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5 April 2017
Nine Aliens Indicted on Immigration and Fraud ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging VICTOR DIAZ-HERNANDEZ, age 46, of Mexico, OSMAN MAURICIO GOMEZ-MARTINEZ, age 19, of Honduras, JUAN CARLOS GUTIERREZ, age 51, of Honduras, JORGE ORLIN MAYORGA-RAMOS, age 33, of Honduras, JOSE LUIS MONTERO-GARCIA, age 28, of Mexico, JOSE GUADALUPE RAMIREZ-LOPEZ, age 28, of Mexico, GONZALO RUIZ-MARTINEZ, age 24, of Mexico, and RICARDO ADAN SANCHEZ-CAMPOS, age 36, of El Salvador, with Illegal Reentry of a Deported Alien. Further, a federal grand jury in Raleigh has returned an indictment charging ELIZABETH JOSE-MORALES, age 29, of Mexico, with False Representation of a Social Security Account Number and Fraud and Misuse of Visas, Permits, and other Documents.
If convicted of Illegal Reentry of a Deported Alien, DIAZ-HERNANDEZ, GUTIERREZ, MONTERO-GARCIA, RAMIREZ-LOPEZ, RUIZ-MARTINEZ, and SANCHEZ-CAMPOS would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
GOMEZ-MARTINEZ and MAYORGA-RAMOS are alleged to have been previously deported subsequent to aggravated felony convictions (larceny after breaking and entering, and common law robbery, respectively). Therefore, if convicted, they face a maximum imprisonment term of twenty years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number and Fraud and Misuse of Visas, Permits, and other Documents, JOSE-MORALES faces a maximum imprisonment term of twenty-five years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
Newport News Man Pleads Guilty to Producing Child PornographyRead the Press Release
NEWPORT NEWS, Va. –A Newport News man pleaded guilty today to two counts of production of child pornography.
According to the statement of facts filed with the plea agreement, Ernesto Rodriguez Hernandez, 23, of Newport News, used two minor females to produce images of child pornography. Hernandez exchanged messages with Jane Doe 1 using the Facebook messenger application, and received images of child pornography of Jane Doe 1 through Facebook messenger. On Dec. 2, 2016, law enforcement executed a federal search warrant at Hernandez’s residence, and seized Hernandez’s computers and other media storage items. An examination revealed additional videos and images of child pornography. After forensic examination, law enforcement identified an additional minor victim, Jane Doe 2, who Hernandez used to produce additional images of child pornography.
Hernandez faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison on each count when sentenced on July 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys Megan M. Cowles and Lisa R. McKeel are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-94.
New Haven Man Pleads Guilty to Possessing Stolen FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL BALDWIN, 19, of New Haven, pleaded guilty today in Hartford federal court to one count of possession of a stolen firearm.
According to court documents and statements made in court, on April 10, 2016, Hamden Police arrested BALDWIN after he and other individuals fled from police in a stolen car. After a pursuit, the vehicle crashed into a pole and BALDWIN fled from officers on foot. He was subsequently taken into police custody. A search of BALDWIN’s person revealed a plastic bag containing crack cocaine and a makeshift firearm holster around his stomach. Officers also located and seized a Springfield Armory XD .40 caliber handgun that had been discarded next to the crashed vehicle.
The firearm had previously been reported stolen from a residence in Hamden.
BALDWIN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 28, 2017, at which time he faces a maximum term of imprisonment of 10 years. He is released on a $50,000 bond.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hamden Police Department. The case is being prosecuted by Assistant U.S. Attorneys Peter Markle, Michael Runowicz, and Natasha Freismuth.
Nevada Tax Return Preparer Indicted for Filing False Tax ReturnsRead the Press Release
A Las Vegas, Nevada return preparer was indicted today for filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the indictment, from 2010 through 2011, Ofelia Ronquillo prepared income tax returns through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas. The indictment alleges that Ronquillo included false items on her clients’ tax returns to include bogus charitable contributions, education expenses and unreimbursed employee expenses – such as mileage, meals and other transportation expenses, as well as claimed inflated refunds to which they were not entitled.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Tax Return Preparer Indicted for Preparing False Tax ReturnsRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada return preparer was indicted today for preparing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the indictment, from 2010 through 2011, Ofelia Ronquillo prepared income tax returns through a business known as A.R. Financial LLC and later AJRC Tax Services, in Las Vegas. The indictment alleges that Ronquillo included false items on her clients’ tax returns to include charitable contributions, education expenses and unreimbursed employee expenses – such as mileage, meals and other transportation expenses, and claimed inflated refunds to which they were not entitled.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Ronquillo faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Myhre commended special agents of Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Naturalized Citizen Sentenced for Running Fake Passport OperationRead the Press Release
COLUMBUS, Ohio – Kristian G. Afana, also known as Leonard M. Ovono, 36, of Columbus, was sentenced in U.S. District Court to 12 months and one day in prison for running a fake passport scheme.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the U.S. Department of State Diplomatic Security Service, announced the sentence handed down by Senior U.S. District Judge James L. Graham.
According to court documents, Afana would pay individuals to apply for false United States passports by using providing photographs of unknown individuals to be submitted with the passport application in the name of the applicant. Afana would drive the applicants to various post offices in Columbus in order to apply.
In total, Afana caused five fake passports to be issued after creating nine false applications.
Afana is a naturalized United States citizen from Gabon.
Afana pleaded guilty on August 31 to one count of conspiracy to make false statements on United States passport applications and one count of aiding and abetting in the making of a false statement on a United States passport application.
U.S. Attorney Glassman commended the cooperative investigation by the Diplomatic Security Service, as well as Assistant United States Attorney David J. Bosley, who is representing the United States in this case.
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Mexican Man Sentenced for Immigration OffenseRead the Press Release
Acting United States Attorney Duane A. Evans announced that JUAN SALAMANCA-CHAVEZ, age 32, a native of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced SALAMANCA-CHAVEZ to time served (5 months), followed by one year of supervised release, and a $100 special assessment fee. SALAMANCA-CHAVEZ will be surrendered to the custody of the Immigration and Customs Enforcement for removal proceedings.
According to court documents, on October 28, 2016, SALAMANCA-CHAVEZ was found in the United States after having been previously deported from the United States on February 9, 2016.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Mexican Federal Police Commander Charged with Leaking Confidential Law Enforcement Information to Drug CartelRead the Press Release
CHICAGO — A former high-ranking commander in the Mexican Federal Police has been charged in federal court in Chicago with conspiring with others to corruptly impede a U.S.-based narcotics investigation.
IVAN REYES ARZATE, also known as “La Reina,” conspired with others to warn members of a Mexican drug cartel that they were the targets of an investigation being carried out by the U.S. Drug Enforcement Administration, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Reyes had acquired the information through his position as a commander in the Mexican Federal Police, which was working with the DEA and the U.S. Attorney’s Office in Chicago to investigate an international drug trafficking and money laundering organization, the complaint states. Reyes and his co-conspirators tipped off cartel members when the DEA had obtained judicial authorization to intercept their phones, and leaked the identity of a cooperating source who was covertly working with the DEA to gather evidence against the cartel, the complaint states.
The complaint was filed Feb. 10, 2017, and ordered unsealed today. It charges Reyes, 45, of Mexico City, with conspiracy to corruptly obstruct, influence, and impede an official proceeding. Reyes was ordered detained in U.S. custody after making an initial appearance last week before U.S. Magistrate Judge Sheila M. Finnegan in Chicago. The case is next up before Judge Finnegan on April 13, 2017.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the DEA.
The investigation is being conducted through the Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force. Valuable assistance has been provided by the U.S. Attorney’s Office for the Southern District of California, the Chicago Police Department, the Illinois Department of Corrections, the Illinois State Police, and the U.S. Department of Homeland Security.
“The United States and Mexico have a long history of close cooperation in combatting transnational organized crime,” said Acting U.S. Attorney Levin. “The criminal complaint announced today is the first step in holding Mr. Reyes accountable for attempting to impede that bilateral cooperation by allegedly obstructing a significant investigation for personal gain. We remain steadfast in the unwavering commitment to disrupt and dismantle drug trafficking organizations and fight against corruption at all levels; our bilateral efforts will continue.”
According to the complaint, U.S. and Mexican authorities over the past year have been working together to investigate certain narcotics traffickers in Mexico. The investigation revealed that a network of high-level cartel members transported multiple tons of cocaine from Colombia to Mexico, and ultimately on to the United States.
Reyes was the principal point of contact for information being shared between U.S. law enforcement and the Mexican Federal Police. He first drew the attention of U.S. authorities in September 2016 while the investigation was active and ongoing, the complaint states. A member of the conspiracy sent a law enforcement surveillance photograph to an alleged Mexican drug trafficker and notified the man that he was a principal target of an investigation, the complaint states. In a conversation intercepted by law enforcement, a member of the conspiracy further informed the alleged trafficker that a confidential source cooperating with U.S. law enforcement was present at the meeting and “sitting with you the day of the picture,” according to the complaint.
Reyes’s name also surfaced the following month in additional intercepted conversations between members of the alleged Mexico-based transnational drug trafficking organization that was targeted in a joint investigation with U.S. Attorney’s Offices in Chicago and San Diego. The members of the organization discussed obtaining law enforcement information about the investigation, prompting one of the alleged Mexico City-based traffickers to identify the source of the information as “Ivan,” the complaint states. The alleged trafficker went on to say that “Ivan” previously leaked law enforcement information to a different Mexican cartel.
“Who is Ivan?” the alleged head of the transnational drug cartel asked in the intercepted conversations, according to the complaint. The alleged Mexico City trafficker responded, “The boss,” in an apparent reference to Reyes’ position as a high-ranking officer in the Mexican Federal Police. According to the complaint, in November 2016 Reyes met in person with the head of the cartel in Mexico City and discussed the leaked surveillance photograph.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Katherine Sawyer, Michael Ferrara and Devlin Su.
