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30 March 2017
Oceanside Man Indicted in Multi-Million-Dollar Fraud SchemeRead the Press Release
A six-count indictment was unsealed this morning in federal court in Central Islip, New York, charging John Quadrino, the owner/operator of Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading, Inc. (collectively referred to as the “Gold Purchasing Companies”). The defendant is charged with wire fraud and wire fraud conspiracy for orchestrating a Ponzi scheme over the course of more than five years utilizing the Gold Purchasing Companies. The defendant will be arraigned at the federal courthouse in Central Islip this afternoon before United States Magistrate Judge Arlene R. Lindsay.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office, and Madeline Singas, Nassau County District Attorney.
As set forth in the indictment, the charges against the defendant stem from a multi-year investigation by the United States Attorney’s Office, the FBI and the Nassau County District Attorney’s Office (“NCDAO”). The investigation revealed that the defendant represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. The defendant asked investors to invest large sums of money for fixed periods of time in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Contrary to the representations made by the defendant to investors, the defendant never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, he systematically engaged in a classic Ponzi scheme over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, more than 80 investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $6.3 million. The defendant used investor capital to, among other things, issue checks to himself and to pay for his personal gambling expenses.
“As alleged, the defendant deceived investors with the promise of purchases of gold and other valuables and guaranteed returns, leading to his own enrichment and victim losses of over $6 million,” stated Acting United States Attorney Rohde. “We will not permit such conduct to go unanswered.” Ms. Rohde expressed her appreciation to the FBI and NCDAO for their assistance during the course of this multi-year investigation.
“As alleged, rather than carrying out his plan as promised, Quadrino dangled a shiny prospect in front of his victims while funneling their money into a scheme to defraud others and enrich himself,” said FBI Assistant Director-in-Charge Sweeney, Jr. “People know there's risk involved in investing, but they shouldn't have to start out with the odds stacked against them. Along with our partners, we remind the public how seriously we take offenses of this nature.”
“This defendant is accused of pilfering the savings of dozens of innocent investors by promising them great returns, but instead he allegedly gambled their money away,” DA Singas said. “Fortunately, working with our law enforcement partners at the Eastern District of the U.S. Attorney’s Office and the FBI, we were able to end this alleged Ponzi scheme before more investors were victimized.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the offense, the defendant faces a maximum sentence of 20 years’ imprisonment per count.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
The Defendant:
JOHN QUADRINO
Age: 51
Oceanside, New York
E.D.N.Y. Docket No. 17-CR-153 (DRH)
Navajo Man from Farmington Pleads Guilty to Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Thomas J. Yazzie, Jr., 52, an enrolled member of the Navajo Nation from Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.
Yazzie was arrested on Feb. 7, 2017, on an indictment charging him with involuntary manslaughter. According to the indictment, Yazzie killed the victim with his vehicle while driving under the influence of alcohol on the Navajo Indian Reservation in San Juan County, N.M., on May 10, 2016.
During today’s proceedings, Yazzie pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Yazzie acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
At sentencing, Yazzie faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Michael D. Murphy.
NYC Human Resources Administration Employee Charged with Inside Scheme to Steal Public BenefitsRead the Press Release
A complaint was unsealed today in United States District Court for the Eastern District of New York charging Mahalia Abraham, an employee of New York City Human Resources Administration’s Office of Research and Program Monitoring, and William Hopkins, with stealing approximately $59,000 in benefits earmarked for the Supplemental Nutrition Assistance Program (“SNAP”) and Temporary Aid to Needy Families Program (“TANF”), which are funded by federal tax dollars. The defendants will be arraigned this afternoon at the federal courthouse in Brooklyn this afternoon before United States Magistrate Judge Vera M. Scanlon.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark G. Peters, Commissioner of the New York City Department of Investigation (“DOI”).
As set forth in the complaint and other publicly filed documents, the charges against the defendants stem from an investigation that began when one SNAP recipient noticed $56 worth of benefits had been withdrawn from her SNAP electronic benefits transfer card (“EBT”) without her permission. The investigation revealed that Abraham had accessed more than 100 SNAP and TANF recipients’ files to check their account balances and access their EBT account numbers as well as the names, dates of birth, and social security numbers of the intended recipients. Abraham passed this information on to her boyfriend, Hopkins, who used this information to change the PIN numbers on their victims’ cards. Hopkins then keyed in the victims’ EBT card numbers and new PIN numbers at Rite Aid stores throughout Brooklyn in order to withdraw cash and purchase baby formula, which he sold to bodegas for cash. In total, the defendants Abraham and Hopkins stole approximately $53,000 in SNAP benefits and $6,000 in TANF benefits.
“As alleged, the defendants used Mahalia Abraham’s position as an HRA employee to access the personal information of public assistance recipients, and to steal tens of thousands of dollars earmarked for needy New Yorkers,” stated Acting United States Attorney Rohde. “This type of behavior directly contradicts what it means to be a public servant and will not be tolerated.” Ms. Rohde expressed her appreciation to DOI’s Office of the Inspector General for its assistance during the course of this year-long investigation.
“This case began with a complaint from a recipient who noticed $56 in SNAP benefits missing from her account and ultimately led DOI to uncover tens of thousands of dollars in fraud, according to the charges. Though this defendant and her associate stole government funds, their victims were vulnerable New Yorkers – like one recipient left to stand on soup kitchen lines while his benefits were diverted to feed their greed. DOI’s report released today details how this fraud was committed, and the steps that HRA should take to ensure these funds are safeguarded for the people who need them. DOI thanks the United States Attorney’s Office for the Eastern District of New York for its partnership on this investigation and HRA for its continued cooperation to enact meaningful reforms to tackle fraud,” stated DOI Commissioner Peters.
In conjunction with today’s arrests, DOI issued a report detailing the investigation’s findings and providing recommendations to HRA and other government entities aimed at safeguarding public assistance recipients’ personal data. A copy of the Report can be found at the following link: http://www1.nyc.gov/site/doi/newsroom/public-reports.page
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the offense, the defendants face a maximum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Kaitlin T. Farrell is in charge of the prosecution.
The Defendants:
MAHALIA ABRAHAM
Age: 38
Brooklyn, New York
WILLIAM HOPKINS
Age: 41
Brooklyn, New York
E.D.N.Y. Docket No. 17-MJ-282
Michigan City Man Sentenced to 78 Months ImprisonmentRead the Press Release
SOUTH BEND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Lonnie Lewis, Jr., 22, of Michigan City, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio after entering a guilty plea for being a felon in possession of a firearm.
Lewis was sentenced to 78 months’ imprisonment and 2 year supervised release.
According to documents filed in this case, on September 9, 2016, police attempted to perform a traffic stop on Lewis. Instead of submitting, Lewis fled in a vehicle at speeds approaching 100 miles per hour. While fleeing, Lewis tossed a loaded gun and drugs out of the window. Police arrested the defendant after his car hit a tree. After being arrested, Lewis tried to enlist others to retrieve his gun and drugs from the route of pursuit. In August of 2015 Lewis was convicted of dealing cocaine, a level 4 felony offense in LaPorte Superior Court.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department. This case was being handled by Assistant United States Attorney Joel Gabrielse.
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Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
UTICA, NEW YORK – Gilberto Trevizo-Molina, age 46, a citizen of Mexico, was sentenced today to time served (50 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Trevizo-Molina admitted that he unlawfully returned to the United States after he was removed to Mexico on May 29, 2007.
On February 8, 2017, Trevizo-Molina was arrested by Border Patrol agents, who encountered him as a passenger in a vehicle that stopped at a Border Patrol checkpoint on New York State Route 30. He was residing in Charlotte, North Carolina, at the time of his arrest.
Following his sentencing by United States District Judge David N. Hurd, Trevizo-Molina was remanded to the custody of the Department of Homeland Security, which will place Trevizo-Molina into removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Mescalero Apache Man Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Glen Joel Lester, 39, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 24 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Lester was one of 34 individuals charged in Dec. 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Lester was arrested on Dec. 15, 2015, on an indictment charging him with two counts of methamphetamine distribution. On March 11, 2016, Lester pled guilty to both counts of the indictment and admitting selling methamphetamine to an undercover law enforcement agent on two occasions. The first drug sale took place on Aug. 19, 2015, in Mescalero, and involved the sale of $500 worth of methamphetamine. The second drug sale took place in Mescalero on Sept. 10, 2015, and involved the sale of $1,500 worth of methamphetamine.
Seventeen of the 18 federal defendants have entered guilty pleas. The remaining federal defendant has entered a not guilty plea. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Member of Bloods Gang Sentenced to 101 Months in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, Justin Smith, a Bloods gang member, was sentenced to 101 months imprisonment by United States District Judge I. Leo Glasser for his role in leading an illegal drug distribution operation in Brooklyn and carrying multiple firearms to further his drug distribution activities.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Justin Smith, a gang member and convicted drug dealer who regularly kept and carried illegal firearms to protect his criminal organization, used an apartment in Wyckoff Gardens as a base of operations to sell crack and heroin, putting the residents of that community at great risk. This office, together with its law enforcement partners, will work tirelessly to address this type of dangerous conduct,” stated Acting United States Attorney Rohde. Ms. Rohde extended her grateful appreciation to the FBI and thanked the New York City Police Department (NYPD) for their assistance on the investigation.
The defendant was sentenced following his conviction after a guilty plea on October 28, 2016 to multiple counts of illegal drug distribution and firearm offenses, including possession of a firearm in furtherance of drug trafficking. Between September 2013 and April 2015, the defendant conspired to possess and distribute illegal narcotics in and around two New York City Housing Authority (NYCHA) housing developments known as the Gowanus Houses and Wyckoff Gardens, located in the Boerum Hill neighborhood in Brooklyn, New York.
On or about June 18, 2014, NYPD officers entered Smith’s stash house at 185 Nevins Street in Brooklyn, and discovered him with illegal drugs, ammunition, and a firearm. The officers recovered: 80 plastic bags containing crack cocaine, 51 glassine envelopes containing heroin and two containing a mixture of heroin and cocaine, 1,250 small plastic bags used to package crack cocaine for distribution, 212 empty glassine envelopes used to package heroin for distribution, $1,018 in cash, and a digital kitchen scale used to weigh narcotics. Additionally, they recovered nine rounds of .45 caliber ammunition, a box containing 31 rounds of 9mm ammunition, and a stolen black 9mm caliber semiautomatic handgun. The evidence also established that the defendant possessed crack and heroin, as well as firearms, on multiple other occasions in and around Brooklyn.
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorneys Craig R. Heeren and Michael P. Robotti are in charge of the prosecution.
The Defendant:
JUSTIN SMITH
Age: 23
Brooklyn, New YorkE.D.N.Y Docket No. 15-CR-466 (ILG)
Maryland Rap Star Known as “Big Flock” Sentenced to Federal Prison on Gun and Drug Charges After Publishing “Letter to the World”Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Charles Ulysses Bowman-Bey, a/k/a “Big Flock,” age 24, of Upper Marlboro, Maryland, today to 45 months in prison, followed by three years of supervised release for being a felon in possession of firearms and possession with intent to distribute Alprazolam.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Hank Stawinski of the Prince George’s County Police Department.
