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Tuesday 21 February 2017
Two men sentenced to federal prison for heroin crimesRead the Press Release
HUNTINGTON, W.Va. – Two men were sentenced to federal prison today for drug crimes, announced United States Attorney Carol Casto. Antoine Garfield Rushin, 44, of Detroit, was sentenced to 10 years in prison for aiding and abetting the possession with intent to distribute heroin. In a separate prosecution, Bobby James Mitchell, 35, of Huntington, was sentenced to three years and a month for distribution of heroin.
On June 29, 2015, law enforcement executed a search warrant at 1751 Buffington Avenue in Huntington. Just prior to execution of the warrant, officers observed Rushin enter the residence. During the search, Rushin and other individuals in the residence were arrested and officers seized approximately 65 grams of heroin and digital scales. Rushin admitted that he frequently provided heroin to individuals staying at the residence for those individuals to distribute.
In a separate prosecution, on March 16, 2016, members of the Drug Enforcement Administration Task Force conducted a controlled purchase of heroin from Mitchell. Mitchell and a confidential informant working with law enforcement met at 1039 Rear Jefferson Avenue in Huntington to complete the drug deal. The confidential informant provided Mitchell with $500 in exchange for approximately 6.1 grams of heroin.
The investigation of Rushin was conducted by the Huntington FBI Drug Task Force. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution of Rushin. The Drug Enforcement Administration Task Force conducted the investigation of Mitchell. Assistant United States Attorney Gregory McVey is handling the Mitchell prosecution. Chief United States District Judge Robert C. Chambers imposed the sentences.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two men plead guilty to federal heroin crimesRead the Press Release
HUNTINGTON, W.Va. – Two men pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Earnest Moore, 40, of Ohio, pleaded guilty to conspiracy to distribute heroin. In a separate prosecution, Robert Douglas Black, 52, of Huntington, entered his guilty plea to distribution of heroin.
From early 2013 until his arrest on July 23, 2014, Moore admitted that he conspired with others to distribute heroin in the Point Pleasant area of Mason County. During the conspiracy, associates of Moore would frequently transport heroin from Detroit and Columbus to a residence in Gallipolis, where they would store and prepare the drugs for distribution. Members of the conspiracy would then distribute the heroin to customers in Gallipolis and to customers who traveled from Point Pleasant. Moore and others also frequently traveled to Point Pleasant where they used various residences to distribute the drugs. Moore faces up to 20 years in federal prison when he is sentenced on May 30, 2017.
In a separate prosecution, Black admitted that on May 4, 2016, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at his residence on 5th Avenue West in Huntington. On May 25, 2016, law enforcement executed a search warrant at Black’s residence and seized over $2,000 in cash, a set of digital scales, and additional heroin that Black admitted he intended to distribute. Black faces up to 20 years in federal prison when he is sentenced on May 30, 2017.
The Drug Enforcement Administration Task Force, which includes the Putnam County Sheriff’s Department and the Gallia-Meigs County, Ohio, Major Crimes Task Force, conducted the investigation of Moore. The investigation of Black was conducted by the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams is in charge of these prosecutions. The plea hearings were held before Chief United States District Judge Robert C. Chambers.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Men Sentenced for Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Angel Nunez, age 28, of Brooklyn, New York, and Stanislav Petkevichus, age 28, of Slingerlands, New York, were each sentenced today for conspiring to distribute the controlled substance oxycodone in Albany County.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
U.S. District Judge Mae A. D’Agostino sentenced Nunez to 33 months in prison, to be followed by 3 years of supervised release, and to forfeit $100,000. Judge D’Agostino sentenced Petkevichus to time served (96 days in jail), as well as 3 years of supervised release including 6 months of home detention, and to forfeit $4,435.
As part of their guilty pleas, the defendants admitted that Nunez obtained 30 mg tablets of oxycodone from sources in New York City, and acted with Petkevichus and others to sell those oxycodone tablets in Albany County and elsewhere.
These cases were investigated by the DEA and prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Texan Pleads Guilty in Large-Scale Cocaine Trafficking and Money Laundering SchemeRead the Press Release
PITTSBURGH – The south Texas supplier of a Pittsburgh cocaine ring pleaded guilty in federal court to charges of violating federal narcotics and money laundering laws, Acting United States Attorney Soo C. Song announced today.
Dante Ivan Lozano, age 41, of Brownsville, Texas, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine, and conspiracy to launder monetary instruments before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that between 2011 and 2015, Lozano mailed 100 or more packages of cocaine to Jeffrey Turner and April Racan in Elizabeth and McKeesport, in Allegheny County. Approximately eight kilograms (about 18 pounds) of cocaine were sent in this fashion.
Turner and Racan then sold the cocaine to Brian Kettering and others. Although drug proceeds in the form of cash were generally sent back to Lozano, during a six-month period of time in 2012, postal money orders were purchased by Kettering and William Coulson, at the direction of Turner and Racan. The money orders totaled at least $116,700, and were purchased in 11 Mon Valley-area post offices. Turner and Racan sent the money orders back to Texas to a Dairy Queen managed by Daniel Cosme. Cosme turned the money orders over to Lozano, who used Hugo Balboa and other straw parties to launder the money orders by cashing some and depositing others into various bank accounts.
Joseph Borrelli, at that time Postmaster in West Newton, PA, aided the drug conspiracy by providing addresses for vacant homes where the cocaine packages could be sent. When they arrived at the post office, the packages would be diverted to Turner and Racan.
Turner, Racan, Borrelli and Kettering were convicted of conspiracy to distribute cocaine. Turner, Racan, Cosme, Balboa, Kettering and Coulson were convicted of money laundering conspiracy.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000 or both on the drug conspiracy count, and a sentence of not more than 20 years in prison, a fine of $500,000, or both on the money laundering conspiracy count.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory J. Nescott is prosecuting this case on behalf of the government.
The United States Postal Service in Pittsburgh, the Drug Enforcement Administration in Brownsville, Texas, the Cameron County (TX) Sheriff’s Office, and the Pennsylvania Office of the Attorney General conducted the investigation leading to the indictment in this case.
Second Virginia Man Sentenced to 7 Years in Prison for Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tracy Whiting, age 24, of Newport News, Virginia, was sentenced by United States District Judge Malachy E. Mannion to serve seven years in prison for the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Whiting previously pleaded guilty to the charge of brandishing a firearm in furtherance of a crime of violence. Whiting was one of four individuals, including Kelvin Robinson, age 25, of Newport News, Virginia, Kwa’shon Roane, age 24, of Gloucester, Virginia, and Rodney Whiting, age 23, of Scranton, who were indicted by a grand jury in March 2016, for the armed robbery of the Econo Lodge.
Previously, in December 2016, Kelvin Robinson was sentenced by Judge Mannion to serve seven years in prison for charges related to the incident. Rodney Whiting and Kwa’shon Roane have also entered guilty pleas and are awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office and numerous local law enforcement agencies, including the Taylor Borough and Moosic Borough Police Departments. Assistant United States Attorney Robert J. O’Hara 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.
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Rio Arriba County Woman Pleads Guilty to Attempted Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Ashley Herrera, 28, of Espanola, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to attempted bank robbery.
Herrera was arrested in July 2016, on a criminal complaint charging her with attempting to rob the Bank of America branch located at 4037 Rodeo Road in Santa Fe, N.M., on Aug. 12, 2015. Herrera subsequently was indicted on Aug. 23, 2016, and charged with attempted bank robbery.
During today’s proceedings, Herrera pled guilty to the indictment. and admitted that on Aug. 12, 2015, she attempted to rob the bank by handing a bank teller a note in which she threatened to shoot if the bank teller did not give her money. Herrera acknowledged leaving the bank without obtaining any money. She was later arrested after one of her fingerprints was found on the demand note she handed the bank teller.
At sentencing, Herrera faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Santa Fe Police Department. Assistant U.S. Attorneys Shana B. Long and Peter J. Eicker are prosecuting the case.
Ridgeland Man Sentenced to Federal Prison on Weapons ChargesRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Brandon James Williams, age 32, of Ridgeland, South Carolina, was sentenced today in federal court in Charleston, South Carolina, for possession of a firearm by a convicted felon. United States District Judge David C. Norton of Charleston sentenced Williams to six-years’ imprisonment, to be followed by a three-year term of supervised release.
Evidence presented at the change of plea and sentencing hearings established that the Ridgeland Police Department was called to the Econo Lodge on James Taylor Drive to conduct a welfare check. Upon arriving, officers made contact with Williams and another individual in one of the rooms and could smell a strong odor of marijuana coming from the room. Upon executing a search warrant for the room, officers found a loaded Ruger 9mm handgun in a jacket belonging to Williams and a Smith & Wesson 9mm handgun in a dresser drawer. Williams has multiple prior felony convictions.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Ridgeland Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Pittsburgh Felon Charged with Violating Federal Firearms LawsRead the Press Release
PITTSBURGH - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jason Porter, Jr., 21, as the sole defendant.
According to the indictment, on or about October 20, 2016, Porter, Jr., being a convicted felon, did knowingly and unlawfully possess a Smith & Wesson, Model SD40VE, .40 caliber pistol and .40 caliber ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm and ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Violent Crimes, Narcotics, and Firearms Task Force, the Pennsylvania Board of Probation and Parole, and the City of Pittsburgh Police Department conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pawtucket Resident Pleads Guilty to Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Justice Reyes, 20, of Pawtucket, pleaded guilty in federal court in Providence today to possession of a firearm with an obliterated serial number. Reyes was arrested outside his Pawtucket residence on April 1, 2016, moments after he sold the firearm to an undercover federal law enforcement agent.
Reyes was serving a state court imposed sentence of home confinement at the time he sold the firearm to an undercover ATF agent.
Reye’s guilty plea before U.S. District Court Chief Judge William E. Smith is announced by United States Attorney Peter F. Neronha and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
According to information presented to the court, on April 1, 2016, an undercover ATF agent bought a .22 caliber semi-automatic rifle from Reyes for $350. Reyes specified that the serial number had been obliterated, and that he could get the undercover and the undercover’s associates additional guns with obliterated serial numbers.
According to Rhode Island state court records, Reyes was sentenced on March 17, 2016, to one year home confinement for violating a suspended sentence imposed on January 29, 2016, having pleaded nolo contendre to a charge of simple assault domestic. Reyes began serving his home confinement sentence two weeks prior to selling the firearm to the ATF agent.
Reyes, who has been detained since his arrest on April 1, 2016, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 5, 2017. Possession of a firearm with an obliterated serial number is punishable by a statutory sentence of up to 10 years in federal prison, 3 years supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island AFT Task Force, with the assistance of the Pawtucket Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pawtucket Drug Trafficker Sentenced to PrisonRead the Press Release
PROVIDENCE – Jesus Garo, 28, of Pawtucket, today was sentenced to 57 months in federal prison for trafficking cocaine and crack cocaine. According to information presented to the court, prior to this most recent drug trafficking conviction in federal court, Garo was previously convicted in Rhode Island state court on drug related charges on four occasions, including twice for drug trafficking, and had been shot and wounded at least twice.