Metairie Doctor Pleads Guilty to Operating a Pill Mill, Threatening Federal Law Enforcement and Health Care FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that SHANNON CHRISTOPHER CEASAR, M.D., age 44, a physician and former co-owner and operator of Gulf South Physician’s Group in Metairie, pled guilty today to Counts 1, 2 and 3 of a Superseding Bill of Information.
According to court documents, CEASAR pled guilty to conspiracy to distribute and dispense, outside the scope of professional practice and not for a legitimate medical purpose, quantities of Oxycodone, a Schedule II drug controlled substance. CEASAR ran what was, in essence, a “pill mill,” i.e., an operation in which he prescribed controlled substances to drug seekers and drug abusers without a legitimate medical purpose and in exchange for a flat fee.
CEASAR also pled guilty to threatening to assault or murder federal law enforcement officers with the intent to impede, intimidate or interfere with such officers while they were engaged in the performance of their official duties, or with the intent to retaliate. On or about July 20, 2016, at a time when CEASAR suspected he was under investigation, he made repeated threats to kill federal law enforcement officers, in particular officers with the Drug Enforcement Administration
Lastly, CEASAR pled guilty to committing and attempting to commit health care fraud. In total, because of CEASAR’s knowing and fraudulent issuance of prescriptions for Schedule II, III, and IV narcotics that he knew were medically unnecessary, health care benefit programs lost approximately $150,000.
The maximum penalty CEASAR faces on the drug conspiracy charge is not more than 20 years in prison, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. On the threat and health care fraud charges, CEASAR faces a maximum of not more than 10 years in prison, a fine of up to $250,000 and at least 3 years supervised release following any term of imprisonment. Sentencing is scheduled before Judge Martin L.C. Feldman on July 26, 2017.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation, U.S. Department of Health and Human Services OIG, and Drug Enforcement Administration, as well as the Jefferson Parish Sherriff’s Office and Louisiana State Police in investigating this matter. Assistant United States Attorneys Shirin Hakimzadeh, Jordan Ginsberg, and Myles Ranier are in charge of the prosecution.
Mercer County, New Jersey, Man Admits Enticing Minor to Engage in Sexually Explicit ConductRead the Press Release
NEWARK, N.J. – A Lawrenceville, New Jersey, man today admitted paying a minor to engage in sexually explicit conduct and stream it online, Acting U.S. Attorney William E. Fitzpatrick announced.
Curtis E. Thompson, 32, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of production of child pornography. Thompson was charged by complaint on Nov. 10, 2015, and has been in custody since that date.
According to documents filed in this case and statements made in court:
Thompson admitted that from May 2015 through September 2015, he used Facebook Messenger and FaceTime on his iPhone to communicate with an individual referred to in the information as “Victim 1” and Victim 1’s friends. Thompson also admitted that based on those communications, he learned that Victim 1 was less than 18 years old.
Thompson admitted using Facebook Messenger and FaceTime to encourage Victim 1 and Victim 1’s friends to engage in sexually explicit activity and either record the conduct or stream it online. Thompson also admitted that he offered and made payments to the victim for recording and streaming the sexually explicit conduct.
Under the terms of today’s plea agreement – which has been accepted by the court – Thompson will be sentenced to 240 months in prison and a lifetime of supervised release. Sentencing is set for April 13, 2017.
Acting U.S. Attorney Fitzpatrick credited Special Agents with the FBI, under the direction of Special agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David A. Holman, Assistant Federal Public Defender, Newark
Manhattan Man Sentenced in White Plains Federal Court to Six Years in Prison for Impersonating Federal Immigration Official to Defraud VictimsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Keith Barwick, the Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (“ICE”) Office of Professional Responsibility (“OPR”) Northeast, and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced that JUAN ANTHONY NIEVES was sentenced yesterday by U.S. District Judge Cathy Seibel to six years in prison for impersonating a federal immigration official to defraud victims in New York and Connecticut.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Juan Nieves exploited vulnerable immigrants working toward U.S. citizenship by posing as a federal immigration officer, charging his victims fraudulent fees while providing no assistance. Nieves not only defrauded his victims of money but also undermined their trust in the immigration system. Today’s significant sentence is a clear message that this outrageous behavior will not be tolerated.”
OPR Special Agent-in-Charge Keith Barwick said: “This case identified an illegal scheme to extort victims—impersonating a U.S. Department of Homeland Security official undermines the confidence people have in their government and in law enforcement. We are committed to aggressively pursue impersonation cases. Having people come forward to report such schemes is crucial to deterring this type of fraud and preventing others from becoming victims.”
HSI Special Agent-in-Charge Angel M. Melendez said: “This law enforcement impersonator demanded thousands of dollars in fees by preying on members of his own community. The imitation of officers is not only illegal, but it also perpetuates a fear and panic within our city. The sentencing of Nieves demonstrates law enforcement’s commitment to locating and prosecuting these criminals so they can face the consequences of their actions.”
According to the Complaint and Information filed in White Plains federal court, as well as statements made in connection with the plea and sentencing proceedings:
NIEVES is not, and never has been, employed by the Department of Homeland Security. But in March 2015 and from November to December 2015, in Orange County, New York, and Hartford County, Connecticut, NIEVES posed as a federal immigration officer capable of providing assistance in the immigration matters of certain victims and their family members. NIEVES claimed that he was a “boss” or “chief” (“jefe” in Spanish) with United States Immigration; that he worked at 26 Federal Plaza in Manhattan and had numerous employees working for him; and that he signed the final paperwork that permits an individual to enter the United States or orders an individual to be deported.
NIEVES offered to help the victims and their family members with their immigration paperwork and in return demanded and received thousands of dollars in so-called fees. In connection with this purported help, NIEVES received from the victims and their family members legitimate immigration paperwork that they had completed, and he also took photos or made copies of their identification documents. NIEVES also engaged in a charade of purporting to contact, in the victims’ presence, one or more individuals who worked for him at U.S. Customs and Immigration Services to do certain work related to the victims’ applications.
In addition to the prison sentence, NIEVES, 49, of Manhattan, was sentenced to three years of supervised release. Judge Seibel also ordered NIEVES to forfeit $15,080 in ill-gotten gains and to pay $15,080 in restitution.
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Mr. Kim praised the outstanding investigative work of OPR and HSI. Mr. Kim also thanked the U.S. Attorney’s Office for the District of Connecticut and the Village of Monroe, New York, Police Department for their assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Won S. Shin is in charge of the prosecution.
Man Pleads Guilty to Possession of a Firearm with an Obliterated Serial NumberRead the Press Release
St. Thomas, USVI- Jashawn Bailey, 30, of St. Thomas pleaded guilty today in federal court to possession of a firearm with an obliterated serial number, Acting United States Attorney Joycelyn Hewlett announced. District Judge Curtis V. Gomez remanded Bailey into the custody of the United States Marshals Service pending his sentencing on August 8, 2017.
According to the plea agreement, on December 14, 2016, Virgin Islands Police Department officers (VIPD), while processing a crime scene, discovered a .45 Taurus firearm with an obliterated serial number wrapped in a T-shirt and hat. The investigation revealed that those items belonged to Bailey. Further, the firearm was determined to be operable and had traveled in interstate commerce. Bailey does not possess a license for the firearm in the Virgin Islands.
Bailey faces a maximum sentence of five years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the VIPD. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Kalamazoo, Michigan, Man Sentenced to 235 Months in Prison for Sex Trafficking and Interstate Transportation for ProstitutionRead the Press Release
LOUISVILLE, Ky. – David Q. Givhan, aka “Premier,” 35, of Kalamazoo, Michigan, was sentenced to 235 months in prison by United States District Court Judge David J. Hale, after being convicted by jury of one count of sex trafficking and three counts of interstate transportation for prostitution announced United States Attorney John E. Kuhn, Jr.
“Forcible sex trafficking is effectively a form of modern day slavery,” stated United States Attorney John Kuhn. “Givhan terrorized vulnerable women through violence, threats and other actions. My Office and the Department of Justice will vigorously prosecute these brutal crimes. And today's sentence should send a powerful message that sex trafficking will be severely punished.”
According to evidence and testimony presented at trial, Givhan prostituted three women for his profit at various times between October 2014 and April 2015 and transported them from Michigan to Kentucky and other states for the purpose of prostitution. He used force, fraud and coercion to compel one of the women to prostitute for him between October 2014 and March 2015. He initially recruited the woman – a single mother of three – using false promises of steady income and a better life. However, once she began earning money, he kept it all. Givhan required her to earn $1,000 a day and beat other women in front of her. Givhan also required her to tattoo his alias, “Premier,” on her neck and threatened to hurt or kill her or her family if she refused to continue prostituting for him. When she objected to his demand that she perform particular acts for customers, he sexually assaulted her. At one point, the woman tried to leave Givhan, but he found her and brought her back. On a trip to Florida, he compelled her to continue prostituting for his profit, even after she sought medical attention for severe pain and bleeding. Shortly thereafter, she managed to escape by enlisting the help of a hotel clerk and her mother.
After deliberating for under five hours, the jury found the defendant guilty on all four counts on December 13, 2016. A fifth count was dismissed during trial. Givhan remains in federal custody.
The investigation was opened when Louisville Metro Police Department officers encountered a woman Givhan had transported from Michigan to Louisville, Kentucky, during a prostitution sting coinciding with the Kentucky Derby.
