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31 March 2017
Former Hotel Clerk Indicted for Fraud and Identity TheftRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former hotel desk clerk on fraud and identity theft charges for unauthorized use of a customer’s bankcard, announced Acting U.S. Attorney Robert O. Posey and U.S. Secret Service Special Agent in Charge Michael Williams.
A four-count indictment filed in U.S. District Court charges TIFFIANY LASHAWN HALL, 40, of Birmingham, with three counts of wire fraud and one count of aggravated identity theft. The indictment also includes notice that the government will seek a longer sentence, of up to 10 years, if Hall is convicted because the criminal acts occurred while she was on supervised release after serving time on a 2007 conviction in federal court.
Hall worked as a front desk clerk at a hotel on Pelham Parkway in Pelham in October 2013. While at work on Oct. 11, 2013, Hall obtained a Regions Bank card belonging to a hotel customer identified in the indictment as P.T. Without authorization, Hall used the card for purchases at Walmart, Piggly Wiggly and Beauty Masters, according to the indictment. She also used the card to withdraw funds from P.T.’s Regions account. The multiple transactions totaled more than $3,000.
The indictment charges Hall with three wire fraud counts for separate bankcard purchases made at Walmart on Montclair Road in Birmingham. The indictment charges Hall with aggravated identity theft for using the bankcard, a means of identification of P.T., in relation to the wire fraud.
The maximum penalty for wire fraud is 30 years in prison and a $1 million fine. The penalty for aggravated identity theft is a minimum of two years in prison, which must be served after completion of any other sentence imposed for an associated crime, and a maximum $250,000 fine.
U.S. Secret Service investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
An indictment includes only charges. A defendant is presumed innocent unless and until proven guilty.
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Former Hotel Clerk Indicted for Fraud and Identity TheftRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former hotel desk clerk on fraud and identity theft charges for unauthorized use of a customer’s bankcard, announced Acting U.S. Attorney Robert O. Posey and U.S. Secret Service Special Agent in Charge Michael Williams.
A four-count indictment filed in U.S. District Court charges TIFFIANY LASHAWN HALL, 40, of Birmingham, with three counts of wire fraud and one count of aggravated identity theft. The indictment also includes notice that the government will seek a longer sentence, of up to 10 years, if Hall is convicted because the criminal acts occurred while she was on supervised release after serving time on a 2007 conviction in federal court.
Hall worked as a front desk clerk at a hotel on Pelham Parkway in Pelham in October 2013. While at work on Oct. 11, 2013, Hall obtained a Regions Bank card belonging to a hotel customer identified in the indictment as P.T. Without authorization, Hall used the card for purchases at Walmart, Piggly Wiggly and Beauty Masters, according to the indictment. She also used the card to withdraw funds from P.T.’s Regions account. The multiple transactions totaled more than $3,000.
The indictment charges Hall with three wire fraud counts for separate bankcard purchases made at Walmart on Montclair Road in Birmingham. The indictment charges Hall with aggravated identity theft for using the bankcard, a means of identification of P.T., in relation to the wire fraud.
The maximum penalty for wire fraud is 30 years in prison and a $1 million fine. The penalty for aggravated identity theft is a minimum of two years in prison, which must be served after completion of any other sentence imposed for an associated crime, and a maximum $250,000 fine.
U.S. Secret Service investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
An indictment includes only charges. A defendant is presumed innocent unless and until proven guilty.
Former Detroit Public Schools Director of Grant Development Sentenced on Fraud ChargesRead the Press Release
The former Detroit Public Schools Director of Grant Development was sentenced today to 18 months in prison and an additional 4 months in a community corrections center upon her release, as a condition of supervised release, after having pleaded guilty to federal program fraud, announced Acting U.S. Attorney Daniel Lemisch.
Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Bernadette Kakooza, Inspector General of the Detroit Public Schools.
Carolyn StarkeyDarden, 72, of Detroit, was sentenced by United States District Judge Stephen J. Murphy, III.
According to court records between 2005 and 2012, Carolyn StarkeyDarden, as president and/or agent of companies she established to provide supplemental educational services to eligible students in Michigan, obtained at least $1,275,000 from DPS through a scheme in which she submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
This case was investigated by agents of the FBI and the Office of Inspector General for Detroit Public Schools. This case was prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Florida Asset Manager Pleads Guilty to Investment Fraud ConspiracyRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Steven Zoernack (55, Sarasota) today pleaded guilty to conspiring to commit wire fraud. He faces a maximum penalty of five years in federal prison, a $250,000 fine, and mandatory restitution to his victims in the amount of $2,890,518.54.
According to the
plea agreement , Zoernack owned and operated an investment advisory firm, EquityStar Capital Management LLC (“EquityStar”), through which he formed and managed multiple hedge funds, including the Petroleum Black Energy Fund, the Global Partners Fund, and the Momentum Growth Fund. Beginning in August 2012, Zoernack and his co-conspirators marketed these funds to accredited investors across the United States and Canada from offices in Sarasota and Newport Beach, California. They raised more than $6 million through their solicitations.In marketing the funds, Zoernack failed to disclose numerous material facts about his background and the funds he was managing. Specifically, he failed to disclose that he had been convicted on federal wire fraud charges in 2007; had previously filed for bankruptcy; had a history of tax liens and adverse money judgments; and still owed hundreds of thousands of dollars in restitution to past fraud victims. In fact, Zoernack actively sought to conceal his past by misappropriating fund assets to pay an online reputation manager to manipulate Internet search engine results about him to prevent potential investors from learning of his past. He also routinely lied about his educational background, his expertise as an investment manager, and his experience in the financial industry. Similarly, Zoernack lied about the educational backgrounds and professional experience of his employees, as well as the size of the firm’s staff. He repeatedly impersonated former EquityStar employees and corresponded with investors online using fictitious names and phony email accounts. In addition, he lied to potential investors about his portfolio’s ratings, profits, market returns, and losses.
After obtaining investor contributions, Zoernack begin misappropriating fund assets for his personal use. Specifically, he made monthly withdrawals of unauthorized “salaries” and “bonuses” in amounts ranging from $12,000 to $25,000 and used these and other fund assets to pay for personal and non-business related expenses, none of which were disclosed to investors. In total, through a combination of trading losses and the misappropriation of fund assets, Zoernack lost millions of dollars of investors’ money.
This case was investigated by the Federal Bureau of Investigation, alongside a parallel civil enforcement action brought by the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Five Indicted for Possessing Cell Phones in Federal PrisonRead the Press Release
WILMINGTON – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Wilmington has returned indictments in five unrelated cases charging JAMES BOSTIC, age 45, MAURICE KNIGHT, age 38, MICHAEL MARSHALL, age 40, KAVIN DATRON WILLIAMS, age 35, and JURHON LEE ROBINSON, age 44, with possession of a prohibited cell phone in federal prison. All are currently serving federal sentences for previous convictions at Butner Correctional Institute in Butner, North Carolina.
If convicted each would face not more than one year imprisonment, not more than $100,000 fine and not more than one year supervised release following any term of imprisonment.
U.S. Attorney Bruce commented, “The possession of cell phones by prisoners is a threat to public safety, endangering correctional officers as well as the general public. Any such cases will be prosecuted vigorously.”
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 Bureau of Prisons and prosecuted by the U.S. Attorney’s Office for the Eastern District of North Carolina.
Federal Jury Finds Santa Fe Engineer Guilty of Obstructing IRS and Filing False Tax ReturnsRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation announced that a federal jury sitting in Albuquerque, N.M., returned a verdict yesterday afternoon finding Darryl J. Gutierrez of Santa Fe, N.M., guilty of violating the federal tax laws. Gutierrez, 61, was found guilty of obstructing and impeding the administration of the internal revenue laws and filing false tax returns.
Gutierrez was indicted on Nov. 5, 2015, and charged with one count of obstructing and impeding the due administration of the internal revenue laws and ten counts of making and subscribing false tax returns.
The trial of Gutierrez on the eleven-count indictment began on March 27, 2017, and concluded yesterday afternoon when the jury returned a guilty verdict on all eleven counts of the indictment. During the trial, the jury learned that Gutierrez was an electrical engineer who worked at Los Alamos National Laboratory for almost 30 years, earning an annual salary ranging from $80,000.00 to $115,000.00 in tax years 2000 to 2009. The evidence at trial also established that Gutierrez, after years of regularly filing timely income tax returns with the IRS, stopped complying with the federal tax laws and began engaging in a pattern of obstructive conduct to prevent the IRS from assessing and collecting his taxes.
The evidence at trial showed that Gutierrez’s obstructive tactics included sending frivolous correspondence to the IRS, and, submitting, under penalty of perjury, false tax information to his employer and to the IRS. For instance, the evidence showed that Gutierrez submitted, under penalty of perjury, false withholdings information (Forms W-4) to his employer and false statements of his wages on his personal income tax returns (Forms 1040) filed with the IRS. The evidence further showed that between Nov. 2010 and Jan. 2011, Gutierrez filed ten false federal income tax returns for tax years 2000 to 2009 seeking a refund when in fact Gutierrez owed the IRS approximately $125,000.
“Our tax system depends on each one of us truthfully reporting our income to the IRS. Anybody can make an honest mistake, but deliberate lies on an income tax return are a crime. As we go into tax filing season, honest taxpayers should take some comfort in knowing that everybody has to follow the same rules, and that those who don’t are facing criminal prosecution and imprisonment,” said Acting U.S. Attorney James D. Tierney. “Taxpayers should also know that the IRS makes every effort to work with taxpayers who are trying in good faith to meet their tax obligations.”
“This verdict should send a clear message that citizens have a duty to comply with the tax laws in our country,” said IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez, Jr. “I also hope it deters others who might consider relying on frivolous anti-tax arguments.”
Gutierrez faces a statutory maximum penalty of three years of imprisonment on each of the eleven charges on which he was convicted. Gutierrez was ordered to post a $200,000 bond pending sentencing. A sentencing date has yet to be scheduled.
This case was investigated by the Albuquerque office of IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Margaret Vierbuchen and Holland S. Kastrin.
Federal Inmate Sentenced for Possession of ShankRead the Press Release
BEAUMONT, Texas - A 25-year-old federal inmate has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Armando Rodriguez, Jr., pleaded guilty on Mar. 6, 2017, to possession of a prohibited object and was sentenced to 12 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Sep. 11, 2016, Rodriguez, a federal inmate housed in the Federal Correctional Complex in Beaumont, was found to be in possession of a homemade knife. The knife, commonly referred to as a shank, was discovered by a corrections officer during a routine pat-down. The shank was a piece of metal that had been sharpened to a point and was designed to be used as a weapon. Such objects are prohibited in the Bureau of Prisons. Rodriguez had previously been convicted of a federal drug violation and was scheduled to complete his sentence on April 3, 2017.
This case was investigated by the Bureau of Prisons and prosecuted by Assistant U.S. Attorney John B. Ross.
Federal Grand Jury Indicts Two Credit Card Cases Investigated by Jefferson County Regional Financial Fraud Task ForceRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday returned two separate indictments charging individuals from outside of Alabama with traveling to the state to commit access device fraud, announced Acting U.S. Attorney Robert O. Posey, and U.S. Secret Service Special Agent in Charge Michael Williams.
“The two unrelated cases indicted this week are prime examples of financial crime frequently committed through the creation and use of fraudulent debit, credit and gift cards,” Posey said. “We are fortunate in the Birmingham Metro Area to have the Jefferson County Regional Financial Crimes Task Force, which brings local law enforcement in the county together with the U.S. Secret Service to quickly respond to and investigate these type of crimes.”