Garo’s most recent arrest in December 2015, followed an investigation by Providence Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into his continued drug trafficking activities.
The sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Garo to serve 3 years supervised release upon completion of his prison term. Garo pleaded guilty on December 16, 2016, to possession with the intent to distribute crack cocaine and possession with the intent to distribute cocaine.
According to information presented to the court, during an investigation into Garo’s drug trafficking activities in November and December 2015, on at least two occasions, Garo sold crack cocaine to a person assisting law enforcement with their investigation. On December 16, 2015, Garo was approached outside of his residence by law enforcement, who seized 14 small bags of crack cocaine and three small bags of cocaine from Garo’s person. A court authorized search of Garo’s residence resulted in the seizure of additional quantities of cocaine and crack cocaine. In total, law enforcement seized more than 15 grams of crack cocaine, 9 grams of cocaine, $1,571 in cash, and various items used in the packaging and distribution of drugs.
Garo has been detained since his arrest on December 16, 2015.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Oshkosh Woman Charged with EmbezzlementRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on February 14, 2017, a federal grand jury returned a two-count indictment against Melisa A. Beyer (age: 37) of Oshkosh, Wisconsin. The first count charges that between January 2007 and May 2014, she embezzled funds from the Oshkosh Central Credit Union (OCCU), in violation of Title 18, United States Code, Section 657. The second count charges Beyer with making a false statement in the reports of OCCU in violation of Title 18, United States Code, Section 1006. More specifically, in March 2014, Beyer falsely reported on OCCU records that the vault money count was in excess of $2,000,000 when in truth, as Beyer well knew, this over-stated the amount of money located in the vault by approximately $1.6 million.
If convicted of the embezzlement charge, Beyer faces a maximum of 30 years’ in prison, a $250,000 fine, and three year’s supervised release. If convicted of the false statement charge, Beyer faces a maximum of 30 years’ in prison, a $1,000,000 fine, and three years of supervised release.
Beyer appeared before the Honorable James Sickel, Magistrate Court Judge, on February 15th and was released pending her final pre-trial hearing scheduled for April 12th at 1:30 p.m. before Chief United States District Judge William C. Griesbach. A trial date has been set for April 24th.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney William Roach.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
One Albuquerque Resident Sentenced and Another Pleads Guilty to Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two Albuquerque residents appeared in federal court today in connection with pending drug trafficking charges. Daniel Griego, 31, was sentenced to 24 months in prison followed by three years of supervised release for his cocaine trafficking conviction. Robert Henry Lovato, 44, entered a guilty plea to a methamphetamine trafficking charge under a plea agreement stipulating to a 48-month term of imprisonment.
Griego and Lovato were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Griego was arrested on a criminal complaint charging him with possessing a distribution quantity of cocaine on July 6, 2016, in Bernalillo County. According to the complaint, on that day, Griego sold approximately 507 grams of cocaine to an individual working with law enforcement. Griego was indicted on July 28, 2016, and charged with distributing cocaine on July 6, 2016. Griego entered a guilty plea to the indictment on Sept. 2, 2016.
Lovato was arrested on July 6, 2017, on an indictment charging him with distributing methamphetamine on April 19, 2016, in Bernalillo County. During today’s proceedings, Lovato entered a guilty plea to a felony information charging him with distributing methamphetamine. A sentencing hearing has yet to be scheduled.
To date, 29 of the 104 defendants have entered guilty pleas and three have been sentenced. The remaining defendants, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. Assistant U.S. Attorney David M. Walsh prosecuted the case against Griego, and Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case against Lovato.
Ohio Man Charged with Possessing Child PornographyRead the Press Release
PITTSBURGH – A resident of Fairfield, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The one-count Indictment named Richard Jay Sharp, 54.
According to the Indictment, on or about November 22, 2016, Sharp possessed child pornography on various electronic devices he owns, including laptop computers and thumb drives.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and any prior criminal history of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Neenah, Wisconsin Woman Sentenced for Role in Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 14, 2017, Cathy S. Konkol (age: 52) of Neenah, Wisconsin, was sentenced in Federal Court in Green Bay to 3 years’ prison to be followed by 3 years’ supervised release after her guilty plea to using an unauthorized access device (credit card) contrary to Title 18, United States Code, Section 1029(a)(1).
According to the plea agreement and other court documents, between approximately January 2015 and April 2016, Konkol used fraudulently obtained credit cards in order to obtain cash advances and purchase electronics at various electronic stores in the Oshkosh and Appleton area. Konkol was known as the “MacBook Lady” by employees at one electronic store given the number of computers she purchased. The investigation revealed that she used fraudulently obtained credit cards to purchase approximately $208,000 in merchandise. Konkol reported she received the credit cards from an individual that she met on a dating website. Konkol was directed by that person to send the majority of cash and merchandise to addresses in Nigeria and Malaysia.
While handing down the sentence, Chief United States District Judge William C. Griesbach noted the year-long time period over which the fraud scheme occurred, the large dollar amount of the fraud, and the repeated instances when Konkol was caught by law enforcement but nevertheless continued to commit further fraudulent acts.
This case was investigated by the U.S. Postal Service, Neenah Police Department, and Grand Chute Police Department. The case was prosecuted by Assistant United States Attorney William Roach.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Navajo Man from Shiprock Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Terrell Ray Antonio, 41, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M. Antonio will serve a 46-month term of imprisonment followed by three years of supervised release for his conviction on an assault charge.
Antonio was arrested on Jan. 22, 2016, on a criminal complaint charging him with assault resulting in serious bodily injury. According to the complaint, on Jan. 17, 2016, struck the victim, a Navajo woman, with his car minutes after she got out the vehicle and started walking away from the vehicle following an argument between the two. The victim suffered a fractured hip, broken right upper arm and head trauma, and had to be airlifted to a hospital because of her injuries. committed the assault on the Navajo Indian Reservation in San Juan County, N.M.
Antonio was indicted on Feb. 24, 2016, and charged with assault resulting in serious bodily injury, and assault with a dangerous weapon, a vehicle.
On July 22, 2016, Antonio pled guilty to Count 1 of the indictment charging him with assault resulting in serious bodily. In entering the guilty plea, Antonio admitted assaulting the victim by striking her with his vehicle, and acknowledged that she suffered serious bodily injury as a result of the assault.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety.
Assistant U.S. Attorney Niki Tapia-Brito prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Navajo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Patrick Yazzie-Tso, 28, an enrolled member of the Navajo Nation who resides in Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 42 months in prison for his conviction on federal assault charges. Yazzie-Tso will be on supervised release for three years after completing his prison sentence.
Yazzie-Tso was arrested in Jan. 2016, on a federal criminal complaint charging him with assault. According to the complaint, on Dec. 13, 2015, the Pojoaque Pueblo Tribal Police Department learned of the assault when they responded to a domestic violence call on Pojoaque Pueblo in Santa Fe County, N.M. The complaint alleged that Yazzie-Tso assaulted the victim, a non-Indian woman, by punching her repeatedly on the head and face, slamming a large painting canvas on her, and strangling her by wrapping his hands around her neck and throat.
Yazzie-Tso was subsequently indicted on Feb. 9, 2016, and charged with assault resulting in serious bodily injury and strangling an intimate partner. On June 1, 2016, Yazzie-Tso pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by Northern Pueblos Agency of the BIA’s Office of Justice Services and the Pojoaque Pueblo Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
Monroe County Man Sentenced to Home Confinement and Probation for Selling ExplosivesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Richard P. Conaboy sentenced Ronald J. Scheu, age 48, of Kunkletown, Pennsylvania, to three years of probation, including an eight-month term of home confinement, for distributing explosives without a license. Judge Conaboy also fined Scheu $1,000.
According to United States Attorney Bruce D. Brandler, Scheu pleaded guilty to distributing 119 M-class devices, 26 class 1.3 mortars, and one aerial shell, without the appropriate license or permit. Scheu admitted to maintaining a storage locker filled with hundreds of pounds of explosives, and to selling professional grade explosives. He also admitted to manufacturing flash powder and explosives at his residence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and by the Carbon County District Attorney’s Office. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Missouri Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
Robert Lorenzo Hester, Jr., 25, of Columbia, Missouri, was charged in a criminal complaint with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Hester was charged in federal court based on his role in making preparations to launch a terrorist attack with persons he believed were associated with ISIS, who were actually undercover law enforcement personnel.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Tammy Dickinson for the Western District of Missouri and Special Agent in Charge Eric Jackson of the FBI’s Kansas City Field Office.
“As alleged in the complaint, Robert Lorenzo Hester, Jr. attempted to provide material support to ISIS by participating in what he believed would be a deadly attack committed in the name of the foreign terrorist organization,” said Acting Assistant Attorney General McCord. “Countering terrorist threats remains the highest priority of the National Security Division, and we will continue our efforts to identify and hold accountable those who seek to commit acts of terrorism within our borders.”
“First on social media, then during face-to-face meetings with an undercover FBI employee, this defendant repeatedly expressed his intent to engage in acts of violent jihad against the United States,” said U.S. Attorney Dickson. “He believed he was part of an ISIS-sponsored terrorist attack that would result in the deaths and injuries of many innocent victims. He readily participated in the preparations for an attack, provided materials and resources for an attack and voiced his intent to carry out an attack. I commend the FBI for protecting the public from a security threat.”
“Terrorism knows no demographic boundaries and remains the FBI’s top priority,” said Special Agent in Charge Jackson. “The arrest of Hester is the culmination of an extensive FBI investigation and demonstrates the challenges law enforcement faces in identifying individuals intent on causing harm.”
Hester, who remains in federal custody, was arrested on February 17, when he arrived at an arranged meeting with an undercover law enforcement employee. The criminal complaint was signed on Sunday and made public today, when Hester made his initial court appearance.
According to an affidavit filed in support of the criminal complaint, throughout the investigation, Hester expressed his interest in and exhibited his willingness to commit violence in support of ISIS – and he attempted to provide material support to ISIS by assisting in what he believed would be a murderous terrorist bombing and gunfire attack committed in the name of the foreign terrorist organization.
Hester is a U.S. citizen who was born in Missouri. He was enlisted in the U.S. Army for less than a year, receiving a general discharge from service in mid-2013.
FBI agents undertook a review of Hester’s publicly available posts on multiple social media accounts in September 2016. On Oct. 3, 2016, Hester was arrested by the Columbia Police Department in an unrelated case and remained in state custody until he was released on bond on Oct. 13, 2016. His bond conditions included electronic monitoring. While Hester was being monitored, FBI undercover employees maintained regular contact with him via an encrypted messaging app and text messages, and met with him on several occasions.
On January 24, Hester pleaded guilty in state court to property damage and unlawful use of a weapon and was released on his own recognizance. Hester was no longer on electronic monitoring after that date. FBI undercover personnel continued to meet in person with Hester and communicate with him electronically.
