Chandra Law Office. Judge Morrissey is a member of the Nebraska State Bar and the Missouri Bar.
An Mai Nguyen, Immigration Judge, Los Angeles Immigration Court
Former Attorney General Loretta E. Lynch appointed An Mai Nguyen to begin hearing cases in April 2017. Judge Nguyen earned a Bachelor of Arts degree in 1996 from the University of Southern California and a Juris Doctor in 2000 from Southwestern Law School. From March 2007 to March 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Las Vegas, Nev. During this post, she served as special assistant U.S. attorney for the District of Nevada from 2009 to 2011. From 2000 through 2003, she served as an assistant district counsel for the former Immigration and Naturalization Service, Department of Justice, in Los Angeles, entering on duty through the Attorney General’s Honors Program. Judge Nguyen is a member of the State Bar of California.
Sean D. Santen, Immigration Judge, Boston Immigration Court
Attorney General Loretta E. Lynch appointed Sean D. Santen to begin hearing cases in April 2017. Judge Santen earned a Bachelor of Arts degree in 2001 from the University of Illinois at Urbana–Champaign, a Master of Arts in 2003 from American University and a Juris Doctor in 2006 from the Indiana University Maurer School of Law. From September 2008 to March 2017, he served as an assistant regional counsel at the Office of General Counsel, Social Security Administration, in Boston, Mass. From 2006 through 2008, he served as a Judicial Law Clerk and Attorney Advisor for the San Antonio Immigration Court, Executive Office for Immigration Review, Department of Justice, entering on duty through the Attorney General’s Honors Program. Judge Santen is a member of the Massachusetts Bar.
Stuart A. Siegel, Immigration Judge, Miami Immigration Court
Former Attorney General Loretta E. Lynch appointed Stuart A. Siegel to begin hearing cases in April 2017. Judge Siegel earned a Bachelor of Arts degree in 1984 from the University of Michigan and a Juris Doctor in 1987 from the Touro College Jacob D. Fuchsberg Law Center. From December 1997 to March 2017, he served as an Assistant Chief Counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in Pompano Beach, Fla. From 1994 to 1997 he was an associate attorney with Adorno & Zeder, PA, in West Palm Beach, Fla. From 1992 to 1994 he served as an administrative law judge for the New York City Department of Transportation. Prior to that role, he was a solo practitioner at the law offices of Stuart A. Siegel, Esq. Judge Siegel also served as assistant district attorney for Nassau County, N.Y., from 1987 to 1992. He was commissioned into the U.S. Army Reserves, Judge Advocate General in September 1994, and continues to serve. Judge Siegel is a member of the Florida Bar and the New York State Bar.
Gwendylan E. Tregerman, Immigration Judge, Atlanta Immigration Court
Former Attorney General Loretta E. Lynch appointed Gwendylan E. Tregerman to begin hearing cases in April 2017. Judge Tregerman earned a Bachelor of Arts degree from Stony Brook University in 1992 and a Juris Doctor in 1996 from the Boston University School of Law. From August 2002 to March 2017, she worked for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Boston, Mass., serving as deputy chief counsel from 2013 to 2017, senior attorney from 2007 to 2013, and assistant chief counsel from 2002 to 2007. Prior to these roles, she was a staff attorney for the U.S. Court of Appeals for the Eleventh Circuit in Atlanta, Ga., from 1997 to 2000, and served as acting supervisory staff attorney from 2000 to 2001. Judge Tregerman is a member of the New York State Bar, the Massachusetts Bar, and the State Bar of Georgia.
Elkhart, Indiana Man Pleads Guilty to Transporting Cocaine from Texas to Pennsylvania and OhioRead the Press Release
ERIE, Pa. - A former resident of Elkhart, Indiana, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
Ancelmo Ayala, 42, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Ayala engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The cocaine that was coming from Texas was being transported to Erie and Ohio for further distribution. According to information disclosed to the court, Ayala was one of the conspirators who transported the drug trafficking organization’s cocaine to Erie in a vehicle equipped with hidden compartments.
Judge Cercone scheduled sentencing for August 14, 2017 at 12:45 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, 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 Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police conducted the investigation that led to the prosecution of Ayala.
Elk Grove Man Charged with Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Alexander Jordan Miller, 21, of Elk Grove, was arrested on Friday, charged with production of child pornography and possession of child pornography, U.S. Attorney Phillip A. Talbert announced. Miller is scheduled to be arraigned today before U.S. Magistrate Judge Edmund F. Brennan.
A six-count indictment, unsealed after his arrest, was returned by a federal grand jury on April 6, 2017. According to court documents, between March 2015 and September 2015, Miller obtained nude images of children between the ages of 11 and 15 years old, then threatened to distribute those images if the victims did not produce and provide him with sexually explicit videos. In addition, Miller also possessed other images of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
If convicted, each count of child pornography production carries a minimum statutory penalty of 15 years in prison and a maximum penalty of 30 years in prison. If convicted of the possession of child pornography charge, Miller faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Colorado Man Sentenced to 13 Years in Federal Prison for Enticing Minor to Engage in Sexual ActivityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 7, 2017, NATHANIEL SMITH, 30, of Aurora, Colorado, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 156 months of imprisonment, followed by 15 years of supervised release, for enticing a minor to engage in sexual activity.
According to court documents and statements made in court, in January 2016, SMITH used his cell phone and internet-based messaging and video chatting services, including Kik and Skype, to entice a 13-year-old female to engage in sexual activity. On January 25, 2016, SMITH was arrested in New London after he traveled from Colorado to meet the girl.
SMITH has been detained since his arrest. On December 13, 2016, he pleaded guilty to one count of enticement of a minor to engage in sexual activity.
This matter was investigated by the Federal Bureau of Investigation, New London Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Charlestown Woman Pleads Guilty to Social Security, Medicaid, and Food Stamp FraudRead the Press Release
CONCORD, N.H. – Ruth Chandler a/k/a Ruth Patterson, 55, of Charlestown, pleaded guilty in federal court on Friday to one count of Social Security Fraud and two counts of Making False Statements, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, Chandler began receiving Social Security disability benefits as of April 2008. She also received Medicaid benefits and Food Stamps, also known as SNAP benefits, beginning in September 2008. Eligibility for each of these benefits programs is based, in part, on the applicant having limited income and resources. In assessing a married individual’s eligibility for Social Security disability benefits, Medicaid, and Food Stamps, the income of the applicant’s spouse is considered.
Chandler married in May 2008, but she failed to disclose her marriage to Social Security as required. Instead, she reported that she was divorced and not currently married. When Social Security officials discovered a bank account held jointly by Chandler (in her married name of Patterson) and her husband in September 2014 as part of an eligibility redetermination, Chandler falsely stated that the bank listed her name incorrectly on the account. Similarly, in connection with her claims for Medicaid and Food Stamps, Chandler did not inform the New Hampshire Department of Health and Human Services that she was married, but rather, stated that she lived with her “friend,” to whom she paid rent and contributed to the utility expenses. She submitted statements to the New Hampshire Department of Health and Human Services outlining the payments she made to her “friend,” on which she forged her husband’s signature. Chandler’s husband’s income would have rendered her ineligible to receive any Supplemental Security Income benefits, Medicaid, and Food Stamps in most months, and severely reduced her benefits in other months. As a result of concealing her marriage from the Social Security Administration and from the New Hampshire Department of Health and Human Services, the government estimates that Chandler fraudulently received approximately $51,000 in disability benefits, $40,753.01 in Medicaid, and $11,001 in Food Stamps.
Chandler is scheduled to be sentenced on July 25, 2017.
The case was investigated by the Social Security Administration’s Office of the Inspector General and the New Hampshire Department of Health and Human Services’ Special Investigations Unit. The case is being prosecuted by Special Assistant United States Attorney Karen Burzycki.
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California Twice Convicted Felon Sentenced to Prison for Operating Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
An Orange County, California man was sentenced today in U.S. District Court in Santa Ana, California to serve 109 months in prison including the last 12 months in a halfway house for his role as the owner and operator of a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm, the Justice Department announced.
Bryan D’Antonio, 50, of Brea, California, pleaded guilty to conspiracy to commit mail and wire fraud on Aug. 9, 2016. In addition to the term of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered D’Antonio to pay $3,826,977.95 in restitution.
D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme with Ronald Rodis, Charles Wayne Farris, and others to induce homeowners to pay between $3,500 and $5,500 for the services of Rodis Law Group (RLG) and its successor entity, America’s Law Group (ALG). RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stating that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys, and that collected these payments from distressed homeowners, without providing anything of value to the overwhelming majority of them. During much of the scheme, Ronald Rodis was the only attorney at RLG.
“This defendant – a repeat telemarketing fraudster - took advantage of vulnerable homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “His two fake law firms promised homeowners assistance saving their homes and modifying their mortgages. The sad reality is both firms were nothing more than telemarketing scams.”
“While still under court supervision after serving a prison term in another telemarketing case, D’Antonio oversaw what was essentially a boiler room operation that preyed upon struggling homeowners,” said Acting U.S. Attorney Sandra R. Brown. “Hundreds of victims lost millions of dollars after D’Antonio’s employees told a series of lies that misrepresented nearly every aspect of the business. Today’s lengthy sentence will ensure that he will not have the opportunity to defraud unsuspecting victims for many years.”
D’Antonio was previously convicted of mail and wire fraud and sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide. D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. In violation of D’Antonio’s permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation in which employees routinely misrepresented the services RLG and ALG would provide.
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications for homeowners. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by Bryan D’Antonio, a convicted felon who was prohibited from engaging in telemarketing.
In connection with his guilty plea, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
“Mr. D’Antonio preyed upon victims who were already experiencing difficult circumstances and robbed them of their remaining financial resources,” said Assistant Director in Charge Deirdre L. Fike of the FBI’s Los Angeles Field Office. “Homeowners seeking financial assistance should thoroughly investigate businesses before investing their money in advance of receiving services.”