“Technology has forever changed the way we do business, making every day financial transactions a prime target for fraud,” Williams said. “The Secret Service, in conjunction with the Jefferson County Regional Financial Crimes Task Force, continues to successfully combat financial crimes in the metro area by adapting our investigative methodologies, and educating the general public.”
A two-count indictment filed in U.S. District Court charges ALEXANDER ACOSTA, 27, and YESTER LUIS RODRIGUEZ DUQUE, 34, both of Florida, with conspiracy to use, possess and traffic in counterfeit and unauthorized access devices, and with possessing 15 or more of the fraudulent cards.
The indictment charges that Acosta and Duque traveled to Alabama in March in order to use counterfeit cards to obtain money, goods and services, and that Acosta used at least one of these cards at a Walmart in Vestavia Hills on March 15. The indictment likewise charges that the defendants were in possession of 15 or more counterfeit or unauthorized access devices on March 15.
The grand jury returned a separate two-count indictment charging CHARLES ANTONIO RICE, 27, and HERMES CHIMAERA-EL, 35, both of North Carolina, with conspiracy to commit access device fraud in March. The indictment also charges RICE with possessing device-making equipment on March 21.
According to the indictment, Rice and Chimaera-El obtained counterfeit access devices encoded with their own names, but with account numbers belonging to residents in the Northern District of Alabama. The duo came to north Alabama in order to use the fraudulent cards to obtain money, goods and services. Rice possessed an MSRX6 Bluetooth card encoder, the indictment charges.
The maximum penalty for conspiracy to use, possess or traffic in unauthorized or counterfeit access devices is five years in prison and a $250,000 fine. The maximum penalty for possessing 15 or more unauthorized or counterfeit access devices is 10 years in prison and a $250,000 fine, and the maximum penalty for possessing device-making equipment is 15 years in prison and a $250,000 fine.
The U.S. Secret Service investigated both cases in conjunction with its financial service investigator and state and local law enforcement partners on the Jefferson County Regional Financial Fraud Task Force. Assistant U.S. Attorneys Robin Beardsley Mark and Erica Williamson Barnes are prosecuting the cases.
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Eight Defendants Plead Guilty to Drug Trafficking Charges, Agree to over $360,000 in ForfeituresRead the Press Release
Eight defendants have pled guilty to drug trafficking charges in federal court in Cedar Rapids.
Kyle Chyma, age 28, Edgar Hernandez, age 30, Kelbie Struve, age 24, Kailyn Struve, age 25, and Marlene Hernandez, age 24, all of Toledo, Iowa, Scott Steuhm, age 24, and Tyler Walz, age 22, both of Tama, Iowa, and Alejandra Castillo-Hernandez, age 45, of Marshalltown, Iowa, pled guilty to taking part in a drug trafficking conspiracy.
In September 2016, all eight defendants were charged in an indictment with conspiracy to distribute controlled substances. At plea hearings this month, Chyma, Edgar Hernandez, Steuhm, Kelbie Struve, Kailyn Struve, Marlene Hernandez, and Alejandra Castillo-Hernandez admitted to trafficking in methamphetamine. Chyma, Kailyn Struve, and Walz admitted to trafficking in cocaine. Chyma also admitted to engaging in a money laundering conspiracy.
The indictment also contained a forfeiture allegation. As part of their guilty pleas, the eight defendants agreed to forfeit up to $360,027.19 in drug proceeds.
Chyma, Edgar Hernandez, and Steuhm face a mandatory minimum sentence of 10 years’ imprisonment and a maximum term of life imprisonment. Kelbie Struve, Kailyn Struve, Marlene Hernandez, and Alejandra Castillo-Hernandez face a mandatory minimum sentence of 5 years’ imprisonment and a maximum term of 40 years’ imprisonment. Walz faces a maximum term of 20 years’ imprisonment.
Sentencing hearings before Chief United States District Court Judge Leonard T. Strand will be set after presentence reports are prepared. All eight defendants are being held in the custody of the United States Marshal pending sentencing.
The case is being prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by the Drug Enforcement Administration, with support from the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Cedar Rapids Police Department, Marion Police Department, Linn County Sheriff’s Office, Iowa City Police Department, Johnson County Drug Task Force, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-76.
Follow us on Twitter @USAO_NDIA.
Drug Trafficker Sentenced to 87 Months ImprisonmentRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that ALVIN SANTOS PADUA, age 38, was sentenced in U.S. District Court today by Senior Judge Alex R. Munson, to 87 months imprisonment for attempted possession of 245 grams of methamphetamine with intent to distribute, three years supervised release, and ordered to pay a $100 special assessment fee.
On September 16, 2013, PADUA met one of his associates at the parking lot of Hotel Mai’ana in Tamuning for the specific purpose of picking up a package containing approximately 250 grams of methamphetamine. PADUA picked up a DVD player box which he expected would contain methamphetamine. The defendant had previously agreed with his associates in the Philippines to sell the drugs, and cause to send $100,000 drug proceeds to the Philippines. He was unaware that the box concealed a sham product that law enforcement agents placed inside the box. The defendant was arrested shortly after he received the package.
Defendant PADUA pled guilty on December 5, 2013.
The case was investigated by special agents from the U.S. Department of Homeland Security, Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Marivic David.
District Man Sentenced to Five Years in Prison for Broad Daylight Attack of Woman in Southeast WashingtonRead the Press Release
WASHINGTON – Christopher Galloway, 49, of Washington, D.C., has been sentenced to five years in prison for attacking a woman last year in Southeast Washington, U.S. Attorney Channing D. Phillips announced. The assault was stopped by officers with the Metropolitan Police Department (MPD), who were driving by the scene and heard the victim’s screams.
Galloway was found guilty by a jury in December 2016 of a charge of assault with intent to commit robbery while armed. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced on March 30, 2017, by the Honorable Neal E. Kravitz. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on March 23, 2016, at approximately 9:40 a.m., two MPD Officers were driving along the 1900 block of Martin Luther King Jr. Avenue SE, on truancy duty, with the windows of their van cracked. They heard a woman’s cries for help and spotted, in the space between two nearby buildings, a man standing over a woman who was on the ground, on her back.
The officers stopped the van and ran to the woman’s assistance, interrupting Galloway as he stood with a knife in his hand over the victim. The knife was recovered on the scene.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura R. Bach; Victim/Witness Advocate James Brennan; Paralegal Specialist Richard Cheatham, and the staff of the U.S. Attorney’s Office Litigation Technology Department. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys William E. Schurmann and John B. Timmer, who investigated and prosecuted the case.
District Man Pleads Guilty to Sexual Assault in Court CellblockRead the Press Release
WASHINGTON – Jerome M. Holliway, 37, of Washington, D.C., pled guilty today to a charge of first-degree sexual abuse for attacking another defendant last fall while they were in a courthouse cellblock, U.S. Attorney Channing D. Phillips announced.
Hollliway pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 17 ½ years in prison. The Honorable José M. Lopez set a hearing for June 9, 2017 to determine whether to accept the plea and sentence. Holliway remains in custody pending his sentencing.
According to the government’s evidence, on Nov. 11, 2016, Holliway and the victim were held in the same cellblock at the Superior Court of the District of Columbia. Both had finished their court hearings and were awaiting transport back to the District of Columbia Jail. At approximately 11:35 a.m., Holliway began attacking the victim -- beating, biting, kicking, and sexually assaulting him, mostly in the toilet area behind a metal divider.
After the attack, Holliway pulled the naked victim up by his chains and stated, “Don’t tell anyone that I did this, tell them a ghost did it or the devil did it or something.”
In a separate matter, Holliway pled guilty today to a charge of attempted threats stemming from another incident that took place last fall. The plea agreement calls for the sentence imposed in this case to run concurrently with the 17 ½ years for the sexual assault. In this matter, Holliway admitted calling his estranged wife’s telephone and leaving a voicemail on Oct. 5, 2016, in which he threatened to beat her and kill anyone she loved.
In announcing the pleas, U.S. Attorney Phillips commended the work of those who investigated the cases from the U.S. Marshals Service and the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D'Yvonne Key and Victim/Witness Advocate Shawn Slade. Finally, he commended the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the sexual assault, and Assistant U.S. Attorney Jeffrey Poulin, who investigated and prosecuted the threats matter.
Dallas County School Teacher Charged with Federal Child Pornography Offense Sentenced to 121 Months in Federal PrisonRead the Press Release
FORT WORTH, Texas — Mark Stutheit, 59, was sentenced today by U.S. District Judge John McBryde to 121 months in federal prison, following his guilty plea in October 2016 to one count of receipt of a visual depiction of a minor engaged in sexually explicit conduct, announced U.S. Attorney John Parker of the Northern District of Texas.
Stutheit who was a teacher at Reinhardt Elementary School in Dallas at the time of the offense has been in custody since his arrest in June 2016.
According to documents filed in the case, in June 2016, an undercover officer with the Queensland Police Service (Brisbane, Queensland, Australia) and Stutheit exchanged emails about the sexual exploitation of children.
On June 23, 2016, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Stutheit’s residence in Saginaw, Texas. A forensic evaluation of evidence seized revealed numerous files containing child pornography on Stutheit’s computer and mobile devices.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated. Assistant U.S. Attorney A. Saleem prosecuted.
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Conspirator Admits Scheme to Defraud Movie Finance CompanyRead the Press Release
Baltimore, Maryland – David Odom, age 53, of Chicago, Illinois pleaded guilty today to a wire fraud conspiracy arising from a scheme to defraud lenders from February to August 2011 in order to obtain financing for a movie. Co-conspirator Darryl Wesley Clements, age 50, of Detroit, Michigan, previously pleaded guilty to wire fraud conspiracy. Rodney Patrick Dunn, age 40, of Elkridge, Maryland, pleaded guilty to receipt of a bribe by a bank official.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); and Eric M. Thorson, Inspector General for the Department of the Treasury.
According to the plea agreements for the defendants, Rodney Dunn was a vice president and a bank loan officer. In 2009, Dunn met Clements. Dunn believed that Clements was a broker for cash lenders and attempted to raise loan funds through Clements and other loan brokers for an athletic complex in the Newport News area of Virginia. Dunn subsequently agreed that if he received a telephone message where he did not recognize the caller’s name, he would text or telephone Clements with the caller’s information and permit Clements to return the telephone call posing as “Rodney Dunn, bank officer.” Dunn believed he would obtain from Clements valuable contacts with professional athletes that would catapult his career change into sports agency. Clements also promised to pay Dunn for his assistance.
David Odom owned CityScope Productions, LLC, and was seeking financing to produce the movie “Season Tickets.” Odom met Clements through an attorney in New York. Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore, where Dunn was employed. In fact, there was no such financing, and there were no escrow funds held at the bank. The false documents further stated that CityScope needed a $2.5 million bridge loan to complete the financing for the movie.
In order to carry out the fraud scheme, Clements created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled. February 2011, Dunn purchased five cashiers’ checks from his employer bank, each for $20 and made payable to Clements. Clements then altered the checks so that they totaled $4 million, the payees were individuals and entities affiliated with the movie, and “The Shah Group,” was the remitter. Clements provided the altered checks to Odom/CityScope. Odom knew that the checks were fraudulent since no one had been paid. Clements also fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements, which Clements emailed to Odom, so that he could furnish those fraudulent documents to prospective lenders.
Dunn communicated by telephone with Clements when a prospective lender called Dunn at the bank to verify the funds in the escrow accounts, so that Clements could return the telephone call, pose as Dunn, and verify the existence of the escrow accounts and their balances. Odom sought financing from multiple lenders including an unsuccessful attempt thwarted by the prospective lender’s local counsel in Baltimore. Among other things, Clements created a fictitious bank statement for a purported escrow account which Odom admitted he sent to a prospective lender.
