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Tuesday 14 February 2017
Bronx Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KELVIN ACOSTA was sentenced to 300 months in prison and supervised release for 10 years for producing child pornography. ACOSTA pled guilty on September 26, 2016, before U.S. District Judge Paul A. Crotty, who also imposed today’s sentence. In imposing sentence, the Court characterized the defendant’s misconduct as the “most deplorable, depraved act that I can imagine.”
U.S. Attorney Preet Bharara stated: “For years, Kelvin Acosta preyed on our community’s youth by tricking them into supplying personal information, using that information to hack their email accounts, and then extorting them into producing child pornography for him. Today, he has been sentenced to federal prison for his predatory criminal behavior.”
According to documents filed in this case and statements made in related court proceedings:
From at least December 2013 through November 2015, KELVIN ACOSTA engaged in a pattern of “sextortion” by hacking into email accounts belonging to teenage girls and extorting them into producing child pornography for him. ACOSTA did so by messaging the girls on Facebook and tricking them into revealing personal information, which he exploited to hack their email accounts. ACOSTA then told his minor victims that he had hacked their email accounts and found compromising material (sex videos and/or nude photographs), which he threatened to send their family, friends, and schools – unless they created child pornography for him via video chat and/or paid him money.
On March 29, 2016, ACOSTA was arrested in the Bronx. On that day, ACOSTA admitted that, for years, he had hacked and extorted girls and women, aged 13 to 25; he had exploited about 40 to 50 accounts of minors that had nude photographs or sex videos, which he viewed; he had about 10 to 20 minors produce child pornography for him; and he had extorted at least three victims – including at least one minor – into bringing him money.
* * *
ACOSTA, 27, of the Bronx, New York, pled guilty on September 26, 2016, to one count of sexual exploitation of a child, in violation of Title 18, United States Code, Sections 2251(a), (e), and 2.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the New York City Police Department, and thanked the Brooklyn District Attorney’s Office for its valuable cooperation in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
17-050
Bridgeport Resident Pleads Guilty to Ecstasy Trafficking ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COLLIN FLETCHER, 52, last residing in Bridgeport, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to distribute, and to possess with intent to distribute, MDA and MDMA.
MDA (Methylenedioxyamphetamine) is an analogue of MDMA (Methylenedioxymethamphetamine), and they are both commonly known as “ecstasy”.
According to court documents and statements made in court, FLETCHER conspired with others to sell ecstasy to customers in Connecticut, New York and elsewhere. On October 27, 2016, and again on November 1, 2016, investigators made two controlled purchases of ecstasy from FLETCHER.
FLETCHER was arrested on November 18, 2016, after he attempted to sell approximately 10,000 capsules of ecstasy to an undercover officer. The capsules had a combined weight of approximately 923 grams of MDA.
Chief Judge Hall scheduled sentencing for May 12, 2017, at which time FLETCHER faces a maximum term of imprisonment of 20 years. FLETCHER, a citizen of Jamaica, has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi Perry.
Berkeley County woman pleads guilty to her role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michelle Zimmerman, 28, of Hedgesville, West Virginia, was convicted of racketeering, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Zimmerman admitted to traveling between Maryland and West Virginia to aid in a heroin distribution operation in June 2016.
Zimmerman pled guilty to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” She faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Artesia Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Londie Tarango, 23, of Artesia, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Tarango will be on supervised release for three years after completing his prison sentence.
Tarango was arrested on Oct. 6, 2015, on an indictment charging him with distributing methamphetamine on Aug. 1, 2014, in Eddy County, N.M. The indictment included forfeiture allegations seeking forfeiture of $2,400 in proceeds of the drug trafficking activity charged to the United States. On May 5, 2016, Tarango pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
23 Arrested for Distributing Heroin and FentanylRead the Press Release
BOSTON – Twenty-three men and women involved in two drug trafficking organizations operating in Taunton and Boston were arrested and charged today in connection with distributing heroin and fentanyl. In addition, the Drug Enforcement Administration, along with state and local partners, conducted 12 searches in Fall River, New Bedford, Bridgewater, Boston, Brighton and Providence.