Hester agreed to meet again with an FBI undercover employee on February 17. When Hester arrived for that meeting, he was arrested. Hester was the sole subject of this undercover investigation.
Undercover Investigation
According to the affidavit, the investigation began when the FBI became aware (through multiple confidential sources) of Hester’s social media posts, in which he expressed animus towards the U.S. and suggested an adherence to radical Islamic ideology and a propensity for violence. Hester used several online aliases, including “Mohammed Junaid Al Amreeki,” “Junaid Muhammad,” “Rabbani Junaid Muhammad,” “Rami Talib” and “Ali Talib Muhammad.”
On Oct. 3, 2016, Hester was arrested by Columbia police officers after an incident in the parking lot of a grocery store. Hester, who appeared to be in an argument with his wife, threw a folded pocket knife through a plate-glass window near the entrance of the store. When store employees confronted Hester, he assumed an aggressive stance and forcefully placed his hand into the diaper bag he was carrying in a manner that appeared to be reaching for a weapon. Police officers later recovered a 9mm handgun from the diaper bag. Hester was in custody until Oct. 13, 2016, when he was released on bond and placed on electronic monitoring.
On Oct. 15, 2016, two days after Hester’s release on bond, an FBI employee using an undercover identity contacted Hester by private message. The FBI employee had accepted a friend request from Hester the day before Hester was arrested for the grocery store incident. They continued to communicate via social media, text and an encrypted messaging app, the affidavit says, during which Hester presented himself as a security threat, stating, for example, that the U.S. government should be “overthrown,” and suggesting “hitting” the government “hard,” while noting that it would not be “a one man job.” Hester identified categories of potential targets for attack and said he wanted a “global jihad.” Hester stated that he was trying to find like-minded people to help. When the undercover employee mentioned “brothers,” Hester said he wanted to meet them.
Hester then established that he would act on the statements he made online. In early November 2016, the affidavit says, Hester made arrangements with the undercover employee – whom he never met in person – to meet with “one of the brothers.” The undercover employee arranged this meeting with another undercover FBI employee.
During a January 31 meeting, the undercover employee provided Hester with a list of items to purchase, including 9-volt batteries, duct tape, copper wire and roofing nails. The undercover employee implied that these items would be used to make bombs, the affidavit says, stating that those materials are needed “to make … things … to bring some kind of destruction.” Hester allegedly responded by stating: “I’m just ready to help. I’m ready to help any way I can.” When the undercover employee stated that what they were planning was “going to bring them to their knees … and then they gonna know to fear Allah,” Hester expressed his anticipation by stating: “I can’t wait. I can’t wait.”
Hester and the undercover employee agreed to meet again at Hester’s residence the next day. When the undercover employee arrived, the affidavit says, Hester gave him the items he had purchased. The undercover employee told Hester they were planning something “10 times more” than the Boston Marathon bombing, and Hester expressed his approval. The undercover employee told Hester that they were planning on “killing a lot of people.” The undercover employee told Hester that he could “walk away,” the affidavit says, but Hester said, “I’m down.” The undercover employee told Hester they were going to “wage all kinda war,” and Hester again expressed his approval.
The undercover employee then pulled back blankets in the back of the SUV to show Hester three AK-47 style rifles and two .45-caliber handguns. The undercover employee told Hester that, while they had plenty of firearms, they needed more ammunition. Hester stated that he could not purchase ammunition because of his state charges, but that he had a friend that could get ammunition for him. Hester stated that he would have money to purchase ammunition after he received his tax refund and after he was paid in a couple of weeks.
The undercover employee also opened a backpack, which contained pieces of pipe with end caps attached in the manner of pipe bombs, along with cord-like safety fuse, stating, “these are bombs right here.” The undercover employee explained that the duct tape Hester provided would be used to tape the bombs together, which Hester acknowledged, and that the nails Hester provided would “cut peoples’ heads off.” Hester responded: “Oh yeah. I know,” indicating that he understood the nails were to be used as shrapnel for bombs.
The undercover employee stated that they had more backpacks that they were going to put in different locations. Hester acknowledged that he understood, and stated that they had to be smarter than the Boston Marathon bombers. Hester again confirmed that he was “down,” the affidavit says, and that he understood they had to “lay low” and act in a manner to avoid detection.
The undercover employee stated that they were going to “strike fear in all these infidel hearts,” and Hester responded that he agreed and that he was ready.
According to the affidavit, Hester contacted the first undercover employee via text message on February 2, and indicated he would “have some more stuff … in a couple of weeks when I get paid.” Hester asked the undercover employee, “When you talk to the brother again let him know I’ll have some more gifts in a couple of weeks.”
On February 4, 6, 7, 11 and 16 Hester communicated with an undercover employee via an encrypted messaging app. Hester said that he was excited, that he was “happy to be part” of it, and that it was “time they answer for their atrocities.” Hester predicted that it was “going to be a good day for Muslims worldwide.” Hester asked how the “party plan” was coming along and reiterated that he would get more “supplies.” The undercover employee told Hester that the “party” would take place on Presidents’ Day and that the targets of the operation would include busses, trains and a train station in Kansas City. Hester said, according to the affidavit, that it felt “good to help strike back at the true terrorist.”
On February 17, Hester met again with the second undercover employee and brought two additional boxes of roofing nails. Hester accompanied the undercover employee to a nearby storage facility, where the two examined the security cameras. Hester was arrested shortly thereafter.
The charge contained in this complaint and the assertions in the supporting affidavit are simply an accusation, and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and David Raskin, with the assistance of Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.
Hester ComplaintMerced County Man Admits Smuggling Cash from Marijuana Proceeds into MexicoRead the Press Release
FRESNO, Calif. — On Friday, February 17, 2017, Arnulfo Huerta-Cornejo, 32, of Delhi, pleaded guilty to conspiring to smuggle bulk cash, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014 and August 2015, Huerta-Cornejo was involved with the cultivation of marijuana on federal lands. During that time, he accumulated approximately $16,000 cash from the sale of marijuana, hid that cash in a vehicle, and arranged to have the cash smuggled into Mexico. Applicable federal regulations require reporting when $10,000 or more cash is taken out the United States.
This case is the product of an investigation by the U.S. Forest Service, the Madera County Sheriff’s Department and the Merced County Sheriff’s Department. Assistant U.S. Attorney Kevin Rooney is prosecuting the case.
Huerta-Cornejo is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on May 22, 2017. Huerta-Cornejo faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will 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.
Marion County man sentenced for possessing child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael P. Lough, 28, of Fairmont, West Virginia, was sentenced today to 37 months incarceration for possession of child pornography, Acting United States Attorney Betsy Steinfeld Jividen announced.
Lough utilized an internet based website to access images of child pornography. In July 2015, using online surveillance and investigatory techniques, authorities discovered Lough to be in possession of various images of child pornography.
Lough pled guilty in March 2016 to one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the investigation.
U.S. District Judge Irene M. Keeley presided.Man Sentenced for False Bomb ThreatsRead the Press Release
TUCSON, Ariz. – Today, Octavio Acosta De La Torre, 43, of Nogales, Sonora, Mexico, was sentenced by Senior U.S. District Judge David C. Bury to 33 months of imprisonment. De La Torre had previously pleaded guilty to false threats to persons and property using or affecting interstate commerce.
Between March 21, 2016 and April 1, 2016, De La Torre made approximately 20 false bomb threats to various businesses and government offices in Tucson and in the Phoenix area, including schools and military recruiting stations, resulting in many closures and evacuations.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Tucson Police Department. The prosecution was handled by Beverly K. Anderson and Cory Picton, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-0858-TUC-DCB (JR)
RELEASE NUMBER: 2017-016_ De La Torre
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
MEDIA ADVISORY-- Federal and Local Authorities to Discuss Serious Threats Posed by Tax ScamsRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Ismael Nevarez, Jr. of the Phoenix Field Office of IRS Criminal Investigation, Chief Gorden E. Eden, Jr., of the Albuquerque Police Department, and Undersheriff Greg Rees of the Bernalillo County Sheriff’s Department will hold a press conference at 1:00 P.M. on WEDNESDAY, FEBRUARY 22, 2017, to discuss how New Mexicans can avoid falling for phone and phishing scams and becoming victims of identity theft. Vigilance is important because tax scams surge during the tax filing season, and phone scams alone have defrauded more than 100,000 victims of more than $54 million since Oct. 2013.
WHO:
U.S. Attorney Damon P. Martinez
Special Agent in Charge Ismael Nevarez Jr. of the Phoenix Field Office of IRS Criminal Investigation
Chief Gorden E. Eden, Jr., of the Albuquerque Police Department
Undersheriff Greg Rees of the Bernalillo County Sheriff’s Department
WHEN:
WEDNESDAY, FEBRUARY 22, 2017
1:00 p.m.
WHERE:
U.S. Attorney’s Office of the District of New Mexico
201 Third Street NW
10th Floor Multi-Media Room (Reception on Ninth Floor)
Albuquerque, NM 87102
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials (which must be worn around the neck or pinned to clothing at all times). Media may begin to arrive at 10:15 a.m. MDT. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 or [email protected].
Louisiana Return Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – A Tangipahoa Parish, Louisiana return preparer pleaded guilty today to her role in a scheme to file federal tax returns using stolen IDS, announced Acting Deputy Assistant Attorney Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.
According to the documents filed with the court, from 2008 through 2016, Alicia Washington aka Alicia Keith, 41, and others obtained electronic filing identification numbers (EFINs) in the names of several tax return preparation businesses and used them to file fraudulent tax returns with the Internal Revenue Service (IRS). To prepare these returns, Washington used stolen IDs belonging to individuals who had been arrested or jailed. Washington and others in the scheme directed the IRS to issue refunds in the form of checks and prepaid debit cards, which were then negotiated by co-conspirators working as check cashers.
Sentencing is scheduled for May 31 before U.S. District Court Judge Susie Morgan. Washington faces a statutory maximum sentence of five years in prison for the conspiracy count and a mandatory minimum of two years in prison for the aggravated identity theft count. Washington also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Polite commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Louisiana Return Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A Tangipahoa Parish, Louisiana return preparer pleaded guilty today to her role in a scheme to file federal tax returns using stolen IDS, announced Acting Deputy Assistant Attorney Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.
According to the documents filed with the court, from 2008 through 2016, Alicia Washington aka Alicia Keith, 41, and others obtained electronic filing identification numbers (EFINs) in the names of several tax return preparation businesses and used them to file fraudulent tax returns with the Internal Revenue Service (IRS). To prepare these returns, Washington used stolen IDs belonging to individuals who had been arrested or jailed. Washington and others in the scheme directed the IRS to issue refunds in the form of checks and prepaid debit cards, which were then negotiated by co-conspirators working as check cashers.