In a telephone call on May 9, 2011, Clements posed as Dunn and fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company). On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire, specifying that the funds were to be used solely for movie expenses.
In early 2011, Odom’s house was sold in a foreclosure proceeding to the mortgage lender and Odom was faced with moving or eviction. Odom admitted that he used the bridge loan funds to spend $821,000 to purchase his home back from the lender, approximately $60,000 to buy two cars, approximately $6,000 to take his family on "Exotic Western Caribbean Cruise" by Carnival Cruise, approximately $90,000 in transfers to family members, and another approximately $75,000 in personal expenses. Odom also paid some pre-production movie expenses.
Odom did not repay the loan. The California finance company prepared to have the bank repay the loan from the purported escrow account, leaving messages for Dunn at the bank, which he then passed on to Clements. Clements, posing as Dunn, falsely told the company that the loan repayment had been sent to CityScope. When the California finance company did not receive the funds from CityScope, it brought lawsuits to recover its loan. Because of the allegations contained in the civil law suits, Odom believed that criminal charges would be brought against Clements, and he told Clements his fears. Clements was engaged in another loan fraud and received proceeds of $4 million. In August 2011, Clements transferred $2 million to CityScope, which Odom used to settle the California finance company’s lawsuit.
Odom and Clements face a maximum sentence of 20 years in prison at their sentencings, which U.S. District Judge George L. Russell III has scheduled for July 27, 2017 at 11:30 a.m. and April 28, 2017 at 9:30 a.m., respectively. Rodney Dunn faces a maximum sentence of 30 years in prison at his sentencing, which Judge Russell has scheduled for June 9, 2017, at 9:30 a.m.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, SIGTARP, and the Treasury Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joyce K. McDonald and Rachel M. Yasser, who are prosecuting the case.
Colorado Man Sentenced to Ten Years for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Anthony Derrico, 36, of Grand Junction, Colorado, was sentenced today in U.S. District Court by Judge George Z. Singal to 10 years in prison to be followed by 10 years of supervised release for transporting child pornography. He was also ordered to pay a total of $10,000 in restitution to children who were depicted in child pornography images he possessed. He pleaded guilty on November 21, 2016.
According to court records, in May 2016, a federal agent in Maine investigating the online exchange of child pornography saw that an individual, later identified as Derrico, posted child pornography images to an online chat group. In a later private chat session with the agent, Derrico expressed an interest in child pornography, and sent the agent three child pornography images. The agent learned that Derrico, who was a truck driver, was driving from Idaho to Texas. Derrico was found in Laredo, Texas and arrested in his truck. Memory cards seized at the time of his arrest contained numerous child pornography images.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Caribbean Defendants Convicted of International Drug TraffickingRead the Press Release
Two defendants were convicted today after a 12 day jury trial for their roles in an international drug trafficking conspiracy that aimed to transport more than 2,400 kilograms of cocaine aboard U.S. registered aircraft, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting Administrator Chuck Rosenberg of the U.S. Drug Enforcement Administration (DEA).
Dwight Knowles, a Bahamian national also known as “Arizona,” and Oral George Thompson, a Jamaican national also known as “Chad,” were convicted of conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine on board a U.S. registered aircraft. Thompson is set to be sentenced on June 21, 2017, and Knowles is set to be sentenced on June 23, 2017. U.S. District Court Judge Amy Berman Jackson of the District of Columbia presided over the trial and will impose sentence.
According to the evidence introduced at trial, Knowles and Thompson sought to acquire U.S. registered aircraft to transport large quantities of cocaine from Colombia and Venezuela. Thompson moved to Colombia by 1997 and Knowles followed by 2010. From their base in Colombia, the defendants were better able to connect with sources of cocaine who were seeking aircraft, mostly from the United States, to transport their cocaine from Colombia and Venezuela to Central America and the Caribbean, for eventual distribution elsewhere.The evidence introduced at trial also revealed that from 2011 through May 2012, Knowles and Thompson sought to acquire a U.S. registered aircraft to transport at least three loads of cocaine from Venezuela to Honduras. The evidence showed that a total of at least 2,400 kilograms of cocaine could have been transported in the three loads. The plan was to acquire a U.S. registered Beechcraft 1900 aircraft in The Bahamas, fly the plane to Haiti to refuel and pick up a second pilot, fly to Venezuela where the cocaine would be loaded on the plane, and then fly to Honduras to deliver the cocaine. In May 2012, Knowles and Thompson arranged for a Bahamian pilot to fly the Beechcraft 1900 aircraft to Haiti; however, upon arriving in Haiti, the pilot and two other men on the plane were arrested and the plane was confiscated by Haitian authorities.
The DEA’s Orlando (Florida) office, Bogotá and Cartagena, Colombia Country Offices, and Special Operations Division investigated the case. The government of Colombia provided invaluable assistance through the investigation of this case, with specific assistance provided by the Colombian National Police. Invaluable assistance was also provided by The Royal Bahamas Police Force, Drug Enforcement Unit; the Ministry of Traffic, Transportation and Urban Planning, Curacao Civil Aviation Authority; and, the National Police of Haiti, Anti-Drug Traffic Office. The United States Federal Aviation Administration (FAA) also played a pivotal role in the investigation and prosecution of the case.
This case was prosecuted by Trial Attorneys Adrian Rosales, Charles Miracle and Erin Cox of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), with significant assistance provided by the NDDS Judicial Attachés in Bogotá, Colombia; the Criminal Division’s Office of International Affairs; and the Prosecutor General’s Office of the Republic of Colombia (Fiscalía).
Canandaigua Man Pleads Guilty to Threatening Mass Shooting at Albany VARead the Press Release
ALBANY, NEW YORK – Robert J. Seifert, age 58, of Canandaigua, New York, pled guilty today to threatening to commit a mass shooting at the Stratton VA Medical Center in Albany.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Donna L. Neves of the U.S. Department of Veterans Affairs (VA) Office of Inspector General, Northeast Field Office.
Seifert pled guilty to a charge of making an interstate threat to injure another. He admitted that on June 15, 2016, he made a phone call to a Veterans Crisis Line operator in Portland, Oregon, in which he stated “I got an Uzi and I wanna kill everybody at the Albany VA,” “Watch what happens when I get to the Albany VA with my Uzi and I start shooting people up,” and “I’m going to [expletive] kill everybody there.”
Seifert has been in custody since July 14, 2016. As part of the plea agreement, the government and Seifert’s attorney asked the Court to impose a sentence of time served at the time of sentencing, as well as 3 years of post-imprisonment supervised release. Sentencing is scheduled for July 28, 2017 before United States District Judge Mae A. D’Agostino.
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
California Man Arrested on Enticement 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 Loren Glen Warner, 27, of Fresno, CA, was arrested and charged by criminal complaint with enticement of a minor. The charge carries a minimum of 10 years and a maximum penalty of life and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the complaint, in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim. In the early morning hours of January 23, 2017, Warner drove to the victim’s residence. The victim got into the car and the two had sexual intercourse.
The investigation was initiated by the New York State Police who received a report from the legal guardian of the victim. The legal guardian reported that she woke up early on January 23, 2017, and saw the victim walking towards the house and the defendant in his car at the end of the driveway. She also reported that later in the day, the victim told her that Warner had sexual intercourse with her.
On March 27, 2017, the defendant pleaded guilty to Rape in the Second Degree and Endangering the Welfare of a Minor in Cattaraugus County Court and is scheduled to be sentenced on those charges on June 12, 2107.
The defendant made an initial appearance today before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., and is being held.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Steven Nigrelli; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bridgeport Heroin Dealer Sentenced to 57 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GLEN PORTER, also known as “Kuran,” 32, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2015, the FBI’s Bridgeport State Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force initiated an investigation into several heroin distributors operating in Bridgeport. The investigation, included court-authorized wiretaps, controlled purchases of heroin and physical surveillance, revealed that Kareem Roseboro, also known as “Swiss,” was supplying distribution quantities of heroin to other individuals, including PORTER. PORTER and others sold heroin to their own customers.
Roseboro and his associates used the Stylz Barbershop, located on State Street in Bridgeport, as a hub for their narcotics distribution activity.
During the course of the investigation, investigators seized multiple “bricks” of heroin, items used in the processing and packaging of heroin, and five firearms. A brick of heroin contains 100 individual dose bags.
On June 6, 2016, a grand jury in Bridgeport returned an eight-count indictment charging PORTER, Roseboro and five other Bridgeport residents with heroin trafficking offenses. The seven defendants were arrested on June 7, 2016.
PORTER has been detained since his arrest. On November 16, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
PORTER’s criminal history includes multiple felony convictions.
Roseboro has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. The case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds and H. Gordon Hall.
Benin Man Convicted in Pennsylvania of Using Stolen IDs to File Tax Returns Seeking More Than $800,000 in RefundsRead the Press Release
A Republic of Benin man unlawfully residing in Philadelphia, Pennsylvania was convicted today in the Eastern District of Pennsylvania of conspiring to commit access device fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and evidence at trial, from February through June 2014, Abdou Koudos Adissa was engaged in a conspiracy in which stolen identities were used to file tax returns claiming refunds with the Internal Revenue Service (IRS). Co-conspirators filed tax returns fraudulently seeking more than $800,000 in refunds, which were loaded onto Green Dot prepaid debit cards and sent via Western Union to Nigeria. In order for the prepaid debit cards to accept direct deposits, they had to be registered using personal identifying information including names, social security numbers and addresses. During a search of the apartment Adissa shared with a co-conspirator, special agents found 106 Green Dot cards in Adissa’s room. Adissa registered the Green Dot cards using stolen IDs and provided his co-conspirators with the direct deposit information related to the cards so that fraudulently obtained refunds could be directed to them. to the evidence produced at trial, he called Western Union 63 times in three months to facilitate transferring these fraudulent refunds to Nigeria.
Sentencing is scheduled for June 28. Adissa faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties. Adissa is pending immigration removal proceedings.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS-Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney David J. Ignall and Trial Attorney Carl F. Brooker of the Tax Division who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Benicia Woman Pleads Guilty to Tax FraudRead the Press Release
SACRAMENTO, Calif. —Sherrell Davis, 43, of Benicia, pleaded guilty today to submitting false claims for tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from February 2011 through May 2013, Davis repeatedly engaged in tax fraud by submitting fraudulent claims for tax refunds in the names of other people to the Internal Revenue Service. The tax returns used fraudulent W-2 tax forms from purported employers that reflected false wages and false withholdings in order to generate tax refunds to which the people listed on the returns were not entitled. The refunds sought also included amounts for tax credits to which the taxpayers were not entitled, including the Earned Income Credit, the American Opportunity Credit, and the Making Work Pay Credit. Davis submitted or assisted in the presentation of fraudulent tax returns seeking a total over $350,000 in tax refunds, of which at least $210,320 were paid out by the IRS.
This case is the product of an investigation by IRS Criminal Investigation. Assistant United States Attorney Christopher S. Hales is prosecuting the case.