The case was investigated by the FBI’s Louisville Division and Louisville Metro Police Department. The case is being prosecuted by Assistant United States Attorney Amanda E. Gregory of the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Jury Finds Sacramento Man Guilty of Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — A jury found Omar Kabiljagic, 46, of Sacramento, guilty today of two counts of filing false claims with the United States, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, in 2008 and 2009, Kabiljagic submitted a series of tax returns to the Internal Revenue Service which contained false information and fraudulently claimed millions of dollars in refunds. In each of these returns, Kabiljagic falsely claimed to have received large amounts of interest income, ranging from to $149,859 to $1,229,000, and then falsely claimed that all of the interest had been withheld by the payers. The returns requested refunds of the allegedly withheld tax. In reality, Kabiljagic had not received the interest and nothing had been withheld. Kabiljagic received repeated warnings from the IRS that his claims were frivolous, but continued to file false claims.
Kabiljagic also helped his co-defendant, Suvada Mahmutovic, 67, prepare and submit similar false claims. One of her false claims resulted in a fraudulent refund of more than $263,000, which the defendants deposited and cashed. At least some of the proceeds appear to have been wired overseas. Mamhutovic pleaded guilty to one count of filing false claims on March 3, 2017.
“Today’s guilty verdict of Mr. Kabiljagic once again shows the severe nature of fraudulent schemes perpetrated by those that wish to make a quick dollar from the U.S. government,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “With the upcoming filing deadline of April 18, 2017, I want to remind all taxpayers that filing fraudulent tax returns is a crime with serious consequences.”
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew G. Morris and Amy Schuller Hitchcock are prosecuting the case.
U.S. District Judge Garland E. Burrell Jr. is scheduled to sentence Kabiljagic on June 23, 2017 and Mahmutovic on May 19, 2017. The defendants face a maximum statutory penalty of five years in prison on each count, a $250,000 fine and restitution to the IRS. 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.
Jury Convicts Felon of Firearm and Drug Trafficking OffensesRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man today on charges of possession of a firearm by a convicted felon, possession with the intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime.
According to court records and evidence presented at trial, Daymont Underwood, 31, of Richmond, was pulled over by the Richmond Police on Oct. 20, 2015, for a traffic violation. Underwood attempted to flee on foot and engaged in a struggle with officers. During the struggle, a loaded .45 caliber handgun fell from Underwood’s waistband. A search of Underwood’s vehicle revealed 78 grams of high-grade marijuana, a digital scale, and sandwich baggies. Law enforcement later determined that Underwood was a convicted felon.
Underwood faces a maximum penalty of life in prison when sentenced on July 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Alfred Durham, Chief of Richmond Police, made the announcement after U.S. District Judge M. Hannah Lauck accepted the verdict. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-18.
Individual Sentenced to 21 Months in Prison for Mortgage FraudRead the Press Release
SAN JUAN, P.R. – Alejandro E. Mayendía-Blanco was sentenced by United States District Court Judge Francisco A. Besosa to serve 21 months of imprisonment for mortgage fraud, five years of supervised release, a fine of $50,000, and an order for restitution of $98,666, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Mayendía-Blanco had plead guilty on August 12, 2016.
Alejandro E. Mayendía-Blanco was arrested on May 29, 2015, on charges of defrauding First Equity Mortgage Bankers, Inc. (FEBMI) in connection with a loan application. On October 3, 2008, the defendant participated in a real estate transaction as the seller of real property located in San Juan, PR. As part of the transaction, the defendant, along with co-defendant Orlando Mayendía represented that Orlando Mayendía was going to contribute $48,381.10 towards the purchase of the property. At the time that the defendant and Orlando Mayendía made this representation to FEBMI they knew it to be false, since the defendant had agreed to contribute the $48,381.10 to the purchaser, Orlando Mayendía, after the sale. Thus, the proceeds of the contribution from the borrower, Orlando Mayendía were the sales proceeds provided to Alejandro Mayendía.
“We are committed to bringing to justice those involved in federal financial crimes in Puerto Rico,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The US Attorney’s Office will continue to investigate and prosecute financial crimes and ensure just and effective punishment for those who perpetrate them, and recover proceeds for victims of financial crimes.”
Assistant U.S. Attorneys Nicholas Cannon and Mariana E. Bauzá prosecuted the case.
Indictment: Topeka Developer Lied Under OathRead the Press Release
TOPEKA, KAN. – A grand jury Wednesday returned a new indictment against Topeka developer Kent Douglas Lindemuth charging him with lying under oath in an effort to hide assets in a bankruptcy, U.S. Attorney Tom Beall said.
Lindemuth, 65, Topeka, Kan., was charged with one count of perjury. Wednesday’s indictment brings the number of federal criminal charges against Lindemuth to 114 counts, including bankruptcy fraud, money laundering, and possession of firearms and ammunition while under indictment. Lindemuth initially was charged in June 2016 in an indictment accusing him of hiding assets after he filed for Chapter 11 bankruptcy protection in November 2012.
The new count alleges Lindemuth committed perjury on Jan. 7, 2013, when he testified under oath at a hearing held by a court-appointed bankruptcy trustee. After being placed under oath by an attorney for the U.S. Trustee Program, Lindemuth stated he had reported all his assets as the law required. He also stated that he would notify his attorney of any changes.
The indictment alleges that at the time he made the statements he was concealing assets, including: An Envista Credit Union account, a US Bank account, a revenue stream of more than $1 million, and firearms with a value of more than $1 million.
Upon conviction, the crimes carry the following penalties:
Perjury: A maximum penalty of five years in federal prison and a fine up to $250,000.
Bankruptcy fraud: A maximum penalty of five years in federal prison and a fine up to $250,000.
Money laundering: Up to 10 years and a fine up to $250,000.
Unlawful possession of firearms and ammunition: Up to 10 years and a fine up to $250,000.
The FBI investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting is prosecuting.
Harrisburg Man Sentenced to 151 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Curtis Waldron, age 41, of Harrisburg, Pennsylvania, was sentenced on March 30, 2017, by United States District Court Judge Sylvia H. Rambo, to 151 months’ imprisonment for drug trafficking.
According to United States Attorney Bruce D. Brandler, Waldron distributed heroin, cocaine and marijuana on October 2, 2015, and possessed with the intent to distribute heroin, cocaine and crack cocaine since at least January 2015. Waldron was found to be responsible for possessing 143 grams of heroin for distribution. One hundred forty-three grams of heroin is the equivalent of approximately 6,000 individual doses of heroin.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Harrisburg Police Department, Dauphin County Drug Task Force and the Dauphin County Probation Office. Assistant United States Attorney William A. Behe prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Greenbrier County man pleads guilty to federal drug crimeRead the Press Release
BECKLEY, W.Va. - A Greenbrier County man pleaded guilty today to a federal oxymorphone crime, announced United States Attorney Carol Casto. Justin Wade Bradley, 24, of Alderson, entered his guilty plea to distribution of oxymorphone.
Bradley admitted that on October 21, 2016, he sold oxymorphone to a confidential informant working with law enforcement. The drug deal took place in Ronceverte. Bradley further admitted that he distributed approximately 75 oxymorphone pills between the summer of 2016 and November of 2016.
Bradley faces up to 20 years in federal prison when he is sentenced on August 2, 2017.
The Greenbrier Valley Drug and Violent Crime Task Force conducted the investigation. Assistant United States Attorney John L. File is responsible for the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being prosecuted under the Greenbrier Valley Heroin and Pill Initiative 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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Grand Jury Accuses Inland Empire Man of 17 Child Exploitation Offenses Related to Six Boys Coerced to Make Explicit VideosRead the Press Release
RIVERSIDE, California – An Inland Empire man was named today in a federal grand jury indictment that charges him with a series of child exploitation crimes for allegedly coercing six boys around the nation to send him sexually explicit videos.
Francisco Javier Soledad, 24, of Eastvale, was charged today in a 17-count indictment that alleges six counts of producing of child pornography, six counts of using the internet to induce a minor to engage in criminal sexual activity, two counts of advertising child pornography, two counts of distributing child pornography, and one count of possessing child pornography on an iPhone.
Soledad was arrested on March 9 by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after federal prosecutors filed a criminal complaint that accused him of one count of producing child pornography in relation to one 13-year-old victim.
The indictment filed today outlines how Soledad victimized six boys between the ages of 12 and 15 over the course of several months in 2016. Soledad allegedly found the victims, who spanned the nation from California to Georgia, on social media sites.
According to court documents, Soledad assumed different personas – sometimes a 13-year-old boy, and other times an adult woman – to convince the victims to send him explicit photographs and videos. Several of the victims refused demands to send additional images, which allegedly prompted Soledad to threaten to publish the previously sent images on social media platforms. In at least one instance, Soledad did in fact publish one of the victim’s nude images on Twitter.
A search of Soledad’s digital devices revealed thousands of images and videos of suspected child pornography. The majority of the child pornography images appear to have been self-produced by the depicted victims. Law enforcement has not yet identified all of the children Soledad may have victimized.
Anyone with information about Soledad – or his Snapchat handle, “linkinparkrocks” – is encouraged to call HSI’s toll-free tip line 1-866-2DHS-ICE or 1-866-234-7423.
Soledad is scheduled to be arraigned on the indictment on April 12 in United States District Court in Los Angeles. Soledad is currently free on a $170,000 bond.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charges of producing child pornography and advertising child pornography each carry a mandatory minimum penalty of 15 years in federal prison and a statutory maximum sentence of 30 years. The charge of enticing a minor carries a mandatory minimum sentence of 10 years in prison and a maximum possible sentence of life. The charge of distributing child pornography carries a mandatory minimum sentence of five years and a maximum sentence of 20 years. The charge of possessing child pornography carries a statutory maximum sentence of 10 years in federal prison.
This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham.
Georgia Woman Sentenced for Methamphetamine Possession and DistributionRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that APRIL NICOLE GRIZZARD, age 32, of Milledgeville, George, was sentenced today after previously pleading guilty to two counts of a Superseding Indictment. GRIZZARD was charged with conspiracy to possess with intent to distribute fifty grams or more of methamphetamine and possession with intent to distribute fifty grams or more of methamphetamine.