Sentencing is scheduled for May 31 before U.S. District Court Judge Susie Morgan. Washington faces a statutory maximum sentence of five years in prison for the conspiracy count and a mandatory minimum of two years in prison for the aggravated identity theft count. Washington also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Polite commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Local Man Sentenced for Robbing Walgreens of Prescription DrugsRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old Corpus Christi resident has been ordered to federal prison for robbery, announced U.S. Attorney Kenneth Magidson. Mark Anthony Garcia pleaded guilty Nov. 14, 2016, to robbery involving controlled substances.
Today, Senior U.S. District Judge John Rainey ordered Garcia to serve 57 months in federal prison to be followed by three years of supervised release. The court also ordered Garcia to pay $2,994.81 in restitution.
On Sept. 11, 2016, Garcia entered a Walgreens drug store and approached the pharmacy counter. He had what appeared to be a black semi-automatic handgun and demanded all of the Xanax and Codeine. He left with four bottles of Xanax and two bottles of Codeine and was positively identified a short time later via store surveillance cameras.
At the time of his arrest, officers recovered some of the controlled substances and a realistic black BB gun that fit the description of the gun used in the robbery.
Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Laguna Pueblo Man Sentenced to Prison for Assault with a Dangerous WeaponRead the Press Release
ALBUQUERQUE – Kyle L. Mansfield, 26, an enrolled member of the Laguna Pueblo who resides in Casa Blanca, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for his conviction on an assault charge. Mansfield will be on supervised release for three years after completing his prison sentence.
Mansfield was arrested on May 12, 2016, on a criminal complaint charging him with assault with a dangerous weapon, a firearm, and assault resulting in serious bodily injury. According to the complaint, Mansfield shot the victim in the leg while driving past the victim’s residence. Mansfield committed the crime on May 9, 2016, on the Laguna Indian Reservation in Cibola County, N.M.
On Aug. 26, 2016, Mansfield pled guilty to a felony information charging him with assault with a dangerous weapon. In entering the guilty plea, Mansfield admitted that on May 9, 2016, he fired six or more shots from a pistol toward the ground in the direction of the victim with the intention of injuring the victim.
This case was investigated by the Laguna Agency of the BIA’s Office of Justice Services and the Pueblo of Laguna Tribal Police Department and was prosecuted by Assistant U.S. Attorney Michael Murphy.
Kentucky man sentenced to federal prison for gun and drug chargesRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man was sentenced today to two years and four months in federal prison for gun and drug crimes, announced United States Attorney Carol Casto. Marques Dawson, 31, previously pleaded guilty to being a felon in possession of a firearm and possession with intent to distribute crack, cocaine, and marijuana. He was also sentenced to an additional six months in prison for violating his federal supervised release. The sentences will be served consecutively.
On August 30, 2016, deputies with the Cabell County Sheriff’s Department executed a search warrant at 1030 21st Street in Huntington. Deputies previously utilized a confidential informant to make multiple controlled purchases of cocaine from Dawson at the residence. During the search, deputies located Dawson inside the residence. Deputies also seized approximately 17 grams of crack, approximately 137 grams of cocaine, approximately 555 grams of marijuana, digital scales, $1,372 in cash, and a Raven Arms, MP-25, .25 caliber pistol. Dawson was arrested and admitted to selling drugs from the residence from at least May of 2016 because he “needed extra money.” Dawson was prohibited from possessing any firearm under federal law because of a 2013 felony conviction in federal court in Kentucky for possession with intent to distribute crack.
The Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime. This prosecution was also brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Kankakee Man Charged with Hobbs Act Robberies of Businesses in Champaign, KankakeeRead the Press Release
URBANA, Ill. – An April trial date has been set for a Kankakee, Ill., man charged with committing robberies of businesses in Champaign and Kankakee in July and August 2016. Thomas James, 33, of the 500 block of S. Indiana Ave., Kankakee, Ill., made his initial appearance in federal court on Feb. 16, on the charges. James has been ordered to remain detained in the custody of the U.S. Marshals Service. Trial is scheduled on April 18.
The indictment alleges that James robbed the Sprint store at 2706 N. Prospect Ave., in Champaign, on July 28, 2016, and the Circle K at 581 S. Indiana Ave., in Kankakee, on Aug. 6, 2016. Both robberies have been charged under the federal statute known as the Hobbs Act, for interference with interstate commerce by threats or violence. The indictment alleges that threats of violence were used to take cell phones and electronic devices from the Sprint store and to take cigarettes and currency from the Circle K. In addition, the indictment alleges that James used a HiPoint 9mm handgun during the robbery of the Circle K, and that he was a felon at the time he possessed the handgun.
If convicted, the statutory maximum penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. The maximum penalty for Hobbs Act robbery is 20 years in prison; for brandishing a firearm during a crime of violence, the penalty is a mandatory seven years to life in prison to be served consecutive to any sentence ordered for the underlying crime of violence. Possession of a firearm by a felon carries a maximum penalty of 10 years in prison.
The charges are the result of investigation by the FBI; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Champaign Police Department; Kankakee Police Department; Illinois State Police; KAMEG; Alton Police Department; and, the Kankakee County State’s Attorney’s Office. Assistant U.S. Attorney Bryan Freres is prosecuting the case on behalf of the Urbana Division, U.S. Attorney’s Office for the Central District of Illinois.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Kankakee Latin King Sentenced to More than Eleven Years in Prison for Illegally Possessing, Trafficking FirearmsRead the Press Release
URBANA, Ill. – U.S. District Judge Colin S. Bruce has sentenced Jesse Guardiola, 43, of Grant Park, Ill., to serve 140 months (11 years, 8 months) in federal prison for five counts of illegal possession of a firearm by a felon. Guardiola has previously been identified by law enforcement as a member of the Latin Kings in Kankakee.
At sentencing, on Feb. 17, Judge Bruce ordered that Guardiola serve the statutory maximum sentence of 120 months for the five counts, to be served concurrently; however, for two counts, the court ordered that 20 months of the sentence be served consecutive to the other counts, for a total of 140 months in prison. He was also ordered to serve three years of supervised release upon his release from prison. Guardiola has been in the custody of the U.S. Marshals Service since his arrest in June 2016.
On Oct. 7, 2016, Guardiola pled guilty to all five counts in the indictment. Guardiola was charged and pled guilty to possession of firearms: on Aug. 18, 2014, a Llama .380 caliber handgun; on Feb. 11, 2015, a Norinco, Model SKS, 7.62 x 39 caliber firearm; on Feb. 24, 2015, a Hi Point, Model JHP, .45 caliber handgun; on April 16, 2015, a separate Norinco, Model SKS, 7.62 x 39 caliber firearm; and, on May 27, 2015, a Colt, Model MKIV Series 80, Officers ACP, .45 caliber handgun. At sentencing, the court found that Guardiola knowingly sold all of the weapons to a confidential informant. Guardiola had prior felony convictions in Will, Kendall and Kankakee counties at the time he possessed and sold the firearms.
The charges are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kankakee Police Department; and the Kankakee County State’s Attorney’s Office. The case was prosecuted in the Urbana Division by Assistant U.S. Attorney Bryan Freres.
Jicarilla Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Mylan Skye Velarde, 31, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced today in federal court in Albuquerque, N.M., to 33 months in prison followed by three years of supervised release for his assault conviction. The sentence was announced by U.S. Attorney Damon P. Martinez and Chief Sylvester Stanley of the Jicarilla Apache Tribal Police Department.
Velarde was arrested in Dec. 2015, on an indictment charging him with assault with a dangerous weapon, a bat, with intent to do bodily harm. According to the indictment, Velarde committed the crime on March 18, 2015, in Indian Country in Rio Arriba County, N.M.
On June 24, 2016, Velarde pled guilty to the indictment. In entering the guilty plea, Velarde admitted that on March 18, 2015, he repeatedly struck the victim in the head and upper torso with a bat, causing the victim to suffer bodily injury.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Jefferson County woman pleads guilty to her role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Amanda Marshall, 30, of Ranson, West Virginia, was convicted of heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Marshall admitted to possessing heroin in Berkeley County on June 29, 2016.
Marshall pled guilty to one count of “Aiding and Abetting Possession with the Intent to Distribute Heroin.” She faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
ID Thieves Sentenced to Prison for Scheme Targeting Unemployment Benefits and Credit UnionsRead the Press Release
A pair of identity thieves who methodically stole and used victims’ personal information to steal more than $350,000 were sentenced today in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes. RYDER COLIN GUTHRIE, 32, and MICHELLE NICOLE HUDSON, 33, were arrested in August 2016, following an investigation that revealed they had used stolen identities to claim more than $50,000 in unemployment benefits and had defrauded multiple credit unions of more than $300,000. GUTHRIE was sentenced to 52 months in prison and HUDSON was sentenced to 48 months in prison. Both are responsible for $363,101 in restitution. At the sentencing hearing U.S. District Judge James L. Robart said, “For four years these defendants lived the high life by using other people’s money… (They) attacked (the victims’) character, their reputation and their assets by a non-violent but equally destructive means.”
“By some estimates, 7% of all U.S. residents age 16 or older, experience at least one incident of identity theft a year,” said U.S. Attorney Annette L. Hayes. “Identity theft takes an emotional and financial toll, and all of us pay more because of these frauds. As today’s sentencing demonstrates, the thieves who engage in this crime face significant federal sentences.”
According to records filed in the case, working out of motels in western Washington, Oregon and northern California, the pair stole identity information of friends and relatives, former employees of a defunct business, and credit union employees. Using advanced data-mining techniques, the pair built detailed credit profiles of the victims which they used to submit fraudulent unemployment benefit claims, and to create and access new and existing accounts under the victims’ names at credit unions. The pair wrote fraudulent checks to inflate the balances in the credit union accounts, and then withdrew cash at ATMs before the checks bounced. The pair also accessed and drained legitimate accounts belonging to the victims. When the pair fled from a motel in Fife, Washington they left behind a laptop containing credit profiles and other evidence of their many frauds.
GUTHRIE and HUDSON each pleaded guilty to conspiracy to commit bank and wire fraud and aggravated identity theft in November 2016.
The case was investigated by the U.S. Secret Service, Washington State Employment Security, the U.S. Department of Labor Office of Inspector General, and the Puyallup and Fife Police Departments.
The case was prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
Hotel Developer Sentenced to Three Years in Prison for Exploiting U.S. Visa ProgramRead the Press Release
CHICAGO — A Chicago hotel developer was sentenced today to three years in prison for exploiting a federal visa program to fraudulently raise capital from Chinese nationals who were seeking residency in the United States.
ANSHOO SETHI, the founder of A Chicago Convention Center LLC, purported in 2011 to build a hotel and convention center near O’Hare International Airport in Chicago. Sethi solicited Chinese nationals to invest $500,000 apiece in the project, plus $41,500 in administrative fees to Sethi’s company. Each Chinese national who participated in the project also applied for an EB-5 visa, which allows foreign investors to obtain a temporary two-year visa that could later be converted to a permanent visa upon success of an employment-generating investment. While soliciting investors Sethi made several false statements, including lies about funding and tax credits from the State of Illinois and the City of Chicago, none of which materialized.
The $900 million project never got off the ground, and no EB-5 visas were ever granted to investors.