Davis is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Davis faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Baltimore Conspirator Sentenced to over Three Years in Federal Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Adebola Opeyemi Adeniyi, age 32, a Nigerian citizen living in Baltimore, today to 42 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in a stolen identity refund fraud (SIRF) scheme. Adeniyi admitted that the conspirators defrauded the IRS by using the personal identifying information (PII) of individual victims to obtain over $655,000 in fraudulent tax refunds. Judge Motz also entered an order requiring Adeniyi to pay restitution of $550,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, from October 17, 2013 through March 17, 2015, Adeniyi and his co-conspirators filed false tax returns, arranging for the electronic transfer of the fraudulently obtained tax refunds to prepaid debit cards. Adeniyi also obtained victims’ account information from the 2013 Target Store data breach, which he and other participants in the scheme used to re-encode the magnetic strips of payment cards in their possession. Adeniyi and other participants used the debit cards loaded with SIRF funds and the re-encoded payment cards to purchase money orders, which the conspirators cashed at check cashing businesses. Adeniyi shared the cash proceeds with other participants in the scheme. The total value of money orders purchased with SIRF funds and cashed by Adeniyi or at his direction was at least $665,635. The total value of money orders purchased with account information compromised during the Target Store data breach and cashed at Adeniyi’s direction was at least $80,500. At least $100,874 in SIRF funds were loaded onto prepaid debit cards for which co-conspirator Mayowa Towobola provided account numbers and security codes to Adeniyi and other participants in the scheme, and the total value of fraudulently obtained money orders cashed by Towobola was at least $58,524. In text messages found on Adeniyi and Towobola’s cell phones, seized during searches executed on July 21, 2015, they discuss loading a total of at least $1,237,358 in fraudulently obtained funds onto various prepaid debit cards.
Further, Adeniyi admitted that he used some of the money orders obtained from the two schemes to: purchase vehicles at auctions in Maryland, and arrange for their shipment to purchasers in Nigeria; and to engage in currency exchange transactions, exchanging U.S. currency for Nigerian currency at competitively low rates.
Co-conspirators Mayowa Olabiyi Towobola, age 26, a resident of Parkville, Maryland, and Hafis Omowonuola Oladokun, age 39, of Owings Mills, Maryland, previously pleaded guilty to their involvement in the wire fraud conspiracy and were sentenced to 33 months in prison, and two years in prison, respectively. Judge Motz also ordered Towobola to pay restitution $159,398. Adeolu Adeola Solabu, age 25, of Baltimore, also pleaded guilty and is scheduled to be sentenced on April 14, 2017, at 11:00 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, IRS-CI and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew J. Maddox and Paul E. Budlow, who are prosecuting the case.
Austin Man Sentenced to Federal Prison for Defrauding the IRS and a Title Company in Order to Facilitate a Real Estate TransactionRead the Press Release
In Austin this morning, a federal judge sentenced 32-year-old Russell Eric Spillers to 14 months in prison for providing false tax information to a title company in order to facilitate a real estate transaction, announced United States Attorney Richard Durbin, Jr., and Special Agent in Charge Ruben Florez, Treasury Inspector General for Tax Administration (TIGTA), Mid-States Field Division.
In addition to the prison term, United States District Judge Sam Sparks ordered that Spillers pay a $7,200 fine as well as $21,026.70 restitution. Judge Sparks also ordered that Spillers be placed on supervised release for a period of three years after completing his prison term.
On January 23, 2017, Spillers pleaded guilty to one count of wire fraud. In 2015, Spillers, while acting as a real estate agent, attempted to sell a house that at the time, had four federal tax liens against it. By pleading guilty, Spillers admitted to creating and emailing to a title company a fraudulent IRS Letter 4025 (Conditional Commitment to Discharge Certain Property from Federal Tax Lien). That letter, dated December 18, 2015, claimed that the IRS had agreed to accept a $1,300 payment from the sale of a property to satisfy the tax liens and allow the sale of the property to go through. Based on that fraudulent letter, the property was sold and as a result, the defendant received $21,026.70.
“TIGTA’s mission includes protecting the integrity of tax administration and the ability of the IRS to collect revenue owed to the Federal Government,” said J. Russell George, Treasury Inspector General for Tax Administration. “Those who violate the Nation’s tax laws and adversely affect tax administration by falsifying IRS documents, as in this case, must be prosecuted to the full extent of the law,” he added.
TIGTA conducted this investigation. Assistant United States Attorney Michael Galdo prosecuted this case on behalf of the Government.
Atlanta area Brothers Sentenced for Corporate Hijacking SchemeRead the Press Release
ATLANTA - Antonio Sandridge and Rodney Sandridge have been sentenced to more than two years in federal prison for mail fraud conspiracy. The defendants, who are brothers, operated a fraud ring where they hijacked corporate identities and used them to fraudulently order over $500,000 in electronics. Both defendants were previously convicted of similar conduct in 2006.
“These defendants manipulated public records and hijacked corporate identities to order expensive electronics for themselves,” said U. S. Attorney John Horn. “Worse, they preyed on small businesses, so the losses suffered by these victims were potentially devastating.”
"The Sandridge brothers made their living by victimizing small businesses,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. sentences imposed today should be a reminder that the Secret Service, in conjunction with our law enforcement partners and the United States Attorney’s Office, will continue to arrest and prosecute criminals who repeatedly take advantage of innocent victims and companies.”
“The Atlanta Police Department strives to protect our citizens and businesses every day. We are extremely proud of the investigative work that went into building a strong case against these career criminals and the outstanding cooperation with both the U.S. Secret Service and the U.S. Attorney’s office to get a conviction,” said Erika Shields, Chief of Atlanta Police Department.
According to U.S. Attorney Horn, the charges and other information presented in court: From 2012 until February 2014, the Sandridges engaged in a scheme where they stole the identities of dormant Georgia corporations by filing new registration information for existing companies on the Georgia Secretary of State’s website, unbeknownst to the actual owners of the corporations. The false registration would list new company officers and a new corporate address, which was a virtual office space under the conspirators’ control.
After stealing the corporate identity of Georgia companies, the Sandridge brothers and co-conspirators would use fake credit applications to order laptops and other electronics from victim vendors in the names of the hijacked companies. The computer equipment was purchased on credit with payment due in the weeks following delivery, and the delivery address was a virtual office space controlled by the conspirators. When victim vendors shipped computer equipment to the virtual office space, Rodney Sandridge picked up the fraudulently ordered electronics, and Antonio Sandridge immediately sold the electronics to third-party resellers.
In total, over $540,000 in computer equipment was ordered from 16 victim companies, and the victims received little more than a couple hundred dollars, if anything, for the orders despite repeated efforts to collect payment.
In 2006, the U.S. District Court for the Northern District in Georgia sentenced the Sandridges to prison on federal conspiracy charges based on their participation in a nearly identical scheme from 2001 to 2005.
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Antonio Sandridge, 49, of Tucker, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May to two years and three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $85,736.
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Rodney Sandridge, 51, of Duluth, Georgia, was also sentenced by Judge May to three years and six months in prison to be followed by three years of supervised release, and he was ordered to pay restitution in the amount of $389,123.
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Antonio and Rodney Sandridge were convicted on these charges on November 22, 2016 and January 20, 2017, respectively, after they pleaded guilty.
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This case was investigated by the U.S. Secret Service and the Atlanta Police Department. Assistant United States Attorneys Samir Kaushal and Nathan P. Kitchens prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Anchorage Husband and Wife Sentenced for Drug Trafficking and Wire Fraud ConvictionsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that on Thursday, March 30, 2017, Arnold Wesley Flowers, II, 42, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 75 months in prison, followed by five years of supervised release, for his convictions for possession of cocaine with intent to distribute, being a felon in possession of firearms, and 12 counts of wire fraud.
Today, March 31, 2017, Flowers' wife, Miranda May Flowers, 32, of Anchorage, was also sentenced by U.S. District Court Judge Sharon L. Gleason to serve 20 months in prison, followed by three years of supervised release, for her convictions on 12 counts of wire fraud. Judge Gleason also imposed a condition of 120 hours of community work service as a condition of Mrs. Flowers’ supervised release.
On Dec. 13, 2016, a jury in U.S. District Court in Anchorage found Mr. and Mrs. Flowers guilty on 12 counts of wire fraud. The evidence established that on the night of Jan. 17, 2016, the Flowers moved several items from their home into a storage unit located at Best Storage on Tudor Road in Anchorage. These items included several big screen television sets, jewelry, designer clothing, shoes, handbags, and sunglasses, as well as video games, computers, and other electronics. On January 19, the Flowers staged a burglary at their home on Larkspur Circle and claimed the above items had been stolen in the staged burglary of their home. The Flowers held a renter's insurance policy with State Farm Insurance. On January 25, the Flowers contacted State Farm Insurance and made a formal claim for reimbursement of the replacement cost of the items they falsely claimed had been stolen on January 19.
The Flowers valued the falsely stolen or damaged property at over $101,000. Flowers communicated this claim for loss to State Farm Insurance through multiple telephone calls and emails that originated in Alaska and were sent to claim investigators located at State Farm Insurance offices located in the Lower 48 states and Hawaii.
In a separate federal jury trial that concluded in Anchorage on Oct. 19, 2016, Mr. Flowers was found guilty of possession of cocaine with intent to distribute and for being a felon in possession of firearms. The evidence established that during a search of Flowers’ residence on March 29, 2016, Anchorage Police found 2 ounces of cocaine packaged in plastic sandwich baggies clogging a toilet in the upstairs bathroom and 4 ounces of wet and similarly packaged cocaine hidden under the lining of a trash can in the same bathroom. When Anchorage Police entered the home, Mr. Flowers was upstairs in the area near the upstairs bathroom. the master bedroom that Flowers shared with his wife and located adjacent to the bathroom where the police found cocaine, Anchorage Police discovered two safes that held a combined $28,000 in cash. Each safe also held a loaded firearm. One of the safes had the distinct odor and smell of cocaine. the top drawer of a dresser inside the bedroom, the Anchorage Police found three boxes of sandwich baggies that were similar to the baggies used to package the cocaine.
The jury also heard evidence that when Flowers was interviewed on March 29, he had $1,275 in cash in the front pocket of his pants. Mr. Flowers maintained that the cash in his pocket and his safes was from the sale of high-end watches. However, during the search of the residence the Anchorage Police did not find any watch inventory or documents that would support that Flowers was actively engaged in the sale of watches.
At Mr. Flowers’ sentencing, Judge Gleason found that the drug trafficking offense was particularly serious, given that Mr. Flowers was not selling cocaine to feed or fuel his own habit, but was selling to others to profit himself; his sole motivation was greed. She also found that it was troubling that someone would destroy the family home to perpetuate a fraudulent insurance claim, while also depriving their family members of the hidden items for months on end. Judge Gleason made specific findings that Mr. Flowers provided false statements to the Anchorage Police, to State Farm Insurance, and to the jury when he testified. She also noted that his watch sale business was a fraud, and that there was no evidence that he ever sold any watches.
At Mrs. Flowers’ sentencing, Judge Gleason noted it was particularly troubling that Mrs. Flowers had engaged in an abuse of law enforcement resources by calling the Anchorage Police Department to report a false burglary, thus instituting a meritless investigation. While responding to Mrs. Flowers’ false call, those resources were unavailable to investigate actual crimes. Judge Gleason also commented that the destruction of the family home by the Flowers and the staging of the burglary were particularly egregious, given that several young children lived in the home. Judge Gleason commented, "this is not something any child should have to go through."
Assistant U.S. Attorneys Kelly Cavanaugh and James Barkeley, and Special Assistant U.S. Attorney Erin Bennett prosecuted these cases for the United States.
Acting U.S. Attorney Schroder commends the Anchorage Police Department, the Federal Bureau of Investigation Safe Streets Task Force, the State of Alaska Division of Insurance, and the Drug Enforcement Administration, for the successful investigation and prosecution of this case.
30 March 2017
West Springfield Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A West Springfield man was charged today in federal court in Springfield in connection with sexually exploiting a five-year-old girl.
Justin Germaine was indicted on five counts of sexual exploitation of children, eight counts of distribution of child pornography, five counts of receipt of child pornography and one count of possession of child pornography. Germaine has been in custody since he was arrested and charged in July 2016.