According to court documents, Fernando Rivera-Rodriguez, 31, of Boston and Fernando Hernandez, 42, of Providence, RI, allegedly led drug trafficking organizations in Boston and Taunton, respectively. Rivera-Rodriguez and Hernandez were charged along with 21 others for conspiring to distribute heroin and fentanyl from the summer of 2016 through the present. The defendants were held following initial appearances in U.S. District Court in Boston this afternoon. Yeurvs Tejeda and Carlos Gonzalez-Figueroa remain fugitives at large.
“Today’s arrests will help stem the flow of heroin and fentanyl into our communities,” said Acting U.S. Attorney William D. Weinreb. “The defendants in this case knew the drugs that they were distributing were potent and potentially lethal, yet they continued to brazenly ignore the dangers and even expand their reach into Maine.”
“DEA is committed to investigating and dismantling large-scale violent, fentanyl and heroin drug trafficking organizations (DTO), like these operating in the South Coast and Boston area,” said Special Agent in Charge Michael J. Ferguson. “As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities. Those that are suffering from a fentanyl and heroin substance use disorder need treatment and recovery but those that distribute and profit from spreading this poison need to be held accountable. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
“The greater Taunton area has been one of the regions hardest hit by opioid trafficking and overdose deaths,” said Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police. “We in law enforcement focus long-term interdiction efforts, like this operation, as frontal attacks on the hot zones of heroin and fentanyl trafficking. Today’s efforts by federal, state and local police and the U.S. Attorney’s Office will impact the heroin and fentanyl trade in Bristol County.”
The following are charged with conspiracy to distribute heroin and fentanyl:
Fernando Rivera-Rodriguez, a/k/a Alex, a/k/a Antonio Moraima, 31, of Boston;
Glendalee Rodriguez, 33, of Fall River;
Juan Morales-Ortiz, a/k/a Josiel, 27, of Boston;
Jancer Soto, 25, of Boston;
Jose Camacho, a/k/a Traga, 37, of Boston;
Wilmi Hernandez-Diaz, 21, of Boston;
Yeurys Tejeda, a/k/a Santos, 28, of Boston;
Jose R. Narvaez-Arroyo, a/k/a Pacha, 35, of Boston;
Jeffrey Freitas, 31, of Bridgewater;
Isis Y. Lugo-Guerrero, a/k/a Izzy, 44, of Boston;
Jose Negron, a/k/a Edwin Padilla, a/k/a Luisito Bulto, 36, of Boston;
Malvin Berrios, a/k/a Bori, 34, of Boston;
Roger Longmire, 34, of Taunton;
Stephanie O’Sullivan, 30, of Taunton;
Omar Guzman, 39, of Taunton;
Marisa Ruiz, 32, of Taunton;
John Paul Tanguay, 33, of Taunton;
Daniel Wren, 31, of Taunton;
David Tejeda, 34, of New Bedford;
Fernando Hernandez, a/k/a Mora, 42, of Providence, RI;
Jose Arias, 21, of Providence, RI;
Carlos Miguel Gonzalez-Figueroa, 32, of Providence, RI; and
Crystal Rivera, 30, of Providence, RI.
Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton, assisted by Arias, Ruiz, Guzman, and Rivera. The organization sold heroin and fentanyl to customers including Tanguay, Wren, O’Sullivan, and Longmire, who also re-distributed a portion of the drugs. The complaint further alleges that Hernandez obtained drugs from a network of suppliers that included Rivera-Rodriguez and Figueroa.