“Charles Bowman-Bey realized too late that ‘the streets don’t love anybody,’ as he wrote in his letter to the world, apologizing for his life of crime and his music videos glorifying drug dealing and gang violence,” said U.S. Attorney Rod J. Rosenstein. “His letter should be required reading for young drug dealers.”
According to his plea agreement, on October 19, 2016, law enforcement executed a search warrant at Bowman-Bey’s residence and recovered: a loaded 5.7x28mm semiautomatic handgun, equipped with a laser sight; a .40 caliber semiautomatic handgun; a .380 caliber semiautomatic handgun; rounds of ammunition of various calibers; a loaded drum-style extended magazine; a .40 caliber extended magazine; $5,561 in cash; 94 tablets of Alprazolam, as well as some ground-up Alprazolam; and a digital scale.
Bowman-Bey admitted that he possessed the Alprazolam to distribute to others and that the $5,561 in cash was the proceeds of his drug dealing. Bowman-Bey also admitted possessing the firearms in furtherance of his drug trafficking, as well as for protection. Bowman-Bey had a previous felony conviction and was prohibited from possessing firearms and ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Thomas J. Sullivan, who prosecuted the case.
Maryland Pimp Pleads Guilty to Being a Felon in Possession of Firearms and to Enticing and Coercing Women to Travel to Engage in ProstitutionRead the Press Release
Baltimore, Maryland – Jason David Young, a/k/a Bird, J Bird, and Chris, age 33, of New Carrollton, Maryland, pleaded guilty today to illegal possession of firearms and to enticing and coercing women to travel across state lines to engage in prostitution.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Gary Gardner of the Howard County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks .
According to his plea agreement, from September 2013 through October 2015, Young was a pimp and used physical, mental and emotional abuse and threats in order to cause women to engage in commercial sex acts for his financial benefit. Young admitted that he transported the women across state lines to engage in prostitution. In January 2015, Young drove two women to Tennessee to engage in commercial sex acts. Young rented hotel rooms and several online advertisements were posted to recruit customers. Both women were arrested for prostitution following an undercover operation executed by the Knox County Sheriff’s Office.
On at least two occasion on 2014, Young was stopped by police and a gun was found in the car. On each occasion, the woman traveling with Young claimed that the gun was hers. One of the women later admitted to police that Young had given her the firearm, and that he routinely possessed firearms. She stated that Young had the women take responsibility for the firearms if discovered by police. One of the guns, a 9mm handgun recovered on December 15, 2014, was stolen.
On February 12, 2015, the Prince George’s County Police Department arrested Young for a parole violation. Young was outside of a local business that was owned by a friend. The owner consented to a search of the business and officers recovered a bag belonging to Young. The owner also told police that he had seen Young with firearms, and when the owner saw police outside the shop, he hid the firearms above the ceiling tiles so Young wouldn’t get in trouble. Investigators recovered the two .45 caliber handguns from the ceiling. Both handguns had been stolen.
Investigation showed that all three of the stolen handguns had been taken from a prostitution customer, a gun collector who kept a gun safe on the same floor of his house as the master bedroom. Young had gone to the house once with two of the women he trafficked, and the gun safe was not fully locked and closed. Women who worked for Young twice stole firearms from the customer and provided them to Young. A total of five firearms were stolen from the customer’s home.
Young took photos of the five firearms using his cell phone and sent them to other individuals. The photos of the guns were taken inside the apartment Young provided to the women in exchange for Young collecting the proceeds of their commercial sex acts. Young controlled all of the women’s money and movements, threatening to beat them if they did not comply with his instructions. Young’s cell phone contained images of the injuries resulting from a severe beating he inflicted on one of the women. In addition, Young provided the women with narcotics and withheld narcotics from addicted women in order to exert control over them.
Young and the government have agreed that if the Court accepts the plea agreement Young will be sentenced to 20 years in prison, followed by five years of supervised release. U.S. District Judge George L. Russell III has scheduled Young’s sentencing for June 16, 2017, at 2:00 p.m. Young has been detained since his arrest in October 19, 2015.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, Howard County, Prince George’s County and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office and Prince William County (VA) Police Department for their assistance and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who are prosecuting the case.
Luna County Woman Sentenced to Thirteen Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Veronica Valenzuela, 41, of Columbus, N.M., was sentenced today in federal court in Las Cruces, N.M., to 156 months in prison followed by five years of supervised release for her methamphetamine trafficking conviction.
Valenzuela was arrested in Feb. 2015, on a criminal complaint alleging conspiracy and methamphetamine trafficking charges. The criminal complaint charged Valenzuela and others with committing the crimes between Oct. 9, 2014 and Dec. 12, 2014 in Luna County, N.M. According to the criminal complaint, Valenzuela and other individuals sold quantities of methamphetamine to undercover Homeland Security Investigations (HSI) agents on the following dates: 27 grams on Oct. 9, 2014; 27.5 grams on Oct. 17, 2014; and 104.89 grams on Nov. 4, 2014.
On April 24, 2016, Valenzuela pled guilty to a felony information charging her with participation in a methamphetamine trafficking conspiracy. In entering the guilty plea, Valenzuela admitted that on Nov. 4, 2014, she conspired with others to distribute 104.89 grams of methamphetamine to an undercover law enforcement agent. Valenzuela further admitted that on Dec. 11, 2014, she conspired with others to distribute 231.05 grams of methamphetamine to an undercover law enforcement agent.
This case was investigated by the Deming office of HSI and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Local, State, and Federal Law Enforcement Partner with the Community to Launch Greenville Safe NeighborhoodsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that the U.S. Attorney’s Office has partnered with the Greenville Police Department, along with the Greenville County Sheriff’s Office, the Thirteenth Circuit Solicitor’s Office, the South Carolina Department of Probation, Parole & Pardon Services, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), and New Mind Health and Care, Inc., in a local, state, and federal violence reduction initiative, a collaboration dubbed, “Greenville Safe Neighborhoods.” The first meeting with the stakeholders, partners, as well as the first eight participating individuals, all of whom are currently on state probation, was held on Monday evening (March 27).
Greenville Safe Neighborhoods is a unified, proactive police and community collaboration that engages, educates and empowers repeat serious offenders to obtain assistance, change behavior, make healthy life choices or suffer consequences of unified police/prosecutorial focus and priority. Predicated on the work of Professor David M. Kennedy of the John Jay College of Criminal Justice in New York, this focused-deterrence model aligns intervention and prosecutorial resources to create an appropriate mix of legal and ethical pressure to change offender behavior, reduce recidivism and severity, and reduce victimization. The Greenville Police Department has been working with its core partners for several months in planning, developing and resourcing the pilot program.
The U.S. Attorney’s Office serves as a partner in similar iterations across the state, to include Aiken Safe Communities, Hartsville Safe Communities, Ceasefire Columbia, and most recently, Home Front--the focused-deterrence model focusing on domestic violence in Spartanburg County.
The Greenville Safe Neighborhoods initiative identifies participants based upon their present and past criminal conduct. Participants attend a meeting with local, state and federal law enforcement officials and prosecutors as well as with service providers, family and affected community members. In the meeting, participants have meaningful access to a host of services or contacts to help them address physical or psychological needs.
GPD Chief Ken Miller, who anchored the first meeting on Monday evening, brought the program’s core partners together to make this initiative a reality. “The Greenville Police Department is committed to working with our community and our program participants and stakeholders to keep our streets and neighborhoods safe.”
During the meeting, the participants observed the unified commitment to this effort between law enforcement and the community. The goal the stakeholders hope to achieve is engaging a participant to address his or her needs, make meaningful strides, and avoid re-offending, thereby making the Greenville community safer. Also underscored during the meeting--the commitment between all levels of law enforcement and prosecution. Should a participant disregard this opportunity and re-offend, new offenses will be identified in “real time” and they will be brought to justice swiftly--in state court or federal court.
Solicitor Walt Wilkins has dedicated prosecutors to this effort and will be working closely with federal prosecutors in the U.S. Attorney’s Office. “We are excited about this partnership and the promise that Greenville Safe Neighborhoods holds for effective communication between the community and local, state, and federal law enforcement.”
U.S. Attorney Drake thanked Chief Miller, Solicitor Wilkins, and the other agencies for their leadership and for bringing the stakeholders together. “These young South Carolinians have some important choices to make in terms of changing their path in life. The resources and community commitment are there.”
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Lincoln Mother and Son Convicted of Conspiracy to Distribute Misbranded Substances, Drug Paraphernalia, and Related Financial CrimesRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on Tuesday, March 28, 2017, co-defendants Allen E. Peithman, Jr., Sharon A. Elder, and their corporations, Cornerstone Plaza, Inc., and AEP Properties, L.L.C., were each convicted of at least one crime after a three-week-long jury trial. Peithman, his mother, Elder, and their respective corporations operated two “head shops” in Lincoln. They operated Dirt Cheap between October of 2013 and August of 2015, and Island Smokes between September of 2014 and April of 2015. In April of 2015, a number of drug overdoses were attributed to the sale of “potpourri” in Lincoln. Island Smokes was selling “potpourri,” also known as “K2” during that time. This led to the execution of a search warrant in April of 2015 during which over 500 packets of “potpourri” and hundreds of pieces of drug paraphernalia were seized. In August of 2015, a search warrant was served at Dirt Cheap, and additional drug paraphernalia was seized.
Peithman was convicted of conspiracy to distribute drug paraphernalia; investment of drug proceeds; conspiracy to distribute misbranded substances; conspiracy to commit mail fraud; conspiracy to structure financial transactions; and commission of an offense while on supervised release. Peithman’s corporation, AEP Properties, L.L.C., was also convicted of the conspiracy to structure. Elder and her corporation, Cornerstone Plaza, Inc., were convicted of conspiracy to distribute drug paraphernalia; investment of drug proceeds; conspiracy to distribute misbranded substances; conspiracy to commit mail fraud; and conspiracy to structure.
After the verdict was returned, additional evidence was presented, and the jury was instructed with respect to consideration of forfeiture allegations seeking forfeiture of real estate, cars, bank accounts, and products used in the above-listed crimes. On March 29, 2017, the jury returned a verdict forfeiting the business checking account for Cornerstone Plaza, Inc., as well as all the misbranded drugs and drug paraphernalia seized from the businesses. The Indictment also included an allegation that a money judgment should be entered against the defendants, and that matter is set for hearing on April 24, 2017.