According to court documents, on five occasions between November 2015 and June 2016, Germaine used a five-year-old girl to engage in sexually explicit conduct for the purposes of creating child pornography. In at least one of the videos found on his cellphone, Germaine appears to be the individual sexually abusing the girl. Between March 2016 and July 2016, Germaine allegedly distributed and received electronic child pornography files. Furthermore, Germaine exchanged emails with another individual in which the two allegedly discussed having sex with children and trading child pornography. Attached to these emails were sexually provocative pictures of minor girls.
The charge of sexual exploitation of children provides for a sentence of no greater than 30 years in prison, a lifetime of supervised release and a fine of $250,000. The charges of receipt and distribution of child pornography each provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 10 years in prison, a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and West Springfield Police Chief Ronald Campurciani, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office is prosecuting the case.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Wellington Ringleader of Elaborate Fraud Schemes Sentenced to 11 Years in PrisonRead the Press Release
Kesner Joaseus, 47, of Wellington, Florida, was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to a total of 11 years in prison for orchestrating two elaborate fraud schemes.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Sean Scheller, Chief, Town of Lantana Police Department, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
On July 28, 2016, Joaseus pled guilty in two separate fraud cases that were consolidated for the sentencing hearing. In one case, Joaseus conspired to commit and did in fact commit mail fraud by engaging in a scheme to defraud for the purpose of obtaining money by means of false and fraudulent pretenses, in violation of Title 18, United States Code, Sections 1341 and 1349 (Case No. 16-80011-CR-Rosenberg). Joaseus was sentenced to 108 months in prison in this case.
According to court documents related to the first case, a legitimate real estate investment trust based in Georgia, RHA 2, LLC, owns dozens of properties in Palm Beach and Broward Counties that it leases out as residential single family homes. This company operates as HavenBrook Homes. From November 2014 through December 2016, defendant Joaseus used the similar company name “RHA Two, LLC,” to illegally take possession of and rent the homes lawfully owned by HavenBrook Homes by assuming the legitimate company’s identity, posting rental signs on the houses, changing the locks and then meeting with unsuspecting prospective tenants.
In addition, Joaseus and his co-defendants entered into bogus leases with a counterfeit “HavenBrook Homes” logo, and collected thousands of dollars in money orders or cash, purportedly for security deposit, first and last month’s rent for the houses. Joaseus collected purported lease payments of over $380,000 from dozens of unsuspecting tenants of houses owned by HavenBrook Homes which the defendants had no right to possess.
In a separate case, Joaseus committed aggravated identity theft and access device fraud, in violation of Title 18, United States Code, Sections 1028A and 1029(a)(2) (Case No. 16-80010-CR-Rosenberg). that case, Joaseus used the personal identifiers, including the date of birth and social security number, of numerous victims to obtain credit cards and then used the credit cards to purchase merchandise and withdraw cash at various locations in Palm Beach County and elsewhere. The merchandise included two Mercedes-Benz automobiles, with total losses of over $260,000. Joaseus was sentenced to 108 months in prison for access device fraud, in addition to a two year consecutive prison sentence on the aggravated identity theft charge. The 108-month sentences in the two cases will be served concurrently, and the two-year sentence for aggravated identity theft will be consecutive, for a total sentence of 132 months (11 years) in prison.
In a related case, defendant Frantz Felisma pled guilty to aggravated identity theft and access device fraud for providing Joaseus with the personally identifiable information that was used to commit the identity theft fraud scheme (Case No. 17-80008-CR-Middlebrooks). Felisma served as a Palm Beach County Sheriff’s Deputy and obtained the personal information from his police department issued computer.
Mr. Greenberg commended the investigative efforts of the ICE-HSI, Lantana Police Department and USPIS. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Rinku Tribuiani in the West Palm Beach U. S. Attorney’s Office.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Wasilla Man Sentenced to 21 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a man from Wasilla was sentenced in federal court in Anchorage for being a felon in possession of a firearm.
Brandon Paul Schatz, 41, from Wasilla, Alaska, was sentenced by U.S. District Judge Sharon L. Gleason to 21 months in prison to be followed by three years of supervised release.
On May 23, 2016, Schatz brought a loaded Glock Model 42 semi-automatic pistol to his work at a gravel pit in Wasilla. At the time, Schatz was on felony probation with the State of Alaska for a conviction of Assault in the Third Degree.
Before imposing a sentence, Judge Gleason commented that due to his history, Mr. Schatz cannot be in possession of any firearms, and that her sentence focused on protection of the public given Mr. Schatz’s prior convictions for assault, weapons offenses, and driving under the influence.
Acting U.S. Attorney Schroder commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Alaska State Troopers for the investigation leading to the successful prosecution of this case.
U.S. Attorney’s Office and ATF Combat Gun Trafficking in Atlanta, including a spike in Thefts from Licensed Firearms DealersRead the Press Release
ATLANTA – The U.S. Attorney’s Office and the ATF continue to combat gun trafficking in Atlanta, including eight federal cases involving 32 defendants prosecuted in the past four months. In particular, ATF reported a dramatic increase in thefts of firearms from federally licensed firearms dealers in Georgia, facilitating the trafficking of these illegally obtained guns to criminals within and outside the state.
For example:
- In 2013, for example, the ATF received reports of 25 burglaries of licensed gun dealers in Georgia resulting in thefts of 338 guns.
- In 2014, the ATF received reports of 34 burglaries of licensed gun dealers in Georgia with a loss of 307 guns.
- In 2015, the ATF received reports of 33 burglaries of licensed gun dealers in Georgia resulting in thefts of 429 guns.
- In 2016, ATF investigated burglaries of 50 federally licensed firearms dealers in Georgia, with a staggering theft of more than 1,000 firearms.
“These stolen guns are trafficked all over the country as well as internationally, and are falling into the hands of convicted felons who use them to terrorize local communities,” said U.S. Attorney John Horn. “Frequently, traffickers who are prohibited from purchasing firearms enlist people with no criminal history – called “straw purchasers” – to buy the guns for them. In this way, relatives, spouses, friends, and associates of gun traffickers may find themselves ensnared in criminal conduct and facing lengthy prison sentences. The illegal trafficking of firearms fuels an entire cycle of criminal conduct that affects our entire community.”
“The primary goal of ATF’s firearms trafficking strategy is to prevent violent crime by disrupting and dismantling the firearms trafficking organizations and networks responsible for supplying violent offenders with crime guns,” said Special Agent in Charge Wayne Dixie. “Our top priority in the Atlanta Field Division of ATF is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice.”
Recognizing the unique threat posed to public safety by this spike in illegal firearms activity, the U.S. Attorney’s Office, in collaboration with the ATF and local law enforcement partners, has identified and prosecuted those individuals responsible for this spike in firearms offenses. The district’s recent prosecutions include the following cases and involve the following facts based on the charges and other information presented in court:
- United States v. Terry Brown, et. al.: on March 22, 2017, Brown, who led a criminal ring comprising seven defendants that stole 131 firearms from seven gun stores, was sentenced to six years, six months of imprisonment by U.S. District Judge Harold L. Murphy; the defendants’ scheme involved the trafficking of firearms stolen from federally licensed firearms dealers located across the state of Georgia, including dealers in the cities of Dalton, Tallapoosa, Warner Robbins, Athens, Thomson, Monroe, and LaGrange, Georgia; Co-defendants Jameel Drinkard, Eric Moore, and Jacquez Miller previously received sentences of imprisonment of eight years, four years, and one year, three months respectively, while the final defendants’ cases remain pending;
- United States v. Jaleel Wulu and Javaree Williams: on March 22, 2017, the defendants pleaded guilty to making false statements to purchase multiple firearms from several federally licensed firearms dealers and conspiring to do so; the men illegally purchased guns from licensed firearms dealers located in the cities of Atlanta, Sandy Springs, and Mableton, Georgia. Defendant Williams admitted to purchasing several firearms for Defendant Wulu – an aspiring Atlanta rapper known as “Trill Castro;” multiple guns purchased by the men were recovered at crime scenes in the state of Maryland;
- United States v. Jordan Brown, et. al.: on March 7, 2017, four defendants were charged with stealing 105 guns from a licensed gun dealer in Cumming, Georgia, by ramming a pickup truck through the side of the store at approximately 5:15 a.m. on December 31, 2016; an employee inside the store at the time fired a shot at the ceiling of the store in an attempt to thwart the burglary; local law enforcement officers arrested the defendants following a car chase;
- United States v. Alfred, et. al.: on March 1, 2017, a federal grand jury charged three defendants in a superseding indictment with trafficking 36 firearms from Georgia to the country of Trinidad and Tobago by using straw purchasers to illegally buy the guns and then secretly shipping the firearms aboard an international air carrier;
- United States v. Robbins, et. al.: on February 27, 2017, Robbins, one of three defendants charged with making false statements to federally licensed firearms dealers to purchase guns, pleaded guilty to this offense; the defendants’ illegal gun purchases resulted in the trafficking of 10 firearms to an individual unlawfully present in the United States; the co-defendants’ charges remain pending;
- United States v. Fisher-Bland, et. al.: on February 21, 2017, six defendants were charged with trafficking 33 firearms from Georgia to Rochester, New York, utilizing straw purchasers to make the illegal gun purchases; two of the defendants travelled from New York to Georgia to illegally purchase and transfer the firearms interstate as part of the scheme;
- United States v. Rawls: on December 20, 2016, Rawls, who illegally purchased firearms that law enforcement officers later recovered at multiple crime scenes in the states of Massachusetts and Rhode Island, pleaded guilty to making false statements to a licensed gun dealer and illegally transferring firearms to an out-of-state resident; this prosecution resulted from a collaboration by ATF field offices in Atlanta, Massachusetts, and Rhode Island; and
- United States v. Coffey, et. al.: on December 16, 2016, six defendants were charged with stealing and trafficking 129 firearms across three states – Georgia, North Carolina, and South Carolina; the defendants are alleged to have used a torch to burn a hole through a loading dock bay door of one of the guns stores to gain entry.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Industry and Security, Office of Export Enforcement, Georgia State Patrol, Atlanta Police Department, Henry County Police Department, Alpharetta Police Department, Cumming Police Department, City of Milton, Georgia, Police Department, Forsyth County Sheriff’s Office, members of the ATF-RAGE unit in and near August, Georgia, the North Carolina Police Departments of Charlotte-Mecklenburg and Rocky Mount, Rock Hill, South Carolina, Police Department, Rochester, New York, Police Department, Holly Springs Police Department, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robins Police Department, LaGrange Police Department, and the Pearl, Mississippi Police Department
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney General Jeff Sessions Meets with Attorneys General of El Salvador, Guatemala and HondurasRead the Press Release
A Department of Justice official released the following background statement at the conclusion of Attorney General Jeff Sessions’ meeting with the Attorneys General from El Salvador, Guatemala and Honduras:
“On Thursday, March 30, 2017, Attorney General Sessions met with the Attorneys General of El Salvador, Guatemala and Honduras. The goal of the dialogue was to strengthen law enforcement cooperation against transnational criminal threats common to all our countries, such as cartels, gangs and financial crimes. Attorney General Sessions and his counterparts agreed that this meeting was an important first step and that these vital discussions would continue as a means to increasing citizen security both in Central America and the United States.”
DELEGATION
Attorney General of El Salvador, Douglas Arquimides Melendez Ruiz
Attorney General of Guatemala, Thelma Esperanza Aldana Hernandez
Attorney General of Honduras, Oscar Fernando Chinchilla BanegasAdditional information on the Justice Department's Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) may be found on OPDAT's website.
Two indicted on firearms chargesRead the Press Release
Two men were indicted on firearms charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Anthony V. Mascarella, 29, of Youngstown, was indicted on one count of being a felon in possession of a firearm and ammunition.
Terry Lee Leitch, 33, of Rootstown, was indicted on one count of possession of an unregistered firearm.