U.S. District Judge Martin L.C. Feldman sentenced GRIZZARD to time served (10 months in jail prior to being released on bond) and five years’ supervised release.
According to court documents, in September of 2014, a woman in Atlanta agreed to deliver one-half pound of methamphetamine to an undercover Drug Enforcement Administration (DEA) Special Agent in Metairie. The woman employed an individual named ALLISON CHRISWELL to deliver the drugs. GRIZZARD, who assisted in obtaining the drugs for delivery, accompanied CHRISWELL to Metairie to deliver the drugs. When GRIZZARD and CHRISWELL arrived in Metairie with the methamphetamine, DEA Agents arrested them.
CHRISWELL pled guilty to conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine and was sentenced 96 months incarceration, followed by five years of supervised release and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney Andre’ Jones was in charge of the prosecution.
Georgia Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER JAMIESON, age 34, a resident of Douglasville, Georgia, was sentenced today after previously pleading guilty to receipt of child pornography.
U.S. District Judge Martin L.C. Feldman sentenced JAMIESON to 97 months incarceration, five years of supervised release, and ordered that JAMIESON register as a sex offender under the Sex Offender Registration and Notification Act.
According to court documents, in November 2013, Special Agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) and the United States Postal Inspection Service arrested JAMIESON after they determined that JAMIESON was responsible for receiving videos depicting the sexual exploitation of children on the Internet. JAMIESON pled guilty to knowingly receiving several videos depicting the sexual exploitation of children from Jonathan Johnson, the administrator of a multi-national child pornography website.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Homeland Security Investigations and the U.S. Postal Inspection Service in investigating this matter. The prosecution of this case was handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Fresno Gang Member Sentenced to 9 Years in Prison for Illegal Firearm PossessionRead the Press Release
FRESNO, Calif. — Tremayne Beard, 34, of Fresno, was sentenced on Monday by U.S. District Judge Lawrence J. O'Neill to nine years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on the evening of December 5, 2016, and continuing into the early hours of December 6, 2016, the defendant was at a party at the Fresno Fairgrounds. Fresno police officers were assigned to patrol the event after a recent surge in gang violence in Fresno. When shots were fired, officers observed Beard leaving the Fairgrounds parking lot at a high rate of speed. Police officers followed Beard’s vehicle, and he ultimately crashed into a parked car and a retaining wall. As he got out of his car and fled into a neighboring backyard, a witness saw him throw something. Beard was subsequently arrested and police found a .45‑caliber handgun where the witness indicated something had been thrown. Numerous shell casings were found in the area where Beard had been parked at the Fairgrounds, including a .45‑caliber casing that matched bullets in the gun found by the police. A partial .45‑caliber bullet was also found lodged in a vehicle parked near the Fairgrounds. Beard has multiple prior convictions, and he was identified as a gang member by the Fresno police.
“This case highlights how the prosecution of firearms offenses helps to protect the community,” said U.S. Attorney Talbert. “The defendant’s conduct on the night of the offense put several lives in dangers, and I am grateful for the cooperative work among our law enforcement partners to hold him accountable for his crimes. My office is committed to prosecuting cases such as these, which have a direct impact on the communities we serve.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives, or ATF, has the country’s only crime gun-tracing facility,” said Special Agent in Charge Jill Snyder. “The mission of ATF’s National Tracing Center is to conduct firearms tracing that will provide investigative leads for federal, state, local and foreign law enforcement agencies. In this case, the capabilities of ATF’s National Tracing Center provided information on the firearm used to investigators. ATF works closely with our partners in law enforcement to prosecute felons who illegally possess firearms and engage in acts of violence. This case is an example of how agencies can work together to help make our neighborhoods a safer place.”
Fresno Chief of Police Jerry Dyer stated, “Removing Tremayne Beard from our community will have a tremendous positive impact on the safety of our neighborhoods.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno Police Department, the California Department of Justice, and the California Highway Patrol. The case was a part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly A. Sanchez prosecuted the case.
Fourteen Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down prison terms ranging from 188 months to 24 months to 14 methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; Colonel Glenn McNiel of the North Carolina State Highway Patrol;Chief Thurman Whisnant of the Hickory Police Department; Sheriff Coy Reid of the Catawba County Sheriff’s Office; Sheriff Chris Bowman of the Alexander County Sheriff’s Office; Chief Damon D. Williams of the Mooresville Police Department; and Sheriff Darren Campbell of the Iredell County Sheriff’s Office
The 14 defendants sentenced over the past three days in U.S. District Court in Statesville are:
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Irving E. Rodriguez-Munguia, 24, of Mexico, was sentenced to 188 months, followed by five years of supervised release. (5:15-cr-77)
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Reginald Jerry Shaw, 42, of Charlotte, was sentenced to 151 months, followed by five years of supervised release. (5:16-cr-46)
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Alexis Noe Bautista, 36, of Mexico, was sentenced to 121 months, followed by five years of supervised release. (5:16-cr-13)
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Steven Glenn Burke, 32, of West Jefferson, was sentenced to 120 months, followed by five years of supervised release. (5:16-cr-40)
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Zachary Robert Testerman, 27, of Millers Creek, was sentenced to 77 months, followed by five years of supervised release. (5:16-cr-46)
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Gary Joseph Phipps, 31, of West Jefferson, was sentenced to 65 months, followed by three years of supervised release. (5:16-cr-47)
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Christopher Gray Young, 34, of McMinnville, Tennessee, was sentenced to 65 months, followed by five years of supervised release. (5:16-cr-53)
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Hanna Lee Raymer, 38, of Mooresville, was sentenced to 60 months, followed by four years of supervised release. (5:16-cr-48)
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Kenneth Otto Jones, 51, of Hickory, was sentenced to 60 months, followed by four years of supervised release. (5:16-cr-60)
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Heather Lynne Bostian, 32, of Statesville, was sentenced to 57 months, followed by three years of supervised release. (5:16-cr-61)
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Mark Monroe Goings, 45, of Mount Airy, was sentenced to 50 months, followed by two years of supervised release. (5:16-cr-59)
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Rhiannon Nicole Forrest, 33, of Statesville, was sentenced to 46 months, followed by three years of supervised release. (5:16-cr-56)
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Tammy Lynn Paris, 50, of Jasper, Georgia, was sentenced to 46 months, followed by three years of supervised release. (5:16-cr-44)
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Kristy Hope Eastridge, 33, of Crumpler, was sentenced to 24 months, followed by six years of supervised release. (5:16-cr-47)
All of the defendants were charged as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation, which, since 2015, has resulted in the prosecution of more than 150 individuals. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized far in exces s of 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies for their investigative efforts. Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the cases.
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Former Organization Director Sentenced to a Year in Prison for Theft of Nearly $250,000 from EmployerRead the Press Release
WASHINGTON – Tamara Kukla, who worked as the “Director of Membership” for a Washington based non-profit organization, has been sentenced to a year and a day in prison for embezzling nearly $250,000 from her employer, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Kukla, 47, of Plano, Texas, pled guilty in November 2016, in the U.S. District Court for the District of Columbia, to interstate transportation of stolen property. The Honorable James E. Boasberg sentenced her on April 4, 2017. Kukla will be placed on three years of supervised release following completion of her prison term. She also must pay $248,755 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Kukla’s employer provided her with a credit card to assist her with her duties and responsibilities as the “Director of Membership.” Kukla’s duties and responsibilities included, among others, formulating and executing marketing plans designed to maintain and increase her employer’s membership rolls. Beginning around October 2009 and continuing through about December 2011, Kukla devised and carried out a scheme to defraud her employer by embezzling funds through her corporate credit card. Kukla used the credit card for both legitimate and personal purchases, but provided false descriptions of the personal purchases as work-related expenses so that her employer would pay for them. These unauthorized purchases and expenses included, among others, personal expenses related to travel, transportation, hotel lodgings, retail purchases, meals, food, and entertainment. Kukla also devised a scheme whereby she caused her employer to pay for thousands of dollars in expenses for personal services from two different private companies.
In announcing the sentence, U.S. Attorney Phillips and Special Agent in Charge Ebert commended the work of those who investigated the case from the National Capitol Region Fraud Task Force of the U.S. Secret Service’s Washington Field Office. They also expressed appreciation for the efforts of those who worked on the matter for the U.S. Attorney’s Office, including former Special Assistant U.S. Attorney Vesna Harasic-Yaksic and Assistant U.S. Attorney Zia Faruqui, who handled forfeiture issues; Paralegal Specialists Krishawn Graham and Angela Lawrence; former Assistant U.S. Attorney Loyaan A. Egal, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who prosecuted the case.
Former NBA Player’s Nine-Year Prison Sentence Affirmed for Role in a $2 Million Ponzi SchemeRead the Press Release
PHILADELPHIA, P.A. – C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, today lost his appeal of the nine-year prison sentence he received for his role in orchestrating a $2 million real estate investment Ponzi scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
George had raised multiple issues on appeal. Each was rejected, in a three-judge panel opinion, written by Judge Thomas M. Hardiman of the United States Court of Appeals for the Third Circuit.
George had argued, among other things, that the Government had withheld evidence proving his innocence while, at the same time, ensuring his conviction based on false testimony from an FBI agent. The panel disagreed, noting that the evidence George identified was “inculpatory, not exculpatory.” It labeled “fallacious” the suggestion that the Government could have withheld from George his own bank account information. Not only did George and his attorneys have access to the account information, the same bank accounts also were used to prove George’s guilt and did not qualify as the type of information that could be improperly withheld.
The panel also rejected George’s claim that an FBI agent had falsely testified against him, pointing out his argument was based on a mischaracterization of the agent’s testimony. Far from admitting the FBI had not properly conducted its investigation into George’s finances, the agent actually had, “multiple times” testified the FBI had conducted a “thorough pre-trial investigation.”