The conspiracy to commit mail fraud charge carries a possible penalty of up to 20 years in prison. Investment of drug proceeds and conspiracy to commit structuring each carry possible penalties of up to 10 years in prison. Conspiracy to distribute drug paraphernalia and conspiracy to distribute misbranded drugs each carry penalties of up to three years in prison. The crime of committing a felony while on supervised release for which Peithman was convicted carries a possible sentence of up to 10 years consecutive to any other sentence. The corporations face fines of up to $1,000,000 on the structuring conviction. Sentencing for all defendants is scheduled for June 20, 2017.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Food and Drug Administration, Homeland Security Investigations, and the Nebraska State Patrol. In response to the verdict, Special Agent in Charge William Conway, FDA Office of Criminal Investigations, Chicago Field Office, said,
“Drugs that are produced and distributed outside the FDA’s oversight put consumers at risk of being harmed. We will continue to work with our law enforcement partners to prevent such drugs from reaching the market and to bring to justice those who endanger American consumers by circumventing FDA's regulatory process."
Leaders of Clandestine Marijuana Grow House Organization Sentenced to Federal PrisonRead the Press Release
HOUSTON – The three leaders of a Houston area indoor marijuana grow house organization have been sentenced to lengthy prison terms, announced Acting United States Attorney Abe Martinez. Quang Nguyen, 50, pleaded guilty Aug. 15, 2016, while Phuc Tran, 44, and his wife, Thuy Tran, 44, pleaded guilty in July and October 2016, respectfully. All resided in Houston.
Today, U.S. District Judge Alfred H. Bennett handed Nguyen a sentence of 120 month in federal prison. Judge Bennett sentenced Phuc and Thuy Tran last week to respective terms of 87 and 72 months.
These three were held accountable as leaders of their respective clandestine marijuana grow cells working together to further the manufacture and distribution of high-grade hydroponic marijuana in a total of eight grow houses located in Houston area suburbs. The grow houses were identified during a year-long investigation into the organization, which began in March 2014. The investigation ultimately resulted in the seizure of more than 2600 thriving marijuana plants and approximately 80 pounds of harvested hydroponic marijuana buds from six of the grow houses over the course of five days in April 2015.
A pound of hydroponic marijuana sells in the Houston area for approximately $2500 per pound.
A total of nine defendants were charged in the case, most of whom were taken into custody as authorities executed search warrants at two of the six grow houses and found them engaged in harvesting mature marijuana plants. All nine eventually pleaded guilty for their respective roles to conspiracy to possess with intent to distribute 1000 or more marijuana plants. The other six defendants occupied roles in the conspiracy as marijuana grow house tenders, grow house owners and/or occasional harvest help personnel and were sentenced previously to terms ranging from 22 months to 37 months in federal prison.
Nguyen and the Trans have been and will remain will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is the result of a multi-agency Organized Crime Drug Enforcement Task Force investigation dubbed Operation Green House Effect conducted by the Drug Enforcement Administration, Fort Bend County Sheriff’s Office Narcotics Task Force, Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorney Nancy G. Herrera prosecuted the case.
Leader of Violent Robbery Crew Sentenced to 57 Years for Targeting Suburban Cell Phone StoresRead the Press Release
CHICAGO — A federal judge today sentenced a Park Forest man to 57 years in prison for leading a crew of armed robbers that targeted cell phone stores in the Chicago suburbs.
ERIC CURTIS recruited several individuals to join the crew and armed them with firearms to carry out the robberies. The crew stole hundreds of cell phones while terrorizing store employees and customers at gunpoint. After the robberies, Curtis helped to sell the phones and divide the profits among the thieves.
The robberies occurred in 2013 in cell phone stores in Addison, Norridge, Deerfield and Woodridge.
A jury last year convicted Curtis, 32, on one count of conspiracy to commit robbery, three counts of robbery, one count of being a felon in possession of a firearm, and three counts of using a firearm in a crime of violence. U.S. District Judge Charles P. Kocoras imposed the sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. Police departments from Chicago, Woodridge, Deerfield, Joliet, Norridge, Addison and East Peoria provided substantial assistance in the investigation.
“The defendant’s crew terrorized dozens of victims during their crime spree and these victims will likely suffer from the trauma the defendant and his crew caused them for at least as long as any sentence this Court imposes on the defendant,” Assistant U.S. Attorneys Christopher V. Parente and Allison A. Ray argued in the government’s sentencing memorandum. “The defendant’s repeated reckless actions during this crime spree endangered the lives of many everyday citizens who were out on a shopping trip, or just showing up for work trying to earn an honest living.”
Evidence at trial revealed that Curtis’ crew conducted takeover-style robberies. Crew members would enter a store, brandish firearms and order employees and customers to the back of the store at gunpoint. The robbers would take as many cell phones as they could stuff into their duffel bags.
Seven other members of the crew previously pleaded guilty. The prior convictions include another top leader, ERIC ROGERS of Hazel Crest. Rogers stated in a plea agreement that the crew also robbed cell phone stores in Joliet and downstate East Peoria, as well as a store in La Porte, Ind. Eric Rogers is awaiting sentencing.
Lea County Woman Sentenced to Fifteen Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Kyla Lashawn Norby, 28, of Hobbs, N.M., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M., to 15 years in prison followed by 15 years of supervised release for her conviction on a production of child pornography charge. Norby will be required to register as a sex offender when she completes her prison sentence. Norby also was ordered to pay $210,012.00 in restitution to the victim of her criminal conduct.
Norby’s sentence was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, and Lea County Undersheriff Tom Dunford.
Norby was arrested on Jan. 8, 2016, on a criminal complaint alleging that she produced and distributed child pornography between May 2015 and Dec. 2015, in Lea County, N.M. According to the criminal complaint, the investigation into Norby was initiated after Homeland Security Investigations (HSI) agents from Laredo, Tex., arrested a man in Odessa, Tex., who revealed that Norby made a two-year old child sexually available to him. A search of the man’s smartphone revealed photos of Norby, including images consistent with child pornography, that Norby sent to the man from her smartphone.
On June 22, 2016, Norby pled guilty to a felony information charging her with production of child pornography. In her plea agreement, Norby admitted that on Oct. 25, 2015, she used a smartphone to take a sexually explicit photograph of a toddler with the intention of sharing the photograph with an individual in Texas.
This case was investigated by the Las Cruces office of HSI and the Lea Country Sheriff’s Office, both members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, with assistance from HSI in Laredo, Texas. The case was prosecuted by Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Law Enforcement Authorities Arrest 10 Members and Associates of 18th Street Gang on Federal Narcotics and Weapons ChargesRead the Press Release
LOS ANGELES – Federal and local authorities have arrested 10 members and associates of the 18th Street gang, primarily on federal narcotics charges.
In a sweep that began Tuesday evening and continued into Wednesday, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), as well as deputies with the Los Angeles County Sheriff’s Department and officers with the Los Angeles Police Department, took the eight defendants into custody. One defendant was arrested in Honolulu, and another in Indianapolis.
Three other people who face federal charges were already in local custody, and law enforcement continues to search for five more defendants.
The arrests are the culmination of an HSI-led investigation that began in December 2014. The investigation focused on the distribution and sale of methamphetamine and unlicensed sales of firearms.
During the course of the investigation, authorities seized approximately four kilograms of methamphetamine and 14 firearms, including five assault rifles. The investigation led to six indictments that charge a total of 18 defendants.
Among those arrested yesterday are Giovanny Ochoa, also known as “Sporty” and “Speedy,” 26, of Hawthorne, and Aveline Villalba, also known as “Gordo” and “Fatboy,” 36, of South Los Angeles, who are charged in an indictment with selling approximately one-quarter pound of methamphetamine in the fall of 2016 to an undercover operative. Ochoa is additionally charged in relation to another quarter-pound sale, as well as transactions involving one-ounce quantities of meth. If they are convicted of conspiracy and narcotics-distribution charges, Ochoa and Villalba each would face a mandatory minimum sentence of 10 years in federal prison and could be sentenced to as much as life.
Ochoa, Villalba and the other six defendants arrested in the Los Angeles area have been arraigned in United States District Court. All eight pleaded not guilty and were ordered held without bond pending trial.
The two defendants arrested in other districts have also been ordered held without bond and are expected to be transported to Los Angeles in the coming weeks.
The six cases are being prosecuted by Assistant United States Attorneys Joshua Mausner, Jennifer Weinhold and Damaris M. Diaz, and Special Assistant United States Attorney Stacey Fernandez, all of the General Crimes Section.
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jose Angel Sanchez, 35, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Sanchez will be sentenced to ten years in prison followed by a term of supervised release to be determined by the court.
Sanchez was arrested on Dec. 2, 2016, on a criminal complaint charging him with possessing approximately 229.5 grams of methamphetamine with intent to distribute in Dona Ana County, N.M. According to the complaint, Sanchez committed the crime while on supervised release from a prior federal drug trafficking conviction.
During today’s proceedings, Sanchez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Sanchez admitted that on Dec. 2, 2016, he possessed more than 50 grams of methamphetamine, which he intended to sell to other people. Sanchez also admitted that he was on supervised release from a prior conviction when he committed the offense on Dec. 2, 2016, and that he was prohibited from committing crimes as a condition of his supervised release.
Sanchez remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
Knott County Man Receives Four Consecutive Life Sentences for Drug Trafficking and Aggravated Sexual Abuse of ChildrenRead the Press Release
PIKEVILLE, Ky. —A federal judge has sentenced a Knott County man to four consecutive life sentences for sexually abusing young children whose parents were part of his drug trafficking operations.
On Wednesday, U.S. District Judge Amul Thapar sentenced Freddie Kennedy, Jr., on one count of conspiracy to distribute oxycodone; seven counts of crossing a state line with the intent to engage in a sex act with a minor under the age of 12; and, ten counts of transporting a minor under the age of 18 across state lines with the intent to engage in criminal sexual activity.
Because parole is not an option under federal law, Kennedy must serve entirety of his life sentence. In February of this year, a jury convicted Kennedy of these offenses following a two-day trial.
The evidence at trial established that from April 2013 to June 2015, Kennedy organized a drug conspiracy in which several others traveled to out-of-state pain clinics to illegally obtain prescription drugs. In exchange for funding these trips, Kennedy received a portion of the drugs, which he distributed to other local dealers and drug users in the Knott and Perry County areas. Kennedy’s conspiracy was responsible for the distribution of thousands of oxycodone pills.
Evidence also established that, beginning sometime around October of 2013, Kennedy had sexual contact with four separate minor victims on multiple occasions, three of whom were under the age of the 10 at the time he abused them. Kennedy gained access to these victims because their parents were members of the conspiracy or drug addicts to whom he supplied oxycodone pills. In short, Kennedy would offer to watch the minor children while their parents were traveling to out-of-state pain clinics for him, or at home using drugs.
According to the evidence, while baby-sitting for the children, Kennedy intentionally groomed these minor victims by buying them expensive presents, as well as taking them to the movies, out to eat, and shopping as a way to win their trust.