The indictment alleges that Mascarella possessed a Smith & Wesson, model SD40VE, .40 caliber pistol, and ammunition on Nov. 15, 2016, after having been convicted of domestic violence in the Mahoning County Court of Common Pleas in 2007.
Leitch on Sept. 12, 2016, possessed a New England Firearms, model Pardner SB-1, 20 gauge shotgun, modified with a barrel length of approximately 13 inches and an overall length of approximately 19.25 inches, which firearm had not been registered to him in the National Firearms Registration and Transfer Record, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer. The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Youngstown Police Department (Mascarella) and the Portage County Sheriff’s Office (Leitch).
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two previously deported aliens were indicted separately on March 29, 2017, by a federal grand jury on illegal re-entry charges.
According to United States Attorney Bruce D. Brandler, Cesar Mauricio Rodriguez-Flores, age 32, of Mexico, was previously deported from the United States to Mexico on five occasions from March 2011 through September 2016. He is alleged to have illegally re-entered the United States sometime after September 2016, and was found in the United States in York County, Pennsylvania, after eluding examination or inspection by immigration officers.
Francisco Ramirez-Zamudio, age 35, of Mexico was previously deported from the United States to Mexico on four occasions from March 2011 through April 2013. He is alleged to have illegally re-entered the United States sometime after April 2013, and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
The cases were investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell prosecuted the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each defendant is two years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Men Indicted in Maine for Illegally Trafficking American EelsRead the Press Release
William Sheldon, 71, of Woolwich, Maine, and Timothy Lewis, 46, of Phippsburg, Maine, were each indicted in Portland, Maine, with crimes related to illegally trafficking juvenile American eels, also known as “elvers” or “glass eels.” A seven-count indictment was returned on March 1, charging Sheldon with conspiracy to smuggle elvers and violate the Lacey Act. A two-count indictment was returned on March 29, charging Lewis with conspiracy to traffic elvers and violate the Lacey Act. Sheldon was arraigned today in U.S. District Court in Portland. An arraignment for Lewis will be scheduled in the future.
The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and Acting Director Jim Kurth of the USFWS.
These indictments were 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 these two indictments, as well as guilty pleas for eleven individuals in Maine, Virginia and South Carolina. These eleven defendants combined have admitted to illegally trafficking more than $2.75 million worth of elvers.
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 U.S., 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.
The offense in this case is a felony under the Lacey Act, each carrying a maximum penalty of five years’ incarceration, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
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.
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.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller of the U.S. Department of Justice’s Environment and Natural Resources Division.
Two Members of Trenton Drug Trafficking Organization Plead GuiltyRead the Press Release
TRENTON, N.J. – Two Trenton, New Jersey, men admitted their roles in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced today.
Keith Hunter, a/k/a “Meech,” 24, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. On March 29, 2017, Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod,” 23, pleaded guilty before Judge Wolfson to a separate information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of their guilty pleas, Rogers and Hunter both admitted possessing at least one firearm during the conspiracy.
In December 2016, Hunter, Rogers, and eight other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its alleged leader, Ishmael Abdullah. Hunter and Rogers are the first of the 10 defendants to plead guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Hunter, Rogers and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Rogers. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Rogers, Hunter, and other members of the Abdullah DTO maintained joint access to multiple firearms.
The conspiracy charge to which Hunter and Rogers pleaded guilty carries a mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Rogers and Hunter will be sentenced on July 10, 2017, and July 7, 2017 respectively.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Scott C. Curley; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Rogers: David R. Oakley Esq., Princeton
Hunter: Robert J. Haney Esq., Princeton
Three Plead Guilty in Multi-Million Federal Prison Sentencing Reduction Fraud SchemeRead the Press Release
This month, three defendants pled guilty in the Southern District of Florida in connection with their participation in a $4.4 million dollar federal prison sentencing scheme. The fraudulent scheme targeted federal inmates and their families in Miami-Dade County and elsewhere by promising them assistance in obtaining a Rule 35 sentencing reduction, in exchange for money. Rule 35 of the Federal Rules of Criminal Procedure allows the court, upon the government’s motion, to reduce a defendant’s sentence if the defendant is found to have provided substantial assistance in investigating or prosecuting another person. Neither the government nor the court system charges inmates or their relatives a fee for requesting a sentencing reduction when an inmate provides substantial assistance.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Robert A. Bourbon, Special Agent in Charge, Department of Justice, Office of the Inspector General (DOJ-OIG), and Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation (FBI), Houston Field Office, made the announcement.
“Sentencing reduction fraud schemes that prey on the desperation, vulnerability and trust of federal inmates and their families exploit both the victims and the justice system,” stated Acting U.S. Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office in South Florida and our federal partners across the nation will continue to target such schemes and prosecute the offenders.”
“Conning relatives of federal inmates into thinking that they must pay money for their loved ones to receive a sentence reduction that is actually based solely on how much an inmate assists the government is an outrageous way to defraud innocent victims,” said Special Agent in Charge Robert Bourbon. “Even more importantly, it runs the risk of soiling the reputation of our federal criminal justice system, which prides itself on delivering just results, regardless of an individual’s wealth or access to those in power.”
“If you are a victim, it is critical that you reach out to us,” said FBI Special Agent in Charge Perrye K. Turner. “This case highlights that justice is blind and underscores the FBI’s impartiality when investigating cases.”
Colitha Patrice Bush, 36, and Alvin James Warrick, 40, both of Beaumont, Texas, as well as Ronald Bennett Shepherd, 32, of Houston, Texas, each pled guilty to a single count of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, in connection with their participation in the multi-year fraud scheme. In addition to the Southern District of Florida matter (Case No. 16-CR-20698-JAL)), Warrick and Bush also pled guilty to one count of conspiracy to commit wire fraud in a related case originally brought in the Eastern District of Texas, and subsequently transferred to Florida (Case No. 17-CR-20194-JAL).
Bush’s sentencing for both cases is scheduled for June 7, 2017, at 3:00 p.m. before U.S. District Judge Joan A. Lenard. Warrick’s sentencing is scheduled for May 31, 2017, at 3:00 p.m., and Shepherd’s sentencing is scheduled for May 24, 2017, at 3:00 p.m., also before U.S. District Judge Joan A. Lenard. The defendants each face a statutory maximum penalty of 20 years in prison as to each count.
According to court documents, from 2009 through September 7, 2016, Warrick, Bush, Shepherd, and others held themselves out as owners and operators of Private Services, a company that reportedly worked with a network of informants and law enforcement personnel to identify and provide information and third party cooperation that could be credited to federal inmates in Rule 35 proceedings. Using aliases such as “Peter Candlewood,” “Diane Lane,” and “Diane Rice,” the defendants targeted federal inmates and their families by promising that they could provide substantial assistance services, which would be used to help secure the early release of the inmates. In return, the defendants required relatives of the federal inmates to make periodic payments via cash, check, wire, and electronic fund transfer, in order for the third party cooperation process to supposedly be conducted. Overall, more than $4.4 million was paid to the defendants by at least twenty-two victims.
As part of the scheme, Warrick and Bush also provided fake invoices and fraudulent documents allegedly showing agreements between various U.S. Attorney’s Offices, including the Eastern District of New York and the Southern District of New York, and a company affiliated with Private Services. In fact, the agreements were fake, the prosecutors’ signatures were forged, and no substantial assistance was provided on behalf of these inmates. Instead, Warrick, Bush and Shepherd simply received payments from relatives of federal inmates, and used the fraudulently obtained funds for their personal use and benefit, including the purchase of luxury automobiles, vacations, and gambling activities.
Mr. Greenberg commended the investigative efforts of the DOJ-OIG, the FBI, the Houston Police Department, and the U.S. Attorney’s Offices in the Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of Texas, and Eastern District of Virginia, who provided significant and valuable support to this joint investigation. The Southern District of Florida case is being prosecuted by Assistant United States Attorney Anne P. McNamara. The Eastern District of Texas case is being prosecuted by Assistant United States Attorney Robert L. Rawls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Indicted on Drug and Firearms ChargesRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced a variety of drug and firearms charges in a 12 count Indictment. Named in the indictment are: Keith Miller, of Albion, Indiana; Brock Shellman, of Albion, Indiana and; Derek Jordan, of Wolcottville, Indiana.
The indictment alleges that Miller and Shellman were involved in a conspiracy to possess a large amount of methamphetamine intended for distribution, as well as the attempt to possess a large amount of methamphetamine with the intent to distribute. The indictment also alleges several instances of methamphetamine trafficking by Miller, firearms offenses by Keith Miller and Derek Jordan, and that Keith Miller was using his residence to engage in narcotics trafficking.
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This indictment results from a long- term multi-agency investigation conducted by the Drug Enforcement Administration Task Force in Fort Wayne, which includes personnel from the Drug Enforcement Administration, the Noble County Sheriff’s Department, the Steuben County Sheriff’s Department, and the Fort Wayne Police Department. Also participating in this investigation was the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is being handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Staten Island Man Pleads Guilty in Manhattan Federal Court to Defrauding Investors of over $2 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that EDWARD J. SERVIDER, a/k/a “Nick Halden,” pled guilty to defrauding approximately 100 investors of over $2.4 million through his firm EJS Capital Management, LLC. SERVIDER pled guilty to one count of conspiracy to commit commodities fraud before U.S. District Judge Jed S. Rakoff.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Edward Servider lured investors into his scheme by falsely telling them he had achieved high annual rates of return through his Forex trading. In fact, he never made a single trade or achieved any returns for any of his nearly 100 investor-clients. Instead, he used his investors’ money to pay for personal luxuries like hotels, cars, and an engagement ring. I want to thank the FBI for their great work in putting a stop to this fraud.”
According to allegations contained in the Complaint and the Indictment filed against SERVIDER and statements made in related court filings and proceedings:
In March 2013, SERVIDER set up a retail foreign currency exchange (“Forex”) trading firm, called EJS Capital Management, LLC (“EJS”), in Brooklyn. SERVIDER and his business partner (“CC-1”) ran EJS from March 2013 through July 2014. EJS employed salespeople (“cold callers”) who made unsolicited telephone calls to prospective investors. SERVIDER and the EJS cold callers told prospective investors that their funds would be used to trade in Forex transactions, and provided them with a “performance report” that falsely claimed that between 2010 and 2013, EJS had achieved gross annual returns for its investors of approximately 18 percent, 22 percent, 49 percent, and 77 percent (the “EJS Performance Report”). In truth, EJS had never conducted any trading or achieved any returns for its investors. To sustain the fraud, SERVIDER directed EJS employees to send account statements to the EJS investors, falsely showing positive returns on their investments.
In fact, instead of using the investor funds to execute Forex trading, the majority of the moneys was misappropriated and used to pay SERVIDER and CC-1’s personal expenses and purported business expenses for EJS. For example, SERVIDER used investor funds to purchase an engagement ring, to lease a BMW vehicle for his girlfriend, and to pay for hotel rooms, rental cars, and parking tickets.
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SERVIDER, 29, pled guilty to one count of conspiracy to commit commodities fraud, which carries a maximum term of five years in prison and a maximum fine of the greatest of $250,000, twice the gross gain from the offense, or twice the gross loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
SERVIDER’s sentencing is scheduled for July 27, 2017, at 4:00 p.m.