Sethi, 32, of Chicago, pleaded guilty last year to one count of wire fraud. In addition to the 36-month prison term, U.S. District Judge John Z. Lee also ordered Sethi to pay $8.85 million in restitution to the victim investors.
The prosecution represents the largest EB-5 criminal fraud case in the United States to date.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
“Defendant Anshoo Sethi abused the EB-5 visa program and blatantly lied to investors and the United States government on a massive scale,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “Overseas investors spent much time and energy making the difficult decision to invest in the Sethi project, and processing their visa applications – not knowing that the project was built on a bed of lies and forged documents.”
According to his plea agreement, Sethi’s fraud scheme began in the summer of 2011 and continued until February 2013. Sethi told investors that he planned to build the hotel and convention center on a three-acre parcel of land in the 8200 block of West Higgins Road in Chicago, just east of O’Hare. Sethi falsely told investors that his company maintained relationships with large hotel chains that purportedly were interested in the project, including Hyatt, Starwood and Intercontinental Hotel Group. To bolster an additional false statement regarding City of Chicago funding, Sethi signed a “Redevelopment Agreement TIF” document that purported to convey a relationship between the city and Sethi’s company. The document, which contained a bogus city ordinance implying that the project had been approved for TIF funding, was provided to third party brokers who used it to solicit investors.
In all, Sethi raised approximately $158 million from more than 290 investors. The U.S. Securities and Exchange Commission brought a civil lawsuit against Sethi and was able to restore approximately $147 million to Chinese investors.
The government is represented in the criminal prosecution by Mr. Harjani.
Hoopeston Drug Trafficker Sentenced to Life in Prison for Distributing Crystal Meth, Cocaine in ChampaignRead the Press Release
URBANA, Ill. -- Jose Jaime Lopez, aka “JJ,” 37, of the 800 block of West Penn St., Hoopeston, Ill., has been ordered to serve the rest of his life in federal prison for trafficking crystal meth and cocaine in Champaign, as announced by Patrick D. Hansen, Acting U.S. Attorney for the Central District of Illinois. Lopez has been in the custody of the U.S. Marshals Service since his federal arrest in January 2016. U.S. District Judge Colin S. Bruce sentenced Lopez on Feb. 17.
On Nov. 3, 2016, a jury found Lopez guilty of distribution of cocaine and methamphetamine, as well as attempted possession of methamphetamine with intent to distribute. During three days of trial, the government presented evidence to establish that in October 2014, Lopez arranged with a Mexican drug cartel member in Houston, to obtain approximately 10 ounces of crystal methamphetamine, also known as “ice.” Agents of the Drug Enforcement Administration intercepted phone calls between Lopez and the cartel member. On Oct. 3, 2014, agents of the DEA and Champaign Police Department seized 272.5 grams of nearly 100 percent pure crystal methamphetamine from a drug courier in Rantoul, Ill. The courier was transporting the crystal meth to Lopez in Hoopeston so Lopez could distribute it in Central Illinois. Later, in November and December 2015, agents used a confidential informant to purchase two ounces of powder cocaine, 18 grams of ice, and 30 grams of ice, respectively, from Lopez in the parking lots of businesses on North Prospect Street in Champaign. On January 6, 2016, agents executed a search warrant at Lopez’s Hoopeston residence and found numerous items associated with drug trafficking.
At the time the drug trafficking offenses occurred, Lopez was on federal supervised release for a 2002 federal drug trafficking conviction, as well as state bond for aggravated fleeing from a police officer. Lopez was also ordered to serve five years in prison, to be served concurrent with the life sentence, for violating federal supervised release. Lopez also has a prior felony drug conviction in Texas, as well as two Vermilion County, Illinois convictions for aggravated battery of a police officer and driving under the influence of alcohol.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The U.S. Drug Enforcement Administration and the Champaign Police Department investigated the case.
Greene County Drug Trafficker Sentenced to over 17 Years for Cocaine and Marijuana ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced AUGUSTO ESPINDOLA-PINEDA, 38, from Snow Hill, N.C., to 210 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. AUGUSTO ESPINDOLA-PINEDA pled guilty to these charges on May 11, 2016. A co-conspirator, HUBERTO ESPINDOLA-SOTO, was sentenced to 146 months in prison by Judge Flanagan on December 6, 2016. Both AUGUSTO ESPINDOLA-PINEDA and HUBERTO ESPINDOLA-SOTO are from Mexico and reentered the United States illegally.
On November 12, 2014, after a lengthy investigation, DEA Task Force Officers arrested co-conspirator HUBERTO ESPIDOLA-SOTO after he left a mobile home maintained by AUGUSTO ESPINDOLA-PINEDA in La Grange, N.C. During a search of the mobile home, officers found approximately 3 kilograms of crystal methamphetamine, 5 kilograms of cocaine, two assault rifles and a .22 caliber rifle. Officers arrested AUGUSTO ESPINDOLA-PINEDA on the same day. The investigation revealed that the conspiracy involved 335 kilograms of cocaine, 3 kilograms of crystal methamphetamine and 500 pounds of marijuana.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The case was investigated by the Drug Enforcement Administration, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Grape Street Crips Associate Pleads Guilty to Committing Murder During Home-Invasion RobberyRead the Press Release
NEWARK, N.J. – A Newark man today admitted his involvement in an August 2015 home invasion that left one person dead, U.S. Attorney Paul J. Fishman announced.
Jahad Lemons, a/k/a “JBird,” 26, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to all four counts of an indictment charging him with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
On Aug. 18, 2015, Lemons, Aaron Terrell, a/k/a “Push,” 27, and Papayaw Mack, a/k/a “GY,” 25, as well as two other individuals – referred to in the indictment as “CC-1” and “CC-2” – used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.
At the residential building, Lemons, Terrell, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3 who were already inside the apartment – of cash and personal affects. During the course of the robbery, Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.
All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on Oct. 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in and around Newark.
Under the terms of today’s plea agreement, Lemons will be sentenced to between 17 years and 22 years in prison and five years of supervised release. Sentencing is scheduled for June 12, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against Terrell and Mack are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Kathleen M. Theurer Esq., Jersey City, New Jersey
Grand Jury Returns Indictment in International Identify Theft and Tax Refund Fraud SchemeRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that a grand jury in the Western District of Michigan has returned a 22-count indictment charging Oghenevwakpo Igboba and Charles Aghogho Ejinyere with using hundreds of other people’s personally identifying information to access their tax information using an IRS website. Igboba and Ejinyere are alleged to have used that sensitive personal and tax information to file false federal income tax returns directing the IRS to pay fraudulent refunds to bank accounts they controlled.
Igboba was arrested in Lansing, Michigan on February 9, 2017. Ejinyere was arrested earlier today in London, England, and the United States will seek his extradition. The men are charged with conspiracy to defraud the United States, wire fraud, making false and fraudulent claims to the government, and aggravated identity theft.
The case is being investigated by the Treasury Inspector General for Tax Administration and IRS - Criminal Investigation. "It is the mission of the Treasury Inspector General for Tax Administration (TIGTA) to protect the integrity of the Internal Revenue Service (IRS) and promote the fair administration of our federal tax system," said J. Russell George, Treasury Inspector General for Tax Administration. "TIGTA continues to work closely with the United States Attorney’s Office and its law enforcement partners to hold individuals responsible for their illegal use of legitimate information provided to the IRS by taxpayers."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated, "Tax-related identity theft remains a high priority for the IRS. The IRS is combatting tax-related identity theft with an aggressive strategy of prevention, detection and victim assistance. We are committed to assisting victims in resolving their tax-related issues as quickly as possible. Victims can obtain more information at www.IRS.gov."
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
Gloucester County, New Jersey, Man Admits Enticing Children to Engage in Criminal Sexual ConductRead the Press Release
CAMDEN, N.J. – A Deptford, New Jersey, man today admitted using a fake Facebook profile to entice children to produce sexually explicit images, U.S. Attorney Paul J. Fishman announced.
Michael J. Mostovlyan, 33, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
Mostovlyan admitted that, between Jan. 1, 2016 and June 2, 2016, he communicated with children online in order to obtain sexually explicit images of those children. Using a fake female persona on Facebook in the name of “Amber Zee,” which he created using actual images of a girl, Mostovlyan was able to persuade the victims to send him sexually explicit photographs or videos.
The count to which Mostovlyan pleaded guilty carries a mandatory minimum term of 10 years in prison, a potential maximum term of life imprisonment, and a $250,000 fine. Mostovlyan must also register as a sex offender. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction Special Agent in Charge Michael Harpster in Philadelphia; the Monroe Township Police Department under the direction of Chief Michael E. Lloyd; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the Deptford Township Police Department, under the direction of Chief William Hanstein, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Jonathan Kessous, Esq.
Georgia Man Pleads Guilty in Odometer Fraud SchemeRead the Press Release
A Georgia man pleaded guilty today to operating an odometer fraud scheme involving over 100 vehicles, the Department of Justice announced today.
Paul Robinson, 37, of Lawrenceville, Georgia, pleaded guilty in U.S. District Court in Norfolk, Virginia, to one count of conspiracy to commit securities fraud and odometer tampering.
“We buy vehicles to help assist us in many aspects of our lives,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “No consumer makes such a significant purchase lightly and we have to be able to trust that a dealer is not selling one car and actually supplying a vastly inferior automobile paired with falsified title documents. We are committed to prosecuting individuals who break that trust by rolling back odometers and passing off phony title.”
Robinson owned and operated Affordable Auto Body Repair, a repair shop and licensed salvage vehicle dealer located in Chesapeake, Virginia. Robinson purchased older vehicles, many of which had been involved in accidents, from an automobile auction specializing in vehicles from insurance companies. On over 100 of these vehicles, Robinson altered or replaced the odometer to reflect a false, lower mileage. He then obtained fraudulent Virginia motor vehicle titles with mileage readings matching the false, lower mileage on the new odometer, and passed these falsified title documents on to the auto purchasers.
Robinson obtained many of these fraudulent titles from a former DMV Select clerk named Steven Bazemore. In many instances, Robinson asked Bazemore to return the documents used to procure the fraudulent titles rather than retaining the documents in the DMV file system. This made it more difficult for the DMV to detect the fraud. Bazemore previously pleaded guilty relating to his role in the conspiracy. On Sept. 22, 2016, Bazemore was sentenced to one year of home confinement and ordered to pay restitution to the ultimate purchasers of the vehicles. Robinson’s sentencing is scheduled for June 8.
This case was investigated by National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and the Virginia DMV. NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.This case is being prosecuted by Trial Attorneys John W. Burke and Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch with assistance from Assistant U.S. Attorney Alan Salsbury of the U.S. Attorney’s Office for the Eastern District of Virginia.