The opinion also disagreed that George had uncovered new evidence showing there were no victims of his scheme. That evidence, which took the form of a forensic accounting, showed George’s own business dealings and, therefore, could not be newly discovered. It also “would not have been admissible at trial in any event” because of the district court’s ruling that it was so flawed as to not qualify as a true forensic accounting.
Finally, the panel concluded the trial court had properly enhanced George’s sentence because George had perjured himself at trial and because of the magnitude of the hardship he had caused his multiple victims. It concluded by stating it had considered George’s other “miscellaneous arguments” but found them to be “without merit.”
According to documents filed in this case and the evidence presented at trial:
George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.
Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the IRS, and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself – a “sizzle reel” for “The Tate Show” – which was made available on YouTube. The George Group had virtually no income-generating operations.
In addition to his prison sentence, which will be followed by three years’ supervised release, the court affirmed the order requiring George to pay $2.55 million in restitution.
The government was represented by Assistant U.S. Attorney Bruce P. Keller of the U.S. Attorney’s Office Appeals Division in Newark. Assistant U.S. Attorney Zach Intrater, now Deputy Chief of the Economic Crimes Unit, represented the government at George’s trial.
Former District Attorney Walter P. Reed and his son, Steven P. Reed, SentencedRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that former St. Tammany Parish District Attorney WALTER P. REED, age 70, and his son STEVEN P. REED, age 45, both of Covington, were sentenced today after being convicted by a federal jury in May of 2016.
U.S. District Judge Eldon E. Fallon sentenced WALTER P. REED to 48 months incarceration to be followed by 2 years of supervised release. WALTER P. REED was also ordered to pay $572,000 in restitution, $40,000 to the Internal Revenue Service, and a $15,000 fine. Additionally, per a prior ruling, WALTER P. REED was ordered to pay $609,217.08 in forfeiture. Furthermore, Judge Fallon ordered WALTER P. REED and STEVEN P. REED jointly and severally responsible for $46,200 in forfeiture.
STEVEN P. REED was sentenced by U.S Judge Fallon to 5 years probation and ordered to perform 50 hours of community service.
WALTER P. REED was convicted of one count conspiracy to commit wire fraud and money laundering; seven counts of wire fraud; one count of money laundering; four counts of false statement on income tax return; and, five counts of mail fraud.
STEVEN P. REED was convicted of one count of conspiracy to commit wire fraud, and money laundering; one count of wire fraud; and, one count of money laundering,
“Walter and Steven Reed broke the law and have now been punished for their crimes,” stated Acting U.S. Attorney Duane A. Evans. “We want to assure the public that with the continued assistance from our federal, state, and local law enforcement partners, this Office will identify and prosecute any individual who commits an act of public corruption.”
"I would like to thank the men and women of the FBI, the IRS, and the U.S. Attorney's Office for their hard work on this very important matter," stated FBI New Orleans Special Agent in Charge Jeffrey Sallet.
“Today, Walter and Stephen Reed were held accountable for their actions. It is a severe abuse of the public trust when elected officials misuse campaign funds for personal purposes, and abuse their positions for personal gain. IRS – Criminal Investigation is extremely proud of the work we do in cases such as these, and we stand ready to pursue further investigation and criminal actions against individuals engaged in all forms of public corruption,” stated Criminal Investigation Special Agent in Charge Jerome R. McDuffie.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation for investigating this matter and thanked the Metropolitan Crime Commission for its assistance. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg, Brian M. Klebba, Maria Carboni, and Jeff Sandman.
Felon in Possession of a Firearm Receives 48-Month Prison SentenceRead the Press Release
Gulfport, Miss – On April 4, 2017, Chief U.S. District Judge Louis Guirola, Jr. sentenced Destin Dominique Johnson to 48 months in prison for being a felon in possession of a firearm, U. S. Attorney Harold H. Brittain announced today. Johnson was also ordered to pay a $3,000 fine and serve three years of supervised release when released from prison.
Johnson, 27, of Bay St. Louis, Mississippi, was in possession of a firearm in June, 2016. He has been incarcerated since that time. The Court ordered the federal sentence to run concurrently with a state sentence from Hancock County and recommended Johnson attend the Bureau of Prisons 500-hour drug treatment program while incarcerated.
The Bureau of Alcohol Tobacco Firearms and Explosives investigated this case. It was prosecuted by Assistant United States Attorney Annette Williams.
Federal Grand Jury Indicts San Antonio Man for Tax EvasionRead the Press Release
In San Antonio today, a federal grand jury indicted a San Antonio man for allegedly attempting to evade paying approximately $900,000 in taxes announced United States Attorney Richard L. Durbin, Jr.
The indictment charges Robert Steven Powell with three counts of tax evasion. The indictment alleges that from October 2000 to December 2013, Powell willfully attempted to evade paying income tax due to the United States for the calendar years 1999 through 2011. The indictment further alleges that Powell placed various assets, including real estate and a recreational vehicle in the names of nominees; concealed his physical address by using identification documents from multiple states with addresses at which he did not reside; and, submitted false IRS forms to his employer.
Upon conviction of each tax evasion charge, Powel faces up to five years in federal prison.
Agents with the Internal Revenue Service—Criminal Investigation conducted this investigation. Assistant U.S. Attorney William R. Harris and Department of Justice Tax Division Trial Attorney Gregory P. Bailey are prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Fairport Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Loria, 33, of Fairport, N.Y., pleaded guilty before Senior U.S. District Judge Frank P. Geraci, Jr. to possession with intent to distribute, and distribution of, oxycodone and being an unlawful user of oxycodone in possession of a firearm. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that in June of 2103, members of the Drug Enforcement Administration commenced an investigation into the narcotics trafficking activities of the defendant. As part of that investigation, law enforcement officers made five controlled purchases of oxycodone pills from Loria between August 2013 and September 2013.
On September 26, 2013, the date of the final pre-arranged deal, agents met with Loria in the Target parking lot on Nine Mile Point Road, in Penfield, NY. The defendant was arrested after he arranged to sell 96 oxycodone pills to an undercover police officer in exchange for $1,728.00. A loaded handgun was found in the glove compartment of Loria’s car, which he drove to the deal.
The plea is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for July 19, 2017, at 3:30 p.m. before Judge Geraci.
Developer Pleads Guilty to Embezzling from A Bankruptcy EstateRead the Press Release
Tampa, FL – Acting United States W. Stephen Muldrow announces that Clark D. East (59, Sugarland, TX) has pleaded guilty to embezzlement from a bankruptcy estate. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, East obtained a loan from Stearns Bank, a member bank of the Federal Home Loan Bank of Minneapolis, to develop a property located at 3700 Ulmerton Road Plaza in Clearwater. East subsequently defaulted on the loan and Stearns Bank obtained approval to sell the property at foreclosure on March 27, 2012. The day before the scheduled foreclosure sale, East filed for bankruptcy protection with the United States Bankruptcy Court for through his company, 3700 Ulmerton Road, LLC. During the bankruptcy proceedings, East was ordered to sell the property and to remit $1.2 million in sales proceeds to Stearns Bank. Rather than repaying Stearns Bank, East embezzled approximately $800,000 of proceeds that were part of the bankruptcy estate and due to Stearns Bank.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The Office of the United States Trustee for the Middle District of Florida, Tampa Division also provided substantial assistance. The case is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay G. Trezevant.
Davon Lymon Sentenced to Twenty Years for Conviction on Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – This morning, Chief U.S. District Judge M. Christina Armijo sentenced Davon Lymon, 36, of Albuquerque, N.M., for his conviction in one of his two federal cases. Lymon was sentenced to 20 years of imprisonment to be followed by three years of supervised release for his conviction on two felon in possession of firearms charges. Lymon will be sentenced on his conviction on two heroin trafficking charges and another felon in possession charge in his second federal case on April 24, 2017.
Lymon’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Will R. Glaspy of the El Paso Division of the DEA, and Chief Gorden E. Eden Jr., of the Albuquerque Police Department (APD).
Lymon stands convicted in two federal cases. The first indictment in the first case, filed on Nov. 27, 2015, charged Lymon with four counts of being a felon in possession of firearms and one count of possessing a stolen firearm (the firearms case). The indictment in the second case, filed on Dec. 2, 2015, charged Lymon with two heroin trafficking charges and a felon in possession of a firearm charge (the heroin trafficking case). At the time Lymon committed the crimes, he was prohibited from possessing firearms because of his prior felony convictions for voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud, and forgery.
Lymon was convicted on two of the four charges in the firearms case. Chief U.S. District Judge Armijo found Lymon guilty on Count 4 of the four-count indictment on Oct. 28, 2016, following a bench trial on that charge alone. Count 4 charged Lymon with being a felon in possession of a firearm and ammunition on Oct. 21, 2015, the day on which he allegedly shot Officer Daniel Webster of the APD. Officer Webster died on Oct. 29, 2015, due to injuries he allegedly sustained during the shooting, and Lymon has been charged with murdering Officer Webster in a separate state case. Lymon has yet to answer to the charges in the state case and is presumed innocent unless found guilty.
On Dec. 13, 2016, Lymon pled guilty to Count 2 of the indictment in the firearms case under a plea agreement with the U.S. Attorney’s Office, and admitted unlawfully possessing a firearm on May 27, 2016. As part of the plea agreement, the U.S. Attorney’s Office agreed to dismiss Count 1, charging Lymon with being a felon in possession of a firearm on May 27, 2015, and Count 3, of the indictment, charging Lymon with possessing a stolen firearm in May 2015.
The indictment in the second federal case charged Lymon with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm on Oct. 2, 2015. Lymon pled guilty to the three charges in the heroin trafficking case on May 9, 2016, without the benefit of a plea agreement. Lymon will be sentenced on his conviction in the heroin trafficking case on April 24, 2017. He faces a statutory maximum penalty of 20 years in prison on the two heroin trafficking charges and a statutory maximum penalty of ten years in prison on the firearms charge.