D’Antonio’s co-defendants, Charles Wayne Farris and Ronald Rodis, both previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Farris and Rodis are scheduled to be sentenced on May 1.
This case was investigated by the FBI and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
California Man Admits Possessing with Intent to Distribute 29 Kilograms of MethamphetamineRead the Press Release
TRENTON, N.J. – A South Gate, California, man today admitted his intent to distribute over 29 kilograms of methamphetamine that was hidden in a tractor trailer he was driving, Acting U.S. Attorney William E. Fitzpatrick announced.
Tomas Lopez Beltran, 45, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of possession with intent to distribute more than 500 grams or more of methamphetamine.
According to documents filed in this case and statements in the court:
On Oct. 28, 2016, law enforcement lawfully searched a tractor trailer driven by Beltran and recovered approximately 29 kilograms of methamphetamine and $73,500 in cash from a concealed compartment located inside the cab of the trailer. Beltran admitted today that he intended to distribute the methamphetamine and cash to an individual in Georgia.
The count of possession with intent to distribute more than 500 grams or more of methamphetamine carries a minimum potential penalty of 10 years in prison and a maximum potential penalty of life in prison. Sentencing will be scheduled at a later date.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman, Esq., Assistant Federal Public Defender, Newark
Bronx Man Sentenced to 15 Years in Prison for Discharging Firearm and Drug Trafficking in Barre, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Maxwell Suero, 25, of Bronx, New York, was sentenced today for discharging a firearm in furtherance of a drug trafficking offense and conspiring to distribute more than 28 grams of cocaine base. District Judge William K. Sessions sentenced Suero to a 60-month term of incarceration for conspiracy to distribute more than 28 grams of cocaine base, and a consecutive 120-month term of incarceration for discharging a firearm in furtherance of a drug trafficking offense, resulting in a total sentence of 180 months.
According to Court records, in the summer of 2014, Suero was importing cocaine base to Barre, Vermont for distribution from the residence of co-defendant Melissa Garr. Suero provided cocaine base to Garr in exchange for allowing Suero and his associates to distribute drugs from her residence. Suero also recruited his co-defendant, Khari Long, to travel from New York to Vermont for the sole purpose of dealing cocaine base to Vermonters.
On September 22, 2014, Suero and Long entered Garr’s residence in Barre with the intent of confronting Garr and two other drug dealers who had begun dealing controlled substances from Garr’s residence. Suero and Long were both armed with firearms when they entered Garr’s residence through a basement door. The confrontation resulted in a shoot-out between Suero and one of the newly arrived drug dealers. Suero sustained a gunshot wound to his hand, while the other man sustained a gunshot wound to his left shoulder. Suero and Long retreated back through the basement, and upon exiting the residence, Suero left a smear of his blood on the basement doorknob.
After a brief hiatus, Suero returned to Garr’s residence, and again began distributing cocaine base. On February 6, 2015, Barre City Police Officers, Vermont State Police Troopers, and United States Marshal Deputies executed an arrest warrant for Suero at Garr’s residence. While attempting to hide, Suero threw a loaded .45 caliber revolver, and dropped 6.5 grams of cocaine base. Suero was eventually located in a basement crawl space. Approximately 150 grams of powder cocaine were located in the ceiling tiles of one of Garr’s bedrooms.
As part of his plea agreement, Suero admitted to conspiring to distribute more than 2.8 kilograms of cocaine base from 2011 to February 2015, to discharging a firearm during the September 22, 2014 confrontation at Garr’s residence, and to acting as a lookout in an armed robbery of a restaurant in the Bronx on December 21, 2012.
Acting United States Attorney Eugenia A. P. Cowles commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Barre City Police Department; the Vermont State Police; and the United States Marshals Service in the arrest and prosecution of Suero.
Suero was represented by Chandler Matson, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.
Bradenton Man Indicted for Distributing Fentanyl That Resulted in DeathRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging David Earl Johnson (36, Bradenton) with distribution of fentanyl resulting in death and distribution of fentanyl. If convicted on the first charge, he faces a mandatory minimum of 20 years, up to life, in federal prison. If convicted of the second offense, he faces a maximum sentence of 20 years’ imprisonment. The indictment also notifies Johnson that the United States intends to forfeit assets alleged to be traceable to the proceeds of the offenses.
According to the indictment, Johnson distributed fentanyl on two occasions on January 11, 2017, the first of which resulted in the death of “K.H.”
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The investigation was conducted by the Manatee County Sheriff’s Office, with assistance from the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Bakersfield Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
BAKERSFIELD, Calif. — U.S. District Judge Dale A. Drozd sentenced a Bakersfield man to 15 years in prison today for federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Acting Assistant Attorney General of the Civil Rights Division, Thomas Wheeler, and U.S. Attorney Phillip A. Talbert announced.
Justin Cole Whittington, 25, was convicted in December 2016 of interfering with a person’s housing rights because of his race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
Judge Drozd also ordered Whittington to pay $2,000 in restitution to the victim and called the defendant’s actions: “Reprehensible conduct that’s had a significant impact on [the victim’s family] — outrageous, repugnant criminal conduct. He obstructed justice, he lied, he did everything he could to escape responsibility.”
According to court documents, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a car drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention to the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store.
According to evidence presented at trial, the victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the car. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the car identified by the victim.
Whittington was also found guilty of making false statements to an FBI agent when he falsely claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.
According to court documents and evidence presented at trial, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
“Hate violence has no place in our society. It harms individuals and entire communities by threatening their sense of security and freedom,” said Acting Assistant Attorney General Wheeler. “In this case, Whittington fired a shotgun at the victim, terrorizing him and his family, because of his Latino ethnicity. The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter the color of their skin, their country of origin, or how they worship, can live their lives freely and without fear.”
U.S. Attorney Talbert stated: “The sentence handed down today reflects the seriousness of hate crimes such as this, which cause not only the victims but entire communities to feel vulnerable and unsafe. Our district is one that is rich in diversity, and my office is committed to investigating and prosecuting those who violate community members’ civil rights through acts of hate and intimidation.”
“The FBI works closely with our law enforcement partners to ensure thorough investigation of allegations of hate crimes in the communities we serve and protect,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Whittington’s threats and intimidation of his neighbors were despicable acts and not reflective of the America we all want to live in.”
Kern County Sheriff Donny Youngblood stated: “The Kern County Sheriff's Office will continue to work with our federal partners in investigating all hate crimes. I realize that these type of crimes reverberate through a community and cause fear to our community members. Violation of people’s civil rights impact all of us and will not be tolerated.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney prosecuted the case with the assistance of Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.
Bakersfield Man Sentenced to 15 Years in Prison for Hate CrimeRead the Press Release
U.S. District Judge Dale A. Drozd sentenced a Bakersfield man to 15 years in prison for federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and U.S. Attorney Phillip A. Talbert of the Eastern District of California announced.
Justin Cole Whittington, 25, was convicted in December 2016 of interfering with a person’s housing rights because of race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
“Hate violence has no place in our society. It harms individuals and entire communities by threatening their sense of security and freedom,” said Acting Assistant Attorney General Wheeler. “In this case, Whittington fired a shotgun at the victim, terrorizing him and his family, because of his Latino ethnicity. The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter the color of their skin, their country of origin, or how they worship, can live their lives freely and without fear.”
“The sentence handed down today reflects the seriousness of hate crimes such as this, which cause not only the victims but entire communities to feel vulnerable and unsafe,” said U.S. Attorney Talbert. “Our district is one that is rich in diversity, and my office is committed to investigating and prosecuting those who violate community members’ civil rights through acts of hate and intimidation.”
“The FBI works closely with our law enforcement partners to ensure thorough investigation of allegations of hate crimes in the communities we serve and protect,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Whittington’s threats and intimidation of his neighbors were despicable acts and not reflective of the America we all want to live in.”
“The Kern County Sheriff's Office will continue to work with our federal partners in investigating all hate crimes,” said Kern County Sheriff Donny Youngblood. ”I realize that these type of crimes reverberate through a community and cause fear to our community members. Violation of people’s civil rights impact all of us and will not be tolerated.’
According to evidence presented in court, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a car drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention to the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store. The victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the car. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the car identified by the victim. Subsequently, Whittington made false statements to an FBI agent when questioned about the sawed-off shotgun.
Following these crimes, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney of the Eastern District of California and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section prosecuted the case.
Attorney General Jeff Sessions Announces New Initiatives to Advance Forensic Science and Help Counter the Rise in Violent CrimeRead the Press Release
As part of the Department’s efforts under the Task Force on Crime Reduction and Public Safety (Task Force), Attorney General Jeff Sessions today announced a series of actions the Department will take to advance forensic science and help combat the rise in violent crime.
These actions are being undertaken on the expiration of the National Commission on Forensic Science (NCFS) and will increase the capacity of forensic science providers, improve the reliability of forensic analysis, and permit reporting of forensic results with greater specificity. The Task Force’s Subcommittee on Forensics will spearhead the development of that strategic plan.
“The availability of prompt and accurate forensic science analysis to our law enforcement officers and prosecutors is critical to integrity in law enforcement, reducing violent crime and increasing public safety,” said Attorney General Sessions. “As we decide how to move forward, we bear in mind that the Department is just one piece of the larger criminal justice system and that the vast majority of forensic science is practiced by state and local forensic laboratories and is used by state and local prosecutors. We applaud the professionalism of the National Commission on Forensic Science and look forward to building on the contributions it has made in this crucial field.”
The following three actions were announced today:
1. In the coming weeks, the Department will appoint a Senior Forensic Advisor to interface with forensic science stakeholders and advise Department leadership;
2. The Department will conduct a needs assessment of forensic science laboratories that examines workload, backlog, personnel and equipment needs of public crime laboratories and the needs of academic and non-traditional forensic science practitioners, and issue a report to Congress; and
3. The Department will publish a notice in the Federal Register seeking public comment on how the Department should move forward to strengthen the foundations of forensic science and improve the operations and capacity of forensic laboratories. The notice will remain open until June 9, 2017.