More information on odometer fraud is available at: http://www.nhtsa.gov/Odometer-Fraud. Tips on detecting and avoiding odometer fraud are available at: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Four Defendants Plead Guilty in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Four defendants including two sober home owners, the clinical director of a substance abuse treatment center, and a sales representative for multiple laboratories pled guilty last week for their participation in a health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Bryan Kummerlen, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Michael Bonds, 45, of Delray Beach, Stefan Gatt, 27, of Deerfield Beach, and Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. Davis also pled guilty to one count of managing, leasing, profiting from, and making available a place (one of her sober homes) for the purpose of for the purpose of the unlawful distribution and use of controlled substances, in violation of Title 21, United States Code, Section 856(a). Sentencing hearings are scheduled for April 24, 2017.
Trial is scheduled for March 20, 2017 for co-defendants Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, Joaquin Mendez, 52, of Miramar, Laura Chatman, 44, of Boynton Beach, and Donald Willems, 40, of Weston. The co-defendants are are charged by criminal complaint, a formal charging document notifying the defendants of the charges. All persons charged by criminal complaint are presumed innocent until proven guilty in a court of law.
In a separate but related case, Licensed Mental Health Counselor Dr. Barry Gregory (case no. 9:17-cr-80033-DMM), 62, of Wellington, pled guilty to one count of conspiracy to commit health care fraud and one count of knowingly falsifying a matter involving health care benefit programs, in violation of Title 18, United States Code, Section 1035(a)(1) and 2. Sentencing for Gregory is scheduled for April 26, 2017.
According to court documents, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., Total Recovery Sober Living LLC, and other sober homes, which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, Chatman, Davis, and Bonds permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth Chatman, Bonds, and Davis referred the sober homes’ residents who had insurance to treatment centers owned by Kenneth Chatman but titled in the name of Laura Chatman. These treatment centers purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. In most instances, defendant Kenneth Chatman knew that the sober home residents referred to the treatment centers, Journey to Recovery LLC, in Lake Worth, Florida, and Reflections Treatment Center, LLC, in Margate, Florida, were using drugs. Defendant Gregory was the Clinical Director of Reflections Treatment Center and Journey to Recovery, and was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees. Gregory was aware that Kenneth Chatman was the true owner of some of these sober homes, but they were placed in other people’s names in an attempt to hide Chatman’s true ownership and control over the businesses. Gregory also knew that Chatman was paying kickbacks and bribes to sober home owners for referring their residents to Reflections and Journey for treatment, and that these kickbacks and bribes were disguised as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” Bonds, Davis, and Gregory further admitted that bribes and kickbacks were paid to insured patients who attended treatment, in the forms of free or reduced rent and other items. Bonds and Davis also admitted that residents of their sober homes were continuing to use controlled substances and that their sober homes were not, in fact, places where persons abstained from the use of drugs and alcohol. Rather, the defendants allowed their sober homes to be used by residents to continue abusing drugs and alcohol while attending ineffective and improperly licensed treatment centers in exchange for free rent.
Defendant Kenneth Chatman hired doctors, including defendants Mendez and Willems, to serve as medical directors of his treatment centers. The doctors ordered drug treatment and drug testing for the sober home residents, specifically expensive urine and saliva drug screens and allergy testing, regardless of whether such treatment and testing were medically necessary. The defendants provided services meant solely to maximize insurance reimbursements. In some instances, defendants Kenneth Chatman and Davis submitted urine and saliva samples from employees instead of urine and saliva from patients. In other instances, defendant Kenneth Chatman caused confirmatory testing to be performed and billed for residents who left the sober homes and were no longer receiving treatment at the treatment centers. Defendants Mendez and Willems also falsely documented patient files to make it appear as though they reviewed the test results. Defendant Gatt admitted that he knew the bodily fluid samples that he collected from Reflections came from employees and that he paid kickbacks to Chatman for Chatman to continue referring lucrative lab testing to him. Defendant Gregory admitted that the drug testing was “useless” because it was not used to direct the patients’ treatment and that as many as 90% of patients were testing positive for the continued use of controlled substances while purportedly obtaining treatment. Gregory knew that Kenneth Chatman was advising patients that they were allowed to continue using controlled substances. On some occasions when Gregory recommended referring relapsed patients to detox or other facilities, Chatman, who had no medical or clinical training, would overrule Gregory’s recommendations because discharging the patients would end Chatman’s ability to bill the patients’ insurance plans.
Defendants Kenneth Chatman and Davis engaged in various tactics to keep patients from being able to leave Reflections and Journey, including threatening violence, and confiscating their belongings, such as car keys, telephones, medications, and food stamps, in order to maintain the ability to continue fraudulently billing their insurance companies.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers. Gregory, who also owned a consulting firm that assisted substance abuse treatment facilities in obtaining licensure, filed documents with the Florida Department of Children and Families and assisted with audits to help Chatman receive permanent DCF licenses for Reflections and Journey.
Potential victims should call (561) 822-5114 or submit complaints through the IC3 Complaint Form - https://www.ic3.gov/complaint/default.aspx and use the key word “Chatman Reflections” in the “Description of the Incident” field when submitting complaints related to this case.
Mr. Ferrer commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Montpelier Man Pleads Guilty in Fatal Arson CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jonathan Zampieri, age 34, formerly of Montpelier, pleaded guilty today in the United States District Court in Burlington to arson and robbery charges stemming from the fatal arson that occurred in Northfield in December 2015. Zampieri, who has been detained since his arrest in December 2015, appeared before Chief Judge Christina Reiss and pled guilty to arson with death resulting and conspiracy to commit robbery.
As described during the change of plea proceedings, in the fall of 2015, Jonathan Zampieri, Howard Hoisington, Tammy Wilder, Kevin Atwood and Kim Hoisington committed a series of robberies of drug dealers in the Washington County area of Vermont. Three of these robberies involved dousing a person selling drugs with gasoline and threatening them with a lighter to rob them of their drugs and cash. The last of these robberies resulted in a fire that destroyed a building in Northfield and killed innocent bystander Brittany Burt.
Also according to the facts presented in the hearing, at approximately 12:00 a.m., on December 14, 2015, Zampieri, Howard, Tammy Wilder, Kim Hoisington and Amanda Wilder drove in Zampieri’s vehicle to pick up Atwood in Montpelier. They all drove to the Cumberland Farms in Northfield where Zampieri filled two mason jars with gasoline. Zampieri, Howard and Atwood then drove to the apartment of Efren Serrano on Union Street in Northfield, Vermont, from whom they had arranged to purchase crack cocaine. Zampieri, Howard and Atwood went to Serrano’s apartment and kicked in the front door. They found Serrano and Serrano’s girlfriend, Brittany Burt, in the bedroom. Serrano and Burt were doused with gasoline and the men demanded Serrano’s drugs. When Serrano did not respond, the men pulled out a lighter. The lighter went off, igniting the gasoline vapors and causing the room to burst into flames. Zampieri, Howard and Atwood fled the building. At some point, Serrano was able to run from the building on fire. Serrano sustained life threatening injuries but he survived. Brittany Burt could not escape the building and she died on the bedroom floor.
Zampieri faces a potential life sentence on the arson charge and up to twenty years of imprisonment on the robbery charge. Zampieri’s co-defendants, Howard Hoisington, Tammy Wilder, Kimberly Hoisington and Richard Hoisington, are still awaiting trial.
The case was investigated by the Vermont State Police, Vermont Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jonathan Zampieri is represented by Robert Katims. The United States is represented by Wendy Fuller.
Former Lake Cumberland Marina Owner Sentenced to 50 Months for Bank FraudRead the Press Release
LEXINGTON, Ky. – A Kentucky man, who operated a marina on Lake Cumberland, has been sentenced to 50 months in federal prison for bank fraud.
Today, Senior U.S. District Judge Joseph M. Hood sentenced John Guzman, 70, of Shelby County, Ky., for nine counts of bank fraud. In addition to his federal prison sentence, Guzman was sentenced to five years of supervised release. Under federal law, Guzman must serve at least 85 percent of his prison sentence.
Guzman was convicted last year, after a one-week trial in Lexington, by a jury who found him guilty of defrauding American Founders Bank of over $4,000,000. According to evidence presented at trial, Guzman bought the Grider Hill Marina, on Lake Cumberland, using money from nine fraudulent bank loans. Guzman submitted false paperwork in his bank loan applications, and claimed that the money would be used to buy boats and homes that did not actually exist. As part of his fraud, he falsified appraisal documents and insurance policies for the nonexistent collateral, and forged signatures of investors and acquaintances, as well as that of his deceased brother.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Amy S. Hess, Special Agent in Charge, FBI Louisville Division; and Joseph Moriarty, Special Agent in Charge, FDIC OIG Chicago Division, jointly made the announcement today. The case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Neeraj Gupta and Ken Taylor prosecuted this case on behalf of the federal government.
Former JPD Officer Pleads Guilty to BriberyRead the Press Release
Jackson, Miss. - Former Jackson Police Officer Melvin Williams, 48, pleaded guilty on February 17, 2017 to bribery, announced U.S. Attorney Gregory K. Davis.
The investigation in this case revealed that, in February 2016, Officer Williams contacted a local businessman and threatened to execute an arrest warrant if the businessman did not pay Officer Williams a sum of money. During the investigation, the FBI determined that the arrest warrant was not valid. The businessman agreed to cooperate with the FBI and Officer Williams was paid a total of $6,000 over three separate days.
Williams will be sentenced by U.S. District Judge Tom S. Lee on May 25, 2017, and faces a maximum penalty of ten years in prison and $250,000 fine.
The case is being prosecuted by Deputy Criminal Chief Patrick Lemon and was investigated by the Federal Bureau of Investigation.
Former Corrections Officer Pleads Guilty to Attempted ExtortionRead the Press Release
DAYTON – Michael Rose, 29, of New Carlisle, Ohio, pleaded guilty in U.S. District Court to attempted extortion under the color of law.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Montgomery County Sheriff Phil Plummer announced the plea entered into today before U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Rose began working as a corrections officer at the Montgomery County Jail in spring 2016. In September of that year, Rose agreed to bring contraband – namely, a cell phone – into the jail in exchange for cash from an inmate. Likewise, in November 2016, Rose smuggled in a second cell phone and met with an associate of an inmate near a Dayton retail store to receive $1,500 as payment. Rose provided the phone knowing that the inmate intended to use it to direct drug trafficking activities from jail.
“Corruption by a corrections officer harms not only the jail where he or she works, but it also undermines confidence in law enforcement and our system of justice generally,” U.S. Attorney Glassman said. “That’s why it’s so important for us to investigate and prosecute instances of public corruption like this one.”
Rose pleaded guilty to attempted extortion under color of official right, which is a crime punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Montgomery County Sheriff’s Office RANGE Task Force and the FBI, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
Former City of Norton Parks and Recreation Maintenance Supervisor Sentenced in Federal CourtRead the Press Release
Abingdon, VIRGINIA – The former Maintenance Supervisor of the City of Norton Parks and Recreation Department, who previously admitted to coercing women who were on state probation to perform sexual favors for him and lying in federal court, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced today.