Mr. Kim praised the work of the FBI, and thanked the U.S. Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Soldier of Violent Bloods Street Gang Admits Racketeering ConspiracyRead the Press Release
Plea Calls for 22-Year Prison Sentence
NEWARK, N.J. – A soldier of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved attempted murder and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Laquan Reed, 27, a/k/a “Drama,” of Montclair, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups, called “sets,” that operate in specific geographic locations. Sex Money Murder is the set that operates primarily in Essex County, New Jersey. Reed, a ranking member in Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He admitted that he conspired with set members to murder a rival gang member on Aug. 3, 2011, identified in the indictment as “Victim 6.” Reed admitted he and others engaged in a shootout in an effort to kill the rival gang member in and around Newark. Reed also admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
The plea agreement requires Reed to be sentenced to 22 years in prison and five years of supervised release. Sentencing is scheduled for July 10, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Mary Toscano, Chief, Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division, and Dara Govan of the Criminal Division in Newark.
Defense counsel: James Patton Esq., Livingston, New Jersey
Shreveport woman sentenced to 46 months in prison for cocaine distribution conspiracyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport woman was sentenced Monday to 46 months in prison for her role in a cocaine and methamphetamine distribution operation in Caddo, Bossier, DeSoto and Red River parishes.
Linda G. Brown, 61, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of conspiracy to possess with intent to distribute cocaine. She was also sentenced to three years of supervised release. According to the guilty plea, the defendant along with co-defendants Shawn F. Swift, 36; Ricky R. Swift, 64; and Jarvis Randle, 29, all of Shreveport, conspired to distribute cocaine, methamphetamine and cocaine base from January of 2013 to October of 2014 in Caddo, Bossier, DeSoto and Red River parishes. Agents conducted controlled buys and monitored communications between the defendants as they planned and sold illegal drugs. Shawn Swift operated the drug sales with the other defendants out of the family home in Shreveport, and they distributed them to the surrounding areas.
They also forfeited 39 weapons seized during the investigation of this case and more than $360,000. Of that total, $89,700 was seized during a traffic stop on September 21, 2014; $237,753 was seized from the home of Ricky Swift and Linda Brown on October 21, 2014; and $40,457 was seized from the home of Shawn Swift on October 21, 2014.
Randle, pleaded guilty to the conspiracy charge on April 27, 2015; Ricky Swift pleaded guilty on June 1, 2015 to one count of laundering monetary instruments; and Shawn Swift, pleaded guilty on June 2, 2015 to the conspiracy charge and one count of possession of firearms in furtherance of drug trafficking.
Randle was sentenced on September 8, 2015 to 57 months in prison and three years of supervised release; Shawn Swift was sentenced on March 17, 2016 to 180 months and 10 years of supervised release; Rickey Swift was sentenced on April 6, 2016 to 13 months in prison and two years of supervised release.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Not So Swift.” The FBI, ATF, DEA, Louisiana State Police, Caddo Parish Sheriff’s Office, Bossier Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office and Red River Parish Sheriff’s Office conducted the investigation. The OCDETF program 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 level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys James G. Cowles Jr. and Allison D. Bushnell prosecuted the case.
Serial Armed Robber Sentenced to 184 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas, Texas, man, Dequindrick Alexander, 22, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 184 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Alexander pleaded guilty in February 2016 to two counts of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of a crime of violence. He has been in custody since his arrest in September 2014.
According to documents filed in the case, on June 29, 2014, Alexander entered Foot Locker, located at 655 West Illinois Avenue, Dallas, Texas, removed a .380 caliber Thunder Chief pistol
from a shoe box, pointed the gun at the employee and demanded money. Alexander took $209 in cash and two shoes from a display case as he exited the store.
On June 30, 2014, Alexander entered 7-Eleven, located at 835 Ninth Street, Dallas, Texas, pointed a gun at a store employee, as well as customers of 7-Eleven, and demanded money. Alexander took $146.72 in cash as well as cigarettes. Prior to the robbery of 7-Eleven located on Ninth Street, Alexander entered 7-Eleven, located at 2223 South Beckley Avenue, Dallas, Texas,
pointed a gun at a store employee and demanded money. Alexander took an unspecified amount of cash from the store and $220 in cash and property from a 7-Eleven customer, without her consent.
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney Kate Rumsey prosecuted.# # #
Sentencings for March 23 - March 28, 2017Read the Press Release
Marvin Wayne Magnan, 63, of Ethete, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 28, 2017, on two counts of aggravated sexual abuse; six counts of abusive sexual contact; two counts of sexual abuse of a minor; one count of sexual abuse; and one count of simple assault. Magnan was arrested in Ethete, Wyoming. He received 108 years of imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a special assessment of $1,125.00. This case was investigated by the Federal Bureau of Investigation.
Daniel Lee Evans, 35, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, for possession with intent to distribute methamphetamine. Evans was arrested in Casper, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Lance Sterling Addison, 36, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, for failure to register as a sex offender. Addison was arrested in Riverton, Wyoming. He received 24 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Mitchell Wayne Mosqueda, 24, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, for assault with a dangerous weapon with intent to do bodily harm. Mosqueda was arrested in Riverton, Wyoming. He received 15 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $5,298.12 in restitution. This case was investigated by the Federal Bureau of Investigation.
Gerald Paul Headley, Jr., a/k/a Percy Headley, 43, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 27, 2017, on two counts of abusive sexual contact. Headley was arrested in Lander, Wyoming. He received 180 months of imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a $200.00 special assessment and $1,194.80 in restitution. This case was investigated by the Federal Bureau of Investigation.
Jonathan Marino Guerrero-Santana, 25, of Snellville, Georgia, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 27, 2017, for use of unauthorized access devices to obtain $1,000 or more and aiding and abetting. Guerrero-Santana was arrested in Laramie, Wyoming. He received four years of probation and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Laramie Police Department, the Federal Bureau of Investigation and the U.S. Secret Service.
Donald Mullen, 28, of Miles City, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 24, 2017, for possession of child pornography. Mullen was arrested in Gillette, Wyoming. He received 120 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Joel Rodriguez, 29, of Lafayette, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 24, 2017, for possession with intent to distribute methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Rodriguez was arrested in Casper, Wyoming. He received 144 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment and $280.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Kyle Steven Hebert, 46, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl of March 23, 2017, for possession of child pornography. Hebert was arrested in Casper, Wyoming. He received a 120 months of imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $100.00 special assessment and $2,500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Schenectady Woman Sentenced to 37 Months for Lottery ScamRead the Press Release
ALBANY, NEW YORK – Kimberly Powell, age 38, of Schenectady, New York, was sentenced today to serve 37 months in prison for her participation in a Jamaica-based lottery scam that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
United States District Judge Mae A. D’Agostino also sentenced Powell to a 3-year term of supervised release, to begin once she completes her prison term.
As part of her August 3, 2016 guilty plea to mail fraud charges, Powell admitted to working with her husband Jeragh Powell, and others, to mail false lottery prize notifications to mostly elderly people located throughout the United States. The fraudulent prize notification letters congratulated the victims on winning a recent drawing and instructed them to pay tens of thousands of dollars in “fees and taxes,” and “shipping and handling,” in order to receive their purported prize money and cars. Members of the conspiracy located in Jamaica also communicated with the victims by telephone, directing them to make payments to people in the United States.
Kimberly Powell and her husband Jeragh Powell, age 26 and a citizen of Jamaica, received more than $65,000 from victims of the scheme, and forwarded a large portion of the proceeds to Jeragh Powell’s associates in Jamaica. Jeragh Powell was prosecuted and also pled guilty to mail fraud. On January 31, 2017, Judge D’Agostino sentenced him to 41 months in prison.
This case was investigated by the USPIS, Homeland Security Investigations (HSI), and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Santa Rosa Man Pleads Guilty to Role in North Bay Drug Distribution and Money Laundering ConspiracyRead the Press Release
SAN FRANCISCO – Eutimio Reyna-Ceron (a/k/a “Tony,” a/k/a “Gordo,” a/k/a “Little Tony”) pleaded guilty in federal court in San Francisco yesterday to charges of conspiracy to distribute heroin and methamphetamine, distribution of heroin, and money laundering, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin. Reyna-Ceron’s plea was accepted by the Honorable Vince Chhabria, U.S. District Judge, in San Francisco and represents the twelfth guilty plea accepted by the court in this 20-defendant drug conspiracy case.
In pleading guilty, Reyna-Ceron, 29, of Santa Rosa, Calif., admitted that he and others operated a drug distribution ring in Santa Rosa, and that they distributed an average of a half-kilogram of heroin per week over a period of at least seven months. Reyna-Ceron admitted that, at any given time, he had three couriers working for him delivering drugs, and that he and his couriers sold drugs in quantities ranging from a gram to multiple ounces at a time. The defendant also admitted to laundering the proceeds of those transactions, which amounted to between $2,500 and $3,000 per day.
On July 19, 2017, Reyna-Ceron was charged in a 33-count Superseding Indictment along with 19 other defendants. For his part in the conspiracy, Reyna-Ceron was charged with one count of conspiracy to distribute and possess with intent to distribute heroin and methamphetamine, in violation of 21 U.S.C. § 846; seven counts of distribution and possession with intent to distribute heroin, in violation of 21 U.S.C. § 841; one count of distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841; one count of conspiracy to launder drug proceeds, in violation of 18 U.S.C. § 1956(h); and ten counts of international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(B). Pursuant to yesterday’s plea agreement, Reyna-Ceron pleaded guilty to one count each of conspiracy to distribute heroin and methamphetamine, distribution of heroin, and money laundering.
Judge Chhabria has scheduled Reyna-Ceron’s sentencing for June 27, 2017, at 10:30 a.m., in San Francisco. As part of his plea, Reyna-Ceron agreed to a forfeiture money judgment of $1,080,000, which he agreed was an approximation of the amount of proceeds his distribution network received during the period of the conspiracy. The statutory minimum prison term for the violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(B), as charged in count one of the superseding indictment, is 10 years’ imprisonment; the statutory maximum for the charge is life in prison. The maximum statutory penalties for the distribution and money laundering to which Reyna-Ceron has pleaded guilty is 20 years in prison. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Eleven of Reyna-Ceron’s co-defendants have pleaded guilty to certain crimes related to the drug distribution and money laundering conspiracy. Reyna-Ceron’s brother, Marcelino Reyna-Ceron, pleaded guilty to conspiracy to distribute drugs and conspiracy to launder proceeds charges. Reyna-Ceron’s brother-in-law, Raymundo Doval Duran, pleaded guilty to illegal use of a communications facility in connection with the drug operation. In addition, Reyna-Ceron’s niece, Elizabeth Reyna-Rodriguez, and two nephews, Marcelino Reyna-Rodriguez and Eutimio Reyna-Rodriguez, pleaded guilty to money laundering charges, and his niece’s husband, Ramon Medina, pleaded guilty to drug charges. None of these co-defendants has been sentenced. Sentencing hearings for these defendants will take place in August and September of 2017.
This case was the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. In this case, the United States Attorney’s Office, the Sonoma County District Attorney’s Office, the Drug Enforcement Administration, the Santa Rosa Police Department, and the Internal Revenue Service, worked together, with assistance from other federal and state agencies, including the Petaluma Police Department, to investigate and prosecute the offenders.
San Francisco-Based Drug Trafficker Sentenced to over 13 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Herman Keese, 57, of San Francisco, was sentenced on Thursday to 13 years and eight months in prison by U.S. District Judge Troy L. Nunley, United States Attorney Phillip A. Talbert announced today. Keese pleaded guilty to drug trafficking and money laundering charges on August 25, 2016.
According to court documents, between April 2007 and March 1, 2012, Keese distributed methamphetamine and PCP from San Francisco to Sacramento and to the East Coast. Keese also engaged in a conspiracy to launder the proceeds of the drug trafficking enterprise using a 97-cent store he owned in San Francisco.
“Today’s sentencing of Herman Keese should send a clear message to would-be criminals—you will be caught and prosecuted to the full extent of the law,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Together with our partners at the U.S. Attorney’s Office, DEA, and ATF, we will hold those engaged in similar conduct fully accountable.”