The Attorney General will continue to receive and act upon recommendations from the Task Force as they become available.
Arson Awareness Week 2017 to Focus on Preventing Arson at Houses of WorshipRead the Press Release
The Justice Department today announced that its Civil Rights Division is partnering with the Federal Emergency Management Agency’s U.S. Fire Administration on this year’s Arson Awareness Week, May 7-13, with a focus on Preventing Arson at Houses of Worship.
There were an average of 103 arsons of houses of worship per year from 2000 to 2015. Half of all reported fires at houses of worship turn out to involve arson.
The Department of Justice enforces a number of federal statutes protecting places of worship from attack, including 18 U.S.C. § 247, known as the Church Arson Prevention Act, which was passed in the 1990s in response to a sharp increase in church arsons. That law makes it a federal crime to target religious property because of the religion or race of the congregation. In February of this year, the Department indicted an Idaho man under § 247 alleging that he set fire to a Catholic Church in Bonner’s Ferry in April 2016. In 2013, an Indiana man was sentenced to 20 years imprisonment for setting a fire at the Islamic Center of Greater Toledo.
FEMA and the Department of Justice have produced a number of materials to help congregations, community organizations and local law enforcement and fire safety officials to increase arson awareness and hold events highlighting proactive steps that can be taken to try to reduce house of worship arson. These materials are available at the Arson Awareness Week homepage, www.usfa.fema.gov/aaw.
“Arson against houses of worship is a serious crime that the Department of Justice is committed to prosecuting to the fullest extent of the law,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “But our role as prosecutors, while critically important, only comes after the fact when the damage is already done. That is why we encourage communities and local officials to take proactive steps to increase public awareness of the problem and measures that can be taken to reduce the likelihood of being a victim of house of worship arson.”
Further information about hate crimes, including arsons against on places of worship, is available at the Civil Rights Division hate crimes page, https://www.justice.gov/crt/hate-crimes-0.
Arizona Man Sentenced to 18 Months in Federal Prison for Marijuana ConspiracyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Luis Fernando Enciso-Ulloa, 58, was sentenced Friday morning by United States Chief District Judge Michael J. Reagan to 18 months in federal prison for one count of conspiring to distribute and possess with the intent to distribute marijuana, three years of supervised release to follow the imprisonment, a $300 fine, and a $100 special assessment fee.
Facts revealed in open court at the sentencing and plea hearings revealed that Enciso-Ulloa packaged and shipped four packages of marijuana weighing 22 pounds each from Nogales, Arizona to Belleville, Illinois, and agreed to help find a buyer for approximately 13 pounds of marijuana in 2014 and 2015. Enciso-Ulloa was charged in February 2016 and pled guilty in January 2017. This was Enciso-Ulloa’s seventh drug conviction. In sentencing Enciso-Ulloa to 18 months of imprisonment, 3 years of supervised release, a $300 fine and a $100 special assessment fee, Chief Judge Reagan indicated that this sentence punishes Enciso-Ulloa, promotes respect for the law and serves to deter the public and Enciso-Ulloa from committing drug crimes.
Evidence in support of this prosecution was obtained in an investigation conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking
organizations. Agencies participating in this case include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, the Illinois State Police, and Fontana, California Police Department. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Allegany County Man Pleads Guilty to Sexual Exploitation of a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – Jason Wayne Hines, age 37, formerly of Cumberland, Maryland, pleaded guilty today to sexually exploiting a child to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.
According to his plea agreement, on January 29 and February 1, 2016, during an undercover investigation, Maryland State Police officers downloaded two videos of minors engaged in sexually explicit conduct from Hines’ computer, which he was sharing over the internet. On May 3, 2016, a search warrant was executed at Hines’ residence. An on-scene forensic analysis of Hines’ laptop computer recovered images and videos depicting minors engaged in sexually explicit conduct. Hines was arrested on state criminal charges for distribution and possession of child pornography.
Forensic examination of Hines’ computers, storage media, and cell phone seized during the search revealed over 1,000 images and over 50 videos of child pornography. Hines’ internet search history also showed an interest in sexual activity with minors. Investigators recovered 23 images created between October 3, 2015 and February 28, 2016, and five videos from Hines’ smartphone. The five videos did not have create dates, but depicted Hines sexually abusing a prepubescent female as she is sleeping. The images recovered from the phone also document Hines’ sexual abuse of the child.
As part of his plea agreement, Hines must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Hines and the government have agreed that if the Court accepts the plea agreement Hines will be sentenced to between 17 ½ and 25 years in prison, followed by a lifetime of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 18, 2017, at 3:00 p.m.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Sandra Wilkinson, who are prosecuting the federal case.
Albuquerque Man Sentenced to Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Douglas Humilestewa, 53 of Albuquerque, N.M., was sentenced today in federal court to 30 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Humilestewa will be required to register as a sex offender when he completes his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Humilestewa was charged by indictment on Feb. 9, 2016, with violating SORNA by failing to update his sex offender registration on Nov. 15, 2015 or thereafter. According to the indictment, Humilestewa was required to maintain an updated sex offender registration while residing in Bernalillo County, N.M.
On Dec. 1, 2016, Humilestewa pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney David M. Walsh.
Acting Manhattan U.S. Attorney Announces Compensation Program for Absolute Poker Victim PlayersRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has retained the Garden City Group (“GCG”) to oversee a process for compensating eligible victims of a fraud committed by Absolute Poker against United States players who were unable to withdraw funds from Absolute Poker following the Office’s filing in 2011 of a civil money laundering and forfeiture action against Absolute Poker and others in United States v. PokerStars, et al.
GCG is already overseeing the claims process for eligible victims of the fraud committed by Full Tilt Poker against United States players, as described in both United States v. PokerStars, et al., and the indictment in the parallel criminal case, United States v. Bitar, et. al. To date, approximately $118 million has been paid to Full Tilt Poker fraud victims through that process.
Background
In July 2012, the United States entered into settlement agreements with Full Tilt Poker and PokerStars – two of the three online poker companies named as defendants in a civil forfeiture action brought by the United States alleging bank fraud, wire fraud, money laundering, and illegal gambling offenses. On July 16, 2013, the third online poker company named in the complaint, Absolute Poker, along with certain of its affiliates, entered into a settlement agreement in which they also agreed to the forfeiture of their assets. Under the terms of the July 2012 settlement with Full Tilt Poker, the company agreed to forfeit virtually all of its assets to the United States (the “Forfeited Full Tilt Assets”) in order to fully resolve the action. The amended complaint filed in that action alleged that Full Tilt Poker defrauded its players by misrepresenting to the public that player funds held by Full Tilt Poker were safe, secure, and available for withdrawal at any time. In reality, the company did not maintain funds sufficient to repay all of its players and instead used player funds to finance more than $400 million in dividend payments to Full Tilt Poker’s owners.
Under the terms of the settlement with PokerStars (the “PokerStars Settlement”), the company agreed, among other things, to forfeit $547 million to the United States (the “Forfeited Poker Funds”) and to assume Full Tilt Poker’s liability for the approximately $184 million owed by Full Tilt to foreign players. The PokerStars Settlement also provided that PokerStars will acquire the Forfeited Full Tilt Assets from the Government and also precludes PokerStars from offering online poker for real money in the United States unless and until it becomes permissible to do so under relevant law.
The Full Tilt Poker Claims Process
Pursuant to the regulations governing remission, the Department of Justice may use forfeited funds to compensate victims of a charged criminal offense or a related offense that was the underlying basis for forfeiture.
Using a portion of the Forfeited Poker Funds, the Department of Justice established a process (the “FTP Claims Process”) by which eligible U.S. victims of Full Tilt Poker were able to seek compensation for their losses. GCG was selected as Claims Administrator by the United States to process claims submitted by the U.S. Full Tilt fraud victims.
GCG is a class action settlement and bankruptcy administration company that has provided comprehensive legal administration services for nearly 30 years. GCG has worked on numerous complex administrations, including the U.S. Victims of State-Sponsored Terrorism Fund; the Gulf Coast Claims Facility; the Deepwater Horizon Economic and Property Damage Settlement; the Visa Check/MasterMoney Antitrust Litigation; the WorldCom Securities Litigation; and the IPO Securities Litigation.
The FTP Claims Process was announced in March 2013 and is winding down. GCG received and reviewed 53,220 claims submitted by U.S. Full Tilt fraud victims during the claims period. To date, 44,320 claims have been approved for payment and approximately $118,116,918.04 has been paid to U.S. Full Tilt fraud victims.
The Absolute Poker Claims Process
As alleged in the operative forfeiture complaints and indictments in this case, the three online poker companies, including Absolute Poker, and their principals, conspired with one another, and others, such as payment processors who worked with multiple poker companies, to carry out the offense conduct that served as the basis for the forfeiture of the Forfeited Poker Funds.
Additionally, the Department of Justice has concluded that players of Absolute Poker who were unable to recover their funds from Absolute Poker are similarly situated to the eligible victims of Full Tilt Poker, in that Absolute Poker, like Full Tilt Poker, did not maintain funds sufficient to repay all of its players.
Accordingly, remaining Forfeited Poker Funds will be used to fund a claims process for eligible Absolute Poker victims.
That victim claims process will begin shortly. Information about the claims administration will be posted on the dedicated website GCG has established in connection with the victim compensation process, www.AbsolutePokerClaims.com. Information is also available from the toll-free hotline number at (855) 907-3254.
This aspect of the matter is being handled by the Office’s Money Laundering and Asset Forfeiture Unit.
ADA Settlement Agreement Entered Between United States Attorney’s Office and Local RestaurantRead the Press Release
Steve Butler, Acting United States Attorney for the Southern District of Alabama, announces the successful resolution of complaints made by a person with disabilities who could not access a local restaurant. The United States Attorney’s Office recently entered into a settlement agreement with the owner and operator of Old 27 Grill in Fairhope.