While some of the abuse occurred at Kennedy’s residences in Perry and Knott Counties, much of it occurred on three separate out-of-state trips that Kennedy took with the minor children. Specifically, Kennedy took the victims for overnight stays at hotel/casino in located in Indiana. The minors stayed in a room with Kennedy, who was the only adult. On each of these occasions, Kennedy engaged in sexual acts with the minor victims.
Carlton Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA); Richard W. Sanders, Commissioner, Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by the DEA and KSP. Assistant U.S. Attorney W. Samuel Dotson prosecuted this case on behalf of the federal government.
Kenner Man Sentenced for Conspiracy to Commit Access Device FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOHN PAUL PIERRE, age 29, of Kenner, was sentenced today after previously pleading guilty to conspiracy to commit access device fraud.
U.S. District Judge Mary Ann Vial Lemmon sentenced PIERRE to 9 months imprisonment followed by 3 years of supervised release. PIERRE was also ordered to pay restitution in the amount ofU $7,460.06.
According to court documents, PIERRE’s co-conspirator, RYAN CLAVERIE, worked as a waiter in a restaurant in Metairie. During the course of his employment, CLAVERIE routinely handled the credit and debit cards of restaurant patrons. CLAVERIE had a credit card “skimmer” that extracted customer account information from the magnetic strip on the back of a credit card and a bank debit card and logged it for later download to a computer.
PIERRE and his co-conspirators then used the captured electronic account information contained on the magnetic strips of these valid cards in order to manufacture and produce counterfeit credit cards. The counterfeit credit cards where used to fraudulently obtain things of value for their own personal gain at several retail stores and establishments in the metropolitan New Orleans area.
CLAVERIE pled guilty to conspiracy to commit access device fraud. U.S. District Judge Jane Triche Milazzo set sentencing on May 4, 2017.
Acting U.S. Attorney Evans praised the work of the United States Secret Service, New Orleans Field Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Office and the Kenner Police Department for investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen was in charge of the prosecution.
KC Man Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury on charges related to tax evasion.
Steven Matthews, 48, of Kansas City, was charged in a five-count indictment returned under seal by a federal grand jury on Wednesday, March 29, 2017. That indictment was unsealed and made public upon Matthews’s arrest this morning and initial court appearance this afternoon.
The federal indictment charges Matthews with one count of tax evasion, one count of corruptly impeding the due administration of the internal revenue laws and three counts of failure to file tax returns.
From May 2011 to May 2015, the indictment says, Matthews attempted to evade payment of the Trust Fund Recovery Penalty assessed against him personally for withholding that wasn’t paid for the quarters ending December 2002 through June 2003 for the trust fund taxes of Winntech Digital Systems (where he served as the Chief Financial Officer). Matthews allegedly also attempted to evade payment of income tax owed by him for 2008.
According to the indictment, Matthews used corporate funds to pay his personal expenses, created a false deed of trust for a condominium he owned, placed money into an attorney trust account that was then used to pay his personal expenses, established a corporation (SLM Consultants, LLC) using his mother’s Social Security number and listing his mother as the sole member, and dealt in cash from 2011 through 2015, all in an effort to evade payment of taxes and to impede the due administration of the internal revenue laws.
The indictment also alleges that Matthews failed to file federal income tax returns on income earned during 2012, 2014 and 2015.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Justice Department Requires Divestiture of Morpho’s Explosive Trace Detection Business Before Smiths AcquisitionRead the Press Release
The Department of Justice announced today that it will require Smiths Group plc to divest Morpho Detection LLC and Morpho Detection International LLC’s global explosive trace detection (ETD) business in order for Smiths to proceed with its proposed $710 million acquisition of Morpho from Safran S.A.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“The acquisition, as originally proposed, would have eliminated one of only three suppliers of desktop explosive trace detection devices in the United States, and these devices play a critical role in ensuring the safe transport of passengers and cargo at our nation’s airports,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that the Transportation Security Administration and other desktop explosive trace detection purchasers continue to enjoy the benefits of vigorous competition when they purchase these vital security screening products.”
The European Commission previously announced that in order to address its competitive concerns with the acquisition, it also will require Smiths to divest Morpho’s global ETD business. The department’s Antitrust Division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies.
According to the department’s complaint, Smiths and Morpho are two of the leading providers of desktop ETD devices for both air passenger travel and air cargo screening at U.S. airports. Desktop ETD devices detect trace amounts of explosive residue or narcotics on hands, belongings, and cargo from a tiny sample swabbed from the object and placed inside the detector. The complaint alleges that competition between Smiths and Morpho has resulted in lower prices, better service, and more innovative desktop ETD devices.
The proposed divestiture will remedy the loss of this competition. Under the terms of the proposed settlement, Smiths must divest Morpho’s global ETD business to a buyer approved by the United States. The department believes that the divestiture of Morpho’s global ETD business, which also includes handheld and portal ETD devices, was necessary to ensure that the buyer of Morpho’s global ETD business would be a viable competitor in the provision of desktop ETD devices.
Smiths is a London-based public limited company that provides products used in an array of industries. Smith’s wholly-owned U.S. subsidiary, Smiths Detection U.S. Inc. (Smiths Detection), sells a wide range of threat and contraband detection equipment used at airports and other high-risk critical infrastructure sites. Smiths Detection, which is headquartered in Edgewood, Maryland, had approximately $730 million in annual revenues in 2015.
Safran is an aerospace and defense company based in Paris. Morpho, a division of Safran, is headquartered in Newark, California. Morpho sells threat and contraband detection equipment used at airports and other high-risk critical infrastructure sites. Morpho had approximately $325 million in annual revenues in 2015, about $65 million of which were from ETD product sales.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Smiths CIS Smiths Complaint Smiths Explanation Smiths HSSO with PFJJury Convicts Pharr Man in Absentia for Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – A 20-year-old Pharr man has been convicted of both conspiracy to commit hostage taking and conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Abe Martinez. The federal jury sitting in McAllen convicted Luis Gerardo Betancourt in absentia following a five-day trial and less than three hours of deliberation.
Betancourt was present upon the jury’s selection, but failed to appear for trial and presentation of the evidence. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the United States Marshals Service in McAllen, Texas at (956) 618-8025.
The investigation began Dec. 4, 2015, when authorities learned of people in other states being forced to pay for the release of family members being held hostage at an undetermined location. Testimony at trial revealed that an individual had paid approximately $17,000 for such release. The jury heard that some family members received threats such as to cut off body parts and kill the hostages, one of whom was an eight-year-old victim, if monetary demands were not met. Further investigation revealed Betancourt’s involvement in the conspiracy. The jury heard that he was responsible for recruiting and transporting co-conspirators as well as the receipt of money sent by the victims’ family members.
The hostages held during the course of the conspiracy were eventually released Dec. 8, 2015.
U.S. District Judge Randy Crane presided over the trial and has set sentencing for June 8, 2017. At that time, Betancourt faces up to life in federal prison for conspiracy to commit hostage taking and up to 10 years for the alien transportation conspiracy.
The FBI Safe Streets Task Force conducted the investigation with assistance from Border Patrol, Customs and Border Protection, police departments in Pharr and Robstown Police Department and the Orange County, Florida, Sheriff’s Office. Assistant U.S. Attorneys David A. Lindenmuth and Roberto Lopez Jr. are prosecuting the case.
Jicarilla Apache Woman Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Audriana Veneno, 23, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pled guilty today in federal court in Albuquerque, N.M., to a child abuse charge.
Veneno was arrested in March 2015, on an indictment charging her with assaulting the victim, a child under the age of 16 years. The indictment alleged that Veneno committed the crime on Nov. 6, 2014, on the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M.
During today’s proceedings, Veneno pled guilty to an information charging her with child abuse. In entering the guilty plea, Veneno admitted that on Nov. 6, 2014, she intentionally and negligently permitted the victim, who was under the age of 18 years, to be placed in a situation that endangered the victim’s life or health.
At sentencing, Veneno faces a maximum penalty of three years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. Assistant U.S. Attorney Raquel Ruiz-Velez is prosecuting the case.
Jacksonville Man Sentenced to More Than 7 Years for Receiving Child Sex Abuse Videos via the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Richard Daniel Lord (58, Jacksonville) to seven years and three months in federal prison for receiving sexual abuse videos of child over the Internet. He was also ordered to serve a life term of supervision and to register as a sex offender upon his release from prison.
According to court documents, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s Jacksonville residence, while he was at home. During an interview with agents, Lord admitted to using his cellphones to search for, download, and view child pornography; that he was most interested in images and videos of children between the ages of 10-12 years old; and that he searched for child pornography “constantly” and could not control himself. A forensic examination of Lord’s cellphones revealed six videos that he had downloaded depicting prepubescent children being sexually abused.
This case was investigated by the Columbia County Sheriff’s Office, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Individual Sentenced to 12 Years in Prison for Drug Trafficking and Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico– Yesterday, defendant José Centeno-González was sentenced by Honorable Judge Francisco Besosa to 12 years of imprisonment and 3 years of Supervised Release, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
José Centeno-González was arrested by the Police of Puerto Rico on May 6, 2015 while driving a Toyota Tundra. A search warrant was obtained for the Toyota Tundra and during the execution of the search police officers discovered a firearm, a Glock .40, 84 rounds of ammunition, and 113 grams of crack-cocaine inside a hidden compartment. At the time of Centeno’s arrest, he was on supervised release for a priory felony firearms offense. Following a jury trial, on September 21, 2016, Centeno was convicted of possessing a firearm after having been convicted of a felony.
Yesterday, March 29, 2017, during the sentencing hearing the Court found by a preponderance of the evidence that Centeno possessed with intent to distribute 113 grams of crack-cocaine and that he possessed the firearm in furtherance of this offense. Consequently, Centeno was sentenced to the statutory maximum term of imprisonment of 120 months followed by a three-year term of supervised release. In addition, the Court revoked Centeno’s supervision for having engaged in new criminal conduct and sentenced him to serve a consecutive 24-month term of imprisonment for a total sentence of 12 years.
The case was prosecuted by Assistant United States Attorneys Alexander Alum and Marie Christine Amy from the U.S. Attorney’s Violent Crimes Unit.
Husband and Wife Defendants Convicted of Mortgage Fraud and Medicaid FraudRead the Press Release
Earlier this afternoon, defendants Joseph Atias and Sofia Atias were convicted of bank fraud, conspiracy to commit bank fraud and Medicaid fraud by a jury in federal court in Central Islip. The fraud was designed to, and did, defraud Bank of America of over half a million dollars. The defendants face penalties of up to 35 years’ imprisonment, the forfeiture of $560,000, and restitution of over $700,000. After the verdicts, Joseph Atias was remanded to custody pending sentencing by United States District Judge Denis R. Hurley.