The Albuquerque office of ATF and APD investigated the firearms case, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division. The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA.
Assistant U.S. Attorneys Jacob A. Wishard and Kimberly A. Brawley are prosecuting the two federal cases against Lymon as part 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 work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Cypress Man Gets 25 Years for Multiple Convictions Related to Child PornographyRead the Press Release
HOUSTON – A 35-year-old Cypress man has been handed a significant federal prison term for production, distribution and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury in the Southern District of Texas (SDTX) indicted Joshua Ray Johnson for production and possession of child pornography. He was also charged with distribution of child pornography in the District of Alaska which was later transferred to the SDTX. He pleaded guilty to all the charges Aug. 9, 2016.
Today, U.S. District Judge Nancy Atlas ordered he serve 300 and 240 months for the production and distribution convictions, respectively. The sentences will run concurrently for a total 300-month-prison term. At the hearing today, the father of the victim appeared in court and stated that no parent should have to go through what he has. In handing down the sentence, Judge Atlas stated that what Johnson did was abhorrent and deplorable. Johnson will be on supervised release for life following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation began in the District of Alaska where a special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was acting in an undercover capacity working to combat online child exploitation. Authorities discovered Johnson took lewd and lascivious photos of a two-year-old female victim and distributed them via the Internet. The images showed her legs spread apart and focused on the toddler’s genitalia.
Based on the images received in Alaska, a search warrant was executed locally and the victim was identified. In addition to the 70 images of the victim that Johnson produced, there were more than 2000 images and videos of child pornography. The National Center for Missing and Exploited Children (NCMEC) identified 22 known series (identified victims) in Johnson’s possession. NCMEC also indicated other law enforcement agencies in investigations around the world have seen the images Johnson produced. The victim in this case is now the subject of a particular series as identified by NCMEC.
Johnson will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI in Alaska and Houston conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clearwater Woman Got Order to Sell Meth in a Call from the Sedgwick County JailRead the Press Release
WICHITA, KAN. - A Clearwater woman was sentenced Wednesday to four years in federal prison on a drug trafficking charge, U.S. Attorney Tom Beall said.
Kraysalias Lynn Bernhardt, 21, Clearwater Kan., pleaded guilty to one count of using a telephone in furtherance of drug trafficking. In her plea, she admitted that on Jan. 16, 2016, she talked by phone with co-defendant Samuel Below, who was being held in the Sedgwick County Jail. Below told her to sell methamphetamine that he was storing at her residence. Following his direction, she sold a pound of meth.
Below was sentenced in December to 10 years in federal prison.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated and Assistant U.S. Attorney Alan Metzger for their work on the case.
Children's Ski School Employee Charged with Child Exploitation and Possession of Child PornographyRead the Press Release
RENO, Nev. – An employee at a children’s ski school at a ski resort in South Lake Tahoe, Calif., was charged today with child exploitation and possession of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Stephan L. DeGraffenreid, 26, of Gardnerville, Nev., was charged with one count of sexual exploitation of a child, two counts of attempted sexual exploitation of a child, and one count of possession of child pornography. If convicted, the mandatory statutory minimum penalty is 15 years in prison for each of the sexual exploitation and attempted sexual exploitation charges.
According to a criminal complaint, law enforcement discovered child pornography on an Apple iPod Touch that was found at the Children’s Ski School at Heavenly Ski Resort. During the investigation, law enforcement learned the iPod belonged to DeGraffenreid who was an employee at the Children’s Ski School. During the execution of a search warrant at his residence, officers located a thumb drive that contained explicit images of children in a Gardnerville, Nev., day care facility restroom. DeGraffenreid admitted to downloading and possessing the child pornography.
The case is being investigated by the FBI, the Washoe County Sheriff’s Office, and the El Dorado County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
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Cheektowaga Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Kurowski, 24, of Cheektowaga, NY, who pleaded guilty to possession of child pornography, was sentenced to 30 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in the Spring of 2015, Kurowski began communicating via text message with a 17-year-old female. The text messages were sexually explicit in nature. On April 10, 2015, the defendant asked her to send him a sexually explicit photograph which she then sent via text message. Kurowski was aware that she was a minor at the time he received this image.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge, the Blasdell Police Department, under the direction of Lieutenant Joseph Gramaglia, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Charleston man sentenced to federal prison for making false statement to FBI agent and for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who falsely told the FBI that he did not get any money from anyone related to the West Virginia Prep Academy and who separately distributed heroin was sentenced yesterday to a year and a half in federal prison, announced United States Attorney Carol Casto. Daniel Andrew Hicks, 43, previously pleaded guilty to making a materially false statement to an FBI agent and, in a separate prosecution, pleaded guilty to distributing heroin.
In 2013, the FBI, along with the South Charleston Police Department, investigated whether any federal criminal violations had occurred in connection with the operation of the West Virginia Prep Academy, a college preparatory school purportedly set up to give students the opportunity to compete for college football and basketball scholarships. When an FBI Special Agent, along with an officer with the South Charleston Police Department, served a federal grand jury target letter on Hicks in the course of that investigation, Hicks stated that he “did not get a dime” from anyone related to the Prep Academy. Hicks later admitted that this statement was materially false, as he had deposited a check from the mother of a student into the bank account of the Prep Academy. Hicks further admitted that he did not return those funds to the mother when her son did not attend the Prep Academy. As part of his sentence, Hicks was ordered to pay restitution of $11,808.59 to 23 individuals.
In a separate prosecution, Hicks admitted that on several occasions in January and February of 2016, he sold heroin to a confidential informant working with law enforcement. Following his arrest on February 18, 2016, law enforcement found Hicks with close to five grams of heroin that he intended to distribute. Additionally, officers executed a search warrant on an apartment Hicks had rented at 112 Henson Avenue in South Charleston and seized $4,924 in cash stored in a shoe box on the kitchen counter. Next to the shoe box, officers also discovered three sets of digital scales and three cell phones.
The investigation of Hicks for his involvement in the West Virginia Prep Academy was conducted by the South Charleston Police Department and the FBI. Assistant United States Attorneys Meredith George Thomas and John L. File are in charge of the false statement prosecution. The Metropolitan Drug Enforcement Network Team conducted the heroin investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution of the drug crime. United States District Judge Thomas E. Johnston is presiding over these cases.
The drug case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of pain pills 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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Castle Rock Breast Cancer Charity Promoter Pleads Guilty to Failure to File a Tax ReturnRead the Press Release
DENVER – Adam C. Shryock, age 37, of Castle Rock, Colorado, pled guilty before U.S. District Court Magistrate Judge Michael J. Watanabe to willful failure to file a tax return, announced acting United States Attorney Bob Troyer and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne. Shryock was charged by Information in Denver, Colorado on October 6, 2016. Shryock is scheduled to be sentenced by Magistrate Judge Watanabe on June 27, 2017.
According to the facts in the information and plea agreement, Shryock created a promotional campaign “Boobies Rock Awareness for Breast Cancer” in February, 2011 and subsequently incorporated “Boobies Rock” in California in April, 2011 as its sole owner and operator. Between April, 2011 and June 2013, Boobies Rock!, operating as a for-profit business, held between 3,600 and 4,500 promotional events selling breast cancer awareness merchandise and accepting donations at bars and sporting events throughout the country.
The Boobies Rock merchandise consisted of t-shirts, hoodies, koozies and bracelets. Hiring managers and/or sales representatives accepted cash, checks, and credit card payments at the events. Shryock instructed the money received be deposited into bank accounts controlled by Shryock at two different banks. Proceeds were also mailed or hand delivered to Shryock’s Castle Rock residence.
During the years under investigation over 2,200 cash deposits totaling over $1.8 million were made into Shryock’s accounts. Shryock used some of these funds to support his lifestyle. Based on the income Shryock earned operating Boobies Rock between 2011 and 2013, along with income Shryock did not report in 2010 while residing in California, the amount of restitution owed to the IRS is $430,970.
Willful failure to file a federal income tax return carries a penalty of not more than one year in federal prison, and a fine of up to $100,000 per count.
This case was investigated by Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Martha Paluch.
Cape Cod Man Pleads Guilty to Heroin and Suboxone TraffickingRead the Press Release
BOSTON – A Hyannis man pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin and suboxone with Denzel Chisholm and the “Nauti-Block” gang.
Tyrone Gomes, 31, pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, possession of heroin with the intent to distribute, and conspiracy to distribute suboxone. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 25, 2017.
Chisholm’s arraignment is set for April 13, 2017, in U.S. District Court in Boston. Both Gomes and Chisholm are also facing charges in Massachusetts state court related to the September 2015 murder of Christine Ferreira at a rest stop on Route 6 on Cape Cod.
In October 2015, spurred by the murder of Ferreira, law enforcement initiated an effort to address the rising opioid epidemic and its subsequent violence in Massachusetts and on Cape Cod in particular. According to court documents, Chisholm, Gomes, and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. Gomes received large quantities of heroin from Chisholm, which he sold to other drug dealers and individual users. On March 6, 2016, Chisholm arranged to sell Gomes 12 grams of heroin in exchange for cash and 10 suboxone strips. The suboxone was ultimately destined for Browning Mejia, an inmate at MCI-Norfolk and an associate of Chisholm. As a result of the investigation, agents were able to stop Gomes’ vehicle and recover 12 grams of heroin from Gomes.