The office opened its investigation after receiving complaints that people with mobility disabilities were unable to access the restaurant. As a result of the settlement, the restaurant has agreed to add an ADA-compliant bathroom, accessible parking, tables, and routes throughout the restaurant. The restaurant also adopted policies which require providing dining assistance to persons who are deaf, hard of hearing, blind, and people with mobility disabilities. Service dog policies were also adopted. Staff training is required by the agreement.
Acting United States Attorney Butler said, “After being notified of the investigation, the owner of Old 27 Grill eventually chose to do the appropriate thing, removing the barriers which prevented persons with disabilities from enjoying the restaurant. Not only is this required by law, but it’s also great for business. With more than 55 million persons with disabilities in our country, the restaurant has the potential for much more business.”
This matter was handled by Assistant United States Attorney Holly L. Wiseman.
For more information, visit www.ada.gov or our office’s website at http://www.justice.gov/usao/als/civil/cre.html”. Any person with a disability who believes they have been discriminated against in the Southern District of Alabama may contact our office at 63 South Royal Street, Suite 600, Mobile, AL 36602, telephone us at 251.441.5845 or file a complaint with the U. S. Department of Justice, 950 Pennsylvania Avenue, NW, Civil Rights Division, Disability Rights Section, Washington, DC 20530.
8 April 2017
Oswego County Prevention Coalition and United States Attorney’s Office to Screen Opiate Drugs Documentary in Oswego on Tuesday Evening April 11, 2017Read the Press Release
SYRACUSE, NEW YORK - In response to the growing epidemic of prescription drug and heroin abuse, the Oswego County Prevention Coalition and the United States Attorney’s Office for the Northern District of New York are jointly sponsoring a community event April 11th at the Oswego Elks Lodge.
The evening begins at 5:30 PM with agency resource tables and will feature a 6:30 PM showing of “Chasing the Dragon,” a 45-minute documentary film that profiles the stories of real people and their families experiencing opiate addiction, loss and treatment. Created by the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA), “Chasing the Dragon” profiles the cycle of addiction and looks at the tragic consequences associated with opioid abuse. Immediately following the film will be an interactive community panel discussion focusing on the local response in Oswego to the epidemic of opiate drug addiction.
April 11, 2017 – Anti-Opiate/Heroin Community Event
5:30 PM resource tables
6:30 – 8:30 PM “Chasing the Dragon” Documentary and Community Panel
Oswego Elks Lodge, 132 West 5th Street, Oswego, NY 13126
United States Attorney Richard S. Hartunian said, “The opioid drug epidemic has afflicted communities, families, and individuals throughout the thirty-two counties of the Northern District of New York and across the nation. My office will continue to work with local drug coalitions to bring ‘Chasing the Dragon: the Life of an Opiate Addict’ and its powerful prevention message to a wide audience. Only by working together to prevent the tragedy of addiction and loss, can we begin to overcome this grave threat to public health and safety.”
The documentary features interviews with former addicts and their families discussing the effects of addiction, and how the opiate epidemic is unlike any this country has seen in the past. Also included are medical and law enforcement professionals discussing opiate drugs and the current crisis. “Chasing the Dragon” provides a vivid and thought provoking message of prevention and includes strong language and graphic images suitable for children age 12 and up.
7 April 2017
Woonsocket Resident Sentenced for Possessing Child PornographyRead the Press Release
PROVIDENCE - Jose Marquez Escarcega, 29, of Woonsocket, today was sentenced yesterday to 60 months in federal prison for possession of child pornography, announced Acting United States Attorney Stephen G. Dambruch; Rhode Island State Police Superintendent Ann C Assumpico; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Escarcega to serve 20 years supervised release upon completion of his term of incarceration. Escarcega pleaded guilty on October 31, 2016, to one count of possession of child pornography, as charged in a federal indictment returned on December 3, 2015.
According to information presented to the court, in July 2014, the National Center for Missing and Exploited Children notified the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that someone at Escarcega’s residence downloaded child pornography. Based on information developed during a subsequent investigation by the ICAC Task Force and HSI, a court authorized search was executed on October 2, 2014, at Escarcega’s residence.
A forensic analysis of a computer owned by Escarcega and seized by investigators revealed approximately 450 images and 40 videos of child pornography. Additionally, investigators recovered evidence that Escarcega had contacted and paid an individual in the Philippines to provide him with a live video feed as a prepubescent female was molested.
Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.
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Contact:
Jim Martin (401) 709-5357
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William T. “Billy” Walters Convicted in Manhattan Federal Court of Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM T. WALTERS, a/k/a “Billy,” was found guilty on all 10 counts of conspiracy, securities fraud, and wire fraud charges after a four-week trial before U.S. District Judge P. Kevin Castel relating to his scheme to commit insider trading from 2008 through 2014, principally relating to securities of Dean Foods Company (“Dean Foods” or the “Company”).
Acting U.S. Attorney Joon H. Kim said: “Today, Billy Walters lost his bet that he could cheat the securities markets on a massive scale and get away with it scot-free. As a unanimous jury swiftly found, Walters received inside information about Dean Foods for years – directly from one its board members – and illegally traded on it, netting over $43 million. Armed with his illegal edge, Walters made huge, perfectly-timed trades, at times accounting for over a third of the trading volume in Dean Foods stock. In engaging in his years-long stock fraud scheme, Walters underestimated law enforcement’s resolve to pursue and catch those who cheat the market. The integrity of the American financial markets is a bedrock principle upon which our economy and justice system relies, and this Office and our partners at the FBI are as committed as ever to protecting it.”
According to the allegations in the charging documents and statements made in court proceedings:
From 2008 through 2014, WALTERS and Thomas C. Davis, among others, participated in a scheme to commit insider trading principally related to securities of Dean Foods, a Fortune 500 company that is the largest processor and distributor of fresh milk in the United States. Davis pled guilty to insider trading, perjury, and obstruction of justice charges on May 16, 2016 and has been cooperating with the investigation.
From 2001 until August 7, 2015, Davis served as a member of the Board of Directors of Dean Foods (the “Board”), and regularly possessed material, nonpublic information about Dean Foods, including about the Company’s financial performance and results, comprising quarterly earnings results; contemplated and actual corporate transactions; and other significant corporate and strategic developments (the “Inside Information”). In furtherance of the scheme, Davis violated his duties of trust and confidence to Dean Foods by providing Inside Information to WALTERS in advance of public announcements. WALTERS, knowing that Davis owed duties of trust and confidence to the Company, used the Inside Information to execute profitable trades in Dean Foods stock. In total, WALTERS’ trading on the basis of Inside Information netted realized and unrealized profits of approximately $32 million and avoided additional losses of approximately $11 million. In return for Davis providing the Inside Information to WALTERS, WALTERS, among other things, provided capital to Davis for joint business ventures and made two loans to Davis for approximately $1 million in total, which Davis largely did not repay.
In furtherance of the scheme, and to avoid detection by law enforcement, WALTERS provided Davis with a prepaid cellular phone to use when passing Inside Information to WALTERS. Moreover, WALTERS further instructed Davis to use code words when discussing the Inside Information, including by referring to Dean Foods as the “Dallas Cowboys.”
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WALTERS, 70, of Las Vegas, Nevada, was convicted of one count of conspiracy to commit securities fraud, four counts of securities fraud, one count of conspiracy to commit wire fraud, and four counts of wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two through 10 each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for WALTERS will be determined by the judge. WALTERS will be sentenced by Judge Castel on July 14, 2017.
Mr. Kim praised the work of the FBI and the Postal Inspection Service, and thanked the SEC and the Financial Industry Regulatory Authority (“FINRA”) for their assistance. He also thanked the Las Vegas offices of the FBI and the Internal Revenue Service, Criminal Investigation Division.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brooke E. Cucinella, Daniel S. Goldman, and Michael Ferrara are in charge of the prosecution.
Waterbury Grocery Store Worker Sentenced to 30 Months in Federal Prison for Food Stamp FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CARLOS MONARCA-GONZALEZ, 40, last residing in Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for food stamp fraud offenses.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents, MONARCA worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. From November 2014 until June 2016, MONARCA and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
MONARCA was ordered to pay restitution in the amount of $1,550,756.
MONARCA has been detained since his arrest on August 18, 2016. On November 28, 2016, he pleaded guilty to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
MONARCA, a citizen of Mexico, faces immigration proceedings at the conclusion of his prison term.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Ventura County Man Indicted by Federal Grand Jury for Allegedly Producing Child Pornography Involving 6-Year-Old GirlRead the Press Release
LOS ANGELES – A Simi Valley man was indicted today by a federal grand jury on charges of producing child pornography in a case involving a 6-year-old girl.
Eric Allen Haensgen, 38, who until August 2015 lived in Huntley, Illinois, is also charged with distributing and possessing child pornography.
The indictment alleges that Haensgen produced still photos and videos of the young victim. Investigators found 83 images and three videos of a 6-year-old girl that had been shot with Haensgen’s iPhone and downloaded to a computer, according to court documents.
Haensgen allegedly distributed over the BitTorrent Network other examples of child pornography he obtained from the internet.
Haensgen was arrested on March 24 by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after federal prosecutors filed a criminal complaint that accused him of one count of producing child pornography.
Haensgen is scheduled to be arraigned on the indictment on April 13 in United States District Court. Haensgen remains in custody without bond.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of producing child pornography carries a mandatory minimum penalty of 15 years in federal prison and a statutory maximum sentence of 30 years. The charge of distributing child pornography carries a mandatory minimum sentence of five years and a maximum sentence of 20 years. The charge of possessing child pornography carries a statutory maximum sentence of 20 years in federal prison.
This case is being prosecuted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Two Kansas Men Charged with Shooting EagleRead the Press Release
WICHITA, KAN. - Two Kansas men were charged Thursday with shooting and killing a golden eagle, U.S. Attorney Tom Beall said.