The convictions were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Through a web of lies and false documentation, these defendants stole more than half a million dollars from Bank of America and from Medicaid, which they used to line their own pockets,” stated Acting United States Attorney Rohde. “The fine work of the FBI to bring these defendants to account for these crimes sends a clear message to anyone who contemplates engaging in mortgage fraud or Medicaid fraud: Do not even attempt it, because you will be caught and held responsible.” Ms. Rohde extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The defendants were convicted of bank fraud and conspiracy to commit bank fraud in connection with the sale of property adjacent to Sacred Heart Academy for $925,000, after the defendants had sold the property in a short sale for $480,000 to discharge their mortgage debt. In the short sale process, the defendants and a co-conspirator, an attorney who pleaded guilty and testified against the defendants at trial, concealed the offer from Sacred Heart Academy from the Bank of America. In the short sale process, the defendants submitted a fraudulent contract of sale and other documents with false statements to Bank of America, and obtained approval of a short sale, wherein the proceeds from the sale of the property were less than the total amount of the mortgages on the property. The defendants submitted these documents to Bank of America, falsely representing that there were no funds to pay the mortgages when, in fact, the defendants knew that Sacred Heart Academy, a high school in Hempstead, New York, had offered to buy the property for an amount sufficient to cover the mortgages on the property. To accomplish the fraudulent short sale scheme, the defendants used a relative as a straw buyer of the property to create the appearance of an arms-length sale. Shortly after that sale, the defendant’s straw buyer sold the property to Sacred Heart Academy for approximately half a million dollars in profit.
Regarding the Medicaid fraud count conviction, the jury found the defendants guilty of theft of government funds in connection with their receipt of hundreds of thousands of dollars in Medicaid funds from 2009-2015. The defendants concealed their self-employment from Medicaid, as well as their available cash resources, including trust fund monies, an inheritance and the $465,000 in proceeds from the above bank fraud, in order to continue on Medicaid, which paid the defendants approximately $2,500 per month.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr. of the Office’s Long Island Criminal Division.
The Defendants:
Name: SOFIA ATIAS
Age: 47 years oldResidence: Great Neck, NY
Name: JOSEPH ATIAS
Age: 52 years oldResidence: Great Neck, NY
Home Health Agency Owner Pleads Guilty to Conspiring in $17 Million Medicaid Fraud SchemeRead the Press Release
The owner and operator of five Houston-area home health agencies pleaded guilty to conspiring to defraud Medicare and the State of Texas’s Medicaid-funded Home and Community-Based Service and Primary Home Care programs of more than $17 million. He also pleaded guilty to conspiring to launder money. These health care programs provided qualified individuals with in-home attendant and community-based services that are known commonly as “provider attendant services” (PAS). This case marks the largest PAS fraud case charged in Texas history.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney of the Southern District of Texas Abe Martinez, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation’s (CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Godwin Oriakhi, 61, of Houston, pleaded guilty before U.S. District Judge Sim Lake of the Southern District of Texas to two counts of conspiracy to commit health care fraud and one count of money laundering. He is scheduled to be sentenced by Judge Lake on June 22, 2017.
According to his plea, Godwin Oriakhi admitted that he, his daughter and co-defendant Idia Oriakhi, and other members of his family owned and operated: Aabraham Blessings LLC, Baptist Home Care Providers Inc., Community Wide Home Health Inc., Four Seasons Home Healthcare Inc. and Kis Med Concepts Inc., all of which were home health agencies in the Houston area. Godwin Oriakhi admitted that he, along with his daughter and co-conspirators, obtained patients for his home health agencies by paying illegal kickback payments to patient recruiters and his office employees for hundreds of patient referrals. Oriakhi also admitted that he, along with his daughter and co-conspirators, paid Medicare and Medicaid patients by cash, check, Western Union and Moneygram for receiving services from his family’s home health agencies in exchange for the ability to use their Medicare and Medicaid numbers to bill the programs for home healthcare and PAS services. Oriakhi admitted that he, his daughter and their co-conspirators also directly paid some of these patients for recruiting and referring other Medicare and Medicaid patients to his agencies.
Additionally, Oriakhi admitted that he, his daughter and other co-conspirators paid physicians illegal kickbacks payments, which Oriakhi and his co-conspirators called “copayments,” for referring and certifying Medicare and Medicaid patients for home health and PAS services.
Oriakhi further admitted that each time he submitted a claim predicated on an illegal kickback payment he knew he was submitting a fraudulent claim to Medicare or Medicaid based on his false representations that the claim and the underlying transaction complied with the federal Anti-Kickback Statute and other state and federal laws. Oriakhi further admitted that he knew that Medicare and Medicaid would not otherwise pay for the fraudulent claims, according to his plea.
In addition to the home healthcare and PAS services fraud scheme, Oriakhi admitted that he and his co-conspirators used the money fraudulently obtained from Medicare and Medicaid to pay illegal kickback payments to patient recruiters, employees, physicians and patients to promote the Medicare home health and Medicaid PAS fraud conspiracies, and ensure their successful continuation.
In total, Oriakhi admitted that he and his family submitted approximately $17,212,051 in fraudulent home healthcare and PAS claims to Medicare and Medicaid and received approximately $16,198,600 on those claims.
Oriakhi is the last member of the charged conspirators to plead guilty. Oriakhi’s co-defendants: Idia Oriakhi, his daughter; Charles Esechie, a registered nurse; and Jermaine Doleman, a patient recruiter, pleaded guilty and are awaiting sentencing.
The FBI, HHS-OIG, IRS-CI and MFCU are investigating the case, and brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Aleza S. Remis and William S.W. Chang of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Groton Woman Pleads Guilty to Conspiracy to Commit Sex Trafficking of a Minor, Distributing Heroin that Led to Her OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADELE BOUTHILLIER, 43, of Groton, pleaded guilty today in New Haven federal court to conspiracy to commit sex trafficking of a minor and heroin distribution offenses.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” brought the victim to the motel to engage in prostitution, and the victim stayed in a room there with BOUTHILLIER. Both Gomez and BOUTHILLIER, who was engaged in prostitution and worked with Gomez, knew that the victim was under the age of 18. On the morning of May 28, 2016, BOUTHILLIER purchased a quantity of heroin from Gomez and gave it to the victim, who snorted it. At approximately 10:00 p.m. that day, BOUTHILLIER awoke to find the victim to be unresponsive with vomit coming out of her mouth. BOUTHILLIER waited approximately four hours before calling 911.
BOUTHILLIER pleaded guilty to one count of conspiracy to commit sex trafficking of a minor, an offense that carries a maximum term of imprisonment of life, and one count of possession with intent to distribute heroin, an offense that carries a maximum term of imprisonment of 20 years.
BOUTHILLIER is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on June 22, 2017. BOUTHILLIER, who was released on bond, was ordered detained at the conclusion of today’s court proceeding.
Gomez pleaded guilty on November 17, 2016, and awaits sentencing. He has been detained since his arrest on June 1, 2016.
The matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The investigation is being conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Great Bend, Pennsylvania Woman Charged in Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joann Palmatier, age 54, of Great Bend, Pennsylvania, was charged by felony criminal information with mail fraud.
According to United States Attorney Bruce D. Brandler, the information alleges that Palmatier was employed as a bookkeeper for a custom machine shop in Great Bend, responsible for managing the company’s finances, including paying vendor bills, taxes and payroll. Palmatier is accused of stealing approximately $95,000 of her employer’s money and, among other things, paying her own bills by mailing company checks to her creditors.
The United States also filed a plea agreement, which is subject to the approval of the Court, wherein it is indicated that Palmatier intends to plead guilty to the charges when she appears in federal court for her arraignment.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Todd K. Hinkley is prosecuting 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 this offense is 20 years of 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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Gorham Woman Pleads Guilty to Federal Program Fraud ChargeRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Jamie Hussey, 35, of Gorham, Maine, pleaded guilty in U.S. District Court to committing federal program fraud.
Court records show that between February 2014 and September 2016, the defendant embezzled over $91,577 from the South Portland Housing Authority (SPHA), an agency that that administers public housing units and that receives federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”). The defendant was employed as the SPHA Resident Services Coordinator for the Family Self-Sufficiency Program (FSS), a program that promotes the development of local strategies to coordinate public and private resources that help public housing tenants obtain employment that will enable participating families to achieve economic independence. Under this program, a participant can earn monetary credits that are placed in an escrow account based upon the participant meeting certain goals. Upon successfully completing a FSS contract, a participant may claim funds in their escrow account if no family member is receiving welfare assistance. The defendant caused 48 checks to be issued in the names of FSS program participants and deposited into her personal bank account. None of the participants ever requested these checks, nor received any proceeds of the checks.
Hussey faces up to 10 years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by HUD-Office of the Inspector General and the South Portland Police Department.
Fugitive Wanted on Federal Child Exploitation Charges Captured in DenverRead the Press Release
BOSTON – A federal defendant, who fled in 2015 while on pre-trial release, was captured yesterday in Denver, Colo.
In May 2015, Scot Letourneau, 44, formerly of Quincy and Maine, was arrested and charged in U.S. District Court in Massachusetts with receipt and possession of child pornography. Although the government sought Letourneau’s pretrial detention on the grounds of his prior convictions, the Court released him on Aug. 5, 2015, on an electronic bracelet and home confinement in Maine. On Nov. 3, 2015, Letourneau fled and a warrant for his arrest was immediately issued. Letourneau was apprehended in Denver yesterday and was detained following an appearance in U.S. District Court in Denver this afternoon. He will appear in federal court in Massachusetts at a later date.
As alleged in the original charging documents, in early 2015, law enforcement officers learned that an individual was trading images of child pornography on Kik Messenger, an instant messaging app, with an individual in Connecticut. After further investigation, it was determined that an Internet IP address used in transmitting the images was associated with Letourneau. On May 21, 2015, a search warrant was executed at Letourneau’s home, and a preliminary review of his cellphone revealed that he exchanged images of child pornography with others. Investigators also learned that Letourneau had previously been convicted of distribution of child pornography in 2002 in Cheshire County Superior Court.
On June 18, 2015, a two-count federal indictment was returned against Letourneau charging him with distribution and possession of child pornography.
In light of Letourneau’s prior conviction, the charge of distribution of child pornography provides for a mandatory minimum sentence of 15 years and no greater than 40 years in prison, and the charge of possession of child pornography provides for a mandatory minimum term of 10 years and no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to 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; U.S. Marshal John Gibbons for the District of Massachusetts; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Kenneth Deal, Acting U.S. Marshal for the District of Colorado, made the announcement today. Assistance was also provided by the Adams County (Colo.) Sheriff’s Department; Connecticut State Police; Quincy Police Department; and U.S. Coast Guard. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The case was 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/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Franklin County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Michael Cobb, age 47, of Waynesboro, Pennsylvania, was indicted on March 29, 2017, by a federal grand jury with unlawful possession of a firearm and three drug trafficking offenses.
According to United States Attorney Bruce D. Brandler, Cobb was allegedly in possession of firearms illegally, and possessed heroin, crack cocaine, and powder cocaine with intent to distribute. The indictment also alleges Cobb was previously convicted of a felony offense, making it illegal for him to possess a firearm.