Michael Todd Lintz, 52, of Norton, Va., previously pled guilty to one count of obstruction of justice and one count of using his authority to engage in coercive sexual relations with a female victim, willfully depriving her of her right to bodily integrity. Today in District Court, Lintz was sentenced to 30 months in federal prison and 3 years of supervised release thereafter. Lintz was also ordered to pay a fine of $10,000.
According to a written proffer of facts filed previously, Lintz supervised individuals assigned to perform community service pursuant to a court order, or by referral from a state probation and parole officer. During his employment with the City of Norton, Lintz ensured that he supervised primarily female workers assigned to Parks and Recreation. Lintz monitored the community service time worked by the individuals under his supervision, and reported the hours they worked to state probation and parole officers. If Lintz reported to a state probation officer that an individual did not perform the required number of community service hours, that individual could be violated on their probation conditions and could have to serve time in jail. Lintz used his authority and official position to coerce female community service workers into providing him with sexual favors, the exchange of which he either alluded or explicitly promised could result in favorable outcomes with their court-ordered supervision. Lintz knew that some of these female community service workers could be subjected to jail sentences for failing to perform community service and used that information to his advantage. Specific instances of this conduct are related in more detail below.
In July 2015, Lintz began supervising the community service of Female Worker 1 (“FW1”), who was referred by a state probation and parole officer. FW1 had a significant number of community service hours to perform. When FW1 first started working with Lintz, she was told by other female workers that Lintz would be interested in trading sexual favors in exchange for community service hours. Lintz began contacting FW1 about personal matters outside of working hours, calling her and texting her while she was not at work. Lintz made sexual comments on a daily basis to FW1, and gave her a sexual nickname that he called her in front of other community service workers. Lintz showed FW1 pornography on his phone. Lintz took FW1 back to his home on several occasions, and displayed video pornography to her on the television in his home during working hours. Lintz used his authority and official position to coerce FW1 into providing him with sexual favors on three separate occasions, which are detailed below.
In or about August 2015, while he was supervising her on community service, Lintz approached FW1 shortly after 4:00 pm, after all other workers had left for the day, to ask her to perform oral sex on him. FW1 agreed, and she performed oral sex on Lintz in the back room of the Parks and Recreation Office. In exchange for this sexual act, FW1 believes Lintz allowed her to claim she had worked one week of community service during a time when she took off to care for an ill family member.
In or about August 2015 to September 2015, while he was supervising her on community service, Lintz took FW1 to his home during working hours. He brought her to his carport, closed the blinds, and asked her to perform oral sex on him. Lintz commented to FW1 that he was going to hate to see her finish her community service, as he wanted to engage in oral sex with FW1 every day. Lintz told FW1 that if she continued to engage in oral sex with him, she would finish her community service early.
September 16, 2015, FW1 appeared in federal court in Abingdon, Virginia, on charges of conspiring to distribute a controlled substance. At the request of FW1’s mother, Lintz testified as a witness at FW1’s detention hearing. Under oath before the United States Magistrate Court, Lintz stated that FW1 had worked all of her hours and testified from the time cards he had completed for FW1. Under oath, Lintz denied having any personal relationship with FW1, and represented himself to be only her community service supervisor. Lintz did not advise the court that he had previous sexual encounters with FW1 in the weeks leading up to his testimony. In releasing FW1 on bond, the Court noted that Lintz’s testimony had been particularly persuasive.
Within days, Lintz approached FW1 and told her that, if it had not been for his testimony, she would have been in jail. Lintz then asked FW1 for oral sex and FW1 complied, as she felt he was implying she “owed” him for his testimony on her behalf. Lintz did not give FW1 any additional community service hours beyond the 45 hours she initially received.
In August 2015, Lintz began supervising the community service of Female Worker 3 (“FW3”), who was referred by a state probation and parole officer. FW3 had a significant number of community service hours to perform. On one occasion in February 2016, while he was supervising her on community service, Lintz brought FW3 back to his home to watch a pornographic video on his television during working hours. Lintz told FW3 that he wanted to show that particular pornographic video to FW1. While at his home, Lintz told FW3 he would like to show her his genitals, and described what it would be like to have sex with him. Audio recordings captured Lintz making these comments to FW3. On a separate occasion in February 2016, while he was supervising her on community service, Lintz discussed an arrangement with FW3 to exchange sexual favors for falsifying community service hours. Audio recordings captured Lintz making these comments to FW3.
The defendant’s known course of relevant conduct spans more than seven years and involves at least seven victims targeted by defendant.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Felon Charged with Illegally Possessing FirearmRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a violation of federal firearms law, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Julian Crosby, age 33, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on December 8, 2016, Crosby illegally possessed a firearm. Crosby has previously been convicted of a felony and is prohibited from possessing a firearm.
For possessing a firearm as a convicted felon, the law provides for a maximum sentence of up to 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Police Department, conducted the investigation leading to the indictment in this case. Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: A. Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that on February 15, 2017, a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Spartanburg Man Indicted for Threatening President and President-elect. Kipper Ken King, age 30, of Spartanburg, South Carolina, was charged in a two-count indictment with making threats on the lives of the President of the United States and the President-elect, a violation of Title 18, United States Code, Section 871. The maximum possible penalty King could receive is a maximum fine of $250,000.00 and/or imprisonment of 5 years. The case was investigated by agents of the United States Secret Service and the Spartanburg County Detention Center. The case is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Texas Resident Charged with Wire Fraud. Theresa Lopez Santos, age 65, of Lytle, Texas, was charged in a three-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343. The maximum penalty Santos could receive for each count is a maximum fine of $250,000.00 and/or imprisonment of 20 years. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Greenville Resident Indicted on VA Theft. Hughlyn Zimmerman, age 72, of Greenville, South Carolina, was charged in a one-count indictment with theft of government funds, a violation of Title 18, United States Code, Section 641. The maximum penalty Zimmerman could receive is a maximum fine of $250,000.00 and/or imprisonment of 10 years. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Easley Resident Indicted on Defrauding Local Company. Janna B. Shelby, age 54, of Easley, South Carolina, was charged in a four-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343, and mail fraud, a violation of Title 18, United States Code, Section 1341. The maximum penalty Shelby could receive is a maximum fine of $250,000.00 and/or imprisonment of 20 years. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Spartanburg Man Indicted on Federal Gun and Drug Charges. Xavier Lee Gist, age 22, of Spartanburg, South Carolina, was charged in a four-count indictment with two counts of possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute cocaine base (crack), a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Gist could face is a fine of $1,750,000.00 and/or imprisonment of 45 years. The case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Drug Charges. Damaris Ray Hill, age 27, of Spartanburg, South Carolina, was charged in a one-count indictment with possession with the intent to distribute cocaine base (crack), a violation of Title 21, United States Code, Section 841(a)(1). The maximum penalty Hill could face is a fine of $1,000,000.00 and/or imprisonment of 20 years. The case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Fountain Inn Man Indicted on Federal Gun and Drug Charges. Demetrice Ricole Fruster, age 39, of Fountain Inn, South Carolina, was charged in a three-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with the intent to distribute cocaine base (crack) and a quantity of hydrocodone, a violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Fruster could face is a fine of $1,500,000.00 and/or imprisonment of 35 years. The case was investigated by the Greer Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Rodney Juan Baker, age 56, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Baker could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Derrick Lorenzo Casey, age 37, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Casey could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Hector Tavoris Gonzalez, age 31, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm by a person after being convicted of a federal offense, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Gonzalez could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Marietta Man Indicted on Federal Gun Charge. Michael Wayne Capps, age 45, of Marietta, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Capps could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Oconee County Man Indicted on Federal Gun Charge. Howard Eugene Johnson, age 50, of Oconee County, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Johnson could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Oconee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Anderson Man Indicted on Federal Gun Charge and Destructive Device Charge. Timothy Garrett Holmes, age 22, of Anderson, South Carolina, was charged in a two-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1), and possession of destructive devices not registered to him in the National Firearms Registration and Transfer Record, a violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. The maximum penalty Holmes could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Anderson City Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Landrum Man Indicted on Federal Gun Charge. Joshua Shane Verdin, age 32, of Landrum, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Sections 922(g)(1) and 922(g)(9). The maximum penalty Verdin could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Spartanburg County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Upstate Man Indicted on Federal Gun Charge. Steven Ray Garner, age 33, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Garner could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Greenville Man Indicted on Federal Gun Charge. Travius Isaiah Mayer, age 27, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Mayer could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by First Assistant United States Attorney Lance Crick of the Greenville office.
Taylors Man Indicted on Hobbs Act Robbery and Federal Gun Charges. Delmar Deshion Jackson, age 39, of Taylors, South Carolina, was charged in a thirteen-count indictment with conspiracy to obstruct commerce by robbery and attempted robbery, a violation of Title 18, United States Code, Section1951(a); conspiracy to use and possess a firearm during a crime of violence, a violation of Title 18, United States Code, Section 924(o); obstruction of commerce by robbery, a violation of Title 18, United States Code, Section1951(a); and the use, carry, and possession of a firearm and aiding and abetting the brandishing of the firearm during a crime of violence, a violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). The maximum penalty Jackson could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Joe Brewer of the Greenville office.
Greer Man Indicted on Child Pornography Charges. Leslie Earle Alverson, age 50, of Greer, South Carolina, was charged in a three-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B); receipt of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(2); and advertising visual depictions of minors engaging in sexually explicit conduct, a violation of Title 18, United States Code, Section 2251(d)(1)(A). The maximum penalty Alverson could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joe Brewer of the Greenville office. This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Greenville Man Indicted on Federal Gun Charge. Darius Jacoby Brown, age 27, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Brown could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Anderson Man Indicted on Federal Gun Charge. Matthew Gregory Aldrich, age 31, of Anderson, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Aldrich could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Anderson County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Simpsonville Man Indicted on Federal Gun Charge. Rico Mandreil Sweeney, age 39, of Simpsonville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Sweeney could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Simpsonville Police Department and the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenwood Man Indicted on Federal Gun Charge. Justin Rashad Spencer, age 26, of Greenwood, South Carolina, was charged in a six-count indictment with possession of firearms by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute cocaine, methamphetamine, and marijuana, a violation of Title 21, United States Code, Section 841(a)(1); use and possession of a firearm during a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and possession with intent to distribute cocaine, a violation of Title 21, United States Code, Section 841(a)(1). The maximum penalty Spencer could face is a fine of $250,000.00 and/or life imprisonment. This case was investigated by the Greenwood County Sheriff’s Office and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
Greenville Man Indicted on Federal Gun Charge. Napoleon Isaac Mansell, age 34, of Greenville, South Carolina, was charged in a one-count indictment with possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Mansell could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Greenville County Sheriff’s Office and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeanne Howard of the Greenville office.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.#####
Desoto Man Arrested for Distributing Kilogram Quantities of Heroin in Dallas MetroplexRead the Press Release
DALLAS, Texas — Jose Luis Martinez-Martinez, 41, of Desoto, Texas, made his initial appearance last week before U.S. Magistrate Judge Paul D. Stickney on a complaint, unsealed today, charging possession with intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Stickney ordered that Martinez remain in federal custody. A preliminary hearing will be set at a later date.