Michael Dusin, 22, Phillipsburg, Kan., and Elijah J. Kuhlman, 22, Sharon Springs, Kan., are charged with violating the federal Bald and Golden Eagle Protection Act. According to court documents, it is alleged the two defendants were driving around in Wallace County when they saw what they later described as a large, black bird. Dusin told Kuhlman to back up so he could take a shot at the bird. Dusin shot the bird and it fell to the ground.
On Dec. 12, 2016, a natural resource officer with the Kansas Department of Wildlife, Parks and Tourism investigating a report of a dead Eagle found the eagle’s remains in a field and two spent shotgun shells in the road. With the help of the Wallace County Sheriff, investigators identified a Ford F-150 pickup belonging to Kuhlman that had been seen in the area. An autopsy performed at the U.S. Fish and Wildlife Services’ Wildlife Forensics Laboratory in Ashland, Ore., confirmed the Eagle’s remains contained 41 metal pellets.
If convicted, the defendants face up to a year in federal prison and a fine up to $100,000. The Kansas Department of Wildlife, Parks and Tourism, the Wallace County Sheriff and U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Indicted for Allegedly Trafficking 5 Kilos of CocaineRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Thursday returned a two-count indictment charging Willy D. Espinal, 32, and Laura G. Martinez, 23, of Providence, with trafficking 5 kilograms of cocaine worth an estimated $150,000, announced Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Rhode Island State Police arrested Espinal and Martinez on February 21, 2017, after troopers allegedly discovered 5 kilos of cocaine hidden inside an electronically controlled “hide” below a rear passenger compartment of a vehicle operated by Espinal. Troopers were alerted to the alleged presence of narcotics inside the vehicle by a certified narcotics detection K-9, after a trooper discovered that the vehicle had been altered consistent with the construction of a “hide.” The vehicle, in which Martinez was a passenger, was stopped on Rte. 95 in West Warwick for a minor traffic violation.
Espinal and Martinez, first ordered held on Rhode Island state charges brought in this matter, have been detained in federal custody since their initial appearance in federal court on April 5, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
Homeland Security Investigations assisted Rhode Island State Police in bringing this matter to the U.S. District Court for prosecution.
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email: [email protected]
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Twenty-Five Tri-City Bombers Gang Members and Associates Indicted on Federal Racketeering, Drug Distribution and Money Laundering ChargesRead the Press Release
A grand jury sitting in Houston returned a 27-count superseding indictment against 25 Tri-City Bombers (TCB) gang members and associates in a conspiracy involving racketeering, drug distribution, money laundering, robbery and discharge of a firearm resulting in death.
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, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation’s (CI) Houston Field Office made the announcement.
A 27-count superseding indictment was returned by a grand jury on March 30, 2017, and unsealed in its entirety yesterday in the U.S. District Court of the Southern District of Texas.
According to court documents, the TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. TCB has an organized decision-making hierarchy, including a person in charge of each city, and leaders within the organization who determined whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determined and ordered the severe beating of members and associates for acts of disobedience or non-observance of the TCB’s rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. The RICO conspiracy charged here includes murder, attempted murder, drug trafficking, firearms crimes, money laundering and other crimes in furtherance of the organization’s enterprise. In Texas, for example, the TCB brought money into the gang through drug trafficking, home invasion robberies and money laundering.
The indictment alleges that from January 2009 and continuing through March 2017, TCB members and associates engaged in a variety of racketeering activities, including murder, attempted murder, robbery and drug trafficking. TCB members and associates allegedly coordinated the transportation and sale of cocaine, marijuana, methamphetamine and heroin from South Texas to Atlanta, Georgia, Ft. Wayne, Indiana, St. Louis, Missouri, and other cities nationwide. The indictment also alleges that TCB members committed a home invasion robbery for the purpose of stealing controlled substances, during which the home owner was shot to death.
The 19 defendants charged for their alleged roles in the RICO conspiracy are Mike Bueno, aka Mocho, 45, of Edinburg/Alamo, Texas; Eduardo Hernandez, aka Lepo, 36, of Donna, Texas; Arturo Ramirez Jr., aka China, 41, of Weslaco/San Juan, Texas; Jose Rolando Gonzalez, aka Rollie, 38, of Alton, Texas; Ernesto Alonzo Ruiz, aka Gallito, 38, of Raymondville, Texas; Hipolito Gonzalez, aka Pollie, 34, of Mission, Texas; Israel Gonzalez, aka Rayo, 34, of Pharr, Texas; Rolando Cruz, aka Party, 45, of Edinburg/Mission, Texas; Jesus Silva, aka Bola, 42, of San Juan, Texas; Luis Antonio Saldivar, aka Flaco, 25, of Mission, Texas; Octavio Muniz, aka Tavo, 40, of Pharr/Edinburg, Texas; Joseph Alberto Lopez, 33, of Donna, Texas; Margil Reyna, Jr., aka Mikeo, 32, formerly of Alamo, Texas, now of Toledo, Ohio; Joshua Omar Santillan, 35, of Donna, Texas; Roberto Cortez, aka Robe, 35, of Pharr/San Juan, Texas; Rene Vela, aka Gordo, 47, of Edinburg/McAllen, Texas; Carlos de la Rosa, aka Charlie, 40, of San Juan, Texas, Ernesto Saenz, aka Tuerto, 26, of McAllen, Texas; and Luis Alberto Tello, aka Wicho, 36, of Mercedes, Texas.
The superseding indictment also charges conspiracies to distribute cocaine, marijuana and methamphetamine, money laundering conspiracy, robbery, discharge of a firearm in the course of a violent crime resulting in death, and multiple instances of possession of controlled substances with the intent to distribute. Multiple racketeering conspiracy defendants are charged with each of these offenses. In addition, Daniel Saenz, 32, of Donna, Texas, is charged with conspiracy to distribute cocaine. De la Rosa; Ricardo Ortega, 34, of Edinburg, Texas; and Veronica Chavez, 38, of Mesquite/Brownsville, Texas, are charged with conspiracy to distribute marijuana and possession with intent to distribute marijuana. Ivan Rodriguez, 33, of McAllen, Texas, and Ciro Moya, 39, of Olivia, Minnesota, are charged with conspiracy to distribute methamphetamine. Roberto Reyes, aka Pelon, 31, of Pharr, Texas, is charged with possession with intent to distribute cocaine.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS-CI are investigating the case along with the Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr, Texas.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Tri-City Bombers Gang Members and Associates Indicted on Federal Racketeering, Drug Distribution, and Money Laundering ChargesRead the Press Release
HOUSTON - A grand jury sitting in Houston returned a 27-count superseding indictment against 25 Tri-City Bombers (TCB) gang members and associates in a conspiracy involving racketeering, drug distribution, money laundering, robbery and discharge of a firearm resulting in death.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI) - Houston Field Office made the announcement.
A 27-count superseding indictment was returned by a grand jury on March 30, 2017, and unsealed in its entirety today in the U.S. District Court of the Southern District of Texas.
According to court documents, the TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. TCB has an organized decision-making hierarchy, including a person in charge of each city, and leaders within the organization who determined whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determined and ordered the severe beating of members and associates for acts of disobedience or non-observance of the TCB’s rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. The RICO conspiracy charged here includes murder, attempted murder, drug trafficking, firearms crimes, money laundering and other crimes in furtherance of the organization’s enterprise. In Texas, for example, the TCB brought money into the gang through drug trafficking, home invasion robberies and money laundering.
The indictment alleges that from January 2009 and continuing through March 2017, TCB members and associates engaged in a variety of racketeering activities, including murder, attempted murder, robbery and drug trafficking. TCB members and associates allegedly coordinated the transportation and sale of cocaine, marijuana, methamphetamine and heroin from South Texas to Atlanta, Georgia, Ft. Wayne, Indiana, St. Louis, Missouri, and other cities nationwide. The indictment also alleges that TCB members committed a home invasion robbery for the purpose of stealing controlled substances, during which the home owner was shot to death.
The 19 defendants charged for their alleged roles in the RICO conspiracy are Mike Bueno, aka Mocho, 45, of Edinburg/Alamo; Eduardo Hernandez, aka Lepo, 36, Joseph Alberto Lopez, 33, and Joshua Omar Santillan, 35, all of Donna; Arturo Ramirez Jr., aka China, 41, of Weslaco/San Juan; Jose Rolando Gonzalez, aka Rollie, 38, of Alton; Ernesto Alonzo Ruiz, aka Gallito, 38, of Raymondville; Hipolito Gonzalez, aka Pollie, 34, of Mission; Luis Antonio Saldivar, aka Flaco, 25, of Mission; Israel Gonzalez, aka Rayo, 34, of Pharr; Rolando Cruz, aka Party, 45, of Edinburg/Mission; Jesus Silva, aka Bola, 42, of San Juan; Carlos de la Rosa, aka Charlie, 40, of San Juan; Octavio Muniz, aka Tavo, 40, of Pharr/Edinburg; Margil Reyna, Jr., aka Mikeo, 32, formerly of Alamo, now of Toledo, Ohio; Roberto Cortez, aka Robe, 35, of Pharr/San Juan; Rene Vela, aka Gordo, 47, of Edinburg/McAllen; Ernesto Saenz, aka Tuerto, 26, of McAllen; and Luis Alberto Tello, aka Wicho, 36, of Mercedes.
The superseding indictment also charges conspiracies to distribute cocaine, marijuana and methamphetamine, money laundering conspiracy, robbery, discharge of a firearm in the course of a violent crime resulting in death and multiple instances of possession of controlled substances with the intent to distribute. Multiple racketeering conspiracy defendants are charged with each of these offenses. In addition, Daniel Saenz, 32, of Donna, is charged with conspiracy to distribute cocaine. De la Rosa, Ricardo Ortega, 34, of Edinburg, and Veronica Chavez, 38, of Mesquite/Brownsville, are charged with conspiracy to distribute marijuana and possession with intent to distribute marijuana. Ivan Rodriguez, 33, of McAllen, and Ciro Moya, 39, of Olivia, Minnesota, are charged with conspiracy to distribute methamphetamine. Roberto Reyes, aka Pelon, 31, of Pharr, is charged with possession with intent to distribute cocaine.