The charges stem from an investigation conducted by the Waynesboro Police Department with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 the unlawful possession of firearm charge is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the drug trafficking charges is 30 years in prison, 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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Four Arrested for Heroin TraffickingRead the Press Release
BOSTON – Four men were arrested this morning on charges of heroin distribution and possession with intent to distribute heroin.
Richard R. Fernandez, 26, believed to reside in Lawrence; Jose C. Torres, 27, believed to reside in Haverhill; Angel G. Rivera Serrano, 36, believed to reside in Haverhill; and Luis Humberto Arias Lara, 41, believed to reside in Lowell, were charged with heroin distribution and possession with intent to distribute heroin.
According to court documents, the men distributed heroin in and around Waltham over the course of several months. Each of the defendants allegedly sold drugs to an undercover investigator. Court-authorized searches were conducted this morning at two residences and two alleged stash houses where investigators seized approximately $200,000 in cash and approximately 1.5 kilograms of narcotics.
The charges of distribution and possession with intent to distribute heroin each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million, or twice the value of the funds involved, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal of the District of Massachusetts; and members of the Suburban Middlesex County Drug Task Force, which is composed of the Waltham, Watertown, Newton, Arlington, Belmont, Weston and Lexington Police Departments, made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The information contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Dodge Man Receives Prison Term for Distributing Methamphetamine and Possessing a FirearmRead the Press Release
A man who distributed methamphetamine and illegally possessed a firearm was sentenced March 27, 2017, to 7 years in federal prison.
Jermiah Preston, age 34, from Fort Dodge, Iowa, received the prison term after a November 7, 2016, guilty plea to one count of felon in possession of a firearm, in Case No. CR15-3048-LTS and one count of distribution of a controlled substance, in Case No. CR16-3028-LTS.
At the guilty plea, Preston admitted that in September of 2015, he knowingly and intentionally aided and abetted in the distribution of methamphetamine in the Fort Dodge area. On November 18, 2015, while attempting to serve an arrest warrant on Preston at a hotel in Fort Dodge, law enforcement observed Preston throw a handgun out the window of the room he was occupying. Shortly thereafter, Preston attempted to climb out of the window and was confronted by law enforcement. Preston was a convicted felon, and was in the possession of the handgun illegally.
Preston was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Preston was sentenced to 84 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Preston is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn Wehde and Special Assistant United States Attorney Ajay Alexander and investigated by the Fort Dodge Police Department, the Iowa Division of Narcotics Enforcement (DNE), and the Bureau of Alcohol, Tobacco and Firearms (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 15-CR-03048 and 16-CR-03028. Follow us on Twitter @USAO_NDIA.
Former Orange County Resident Who Fled United States to Avoid Prosecution in Healthcare Fraud Case Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A medical doctor who fled the United States nearly 15 years ago and faked his own death to avoid prosecution in a healthcare fraud case was sentenced late this afternoon to 29 months in federal prison for fleeing justice.
Tigran Svadjian, 58, a naturalized U.S. citizen originally from Armenia who was residing in Newport Beach prior to fleeing the country in September 2002, was sentenced late this afternoon by United States District Judge Michael W. Fitzgerald.
Svadjian pleaded guilty in November to one count of unlawful flight to avoid prosecution.
In a case filed in 2002 in United States District Court in Sacramento, Svadjian, who operated medical clinics in Los Angeles and Fresno, had agreed to plead guilty in a $2.4 million scheme to defraud Medi-Cal by submitting bills for tests that had not been performed, in many cases because the “patients” were dead. After being ordered to appear in federal court in the Eastern District of California for an arraignment in that case, he fled to Russia, leaving behind his wife and son.
On October 24, 2002, the United States Embassy in Moscow received notification that Svadjian had died of pneumonia and that his body had been cremated. Relying on this false information, the Embassy then issued a report documenting the death, and Svadjian’s defense counsel submitted that report to federal prosecutors.
When he pleaded guilty, Svadjian admitted that he paid a Russian police officer in 2002 to submit an official report about his death to the United States Embassy. Soon after, Svadjian obtained a fraudulent Russian passport in a different name and relocated to Hurghada, Egypt, where he occasionally worked as a scuba instructor.
In January 2013, after lengthy and unsuccessful attempts to locate Svadjian or to obtain further confirmation of his death, prosecutors in the Eastern District of California dismissed the healthcare fraud case.
Svadjian was taken into custody by Egyptian authorities on August 1 – nearly 14 years after he fled the United States. Svadjian had been deported to Egypt by Ukrainian authorities after they determined he was travelling on a fraudulent Lithuanian passport. Egyptian authorities discovered in his residence an old United States passport with his true name.
Svadjian “did not simply flee from prosecution,” prosecutors wrote in a sentencing memorandum filed with the court. “Instead, defendant planned and implemented a sophisticated, fraudulent scheme that involved bribing foreign officials, using false statements to mislead U.S. State Department officials into creating a false death certificate, and submitting that false certificate to federal prosecutors. Defendant then hid from U.S. authorities through the use of false identities for approximately 15 years. He abandoned his wife, son, and parents, and started a whole new life without them because he did not want to spend time in prison.”
This case was investigated by the Federal Bureau of Investigation.
This case was being prosecuted by Assistant United States Attorney Bryant Y. Yang of the General Crimes Section.
Former NMMI Cadet from California Sentenced to Ten Years for Federal Child Pornography Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas announced that Joshua Adam Williams, 21, of Lakeside, Calif., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M. Williams will serve 120 months in federal prison followed by 15 years of supervised release for his conviction on a possession of child pornography charge. Williams will be required to register as a sex offender after completing his prison sentence. He was also ordered to pay $210,010.00 in restitution to one of the victims of his criminal conduct.
Williams was arrested on Nov. 4, 2015, in Lakeside, Calif., on a criminal complaint alleging child pornography charges that was filed on Oct. 27, 2015, in federal court in Las Cruces. He was transferred from California to Las Cruces on Dec. 11, 2015, to face the charges against him.
The criminal complaint charged Williams with distribution, possession and attempted production of videos and images depicting minors engaged in sexually explicit conduct. It alleged that Williams committed these crimes in May 2015 in Roswell, N.M., when he was enrolled as a cadet at the New Mexico Military Institute (NMMI).
Court filings reveal that the investigation into Williams began in Aug. 2014, when a father and minor child disclosed to the FBI that the child had been self-producing child pornography and sharing it with others through an internet chat room. The father surrendered the child’s cellular phone to the FBI and the FBI found it to contain alleged child pornography that had been shared with a specific account identified by a particular username. After investigation revealed that Williams, who was then a NMMI cadet, was the subscriber to the account, search warrants were obtained for Williams’ computers, cellphone and other digital media. Forensic examinations of Williams’ computer and cellphone revealed that they contained videos and images consistent with child pornography.
On April 20, 2016, Williams pled guilty to a felony information charging him with possession of child pornography. In his plea agreement, Williams admitted that on May 5, 2015, he possessed a computer and cellular telephone that contained videos and images of child pornography. The plea agreement states that Williams’ computer contained a video of a toddler being sexually molested by an adult and his cellular phone contained approximately 100 videos of minors engaged in sexually explicit conduct.
This case was investigated by the Roswell office of the FBI, New Mexico State Police, New Mexico Internet Crimes Against Children (ICAC) Task Force and the New Mexico Regional Computer Forensic Laboratory with assistance from the FBI in San Diego, Calif., and the U.S. Attorney’s Office for the Southern District of California.
Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Federal Corrections Officer Arraigned on Bribery ChargesRead the Press Release
PLATTSBURGH, NEW YORK – Carlos Ochoa, age 31, of Puerto Rico, was arraigned today on charges that he accepted a bribe from an inmate while he was a corrections officer at Federal Correctional Institution (FCI) Ray Brook.
The announcement was made by United States Attorney Richard S. Hartunian; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and Ronald G. Gardella, Special Agent in Charge of the New York Field Office of the Office of the Inspector General of the U.S. Department of Justice.
Ochoa is charged with conspiracy to commit bribery, bribery by a public official, and providing contraband to a federal inmate.
According to the indictment, Ochoa agreed to accept money in exchange for smuggling an iPhone to Richard Coleman, an inmate at FCI Ray Brook. Ochoa then successfully smuggled the iPhone into the facility and provided it to Coleman, who used the phone to communicate with people outside of the facility. The phone was discovered during a cell search on March 8, 2013.
In addition to Ochoa, the indictment charges Coleman with conspiracy to commit bribery, bribery of a public official, and possession of contraband by a federal inmate.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
If convicted of all charges, Ochoa faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Ochoa appeared today before United States Magistrate Judge Gary L. Favro, who ordered Ochoa detained pending trial before Senior United States Judge Frederick J. Scullin, Jr. Ochoa was already in custody on federal charges in Puerto Rico. He is accused there of accepting a bribe as a corrections officer at the Metropolitan Detention Center in Guaynabo, Puerto Rico, as well as supplying a firearm and ammunition to a prohibited person, and attempting to aid and abet possession with intent to distribute a controlled substance.
This case is being investigated by the FBI and the U.S. Department of Justice Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
Former El Paso-Based Company Employee Pleads Guilty to Computer IntrusionRead the Press Release
In El Paso, 41-year-old Joe Vito Venzor faces up to ten years in federal prison after admitting today to illegally accessing his former employer’s computer system and shutting it down announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before Senior United States District Judge David Briones, Venzor pleaded guilty to one count of transmission of a program to cause damage to a computer. By pleading guilty, Venzor admitted that on September 1, 2016, after being terminated from his position at the company’s help desk, he logged onto the company’s network through an administrator account and shut down the company’s email server and application server while deleting systems files essential to restoring computer operations.
Because of the intrusion, 300 employees in the production and shipping factory were unable to work for nearly three hours before the decision was made to send them home for the rest of the shift. The distribution center was not able to ship any of their products and customers could not place orders online. The IT Managing Director also had to hire a third party IT staff to assist with setting up a new application server for the company. The company continued to suffer direct and indirect losses because of the intrusion into its computer server in the ensuing days and weeks, as they had to reconstruct files, and fulfill production and customer services issues.
Venzor remains on bond pending sentencing scheduled for 9:30am on June 6, 2017, before Judge Briones in El Paso. In addition to the prison term, Venzor is also subject to a fine of up to $250,000 and restitution to his former employer, which has yet to be determined.
The Federal Bureau of Investigation investigated this case. Assistant United States Attorneys Greg McDonald and Rifian Newaz are prosecuting this case on behalf of the Government.
Former Eagle Pass City Manager Admits Lying to FBI in Connection with Investigation into “Pay-To-Play” Bribery Scheme Involving Maverick County ContractsRead the Press Release
This afternoon, 68-year-old former Eagle Pass City Manager Hector Chavez, Sr., admitted to lying to FBI agents during their investigation into a “pay-to-play” scheme involving Maverick County contracts, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Chavez pleaded guilty to one count of making a false statement to a federal agent. By pleading guilty, Chavez admitted that on June 25, 2015, he knowingly gave false statements to agents regarding his response to a federal grand jury subpoena, his work on Maverick County contracts, and a personal consulting services contract with an engineering firm.