According to the affidavit filed with the criminal complaint, the investigation began when the Drug Enforcement Administration (DEA) received information that Martinez-Martinez was involved in the distribution of kilogram quantities of heroin in the Dallas metroplex. An undercover officer contacted Martinez-Martinez by cellular phone and placed an order for three kilograms of heroin. Martinez-Martinez agreed to supply the officer with the three kilograms of heroin and they agreed to meet at Flying J Truck stop located at 7425 Bonnie View Road, Dallas, Texas. Dallas County Sherriff’s officers performed a traffic stop on Martinez-Martinez as he arrived at the Flying J Truck stop. During the traffic stop officers observed a small gift style bag with an open top sitting in the front right passenger seat. Also observed in plain view was a black tar like substance inside the bag believed to be heroin. Martinez-Martinez was then placed under arrest. During an interview, Martinez-Martinez stated that he had an additional 2.5 kilograms of heroin concealed at his residence located at Desoto, Texas. During a search of the residence investigators recovered an additional 3,042.3 grams of heroin.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not less than 10 years or up to life in federal prison and a $10 million fine.
The matter is being investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Rachael Jones is in charge of the prosecution.
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Contractor at U.S. Military Bases Admits Paying Bribes and KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man who operated a construction company that did work at construction projects at two military bases in New Jersey today admitted paying bribes and kickbacks to get the contracts, U.S. Attorney Paul J. Fishman announced.
George Grassie, 54, of Covington Township, Pennsylvania, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to defraud the United States and commit bribery and one count of providing unlawful kickbacks.
According to documents filed in this case and statements made in court:
Grassie owned a business that did construction, excavation and landscaping and did work as a subcontractor at Picattiny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix). He admitted that from December 2010 to December 2013, he paid bribes valued at $95,000 to $150,000 to an individual employed by the U.S. Army Contracting Command in New Jersey to obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. He also admitted that he paid kickbacks valued at $40,000 to $95,000 to Shawn Fuller and James Conway, who were then project managers for a prime contractor at PICA and Fort Dix.
Conway previously pleaded guilty to wire fraud and accepting unlawful kickbacks on August 2016. Fuller previously pleaded guilty to accepting unlawful kickbacks in November 2015.
The conspiracy charge to which Grassie pleaded guilty carries a maximum potential penalty of five years in prison. The charge for making unlawful kickbacks to which Grassie pleaded guilty carries a maximum potential penalty of 10 years in prison. Both charges carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for May 31, 2017.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Craig R.Rupert, Special Agent in Charge, DCIS Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with conducting the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the United States Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark
Columbia Man Charged with Attempting to Aid TerroristsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Acting Assistant Attorney General for National Security Mary B. McCord announced today that a Columbia, Mo., man has been charged in federal court for his role in making preparations to launch a terrorist attack with persons he believed were members of ISIS, but who were actually undercover law enforcement agents.
Robert Lorenzo Hester, Jr., 25, of Columbia, was charged in a criminal complaint filed in the U.S. District Court of Kansas City, Mo., with attempting to provide material support to a foreign terrorist organization. Hester, who remains in federal custody, was arrested on Friday, Feb. 17, 2017, when he arrived at an arranged meeting with an undercover law enforcement agent. The criminal complaint was signed on Sunday and made public today following Hester’s initial court appearance.
“First on social media, then during face-to-face meetings with an undercover FBI employee, this defendant repeatedly expressed his intent to engage in acts of violent jihad against the United States,” Dickinson said. “He believed he was part of an ISIS-sponsored terrorist attack that would result in the deaths and injuries of many innocent victims. He readily participated in the preparations for an attack, provided materials and resources for an attack, and voiced his intent to carry out an attack. I commend the FBI for protecting the public from a security threat.”
“Terrorism knows no demographic boundaries and remains the FBI’s top priority,” said FBI Special Agent in Charge of the Kansas City Field Office Eric Jackson. “The arrest of Hester is the culmination of an extensive FBI investigation and demonstrates the challenges law enforcement faces in identifying individuals intent on causing harm.”
“As alleged in the complaint, Robert Lorenzo Hester, Jr. attempted to provide material support to ISIS by participating in what he believed would be a deadly attack committed in the name of the foreign terrorist organization,” said Acting Assistant Attorney General McCord. “Countering terrorist threats remains the highest priority of the National Security Division, and we will continue our efforts to identify and hold accountable those who seek to commit acts of terrorism within our borders.”
According to an affidavit filed in support of the criminal complaint, Hester demonstrated through his statements and actions that he posed a security threat by his willingness to provide material support to a foreign terrorist organization and his willingness to assist in what he believed would be a murderous terrorist bombing and gunfire attack.
Hester is a U.S. citizen who was born in Missouri. He was enlisted in the U.S. Army for less than a year, receiving a general discharge from service in mid-2013.
FBI agents undertook a review of Hester’s publicly available posts on multiple social media accounts in September 2016. On Oct. 3, 2016, Hester was arrested by the Columbia, Mo., Police Department in an unrelated case and remained in state custody until he was released on bond on Oct. 13, 2016. His bond conditions included electronic monitoring. While Hester was being monitored, undercover federal agents maintained regular contact via an encrypted messaging app and text messages, and met with him on several occasions.
On Jan. 24, 2017, Hester pleaded guilty in state court to property damage and unlawful use of a weapon and was released on his own recognizance. Hester was no longer on electronic monitoring after that date. Undercover agents continued to meet in person with Hester and communicate via social media, texting and an encrypted message app.
Hester agreed to meet again with an undercover agent on Friday, Feb. 17, 2017. When Hester arrived for that meeting, he was arrested. Hester was the sole subject of this undercover investigation.
Undercover Investigation
According to the affidavit, the investigation began when the FBI became aware (through multiple confidential sources) of Hester’s social media posts, in which he expressed animus towards the United States and suggested an adherence to radical Islamic ideology and a propensity for violence. Hester used several online aliases, including “Mohammed Junaid Al Amreeki,” “Junaid Muhammad,” “Rabbani Junaid Muhammad,” “Rami Talib,” “Ali Talib Muhammad.”
On Oct. 3, 2016, Hester was arrested by Columbia police officers after an incident in the parking lot of a grocery store. Hester, who appeared to be in an argument with his wife, threw a folded pocket knife through a plate-glass window near the entrance of the store. When store employees confronted Hester, he assumed an aggressive stance and forcefully placed his hand into the diaper bag he was carrying in a manner that appeared to be reaching for a weapon. Police officers later recovered a 9mm handgun from the diaper bag. Hester was in custody until Oct. 13, 2016, when he was released on bond and placed on electronic monitoring.
On Oct. 15, 2016, two days after Hester’s release on bond, an FBI employee using an undercover identity contacted Hester by private message. The FBI employee had accepted a friend request from Hester the day before Hester was arrested for the grocery store incident. They continued to communicate via social media, text and an encrypted messaging app, the affidavit says, during which Hester presented himself as a security threat, stating, for example, that the U.S. government should be “overthrown,” and suggesting “hitting” the government “hard,” while noting that it would not be “a one man job.” Hester identified categories of potential targets for attack and said he wanted a “global jihad.” Hester stated that he was trying to find like-minded people to help. When the undercover employee mentioned “brothers,” Hester said he wanted to meet them.
Hester then established that he would act on the statements he made online. In early November, the affidavit says, Hester made arrangements with the undercover employee – whom he never met in person – to meet with “one of the brothers.” The undercover employee arranged this meeting with another undercover FBI employee.
During a Jan. 31, 2017, meeting, the undercover employee provided Hester with a list of items to purchase, including 9-volt batteries, duct tape, copper wire, and roofing nails. The undercover employee implied that these items would be used to make bombs, the affidavit says, stating that those materials are needed “to make … things … to bring some kind of destruction.” Hester allegedly responded by stating: “I’m just ready to help. I’m ready to help any way I can.” When the undercover employee stated that what they were planning was “going to bring them to their knees … and then they gonna know to fear Allah,” Hester expressed his anticipation by stating: “I can’t wait. I can’t wait.”
Hester and the undercover employee agreed to meet again at Hester’s residence the next day. When the undercover employee arrived, the affidavit says, Hester gave him the items he had purchased. The undercover employee told Hester they were planning something “10 times more” than the Boston Marathon bombing, and Hester expressed his approval. The undercover agent told Hester that they were planning on “killing a lot of people.” The undercover employee told Hester that he could “walk away,” the affidavit says, but Hester said, “I’m down.” The undercover employee told Hester they were going to “wage all kinda war,” and Hester again expressed his approval.
The undercover employee then pulled back blankets in the back of the SUV to show Hester three AK-47 style rifles and two .45-caliber handguns. The undercover agent told Hester that, while they had plenty of firearms, they needed more ammunition. Hester stated that he could not purchase ammunition because of his state charges, but that he had a friend that could get ammunition for him. Hester stated that he would have money to purchase ammunition after he received his tax refund and after he was paid in a couple of weeks.
The undercover employee also opened a backpack, which contained pipes and fuse, stating, “these are bombs right here.” The undercover employee explained that the duct tape Hester provided would be used to tape the bombs together, which Hester acknowledged, and that the nails Hester provided would “cut peoples’ heads off.” Hester responded: “Oh yeah. I know,” indicating that he understood the nails were to be used as shrapnel for bombs.
The undercover employee stated that they had more backpacks that they were going to put in different locations. Hester acknowledged that he understood, and stated that they had to be smarter than the Boston Marathon bombers. Hester again confirmed that he was “down,” the affidavit says, and that he understood they had to “lay low” and act in a manner to avoid detection.
The undercover employee stated that they were going to “strike fear in all these infidel hearts,” and Hester responded that he agreed and that he was ready.
According to the affidavit, Hester contacted the first undercover employee via text message on Feb. 2, 2017, and indicated he would “have some more stuff … in a couple of weeks when I get paid.” Hester asked the undercover employee, “When you talk to the brother again let him know I’ll have some more gifts in a couple of weeks.”
On Feb. 4, 6, 7, 11 and 16, 2017, Hester communicated with an undercover employee via an encrypted messaging app. Hester said that he was excited, that he was “happy to be part” of it, and that it was “time they answer for their atrocities.” Hester predicted that it was “going to be a good day for Muslims worldwide.” Hester asked how the “party plan” was coming along and reiterated that he would get more “supplies.” The undercover employee told Hester that the “party” would take place on Presidents’ Day and that the targets of the operation would include busses, trains and a train station in Kansas City, Mo. Hester said, according to the affidavit, that it felt “good to help strike back at the true terrorist.”
On Feb. 17, 2017, Hester met again with the second undercover employee and provided more roofing nails. Hester accompanied the undercover employee to a nearby storage facility, where the two examined the security cameras. Hester was arrested shortly thereafter.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and David Raskin and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section. It was investigated by the FBI.