The FBI and IRS-CI are investigating the case along with the Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr, Texas.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section 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.
Topeka Man Charged in Two RobberiesRead the Press Release
KANSAS CITY, KAN. - A Topeka man has been arrested and charged in two robberies, U.S. Attorney Tom Beall said Friday.
The Topeka Police Department assisted the FBI in arresting Joshua Alexander Musgraves, 24, Topeka, Kan., who is charged with two counts of commercial robbery. An indictment filed in U.S. District court in Topeka alleges that on Jan. 6, 2017, Musgraves robbed Plato’s Closet, a clothing store at 1580 S.W. Wanamaker Road in Topeka. The indictment also alleges that on Jan. 20, 2017, Musgraves robbed Kentucky Fried Chicken at 1812 N.W. Topeka Boulevard in Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Toledo men arrested and charged with sex trafficking of childrenRead the Press Release
The Federal Bureau of Investigation (FBI), Cleveland Division, Toledo Resident Agency, and the United States Attorney’s Office, Northern District of Ohio, announce the arrest of Cordell Jenkins, age 46, and Anthony Haynes, age 37, pursuant to a federal complaint and arrest warrant for sex trafficking of children.
Agents placed Jenkins and Haynes into custody early this morning at their residences in Toledo without incident. Additional law enforcement activity occurred today in regards to this ongoing investigation.
Jenkins and Haynes are accused of knowingly recruiting, enticing, harboring, transporting, providing or obtaining a person(s) that the defendants knew was less than eighteen years old to engage in commercial sex acts. In addition to the above, Haynes is also being charged with Obstruction of Justice and Jenkins is being charged with sexual exploitation of children. Both men will have their initial appearance in U.S. District Court later today.
A complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This investigation was conducted by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Tax Preparer Sentenced to 84 Months in Prison in $1.2 Million Tax Refund Fraud SchemeRead the Press Release
TALLAHASSEE, FLORIDA – Jorge Maldonado, 52, of Oviedo, Florida, has been sentenced to 84 months in prison and ordered to pay $1,203,073 in restitution for conspiracy, wire fraud, theft of government property, and aggravated identity theft. His three tax fraud conspirators are scheduled to be sentenced later this month. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The co-defendants are:
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Jennifer Maldonado, 29, of Oviedo, sentencing set for April 19 at 10:00 a.m.;
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Sharon Glover, 55, of Sanford, Florida, sentencing set for April 20 at 2:00 p.m.; and
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Diane White, 54, of Sanford, sentencing set for April 20 at 10:00 a.m.
In July 2016, a federal jury convicted the Maldonados of conspiracy, wire fraud, theft of government property, and aggravated identity theft. Co-conspirators Glover and White pled guilty in February 2016 to conspiracy, theft of government property, and aggravated identity theft.
During the six-day trial, the government presented evidence that, between 2009 and 2011, Jorge Maldonado and his daughter Jennifer, who were both tax preparers, conspired with Glover and White to obtain more than $1.2 million in income tax refunds issued on fraudulent tax returns. The Maldonados filed fraudulent returns that generated refunds. Glover and White cashed refund checks issued as a result of the fraudulent returns. They deposited cash proceeds of the checks into the Maldonados’ bank accounts or delivered the cash to the Maldonados. Glover and White cashed 505 checks by using fraudulent powers of attorney, approximately 16 different forged notary seals, and forged taxpayer signatures.
United States Attorney Canova said: “When fraudsters submit fraudulent tax returns, they are actually stealing from the millions of honest taxpayers who fulfilled their tax obligations accurately and on time. My office is committed to working with our law enforcement partners, such as the Internal Revenue Service, to ensure that tax dollars are used for their intended purpose.”
IRS-Criminal Investigation Tampa Special Agent in Charge Mary Hammond said: “When Jorge and Jennifer Maldonado used their tax return preparation service to steal client identities and make a fast buck for themselves and their co-conspirators, they underestimated the special agents of IRS Criminal Investigation. IRS-CI works diligently to protect the American tax system and root out criminals who prey on unsuspecting taxpayers. ”
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Herbert S. Lindsey and Gary K. Milligan prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer-
Statement of Attorney General Jeff Sessions on the District Court's Entry of Baltimore Consent DecreeRead the Press Release
Attorney General Sessions released the following statement on the District Court’s entry of the Baltimore consent decree:
“Today, a federal court entered a consent decree that will require the court and a highly-paid monitor to govern every detail of how the Baltimore Police Department functions for the foreseeable future. This decree was negotiated during a rushed process by the previous administration and signed only days before they left office. While the Department of Justice continues to fully support police reform in Baltimore, I have grave concerns that some provisions of this decree will reduce the lawful powers of the police department and result in a less safe city.
“Make no mistake, Baltimore is facing a violent crime crisis.
“Baltimore has seen a 22 percent increase in violent crime in just the last year. While arrests in the city fell 45 percent based on some of these ill-advised reforms, homicides rose 78 percent and shootings more than doubled. Just in 2017, we’ve seen homicides are up another 42 percent compared to this time last year. In short, the citizens of Baltimore are plagued by a rash of violent crime that shows no signs of letting up.
“The mayor and police chief in Baltimore say they are committed to better policing and that there should be no delay to review this decree, but there are clear departures from many proven principles of good policing that we fear will result in more crime. The citizens of Baltimore deserve to see a real and lasting reduction in the fast-rising violent crime threatening their city.
“The Department of Justice stands ready to work with Baltimore to fight violent crime and improve policing in the city.”
Statement of Acting U.S. Attorney Joon H. Kim on the Conviction of William T. Walters for Insider TradingRead the Press Release
“Today, Billy Walters lost his bet that he could cheat the securities markets on a massive scale and get away with it scot-free. As a unanimous jury swiftly found, Walters received inside information about Dean Foods for years – directly from one its board members – and illegally traded on it, netting over $43 million. Armed with his illegal edge, Walters made huge, perfectly-timed trades, at times accounting for over a third of the trading volume in Dean Foods stock. In engaging in his years-long stock fraud scheme, Walters underestimated law enforcement’s resolve to pursue and catch those who cheat the market. The integrity of the American financial markets is a bedrock principle upon which our economy and justice system relies, and this Office and our partners at the FBI are as committed as ever to protecting it.”
Springfield Woman Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute 24 pounds of methamphetamine that was shipped from California.
Lisa Renae Thompson, 39, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years and three months in federal prison without parole.
On Dec. 13, 2016, Thompson pleaded guilty to participating in a conspiracy to distribute methamphetamine from June 1 through Sept. 11, 2015. Co-defendant Michael E. Ford, 37, of Springfield, also has pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing. Ford also pleaded guilty to possessing a firearm in furtherance of that drug-trafficking conspiracy.
A co-conspirator shipped methamphetamine from California to Springfield in two- to two-and-a-half-pound increments to Thompson. Thompson picked up the packages at various hotels in the Springfield area then contacted Ford. Ford picked up the methamphetamine from Thompson and distributed it to others.
After a few days, Ford would then meet with Thompson and give her $10,800. Thompson kept $800 and sent $10,000 to the co-conspirator in California.
Thompson admitted that she received approximately 24 pounds of methamphetamine, which she gave to Ford. Thompson also kept some of the methamphetamine and sold it directly to others.
After Thompson was arrested on Sept. 11, 2015, Ford began receiving methamphetamine shipments from the co-conspirator in California. On Sept. 30, 2015, the Springfield Police Department received a phone call from a FedEx employee about a suspicious package. Police officers delivered the 2.2-pound package of methamphetamine to Ford at a Springfield residence, where he was arrested. Ford had a Ruger .22-caliber handgun in his possession.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
Serial Child Molester Sentenced to 20 Years in PrisonRead the Press Release
NORFOLK, Va. – A registered sex offender who was collecting child pornography was sentenced today to 20 years in prison and a lifetime of supervised release.
Michael Murphy, 68, of Norfolk, pleaded guilty to possession of child pornography on Dec. 28, 2016. According to court documents, Murphy was identified by the Norfolk Police Department in March 2016 when a 9-year-old girl disclosed that she was being molested by Murphy. Subsequent to his arrest, Murphy’s electronics were seized and analyzed, which resulted in the discovery of child pornography images that Murphy had collected on the Internet. Murphy was a registered sex offender, having been convicted in Norfolk courts of various offenses: in 1993 of attempted statutory rape and sodomy; in 1994 of production of child pornography, carnal knowledge, and sodomy; and in 2006 of indecent liberties with children. Murphy’s minor victims have ranged from 4 years old to 14 years old.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-115.
Scioto County Physician Pleads Guilty to Role in Pill MillRead the Press Release
CINCINNATI – Margaret Temponeras, 52, of Portsmouth, Ohio, pleaded guilty in U.S. District Court to conspiracy to distribute a controlled substance, which she did through a pain clinic and dispensary.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy, and the Ohio High Intensity Drug Trafficking Area (HIDTA) announced the plea entered into today before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Temponeras owned and was the physician at Unique Pain Management in Wheelersburg, Ohio. Her father, John Temponeras, 82, was also a physician at the clinic.
From June 2005 until May 2011, Temponeras and her father saw more than 20 patients per day, who paid cash payments starting at $200 for each medical examination. Many patients received monthly prescriptions for similar combinations of medications – namely, 120-150 pills of 15mg Oxycodone, 120-150 pills of 30mg Oxycodone and 90 pills of 2mg Xanax.
Patients were referred to Raymond Fankell, 62, of Wheelersburg, Ohio, who owned Prime Pharmacy, to fill their prescriptions.