According to court records, on May 4, 2015, a federal grand jury subpoena was issued to Chace Management, a company owned by the defendant, for all records regarding any subcontracting work done for an engineering firm. Chavez, admittedly, lied to authorities about creating a fraudulent, hand-written personal services agreement he provided in response to the subpoena. Chavez also claimed to have received approximately $24,000 for services rendered to the engineering firm when in fact, the work listed in the agreement never took place.
Chavez, who remains on bond pending sentencing, faces up to five years in federal prison. Sentencing has yet to be scheduled.
This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigations Division together with the Customs and Border Protection Office of Internal Affairs. Assistant United States Attorneys Katherine Griffin, Daniel Lee and Todd Keagle are prosecuting this case on behalf of the Government.
Former Director of Oakland Charter Schools Charged in Grant Application Fraud, Money Laundering SchemeRead the Press Release
SAN FRANCISCO – Benford Chavis, the former director of three Oakland charter schools, collectively known as the American Indian Model Schools, was charged with mail fraud and money laundering in connection with the schools’ applications for federal grant funds, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. Chavis was apprehended this morning in North Carolina and has been ordered to appear in Oakland to face the charges in the Northern District of California.
According to the indictment, unsealed today, from early 2006 through May of 2012, Chavis, 59, from Lumberton, North Carolina, and others devised and implemented a scheme to defraud the California School Finance Authority by causing three charter schools to request federally funded grants in violation of federal conflict of interest regulations. At times between 2000 and 2012, Chavis served as the director and in various additional capacities for three Oakland charter schools – the American Indian Public Charter School, the American Indian Public High School II, and the American Indian Public High School – as well as the schools’ umbrella organization, the American Indian Model Schools (AIMS). The indictment alleges Chavis caused the schools to apply for more than $2.5 million in competitive federal grant funds for the purpose of paying the costs of leasing facilities that Chavis owned or controlled through his companies American Delivery Systems and Lumbee Properties, LLC. Chavis allegedly concealed his interest in the facilities in the grant applications. The indictment further alleges that the schools obtained more than $1.1 million in federal grants as a result of this fraud, and that Chavis used fraud proceeds to promote the fraud scheme as to each school. In sum, Chavis is charged with three counts of mail fraud, in violation of 18 U.S.C. § 1341, and three counts of promotional money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum term of imprisonment for mail fraud is 20 years and the maximum term of imprisonment for money laundering is 10 years for each count. Additional periods of supervised release, fines, and special assessments also could be imposed, however, any sentence following conviction would 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.
Chavis was released on a personal recognizance bond and was ordered to make his initial appearance in the Oakland Courthouse of the Northern District of California before the Honorable Haywood S. Gilliam, U.S. District Judge, on or before April 14, 2017.
Assistant U.S. Attorney Hartley West is prosecuting the case with the assistance of Claudia Hyslop, Maryam Beros, and Patricia Mahoney. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigations.
Former Bank Manager Indicted for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Karen E. Ramm, age 50, of Camp Hill, Pennsylvania, was indicted on March 29, 2017, by a federal grand jury for bank fraud.
According to United States Attorney Bruce D. Brandler, Ramm was a branch manager and loan officer at Commerce Bank (now known as First National Bank of Pennsylvania, successor to Metro Bank) between 2000 and 2010. The indictment alleges that between 2001 and 2007, Ramm defrauded Commerce Bank by using her position to fraudulently originate approximately seven loans totaling $379,900 for a customer she knew personally. It is alleged that each loan contained false information regarding the borrower and it is also alleged that Ramm converted a portion of the loan proceeds to her own benefit.
The case was investigated by the Federal Bureau of Investigation with the assistance of the financial institution’s security and investigations staff. Assistant U.S. Attorney James T. Clancy is prosecuting 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 the bank fraud charge is 30 years of 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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Former Baltimore Man Sentenced to Seven Years in Federal Prison for 2011 Post Office RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Jackson, age 51, formerly of Baltimore, Maryland today to seven years in prison, followed by five years of supervised release, for the armed robbery of a post office.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.
“Although these types of crimes are rare, our employees and customers can rest assured that Postal Inspectors will always continue to pursue justice for criminals who would jeopardize their safety,” said Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division. He continued, “We extend sincere gratitude to our law enforcement partners who assisted in bringing this investigation to a successful resolution.”
According to his plea agreement, on August 3, 2011, Jackson and another man robbed the Perry Point U.S. Post Office in Cecil County, Maryland at gunpoint. One robber vaulted the counter and ordered the Postmaster to open the cash drawer. After taking cash from the drawer, both robbers forced the Postmaster to open the safe, and the robbers removed additional cash and money orders. The Postmaster was forced into a utility closet and instructed to stay there for five minutes or the robbers would kill the Postmaster. Postal inspectors determined that in addition to cash, approximately 60 blank postal money orders were stolen.
Many of the postal money orders were negotiated at locations in and around Baltimore. Postal Inspectors interviewed several individuals who negotiated the stolen and altered postal money orders. One of those individuals admitted receiving the stolen postal money orders from “Jeff,” whom the individual identified in a photograph as Jeffrey Jackson. Jackson provided that individual with details about the robbery that could only have been known to someone that was at the robbery.
An eyewitness to the robbery subsequently identified Jackson in a photo lineup. That person had come in to the Post Office during the robbery. There was no one behind the counter. A minute later, Jackson came out of a back room and told the witness to come back later because the Postmaster was “too busy to help right now.” The eyewitness left and immediately went to the Perry Point Veterans Administration (VA) Police Department to report the suspicious activity. Postal Inspectors and Perry Point VA Police responded to the robbery.
After Jackson’s arrest on unrelated state burglary charges, Jackson contacted police to say he had information about the postal robbery at Perry Point. Jackson was interviewed by Postal Inspectors and provided non-public information about the post office robbery that could only have been known by the robbers. As a result of the robbery, the loss to the USPS was approximately $19,700 in cash and negotiated stolen postal money orders.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation and thanked the VA Office of Inspector General, Perry Point VA Police Department, Perryville Police Department, and Maryland State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Paul E. Budlow and Rachel Miller Yasser, who prosecuted the case.
Fishing Vessel Owner Convicted of Discharging Oily Waste into the Coastal Waters of the United States off Washington StateRead the Press Release
WASHINGTON – Bingham Fox, owner of the fishing vessel Native Sun, was convicted today in U.S. District Court in Seattle of discharging oily waste directly into coastal waters of the State of Washington, a felony violation of the Clean Water Act. The jury deliberated six hours following a five-day trial. U.S. District Judge Robert S. Lasnik scheduled sentencing for July 11, 2017.
According to court documents, Bingham Fox, and others associated with the Native Sun, repeatedly discharged oily wastes into the ocean using unapproved submersible pumps and hoses. According to evidence presented at trial, the Native Sun had multiple, long-term, mechanical problems that put substantial amounts of oil in its bilges. In addition, the vessel was leaky, so the bilges were constantly filling with a mixture of oil and seawater. Bingham Fox had at least one illegal pump installed on board and directed others to regularly dump oily waste from the bilges, even in port.
“This criminal conviction clearly shows that treating our oceans as a dump has serious consequences,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “Law-abiding vessel operators know the importance of compliance with our nation’s environmental laws, but those that flout those laws will face justice.”
“This case highlights the great collaborative efforts of Sector Puget Sound, Coast Guard Investigative Service and the Department of Justice, in holding those who pollute our waters accountable,” said Captain Linda A. Sturgis, Commander, Coast Guard Sector Puget Sound. “The results announced today are a prime example of the importance of the Coast Guard's marine environmental protection mission and the effectiveness of the Act to Prevent Pollution from Ships.”
Bingham Fox faces up to five years in prison and a criminal fine of up to $250,000 for this conviction. On March 17, 2017, his son Randall Fox pleaded guilty to conspiring with others to discharge oily wastes into the ocean when the Native Sun was offshore. Those acts violated the Act to Prevent Pollution from Ships (APPS), which specifically prohibits the discharge of machinery space bilge water, unless it has been properly treated, and meets rigorous oil pollution standards. APPS implements America’s obligations under an international treaty to control pollution by ocean-going vessels. On at least one occasion, a discharge under Randall Fox’s command left a large oily sheen in the wake of the Native Sun, which was video recorded by a crewmember, who reported the crime to authorities. Randall Fox faces a maximum of six years in prison for the APPS count and five years in prison for the conspiracy count. He also faces a criminal fine of up to $250,000 for each count. His sentencing is scheduled for June 16, 2017.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.
Fishing Vessel Owner Convicted of Discharging Oily Waste into the Coastal Waters of the United States Off Washington StateRead the Press Release
Bingham Fox, owner of the fishing vessel Native Sun, was convicted today in U.S. District Court in Seattle of discharging oily waste directly into coastal waters of the State of Washington, a felony violation of the Clean Water Act. The jury deliberated six hours following a five-day trial. U.S. District Judge Robert S. Lasnik scheduled sentencing for July 11, 2017.
According to court documents, Bingham Fox, and others associated with the Native Sun, repeatedly discharged oily wastes into the ocean using unapproved submersible pumps and hoses. According to evidence presented at trial, the Native Sun had multiple, long-term, mechanical problems that put substantial amounts of oil in its bilges. In addition, the vessel was leaky, so the bilges were constantly filling with a mixture of oil and seawater. Bingham Fox had at least one illegal pump installed on board and directed others to regularly dump oily waste from the bilges, even in port.
“This criminal conviction clearly shows that treating our oceans as a dump has serious consequences,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “Law-abiding vessel operators know the importance of compliance with our nation’s environmental laws, but those that flout those laws will face justice.”
“This case highlights the great collaborative efforts of Sector Puget Sound, Coast Guard Investigative Service and the Department of Justice, in holding those who pollute our waters accountable,” said Captain Linda A. Sturgis, Commander, Coast Guard Sector Puget Sound. “The results announced today are a prime example of the importance of the Coast Guard's marine environmental protection mission.”
Bingham Fox faces up to five years in prison and a criminal fine of up to $250,000 for this conviction. On March 17, 2017, his son Randall Fox pleaded guilty to conspiring with others to discharge oily wastes into the ocean when the Native Sun was offshore. Those acts violated the Act to Prevent Pollution from Ships (APPS), which specifically prohibits the discharge of machinery space bilge water, unless it has been properly treated, and meets rigorous oil pollution standards. APPS implements America’s obligations under an international treaty to control pollution by ocean-going vessels. On at least one occasion, a discharge under Randall Fox’s command left a large oily sheen in the wake of the Native Sun, which was video recorded by a crewmember, who reported the crime to authorities. Randall Fox faces a maximum of six years in prison for the APPS count and five years in prison for the conspiracy count. He also faces a criminal fine of up to $250,000 for each count. His sentencing is scheduled for June 16, 2017.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.