According to the plea agreement, one of the methods Keese used to launder drug proceeds involved having his associates deposit money in various banks across the East Coast, which would later be withdrawn at various banks in California, some in the Eastern District of California (EDCA). On numerous occasions, Keese spoke with the undercover agents regarding a means to move his drug proceeds from the East Coast to California. He indicated that he needed a method by which he could move $150,000 per week from Philadelphia to California.
On May 11, 2011, Keese directed his associates to deposit $20,000 into a Philadelphia bank. The $20,000 was then withdrawn from a bank in Sacramento and transported to San Francisco. Keese also received a bulk cash shipment of $42,000 concealed in a stereo tuner.
Further analysis of Keese’s financial records revealed that between 2007 and October 2011, between $2 million and $3 million was deposited in various bank accounts while the reported income for the 97-cent store was approximately $355,742 for the same time period.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Drug Enforcement Administration, the California Highway Patrol, the Sacramento Police Department, and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Heiko P. Coppola and Kevin Khasigian prosecuted the case.
The investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Roswell Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Charles Nunez, 47, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by five years of supervised release for his methamphetamine trafficking conviction. Nunez also was ordered to forfeit $70,000 in drug proceeds and five firearms to the United States.
Nunez was arrested on March 12, 2016, on a criminal complaint charging him with possessing methamphetamine with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm in Chaves County, N.M. According to the complaint, on March 12, 2016, the Chaves County Metro Narcotics Task Force executed search warrants on Nunez, his residence and his vehicle, and seized approximately five pounds of methamphetamine, firearms, a large amount of cash, drug paraphernalia, and a police radio scanner.
On Oct. 17, 2016, Nunez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Nunez admitted that on March 12, 2016, agents seized five pounds of methamphetamine and several firearms from his residence.
This case was investigated by the Roswell office of the FBI and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Readout of Today's Meeting Between Attorney General Sessions and the Jewish Community Centers and JCC Association of North AmericaRead the Press Release
The Attorney General, today, had a positive and productive conversation with the Jewish Community Centers and JCC Association of North America. The Department of Justice will not tolerate hate crimes against Jewish communities or the targeting of any community in this country on the basis of their religious beliefs. JCCs continue to have strong partnerships with local and federal law enforcement and the Attorney General commends them for their responsiveness, efficiency, calm and competence in the face of those who would threaten these institutions and the millions of Americans who walk through their doors.
Queens Resident Pleads Guilty to Federal Ecstacy Trafficking ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PHILLIP STEWART, 46, a citizen of Jamaica residing in Queens, N.Y., pleaded guilty yesterday in New Haven federal court to one count of conspiracy to distribute, and to possess with intent to distribute, MDA and MDMA.
MDA (Methylenedioxyamphetamine) is an analogue of MDMA (Methylenedioxymethamphetamine), and they are both commonly known as “ecstasy”.
According to court documents and statements made in court, STEWART conspired with Collin Fletcher and others to sell ecstasy to customers in Connecticut, New York and elsewhere. On October 27, 2016, and again on November 1, 2016, investigators made two controlled purchases of ecstasy from Fletcher.
STEWART and Fletcher were arrested on November 18, 2016, after they attempted to sell approximately 10,000 capsules of ecstasy to an undercover officer. The capsules had a combined weight of approximately 923 grams of MDA.
STEWART is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 30, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.
Fletcher, a citizen of Jamaica last residing in Bridgeport, pleaded guilty to the same charge on February 14, 2017, and awaits sentencing. He has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi Perry.
Owner of One of the Largest Commercial Fishing Businesses in U.S. Pleads to Falsifying Records & Smuggling Proceeds AbroadRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the United States pleaded guilty today in U.S. District Court in Boston to operating a long-running scheme through which he submitted falsified records to the federal government to evade federal fishing quotas. He then smuggled a portion of the proceeds to Portugal.
Carlos Rafael, 65, of Dartmouth, pleaded guilty today to one count of conspiring to commit offenses against the United States, 23 counts of false labeling and fish identification, two counts of falsifying federal records, one count of bulk cash smuggling, and one count of tax evasion.
Rafael, owner of Carlos Seafood, Inc. based in New Bedford, Mass., owned 32 fishing vessels through independent corporate shells and 44 permits, which amounted to one of the largest commercial fishing businesses in the United States. He was initially arrested and charged in February 2016. U.S. District Court Judge William G. Young scheduled sentencing for June 27, 2017.
“Mr. Rafael’s scheme not only compromised delicate fish populations, but also profited on the backs of his hard-working crews,” said Acting United States Attorney William D. Weinreb. “Mr. Rafael knew he was breaking the law by falsifying records, evading taxes and smuggling ill-gotten profits to Portugal. Without Mr. Rafael and his scheme, New England fishermen who work hard for honest pay can now enjoy a more level playing field.”
“The fraud perpetrated by Mr. Rafael was motivated by greed, at the expense of the delicate ecosystem of the North Atlantic ocean,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “Mr. Rafael not only evaded federal income taxes on bags of cash, but smuggled some of the cash to Portugal. IRS-Criminal Investigation is proud of our undercover program and the unique perspectives, skill set and resources we can bring to a case of this magnitude. I commend the entire investigative team for their incredibly hard work in exposing this massive financial and natural resource fraud.”
“As the Nation’s federal maritime law enforcement agency, the Coast Guard has a critical role in enforcing federal fisheries regulations to protect our precious marine resources, promote sustainable fish stocks, and ensure a level playing field for all the honest fishermen,” said Rear Admiral Steven D. Poulin, Commander, First Coast Guard District. “I am proud of the Coast Guard’s partnership with the NOAA Office of Law Enforcement, the IRS Criminal Investigation Division, and the U.S. Attorney's Office to help bring these illegal operations to a halt.”
“NOAA is committed to ensuring a level playing field for honest fishermen,” said Samuel Rauch, Acting Assistant Administrator for NOAA Fisheries. “Those who cheat the American taxpayers and their fellow fishermen will be found out, investigated, and brought to justice.”
The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying Carlos Seafood. From 2012 to January 2016, Rafael routinely lied to the National Oceanic and Atmospheric Administration (NOAA) about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species.
During that period, Rafael misreported to NOAA approximately 782,812 pounds of fish, telling NOAA that the fish was haddock, or some other abundant species subject to high quotas, when in fact the fish was cod, sole, or other species subject to strict quotas. After submitting false records to federal regulators, Rafael sold much of the fish to a wholesale business in New York City in exchange for bags of cash. During meetings with the undercover agents, Rafael said that in his most recent dealings with the New York buyer he received $668,000 in cash. Rafael smuggled at least some of that cash out of the United States to his native Portugal, hiding it there to evade federal taxation on that revenue.
The charges of conspiracy and tax evasion provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Twenty-three of the charges of falsifying records submitted to the federal government carry the same potential sentence, while two counts, brought under a different statute, provide for a sentence of no greater than 20 years in prison and a fine of $250,000. The charge of bulk cash smuggling provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb; IRS-CI SAC Garland; Rear Admiral Poulin; and Acting Assistant Administrator Rauch made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Weinreb’s Economic Crimes Unit is prosecuting the case.
One Individual Charged with Making False Statements in A Reverse Mortgage Loan ApplicationRead the Press Release
SAN JUAN, P.R – On March 29, 2017, a federal grand jury in the District of Puerto Rico returned a one count indictment charging Tommy Rudy Habibe-Arias with making false statements in an application for a Home Equity Conversion Mortgage loan (commonly known as a “Reverse Mortgage”), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The U.S. Department Housing & Urban Development- Office of Inspector General (HUD-OIG) is conducting the investigation.
According to the indictment, from on or about September 2009 until on or about November 2009, defendant Tommy Rudy Habibe-Arias knowingly made or caused to be made material false statements to a mortgage lending institution named Master Mortgage Corporation, for the purpose of influencing the Federal Housing Administration (FHA) to insure a Reverse Mortgage loan. Specifically, the false and fraudulent information indicated that said property was the defendant’s principal residence, when at no time since September of 2009, or at any other time, the defendant occupied the property as his “primary residence.” The defendant procured $203,605.55 from a Home Equity Conversion Mortgage loan, which he received illegally.
“Mortgage fraud is a serious issue that affects not just financial institutions but ordinary citizens who may have invested in such financial institutions or who hope to purchase, sell or refinance a home by honestly setting forth their finances,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Mortgage lenders provide capital so people can purchase homes, not enrich themselves illegally.”
“The FHA reverse mortgage program enables elderly people to withdraw some of their home's equity to give them greater financial security and allow them to afford to stay in their home,” said Nadine Gurley, HUD-OIG’s Special Agent-in-Charge for the Atlanta Region. “However, the public needs to be aware that to be eligible for these reverse loans, homeowners must be at least 62 years of age or older; own the property outright or have paid down a considerable amount; and must occupy the property as a principal residence. Our agency encourages anyone with information about waste, fraud or abuse against this program to confidentially report it by calling our San Juan Field Office at (787) 766-5868 or via e-mail at [email protected] ”
If convicted, the defendant faces a possible penalty of 30 years in prison and/or a fine of $1,000,000. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Scott H. Anderson.
Ohio Native Pleads Guilty to Coercing Minors to Engage in Sexual Activity and Produce Child Pornography Through “Internet Sextortion”Read the Press Release
Today, an Ohio native living in Port St. Lucie, Florida pled guilty to using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) made the announcement.
Richard Eugene Fye, III, 24, of Ohio, pleaded guilty to Counts 1 to 4 in the Indictment charging: Use Of Means of Interstate Commerce to Persuade, Induce, Entice, or Coerce a Minor to Engage in Illegal Sexual Activity, in violation of Title 18, United States Code, Section 2422(b); Production of Material Containing Visual Depictions of Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2251(a) & (e); Receiving Material Containing Visual Depictions of Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(2)&(b)(2); and Possession of Material Containing Visual Depictions of Sexual Exploitation of Minors (including those under age of 12), in violation of Title 18, United States Code, Sections 2252(a)(4)(B) & (b)(2). The defendant faces mandatory terms of incarceration and a possible statutory sentence of life imprisonment. The defendant also faces up to a lifetime of supervised release and must register as a sex offender. The defendant’s sentencing hearing is scheduled for June 8, 2017 at 10:00 a.m. before Judge Donald M. Middlebrooks in West Palm Beach.
According to a stipulated factual basis filed in this case, in December 2016, a 15-year-old female in Michigan made a complaint about online coercion. The victim stated an unknown subject, who identified himself as “MARCO”, a 14 year old male from Port St. Lucie, contacted her using a social networking application. “MARCO” convinced her to send him nude photographs using her cell phone. “MARCO” then threatened that if the minor female did not also send nude videos of herself, he would send the photographs to her friends and family. Fearing that the pictures would be disseminated the minor female sent “MARCO” the requested videos.
During the course of the investigation, law enforcement learned that “MARCO” was in fact defendant Richard Eugene Fye III.
On January 31, 2017, members of HSI executed a federal search warrant at a location where Fye was living and working and recovered the defendant’s cellular telephone and laptop. The electronic devices contained nude images of the victim, a profile of 14 year old “MARCO” (which included a picture of a teenage male), and over 200 suspected child pornography videos, including images of prepubescent minors under 12 years of age, sado-masochism, and bondage.
Law enforcement also discovered a number of videos and chats involving other minor girls that Fye met online and persuaded, induced, enticed, and/or coerced to produce sexually explicit images and send him via the internet. During a number of these chats, Fye distributed child pornography to minors, in order to illustrate the sexual acts the defendant wanted them to perform in the requested videos.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Mr. Greenberg commended the investigative efforts of ICE-HSI and the Washtenaw County Sheriff’s Office in Michigan. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.