Temponeras became aware that some pharmacies in the Scioto County area had declined to accept or fill her prescriptions from Unique Pain Management so she opened the dispensary Unique Relief LLC from the same location as her clinic in order to fill her own prescriptions.
Temponeras and Fankell have each pleaded guilty to one count of conspiracy to distribute a controlled substance, which is a crime punishable by up to 20 years in prison. John Temponeras pleaded guilty to one count of conspiracy to distribute Oxycodone, which carries the same potential maximum sentence.
U.S. Attorney Glassman commended the investigation of this case by the DEA, FBI, Ohio State Board of Pharmacy, and Ohio HIDTA, as well as Assistant United States Attorneys Timothy D. Oakley and Timothy S. Mangan, who are representing the United States in this case.
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San Angelo Man Who Controlled a Residence as a Multi-Pound Methamphetamine Stash Site Sentenced to 180 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Benny T. Martinez, 37, of San Angelo, Texas, was sentenced this morning before Senior District Judge Sam R. Cummings to 180 months in federal prison following his guilty plea in December 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Martinez pleaded guilty to one count of possession of firearms in furtherance of a drug trafficking crime and one count of convicted felon in possession of a firearm. Martinez has been in custody since the time of his arrest in October 2016.
“People like this do everything they can to destroy our communities and the people who live in them,” said U.S. Attorney Parker. “Our job is to raise the cost to them of doing their jobs, and we will aggressively do just that.”
According to plea documents filed in the case, on October 21, 2016, a search warrant was executed at the residence at 9209 Wilma Lane, San Angelo, Texas. Martinez was the only person at the residence. A thorough search of the residence revealed 2,188 grams of methamphetamine in the ceiling of the pantry, two .22 caliber rifles, $13,700.00 in cash, a vacuum sealer and vacuum sealing bags, a digital scale, and MSM, a common adulterant for methamphetamine. An additional 6,279 grams of methamphetamine was located buried on the north side of an outbuilding, in a small garden.
Further investigation revealed that before Martinez possessed the firearms mentioned, he had been convicted on May 1, 2009, in the 399th Judicial District Court of Bexar County, Texas, and was sentenced to eight months imprisonment for Possession of a Controlled Substance.
The Texas Department of Public Safety, the San Angelo Police Department, the Drug Enforcement Administration, and the Tom Green County Sheriff’s Office investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
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Roseville Woman Pleads Guilty to Fraud Scheme Using Stolen MailRead the Press Release
SACRAMENTO, Calif. — Ashley Nicole Leyba, aka Ashley Nicole Schlichting, 27, of Roseville, pleaded guilty today to bank fraud, aggravated identity theft, and possession of stolen mail, United States Attorney Phillip A. Talbert announced.
According to court documents, between September 15, 2016 and February 3, 2017, carried out an identity theft scheme in order to defraud banks and credit unions. She obtained stolen mail from victims and opened credit card accounts and lines of credit using the financial and identification information found in the stolen mail. Leyba created notebooks, which she labeled “THINK BIG” and “STAY OUT,” to organize the names, addresses and personal information of the mail theft victims.
According to the plea agreement, Leyba used the credit cards to purchase goods at Wal‑Marts in Sacramento and Rocklin, Kohls in Citrus Heights, Foot Locker in Roseville, Lowes in Rancho Cordova, and other stores in Sacramento and Placer counties. Leyba was depicted in surveillance images during several of these fraudulent transactions.
Leyba was arrested on February 13, 2017. In her plea agreement, she admits that while in custody, she instructed associates to destroy stolen identification and financial information that she had in her residence. One associate was arrested for driving while intoxicated, and during an inventory search of the vehicle, some of the stolen mail was recovered before being destroyed according to Leyba’s instruction.
This case is the product of an investigation of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office, Sacramento County Probation Office, and the Citrus Heights Police Department.
Leyba is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 23, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.
Portland Man Sentenced to 14 Months for Misusing a Social Security NumberRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Carlos Rafael Acosta-Joaquin, a/k/a “Kelvin Valle-Alicea,” 31, of Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 months in prison and two years of supervised release for misusing a social security number assigned to another person. On October 26, 2016, the defendant was convicted after a three-day jury trial.
The evidence at trial established that the defendant, a citizen of the Dominican Republic, entered the United States through Puerto Rico without proper documentation after he purchased the social security card and birth certificate of Kelvin Valle-Alicea, a citizen of Puerto Rico. In 2015, while assuming Valle-Alicea’s identity, the defendant used Valle-Alicea’s name and social security number on a state court form after he received a speeding ticket.
Acosta-Joaquin has been in custody since February 24, 2016, when U.S. Citizenship and Immigration Services agents arrested him on immigration charges. Federal agents arrested him on social security fraud charges the next day. A condition of supervised release requires that he surrender to immigration authorities upon his release from prison.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Social Security Administration, Office of Inspector General; the U.S. Department of Health and Human Services, Office of Inspector General; and the Maine Department of Health and Human Services, Fraud Investigations and Recovery Unit.
Peruvian National Pleads Guilty in Manhattan Federal Court to Commodities and Wire Fraud for Running Million-Dollar Ponzi SchemeRead the Press Release
Joon H Kim, the Acting United States Attorney for the Southern District of New York, announced that PEDRO JARAMILLO, a/k/a “Enrique Jaramillo,” pled guilty in Manhattan federal court yesterday to commodities fraud and wire fraud stemming from his scheme to defraud more than two dozen investors, mostly retirees and professionals from Peru and countries in Latin America, of more than $1.2 million through a fraud scheme in which JARAMILLO solicited investments largely for the purported purpose of short-term commodity futures contracts but instead diverted the funds for his own purposes. As a result of their investments with JARAMILLO, investors have lost their life savings, retirement funds, and their homes.
Among other false and misleading statements, JARAMILLO represented to clients that he was an accomplished Wall Street commodities trader who partnered with a certain well-known international investment bank (the “Global Investment Bank”) to earn returns of 25 percent every 90 days for his investors. In fact, JARAMILLO utterly failed to invest monies as promised, had no partnership with the Global Investment Bank, and instead diverted the majority of investor funds to his own use through cash withdrawals, debit purchases, and by wiring funds offshore. The investor funds not diverted offshore or directly to JARAMILLO were used to repay earlier investors whose redemption requests could not be forestalled, in a Ponzi-like fashion.
JARAMILLO was arrested on December 2, 2016, and pled guilty yesterday before United States District Judge Laura Taylor Swain.
Acting U.S. Attorney Joon H. Kim said: “As he admitted, Pedro Jaramillo lured investors with the promise of guaranteed high returns, but the only one who profited was Jaramillo. He failed to invest funds as promised, and paid back early investors with funds from later investors. Many of the victims of his frauds lost their life savings. I want to thank the FBI for working with us to protect investors.”
According to the Complaint, the Indictment, and other statements made in open court:
From at least January 2014 to in or about December 2016, JARAMILLO solicited more than $1.2 million in investments from more than two dozen investors, primarily for the purported purpose of investing in commodity futures contracts, by falsely representing, orally and in writing, that investor monies would be invested in short-term commodities contracts with a guaranteed rate of return.
To help attract investors, JARAMILLO maintained an office on Wall Street (the “Wall Street Office”) where he met with prospective investors to tout his prior success and relationship with the Global Investment Bank. JARAMILLO also starred in a youtube.com video (the “Video”) set to the soundtrack of Frank Sinatra’s “New York, New York.” The Video featured a series of images of Wall Street, the New York Stock Exchange, and JARAMILLO in front of the Wall Street Office. In the video, JARAMILLO told prospective investors that he was a “proven winner” and “trusted partner” who would maintain individually managed and federally insured accounts for each client. JARAMILLO told prospective investors that these safeguards would ensure that prospective investors would “be protected against fraud and brokerage failure.”
In truth and in fact, JARAMILLO not only failed to create individual investment accounts, he also failed to use investor funds to make any legitimate investments, instead diverting the majority of funds to his own use, out of the country, or to repay earlier investors whose redemption requests could not be forestalled. In total, JARAMILLO diverted more than $700,000 to his own use in the form of cash withdrawals and debit card purchases used to fund his lifestyle, including thousands of dollars on three vacations to Disney World for JARAMILLO, family, and guests.
To hide his misappropriations and continue to fund his personal lifestyle, JARAMILLO also used new investor funds to pay back other investors in a Ponzi-like fashion. In total, since January 2014, JARAMILLO distributed more than $200,000 back to investors from funds deposited by new investors. During that time, JARAMILLO also diverted more than $100,000 of investor funds out of bank accounts he controlled in the United States to foreign bank accounts, including in Peru, where JARAMILLO is a citizen.
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JARAMILLO, 48, a Peruvian National who was residing in Queens, New York, before his arrest, pled guilty to one count of commodities fraud and one count of wire fraud. The commodities fraud count carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The defendant, who has been detained since his arrest, will be sentenced at a future date by Judge Swain.
Mr. Kim praised the work of the Federal Bureau of Investigation. He also noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Pakistani Man Pleads Guilty in Axact Diploma Mill ScamRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that UMAIR HAMID, a/k/a “Shah Khan,” a/k/a the “Shah,” pled guilty yesterday before U.S. District Judge Ronnie Abrams to conspiracy to commit wire fraud in connection with an international “diploma mill” scheme that collected tens of millions of dollars from thousands of customers. As alleged in the Indictment to which HAMID pled guilty and the related criminal Complaint, HAMID and his co-conspirators made false and fraudulent representations to consumers on websites and over the phone to trick them into enrolling in purported colleges and high schools, and issued fake diplomas upon receipt of upfront fees from consumers.
Acting U.S. Attorney Joon H. Kim said: “Operating from Pakistan, Umair Hamid helped fraudulently rake in millions of dollars from unwitting American consumers who paid to enroll in, and get degrees from, high schools and colleges that did not exist. As a result of his fraud, people who thought they were investing in an education received nothing more than worthless diplomas and a harsh lesson in the worldwide reach of deceit. Together with our partners at the FBI and the Postal Service, we will continue to work to protect consumers from scams that victimize our citizens.”