Federal Indictment Unsealed in Horry County Illegal Distribution of Oxycodone Conspiracy CaseRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Dennis Heilman, Jeffrey Heilman, Joyce Hendricks, and Becky Hendricks, all of Myrtle Beach, South Carolina, were arrested this week and appeared before a federal magistrate judge in Florence, South Carolina for an arraignment hearing.
All defendants are charged in an indictment with conspiring to possess with intent to distribute and to distribute oxycodone in violation of Title 21, United States Code, Section 846. Dennis Heilman faces several additional counts of possessing with intent to distribute and distributing oxycodone, which is a Schedule II controlled substance.
This case is being investigated by the Drug Enforcement Administration and the Fifteenth Circuit Drug Enforcement Unit, with the assistance of the Horry County Sheriff’s Office. Assistant United States Attorney Ben Garner of the Columbia office is assigned to the case.
U.S. Attorney Drake stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Longs Man Indicted for Felon in Possession of a Firearm, Possession with Intent to Distribute Crack Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Lecephrus Pierce, age 24, of Longs, South Carolina, was charged in a three-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute and distribution of crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Pierce faces a statutory, mandatory minimum penalty of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ATF Horry County Task Force, and Myrtle Beach Police. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
North Carolina Man Indicted for Possessing a Gun After Being Convicted of a Felony. James Franklin Badgett, age 56, of Pilot Mountain, North Carolina, was charged in a one-count indictment with felon in possession of a firearm. Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Badgett could receive is a statutory, mandatory minimum of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ATF Horry County Task Force, and Myrtle Beach Police. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Kingstree Man Indicted for Felon in Possession of a Firearm. Jamon Gerald Canty, age 33, of Kingstree, South Carolina, was charged in a one-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Canty could receive is a statutory, mandatory minimum of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ATF Horry County Task Force, and Myrtle Beach Police. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Timmonsville Man Indicted for Possessing a Gun After Being Convicted of a Felony. Jabari Durvall Sellers, age 36, of Timmonsville, South Carolina, was charged in a one-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Sellers could receive is a statutory, mandatory minimum of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Florence County Sheriff’s Office, and the Timmonsville Police Department. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Myrtle Beach Man Indicted for Illegal Re-entry Into the United States. Eloy Altamirano-Diaz, age 36, of Myrtle Beach, South Carolina, was charged in a one-count indictment with Illegal Re-entry into the U.S. after being previously deported, a violation of Title 8, United States Code, Section 1326(a). The maximum possible penalty Altamirano-Diaz could receive is a maximum fine of $250,000.00 and/or imprisonment of 2 years. The case was investigated by agents of the Immigration and Custom Enforcement – Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Another Myrtle Beach Man Indicted for Illegal Re-entry Into the United States. Edgar Benjamin Lopez-Morales, age 29, of Myrtle Beach, South Carolina, was charged in a one-count indictment with Illegal Re-entry into the U.S. after being previously deported, a violation of Title 8, United States Code, Section 1326(a). The maximum possible penalty Lopez-Morales could receive is a maximum fine of $250,000.00 and/or imprisonment of 2 years. The case was investigated by agents of the Immigration and Custom Enforcement – Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Three Galivants Ferry Men Indicted for Immigration and Drug Charges. Epifanio Castillo-Pacheco, age 43, Isidro Camacho-Castillo, age 29, and Samuel Zepeda-Gonzalez, age 59, all of Galivants Ferry, South Carolina, were charged in a six-count indictment with possession with intent to distribute cocaine, a violation of Title 21, United States Code, Section 841(a)(1); Illegal Re-entry into the United States after being previously deported, a violation of Title 8, United States Code, Section 1326(a); possession of a firearm by an illegal alien, a violation of Title 18, United States Code, Section 922(g)(5)(A); and, possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A).
The maximum possible penalty Castillo-Pacheco and Zepeda-Gonzalez could receive is imprisonment of 20 years and a fine of $1,000,000. The maximum possible penalty Camacho-Castillo could receive is imprisonment of up to 20 years and a fine of $1,000,000.00 and/or imprisonment of 5 years to life. The case was investigated by agents of the ICE- Homeland Security Investigations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####Federal Court Permanently Bars California Man from Preparing Property AppraisalsRead the Press Release
A federal court in Helena, Montana permanently barred Ron Broyles of San Rafael, California from preparing - or assisting others in preparing - any property appraisal that will be used in connection with federal taxes, the Justice Department announced. Based upon evidence the government submitted to the Court in support of a request to bar Broyles, the Court found that Broyles assisted in the organization of a timeshare donation scheme, directly participated in and promoted that scheme, which resulted in timeshare owners claiming improper federal tax deductions for donating their timeshares.
The Court also found that Broyles prepared at least 5,000 appraisals for timeshares to be donated to an entity called Donate for a Cause. Previously, the Court entered permanent injunctions against the other individuals and companies involved in the timeshare donation scheme, including Donate for a Cause, Timeshare Closings, James Tarpey of Montana, Curt Thor of Washington, and Suzanne Tarpey of Montana.
According to the Court’s order, each of Broyles’ 5,000 timeshare appraisals contained false or fraudulent statements about the allowability of tax deductions under the internal revenue laws, and that Broyles knew or had reason to know that these statements were false or fraudulent. According to the evidence submitted by the government, Broyles served as the in-house and primary appraiser for Montana-based organizations Donate for a Cause and TimeShare Closings doing business as Resort Closings. According to the United States’ evidence, between 2011 and 2014, Broyles earned more than $617,000 from preparing appraisals for timeshares to be donated to Donate for a Cause, which constituted all - or virtually all - of his appraisal income during that time. Between 2010 and 2012, Broyles’ appraisals caused his customers to claim more than $11 million in improper charitable contribution deductions, according to the evidence submitted by the government.
The court also barred Broyles from encouraging or advising others to claim charitable contribution deductions on any federal tax return. The court’s order also requires Broyles to identify all timeshare owners for which he prepared a timeshare appraisal since 2010, provide such information to the United States, and email, or mail, a copy of the court’s judgment to every timeshare owner for which he prepared a timeshare appraisal since 2010.
Scams that claim inflated charitable contribution deductions is one of the IRS’s Dirty Dozen Tax Scams for 2017. The IRS recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.
Acting Assistant Attorney General David A. Hubbert, head of the Justice Department’s Tax Division, thanked the IRS Revenue Agent who conducted the investigation and Trial Attorneys Richard G. Rose, Harris J. Phillips and Gretchen E. Nygaard of the Tax Division, who litigated this case.
In the past decade, the Tax Division has obtained injunctions against hundreds of tax return preparers and tax fraud promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Father and Son Spice Traffickers Sentenced to PrisonRead the Press Release
NEWPORT NEWS, Va. – A father and son were sentenced today to a combined 27 years in prison for their roles in a synthetic cannabinoid trafficking operation. The duo was also ordered to forfeit over $1.9 million from their Spice sales.
Nader Abdallah, 56, of Rochester, New York, who was sentenced to 198 months in prison, was convicted on Oct. 20, 2016, by a federal jury of conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues, possession with intent to distribute schedule I controlled substances, distribution and possession with intent to distribute cocaine base, and two counts of false statements. Nader’s son, Sharif Abdallah, 33, also of Rochester, who was sentenced to 132 months in prison, pleaded guilty on Sept. 29, 2016, to conspiracy to use a communication facility and unlawful monetary transactions.
According to court documents and evidence presented at the trial of Nader Abdallah, the father/son team operated a gas station and convenience store located on Warwick Boulevard in Newport News called the Red Barn. Nader and Sharif would take turns coming down from New York to operate the store. In 2011, the Red Barn began selling smokable synthetic cannabinoid products, commonly known as “Spice.” According to court documents, Sharif told investigating agents that he would spend $15,000 to $20,000 on spice inventory in a slow month and $30,000 to $50,000 on spice inventory in a good month.
According to court documents and evidence presented at the trial of Nader Abdallah, on Sept. 18, 2014, law enforcement executed a search warrant at the Red Barn, where they found over 18 kilograms of spice, over $100,000 in cash and a safety deposit box key. Agents conducted a subsequent search warrant of the safety deposit box where they uncovered approximately $700,000 in cash. Eight days after that search warrant, Sharif contacted the Red Barn’s spice supplier and indicated that he and his father wanted to transition from the spice retail they had been doing at the Red Barn to spice wholesale. The Red Barn on Warwick Boulevard was subsequently sold and is no longer under the Abdallahs’ ownership. In December 2014, Nader and Sharif Abdallah acquired a new property in Newport News, which they began using to wholesale spice. During a search warrant executed at that new location on April 20, 2015, law enforcement found over a kilogram of spice and over $10,000 in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Eric M. Hurt and Kevin Hudson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-18.
Easton Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAYMOND J. MARTIN, 49, of Easton, pleaded guilty today in Bridgeport federal court to one count of unlawful possession of a controlled substance.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. Certain members of the conspiracy also distributed prescription pills, including oxycodone, as well as cocaine.
During the investigation, MARTIN was intercepted on a court-authorized wiretap ordering anabolic steroids.
MARTIN is scheduled to be sentenced by U.S. Magistrate Judge Holly B. Fitzsimmons on July 5, 2017, at which time he faces a maximum term of imprisonment of one year and a fine of up to $100,000
MARTIN has been released on a $100,000 bond since his arrest on July 14, 2015.
Santucci pleaded guilty and, on August 25, 2016, was sentenced to 16 months of imprisonment, six months of home confinement, 120 hours of community service and a $5,000 fine.
This matter has been investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Drug Trafficking Defendant Found GuiltyRead the Press Release
Jackson, Miss – On Wednesday, March 29, 2017, Mark Randall Jones, 52, of Los Angeles, California, was found guilty, after a three-day jury trial, of conspiring to possess with intent to distribute cocaine, announced Acting U.S. Attorney Harold Brittain and Inspector in Charge Adrian Gonzalez with the U.S. Postal Inspection Service, Houston Division.
Mark Randall Jones was charged in a two-count federal indictment with conspiracy to possess with intent to distribute more than 5 kilograms of cocaine hydrochloride and possession with intent to distribute 500 grams or more of cocaine hydrochloride.
"The results of the successful federal prosecution of Mark Randall Jones and other defendants by the United States Attorney’s Office supports our goal to maintain the safety and integrity of the U.S. Mail," said Postal Inspector in Charge Gonzalez.
Senior U.S. District Judge David C. Bramlette III, who presided over the case, will sentence Jones on June 7, 2017. He faces a maximum penalty of life in prison.
This case was investigated by the United States Postal Service, the Mississippi Bureau of Narcotics and the Los Angeles County Sheriff’s Department. It is being prosecuted by Assistant United States Attorneys Erin Chalk and Keesha Middleton.