Because Gomes has a prior felony drug conviction from 2010, the charge of conspiracy to distribute and possession with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of eight years and up to a lifetime of supervised release, and a fine of up to $8 million. The charge of conspiracy to distribute suboxone, a Schedule III controlled substance, provides for a term of imprisonment of up to 30 years, a minimum of four years of supervised release, and a fine of up to $1 million. The charge of possession of heroin with the intent to distribute provides for a sentence of up to 30 years in prison, a minimum of six years of supervised release, and a fine of up to $2 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in indictments are allegations. Defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Seafood Dealer Pleads Guilty to Illegally Trafficking American EelsRead the Press Release
NORFOLK, Va. – A New York City man pleaded guilty today to illegally harvesting and trafficking more than $150,000 worth of juvenile American eels, aka “elvers” or “glass eels,” in violation of the Lacey Act.
“Illegal harvesting and trafficking of wildlife represents a dire threat to our critical ecosystems,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This investigation into illegal elver trafficking and resulting guilty plea reaffirms our commitment to protecting Virginia’s natural resources for future generations.”
According to the statement of facts filed with the plea agreement, Tommy Water Zhou, 42, admitted to illegally selling or purchasing elvers harvested illegally in Virginia. In 2010, Zhou established a seafood distribution company known as Wilson Group Sea Trading LLC. The company’s principle place of business was Brooklyn, New York, and its operations included importing seafood for domestic consumption and exporting seafood to international markets. In 2013, Zhou obtained a Maine elver dealer license, authorizing him to purchase and resell elvers harvested in Maine. Thereafter, using his Maine dealer license to cover his illegal activity, Zhou began purchasing and exporting elvers that were actually harvested from Virginia waterways in violation of Virginia law.
“We will not allow illegal wildlife traffickers to undermine managed fish species like the American eel,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “In this operation, we are actively partnering with states all along the East Coast to enforce the law and protect our nation's waterways from further exploitation.”
This plea was the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for 11 individuals whose combined conduct resulted in the illegal trafficking of more than $2.75 million worth of elvers.
“American eels are a key component of many healthy watersheds, and a priceless part of our natural heritage,” said Jim Kurth, Acting Director of USFWS. “Yet greed is driving criminals to harm the species in the United States, after virtually destroying eel populations in Asia. Today’s guilty plea, along with previous indictments and guilty pleas from defendants in multiple states, demonstrate our resolve to arrest and prosecute those who put profits above the law.”
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
“It is important for the preservation of the American eel stock that this type of greedy plundering of juvenile glass eels be stopped. This joint investigation is an excellent example of what cooperative law enforcement partnerships can achieve,” said Virginia Marine Police Chief Rick Lauderman. “We are grateful for the work done by the dedicated agents who participated in Operation Broken Glass.”
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
Zhou will be sentenced on July 12 and faces a maximum penalty of five years in prison and a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; and Jim Kurth, Acting Director of USFWS, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Joseph Kosky and Trial Attorneys Cassandra Barnum and Shane Waller from the Justice Department’s Environmental Crimes Section are prosecuting the case.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-9.
Brooklyn Seafood Dealer Pleads Guilty for Illegally Trafficking American EelsRead the Press Release
Today, Tommy Water Zhou pled guilty in federal district court in Norfolk, Virginia, to trafficking more than $150,361 worth of juvenile American eels, aka “elvers” or “glass eels,” in violation of the Lacey Act. As part of his guilty plea, Zhou admitted to illegally selling or purchasing elvers in interstate commerce, which had been harvested illegally in Virginia.
According to the statement of facts filed with the plea agreement, in 2010, Zhou established a seafood distribution company known as Wilson Group Sea Trading LLC. The company’s principle place of business was Brooklyn, New York, and its operations included importing seafood for domestic consumption and exporting seafood to international markets. In 2013, the defendant obtained a Maine elver dealer license, authorizing him to purchase and resell elvers harvested in Maine. Thereafter, using his Maine dealer license to cover his illegal activity, the defendant began purchasing and exporting elvers that were actually harvested from Virginia waterways in violation of Virginia law.
This plea was the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for eleven individuals whose combined conduct resulted in the illegal trafficking of more than $2.75 million worth of elvers.
The guilty plea was announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, and Acting Director Jim Kurth of the USFWS.
“We will not allow illegal wildlife traffickers to undermine managed fish species like the American eel,” said Acting Assistant Attorney General Wood. “In this operation, we are actively partnering with states all along the East Coast to enforce the law and protect our nation's waterways from further exploitation.”
“Illegal harvesting and trafficking of wildlife represents a dire threat to our critical ecosystems,” said U.S. Attorney Boente. “This investigation into illegal elver trafficking and resulting guilty plea reaffirms our commitment to protecting Virginia’s natural resources for future generations.”
“American eels are a key component of many healthy watersheds, and a priceless part of our natural heritage. Yet greed is driving criminals to harm the species in the United States, after virtually destroying eel populations in Asia,” said Acting Director Kurth. “Today’s guilty plea, along with previous indictments and guilty pleas from defendants in multiple states, demonstrate our resolve to arrest and prosecute those who put profits above the law.”
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the U.S. can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the U.S. in all but two states: Maine and South Carolina. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.
“It is important for the preservation of the American eel stock that this type of greedy plundering of juvenile glass eels be stopped. This joint investigation is an excellent example of what cooperative law enforcement partnerships can achieve,” said Virginia Marine Police Chief Rick Lauderman. “We are grateful for the work done by the dedicated agents who participated in Operation Broken Glass.”
The offense in this case is a felony under the Lacey Act, each carrying a maximum penalty of five years in prison, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
Sentencing is set for July 12.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by the Justice Department’s Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller, and Assistant U.S. Attorney Joseph Kosky, Environment and Natural Resources Division
Bronx Man Pleads Guilty in White Plains Federal Court in Connection with Fatal Carjackings of Two Livery Cab DriversRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that TAKIEM EWING, a/k/a “Mulla,” pled guilty to firearms offenses in connection with the fatal carjackings of two livery cab drivers: Maodo Kane, who was killed in the Bronx on August 5, 2014, and Aboubacar Bah, who was killed in the Bronx on August 12, 2014. EWING faces a mandatory minimum term of 35 years in prison and a maximum term of life in prison, and will be sentenced before United States District Judge Vincent L. Briccetti on July 12, 2017, at 10:00 a.m.
Acting Manhattan U.S. Attorney Joon H. Kim said: “On August 5, 2014, Maodo Kane, a livery cab driver, just trying to earn an honest living, was shot and killed during a carjacking in the Bronx. A week later, Aboubacar Bah, another innocent livery cab driver in the Bronx, was killed in another carjacking. Today, Takiem Ewing has admitted and pled guilty to his participation in these two senseless killings. I want to thank our partners at the FBI, the NYPD, and the City of Yonkers Police Department for their work in bringing Ewing to justice. And we hope that this conviction gives the victims’ friends and families a measure of justice.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
On August 5, 2014, Ewing participated with others in the armed carjacking of Maodo Kane. During the course of the carjacking, one of the perpetrators discharged a gun and Kane was killed in the vicinity of Hunter Avenue, in the Bronx. Subsequently, on August 12, 2014, Ewing participated in the carjacking of Aboubacar Bah. Again, one of the perpetrators discharged a gun in the course of the carjacking, and Mr. Bah was killed in the vicinity of Bryant Avenue, in the Bronx.
Tyrone Felder, Kareem Martin, and Tommy Smalls have also been charged in connection with the carjackings and resulting deaths of Mr. Kane and Mr. Bah. Their trial is scheduled to begin before Judge Briccetti on February 19, 2018.
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Mr. Kim praised the outstanding investigative work of the New York City Police Department (“NYPD”), the City of Yonkers Police Department, and the Federal Bureau of Investigation’s (“FBI”) Westchester County Safe Streets Task Force, which comprises agents and investigators from the FBI, the United States Probation Office, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, the NYPD, the City of Yonkers Police Department, the City of Peekskill Police Department, and the Mount Vernon Police Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Gerber and Scott Hartman are in charge of the prosecution.
Bergen County, New Jersey, Man Admits Role in Conspiracy to Distribute More Than Three Kilograms of Heroin in PatersonRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted purchasing more than three kilograms of heroin from a source in Bronx, New York, and re-selling it to drug dealers in Paterson, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Edwin Lopez, a/k/a “E,” a/k/a “Pan,” 31, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
From June 2015 to May 2016, Lopez, Juan Pablo Goris-Castellano, 26, of Bronx; Carolina Almonte, 29, of Bronx; Charlie Rodriguez, 33, of Paterson; Reinaldo Rodriguez, 27, of Paterson; Victor Alfonso Alvarez Martinez, 26, of Bronx; Edward M. Stanel, 25, of Parsippany, New Jersey; and Joseph Trimarco, 28, of Stony Point, New York, allegedly participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations around Bronx and used couriers to deliver large quantities of heroin to mid-level drug dealers in Paterson. The heroin was either sold in the Paterson area or redistributed to street-level drug dealers in suburban areas, including Morris County, New Jersey, and Rockland County, New York.
Goris-Castellano, who was based out of Bronx, packaged and then distributed large quantities of heroin to Lopez, who operated out of Paterson. Almonte and Martinez brought the heroin to Lopez and returned to Goris-Castellano with Lopez’s payment. Lopez then sold portions of that heroin to Charlie Rodriguez, who worked closely with Reinaldo Rodriguez to resell portions of the heroin to street-level dealers in Paterson and to street-level dealers in suburban areas, including Stanel, who operated in Morris County, and Trimarco, who operated in Rockland County.
Lopez admitted he participated in this conspiracy from June 2015 until his arrest on April 19, 2016. He admitted that at the time of his arrest, he was giving a $13,500 payment to one of Goris-Castellano’s couriers in exchange for the 150 bricks of heroin.
The count of conspiracy to possess with intent to distribute more than one kilogram of heroin carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum $10 million fine. Sentencing is scheduled for July 11, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
This case was brought under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), 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.