According to the allegations contained in the Indictment and the Complaint against HAMID, as well as other court filings in this matter:
The Axact Scheme
HAMID, using the aliases “Shah Khan” and the “Shah,” and others operated a massive education “diploma mill” through the Pakistani company “Axact,” which has described itself as one of the world’s leading information technology (“IT”) providers. Working on behalf of Axact, HAMID and others made misrepresentations to individuals across the world, including throughout the United States and in the Southern District of New York, in order to dupe these individuals into enrolling in supposed high schools, colleges, and other educational institutions. Consumers paid upfront fees to HAMID and his co-conspirators, believing that in return they would be enrolled in real educational courses and, eventually, receive legitimate degrees. Instead, after paying the upfront fees, consumers did not receive any legitimate instruction and were provided fake and worthless diplomas.
Axact promoted and claimed to have an affiliation with approximately 350 fictitious high schools and universities, which Axact advertised online to consumers as genuine schools. During certain time periods since 2014, Axact received approximately 5,000 phone calls per day from individuals seeking to purchase Axact products or enroll in educational institutions supposedly affiliated with Axact. At least some of those consumers appeared to believe that they were calling phone numbers associated with the respective schools. When consumers asked where the schools were located, sales representatives were instructed to give fictitious addresses.
Once a consumer paid for a school certificate or diploma that falsely reflected a completed course of study, Axact sales agents were trained to use sales techniques to persuade the consumer to purchase additional “accreditation” or “certifications” for such certificates or diplomas in order to make them appear more legitimate. Axact, through HAMID and his co-conspirators, falsely “accredited” purported colleges and other educational institutions by arranging to have diplomas from these phony educational institutions affixed with fake stamps supposedly bearing the seal and signature of the U.S. Secretary of State, as well as various state agencies and federal and state officials.
HAMID’s Role in the Scheme
HAMID served as Axact’s “Assistant Vice President of International Relations.” Among other things, HAMID made various false and fraudulent representations to consumers in order to sell fake diplomas. HAMID controlled websites of purported “schools” that (1) falsely represented that consumers who “enrolled” with the schools by paying tuition fees would receive online instruction and coursework, (2) sold bogus academic “accreditations” in exchange for additional fees, (3) falsely represented that the schools had been certified or accredited by various educational organizations, and (4) falsely represented that the schools’ degrees were valid and accepted by employers, including in the United States.
As a further part of the scheme, HAMID and a co-conspirator (1) opened bank accounts in the United States in the names of shell entities, effectively controlled by HAMID, that received funds transferred by consumers in exchange for fake diplomas, (2) transferred funds from those bank accounts to bank accounts associated with other entities located elsewhere in the United States and abroad, at the direction of HAMID, and (3) opened and operated an account to collect and distribute consumer funds obtained in connection with their fraudulent scheme.
In May 2015, Axact was shut down by Pakistani law enforcement, and certain individuals associated with Axact were prosecuted in Pakistan. Nevertheless, after May 2015, HAMID resumed his fraudulent business of selling fake diplomas to consumers in the United States for upfront fees based upon false and fraudulent representations. Most recently, HAMID traveled to the United States in 2016 in order to open a bank account used to collect money from defrauded consumers.
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HAMID, 31, of Karachi, Pakistan, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. HAMID is scheduled to be sentenced by Judge Abrams on July 21, 2017, at 3:00 p.m.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward A. Imperatore, Noah D. Solowiejczyk, and David Abramowicz are in charge of the prosecution.
Northern Ohio Felon Sentenced to 100 Months for Illegally Possessing a FirearmRead the Press Release
COLUMBUS, Ohio – Richard Jerel Doyle, 32, of Brooklyn, Ohio, was sentenced to 100 months in prison for illegally possessing a firearm when Columbus Police arrested him in March 2016. A U.S. District Court jury convicted Doyle following a two-day trial in September.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kimberley Jacobs announced the sentence handed down yesterday evening by Chief U.S. District Judge Edmund A. Sargus Jr.
A Columbus Police officer arrested Doyle on March 18, 2016 after a victim called police and said that Doyle drove up next to her while she was walking along Cleveland Avenue. The victim told officers that Doyle assaulted her with a loaded firearm and that she was able to run away from him. She called 911 and reported the incident. An officer met with the victim and asked for a description of the man. According to testimony, the victim looked up, saw Doyle in his 1994 Cadillac Deville and said, “That’s him! Oh my God.”
Doyle drove away and officers followed him before stopping him without incident along I-71. They searched his car and found a .380 caliber handgun and ammunition.
On July 27, 2016, a grand jury indicted Doyle, who had been convicted in Cuyahoga County in 2010 on charges of drug trafficking and drug possession and in 2005 on charges of sexual battery and robbery. Federal law prohibits people convicted of felonies from owning, possessing or controlling firearms. The same restrictions apply to ammunition.
U.S. Attorney Glassman commended the investigation by agencies on the ATF task force, as well as Assistant U.S. Attorneys Salvador A. Dominguez and Jonathan J.C. Grey who represented the United States in this case.
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New York Man Charged with Aiding the Transportation of 47 Stolen Firearms and Distributing HeroinRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Mercado, age 46, of Queens, New York, was charged on April 6, 2017, in a criminal information with firearms and controlled substance offenses associated with a May 2015, gun store burglary in Bradford County, Pennsylvania.
According to United States Attorney Bruce D. Brandler, the information alleges that Mercado aided and abetted the transport of 47 stolen firearms from Pennsylvania to New York. The firearms were stolen from Fulmer’s Sporting Goods, a federally licensed firearms dealer in Wysox, Pennsylvania, on or about May 24, 2015. The information also charges Mercado with conspiring to distribute and possess with the intent to distribute 100 to 400 grams of heroin, which is equivalent to approximately 4,000 to 16,000 doses of heroin, during a three-year period from June 1, 2012 through June 17, 2015.
The government simultaneously filed a plea agreement with Mercado to the alleged charges, which is subject to approval of the court. A date for his arraignment has not been set.
Mercado is the third individual to be charged in relation to the Fulmer’s Sporting Goods burglary. Jared Miller and Aaron Vanderpool were charged in August 2016, with firearms and heroin trafficking offenses. Miller and Vanderpool have pleaded guilty before United States District Judge Richard Caputo and are awaiting sentencing.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charges are 50 years of imprisonment, a term of supervised release following imprisonment, and a fine. The heroin conspiracy charge carries a five-year mandatory minimum sentence of 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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New Jersey Feedstock Processor Sentenced to Five Years in Prison for Conspiracy to Commit Biofuel FraudRead the Press Release
The owner of a New Jersey feedstock collector and processor was sentenced today for his role in a scheme that generated over $7 million in fraudulent tax credits and renewable fuels credits (RIN credits) connected to the purported production of biodiesel fuel, as well as his subsequent attempts to obstruct a Grand Jury investigation into the fraud.
Malek Jalal, 52, was sentenced to 60 months in prison to be followed by three years of supervised release. He was also sentenced to pay $1,017,087 in restitution, and a $12,500 fine.
Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Acting Special Agent in Charge Frank S. Turner II for the Internal Revenue Service Criminal Investigation, and Acting Special Agent in Charge John Gauthier of EPA’s Criminal Enforcement Program in Ohio announced the sentence handed down today by Senior U.S. District Court Judge James L. Graham.
The RFS program is a national policy, authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007, which requires a certain volume of renewable fuel to be produced to replace or reduce the quantity of petroleum-based transportation fuel, heating oil or jet fuel. Tax credits incentivize businesses to produce renewable fuel like biodiesel.
According to his plea, Jalal, who owned Unity Fuels of Newark, New Jersey, engaged in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits multiple times on the same fuel. Jalal did this by buying fuel from a New York-based company, blending it with other materials, and selling it back to the same New York-based company.
Jalal also admitted to obstruction of justice. According to his plea, Jalal knowingly modified and destroyed records after receiving a Grand Jury subpoena from the Southern District of Ohio. Jalal also directed an employee of Unity Fuels to fabricate false records that were provided to the Grand Jury in an attempt to hide the fraud scheme.
“Unlawful acts like those at issue in this case defraud the U.S. Government, harm American taxpayers and consumers, and undermine energy and environmental laws enacted by Congress,” said Acting Assistant Attorney General Wood. “As today’s plea demonstrates, the Department of Justice will continue to pursue and prosecute those who seek to line their own pockets through RFS fraud.”
“Environmental programs are not immune from fraud," U.S. Attorney Glassman said. "The surest way to deter this and all fraud is to catch the criminal and ensure that he is punished for the crime. That's what we're doing here.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching those who claim fraudulent tax credits," stated Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "The object of these schemes is to defraud the government and the taxpaying public.”
“Violations of renewable fuels laws can have serious impacts on the marketplace and hurt companies that play by the rules,” said Larry Starfield, Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance at EPA. “EPA and its law enforcement partners are committed to ensuring a level playing field for businesses that follow the rules by pursuing those who blatantly violate the law.”
Assistant Attorney General Wood and U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman, Senior Trial Attorney Jeremy Korzenik and Assistant United States Attorney J. Michael Marous, who represented the United States in this case.
Nebraska Resident Sentenced to 160 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On April 6, 2017, Gerald N. Holden, age 42, of Bellevue, Nebraska, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 160 months in prison for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Holden will be required to serve a five-year term of supervised release following his release from prison.
On November 29, 2016, Holden pleaded guilty to the charge and admitted he participated in a conspiracy to distribute methamphetamine in the Southern District of Iowa during the month of August 2016. Holden’s charge was the result of a law enforcement investigation of drug trafficking that occurred in both Omaha, Nebraska, and Council Bluffs, Iowa.
This investigation was conducted by the Southwest Iowa Narcotics Enforcement Task Force, the Omaha Police Department, the Council Bluffs Police Department, and the Pottawattamie County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].