Almonte, Alvarez Martinez, and Stanel have pleaded guilty to participation in portions of this conspiracy. Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Defense counsel: John T. Somohano Esq., Paterson
Benton Harbor Man Convicted of Methamphetamine TraffickingRead the Press Release
SOUTH BEND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Johnny Jones, age 39, of Benton Harbor, Michigan was convicted of conspiracy to distribute methamphetamine and possession of methamphetamine with intent to deliver, after a three-day jury trial before United States District Court Judge Jon E. DeGuilio. Mr. Jones was acquitted of a firearms count from the indictment.
According to documents filed in this case, Mr. Jones and two other individuals from Benton Harbor conspired to distribute over 50 grams of methamphetamine in the Northern District of Indiana and elsewhere between May and August, 2016. The other two defendants named in the indictment had previously pled guilty and are awaiting sentencing. Jones is scheduled to be sentenced on August 9, 2017, at 1:30pm.
This case was the result of an investigation by the Drug Enforcement Administration, St. Joseph County Police Department and Benton Harbor Police. This case is being handled by Assistant United States Attorney Joel Gabrielse.
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Attorney General Jeff Sessions Updates United States Attorneys and DOJ Component Heads on the Department’s Task Force on Crime Reduction and Public SafetyRead the Press Release
Attorney General Jeff Sessions today issued the attached memo to 94 U.S. Attorney’s Offices and Department of Justice component heads providing an update on the Department’s Task Force on Crime Reduction and Public Safety.
Task Force on Crime Reduction and Public Safety Memo
As part of that update, the Attorney General announced the creation of Task Force subcommittees that will focus on a variety of issues including developing violent crime reduction strategies, supporting prevention and re-entry efforts, updating charging and sentencing policies, reviewing asset forfeiture guidance, reducing illegal immigration and human trafficking, combatting hate crimes, and evaluating marijuana enforcement policy.Attorney General Jeff Sessions Delivers Remarks on Efforts to Combat Violent Crime in St. LouisRead the Press Release
On March 31st, 2017, United States Attorney General Jeff Sessions came to Saint Louis as part of a national listening tour of law enforcement concerns and issues.
Over two hundred federal, state, and local law enforcement officials convened at the Thomas F. Eagleton Federal Courthouse to meet with Attorney General Sessions and Deputy Attorney General Dana Boente.
As part of the tour, Attorney General Sessions and Deputy Attorney General Boente met privately with 40 law enforcement officials who were there by invitation. The group discussed such issues as growing violent crime; street crime; federal forfeiture; prison sentences; funding; and federal assistance to local law enforcement.
Attorney General Sessions and Deputy Attorney General Boente pledged their support of local law enforcement efforts and advised that upon their return to Washington, they would meet with their staffs to consider implementing policies that address the law enforcement concerns that were raised.
Attorney General Sessions and Deputy Attorney General Boente then spoke to over one hundred employees of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, and the Federal Marshal Service.
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Alfredo Beltran Leyva Sentenced to Life in Prison for Leading an International Drug Trafficking ConspiracyRead the Press Release
Alfredo Beltran Leyva, also known as Mochomo, one of the leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, was sentenced today to life in prison for his participation in an international narcotics trafficking conspiracy.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Assitant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division, Special Agent in Charge James J. Hunt of the Drug Enforcement Administration (DEA) New York Division and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
“For well over a decade, the defendant commanded a major Mexican drug trafficking organization that imported ton-quantities of cocaine and methamphetamine into the United States and led a campaign of violence and fear that gripped communities across North America,” said Acting Assistant Attorney General Blanco. “Through close cooperation with our foreign counterparts, the United States brought this international drug-trafficker to justice, significantly disrupted the flow of narcotics into the United States and stemmed the tide of destruction wrought by this violent cartel.”
“Alfredo Beltran Leyva spent decades at the head of a criminal organization responsible for trafficking large amounts of cocaine and methamphetamine into the U.S.,” said Assistant Director Richardson. “Today’s sentencing marks an end to Alfredo Beltran Leyva's reign of terror, and demonstrates that the FBI and our law enforcement partners around the globe will aggressively pursue and bring justice to those individuals who use violence and intimidation to threaten our communities.”
“Alfredo Beltran Leyva is one of the ‘Goliaths’ of Mexican drug traffickers known for his savage business tactics and responsible for flooding the United States with illegal drugs,” said Special Agent in Charge Hunt. “This sentencing exemplifies law enforcement’s commitment to bringing justice to the victims of drug abuse through successful prosecutions of the highest echelon of drug traffickers.”
“Today’s sentencing dealt a major blow to the Beltran Leyva Organization by taking out one of its leaders. It is with tireless joint enforcement efforts like this one that we can remove drugs from America’s streets and make our communities that much safer,” said HSI Executive Associate Director Edge. “HSI and our law enforcement partners, both in the United States and around the world, will not waver in our resolve to dismantle and cripple violent drug organizations, and remove their leadership.”
Beltran Leyva, 46, was indicted on Aug. 24, 2012, for conspiracy to distribute cocaine and methamphetamine for importation into the United States. The defendant was extradited from Mexico to the United States on Nov. 15, 2014, and pleaded guilty on Feb. 23, 2016, before U.S. District Judge Richard J. Leon of the District of Columbia. Judge Leon imposed today’s sentence and ordered Beltran Leyva to forfeit $529,200,000.
In court, Beltran Leyva admitted that he was part of a conspiracy to import large quantities of drugs into the United States. At his plea hearing and during pre-trial conferences, the government proffered evidence that from the early 1990s until his indictment in August 2014, the defendant was a leader of the Beltran Leyva Organization, a global criminal enterprise responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States. Beltran Leyva admitted that he and his organization obtained tonnage quantities of cocaine from South American suppliers, which the defendant and his organization helped finance and which were transported to Mexico via air, land and sea. Once the cocaine reached Mexico, the defendant’s organization transported it to key points in Mexico, including Culiacan, Sinaloa, which was also the central point for the collection of billions of dollars from drug trafficking proceeds in the United States. At sentencing, the government’s evidence showed that the organization used weapons and carried out acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, in order to sustain the drug importation operation.
On May 30, 2008, the United States added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list, pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the United States specifically designated Beltran Leyva as a specially-designated drug trafficker under the same act.
The FBI’s El Paso, Texas, Division led the investigation in partnership with the DEA’s New York Division and HSI’s Special Agent in Charge, New York office as part of the Organized Crime Drug Enforcement Task Force. Acting Deputy Chief Amanda Liskamm and Trial Attorney Adrian Rosales of the Criminal Division’s Narcotic and Dangerous Drugs Section and Assistant U.S. Attorneys Marcia M. Henry and Andrea Goldbarg of the Eastern District of New York prosecuted the case. The Criminal Division’s Office of International Affairs provided valuable assistance in the case.
Albuquerque Woman Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jessica Hofer, 26, of Albuquerque, N.M., was sentenced today in federal court to 48 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction. Hofer’s co-defendant, Cody Castillo, 31, previously was sentenced to 84 months of imprisonment on Jan. 20, 2017, based on his guilty plea to methamphetamine trafficking charges.
Hofer and Castillo 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.
Hofer and Castillo were arrested in July 2016, on an indictment charging them with conspiracy and distribution of methamphetamine on June 2, 2016, in Bernalillo County, N.M. Hofer pled guilty on Dec. 2, 2016, to a felony information charging her with possession of methamphetamine with intent to distribute, and admitted that on June 2, 2016, she sold more than 50 grams of methamphetamine with a 99% purity level to an undercover agent.
To date, 32 of the 104 defendants have entered guilty pleas and five 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.
This case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Eva M. Fontanez prosecuted the case.
Albuquerque Man Sentenced to Five Years for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Christopher Craig, 26, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for his conviction on a heroin trafficking charge. Craig will be on supervised release for four years after completing his prison sentence.
Craig was arrested in Feb. 2016, on a criminal complaint charging him with possessing heroin with intent to distribute on Feb. 17, 2016, in Sandoval County, N.M. According to the complaint, Craig attempted to sell approximately 205.8 grams of heroin to law enforcement officers. At the time of his arrest, Craig was on supervised release for a 2010 conviction for possessing a firearm in furtherance of a drug trafficking crime. Craig was subsequently indicted on March 8, 2016, on a heroin trafficking charge.
On Sept. 8, 2016, Craig pled guilty to the indictment and admitted that on Feb. 17, 2016, he arranged to sell a half pound of heroin in exchange for $5,000. Craig further admitted that when he was arrested, he was in possession of 205.8 grams of heroin, which he intended to sell.
This case was investigated the Albuquerque office of the FBI, the New Mexico State Police and the Rio Rancho Police Department. Assistant U.S. Attorney Presiliano Torrez prosecuted the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – William Colbert, 38, of Albuquerque, N.M., pled guilty this morning in federal court to bank robbery charges. Under the terms of his plea agreement, Colbert will be sentenced within the range of 41 to 51 months in federal prison followed by a term of supervised release to be determined by the court.
Colbert and co-defendants Abel Lopez, 31, and Joleen Sedillo, 42, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery offenses. According to the criminal complaint, Sedillo, Lopez and Colbert robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Sedillo, Lopez and Colbert were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
During this morning’s proceedings, Colbert pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Colbert admitted accompanying Sedillo and Lopez to the Bank of the West branches they planned to rob. Colbert further admitted that on July 14, 2016, he entered a Bank of the West branch while disguised with the intent to commit a robbery but left without obtaining any money.
On March 28, 2017, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Sedillo admitted driving Lopez and Colbert to the Bank of the West branches they planned to rob. Sedillo further admitted that on July 14, 2016, she drove her co-defendants away from a branch of Bank of the West branch that Colbert attempted to rob. She also admitted concealing the clothing Colbert wore during the attempted robbery. Under the terms of her plea agreement, Sedillo will be sentenced within the range of 27 to 33 months in prison followed by a term of supervised release to be determined by the court.
Lopez has entered a plea of not guilty to the charges against him. Lopez remains in custody pending trial, which has yet to be scheduled. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.