According to the complaint affidavit, Rivera-Rodriguez operated a drug trafficking organization in Boston, and was assisted by Hernadez-Diaz, Soto, Morales-Ortiz, Rodriguez, Lugo-Guerrero, Negron, Camacho and Yeurys Tejeda. Their customers included David Tejeda, Berrios, and Freitas. The affidavit alleges that Arroyo brokered a kilogram drug deal for Rivera-Rodriguez and that Rivera-Rodriguez and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
A court-authorized wiretap revealed the callous way in which the defendants talked about the deadly effects of the drugs they were distributing. For example, according to the affidavit, Fernando Rivera-Rodriguez, promoted his heroin by telling a drug distributor, that “when you see those people being knocked over . . . you are going to call me back.” The drug distributor did call Rivera-Rodriguez back complaining that the heroin was deadly, saying: “That stuff is not even drug[s]. That is going to kill someone. I think that guy died.” When Rivera-Rodriguez asked, “Did it knock him over?” the distributor said, “I believe so,” and added, “. . . that stuff is that fentanyl. That could kill you.” In response, Rivera-Rodriguez simply said, “Nah, so it’s okay.”
The wiretap also revealed Rivera-Rodriguez boasting about robbing cash and jewelry. For example, Rivera-Rodriguez told Yeurys Tejeda, “We took a little house and we took 13,000 and like three chains, man, and a couple of bracelets, right there in Saugus. And a little while ago, we took another one and took 7,000 from some people also.” Federal agents believe that Rivera-Rodriguez was telling Santos about robbing two houses and stealing over $20,000 in cash and jewelry.
The charging statute provides 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. 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 Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Monday 13 February 2017
Two defendants appear in federal court in Huntington for drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two defendants appeared in federal court today for drug crimes, announced United States Attorney Carol Casto. Gerald Harris, 23, of Huntington, was sentenced to eight months in federal prison for distribution of heroin. In a separate prosecution, Ashara Mayes, 29, of Decatur, Georgia, pleaded guilty to possession with intent to distribute cocaine.
On March 22, 2016, Harris sold approximately 11.8 grams of heroin to a confidential informant working with the Drug Enforcement Administration Task Force. Harris met the confidential informant on Rear Monroe Avenue in Huntington to conduct the drug deal.
In a separate prosecution, on February 25, 2016, Mayes received a package containing cocaine and crack from codefendant Trevor Bethel in Atlanta. Mayes then transported the package to Huntington for Bethel in exchange for $500. After Mayes arrived in Huntington, she met Bethel and took the package to the residence of Jarrell Johnson, another codefendant, located on Rear 9th Avenue in Huntington. Laboratory analysis found that the package contained over 160 grams of cocaine and over 11 grams of crack. Mayes faces up to 20 years in federal prison when she is sentenced on May 22, 2017. For his part in the drug conspiracy, Johnson was sentenced to five years in federal prison. Bethel remains a fugitive.
The Drug Enforcement Administration Task Force conducted the Harris investigation. The investigation of Mayes was conducted by the Drug Enforcement Administration. Assistant United States Attorney Gregory McVey is handling these prosecutions. Chief United States District Judge Robert C. Chambers presided over the hearings.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Pennsylvania Men Plead Guilty to Conspiring to File Federal Tax Returns Using Stolen IDsRead the Press Release
Two Philadelphia, Pennsylvania men pleaded guilty to conspiring to file federal tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Moise Olivier, 27, and Hans Pierre, 28, opened bank accounts in the names of “Moise Olivier Tax Service” and “Hans Pierre Tax Service” even though neither had a tax service. Using stolen personal ID information, members of the conspiracy electronically filed returns seeking fraudulent refunds and directed that the refunds be deposited by the Internal Revenue Service (IRS) into the Moise Olivier and Hans Pierre Tax Service bank accounts. Olivier and Pierre withdrew cash from the accounts to provide to other co-conspirators. Olivier admitted to causing a tax loss of $181,805.10. Pierre admitted to causing a tax loss of $95,157.41.
Olivier is scheduled to be sentenced on May 2, and Pierre, who pleaded guilty on Feb. 8, is scheduled to be sentenced on April 27, before U.S. District Court Judge John R. Padova. Both face statutory maximum sentences of 10 years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Men Charged with Racketeering, Including A 2013 Mob Murder and an Attempted Murder of A Bonanno SoldierRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the filing of an Indictment charging CHRISTOPHER LONDONIO and TERRANCE CALDWELL with offenses related to their alleged role in the November 15, 2013, murder of Michael Meldish, as well as their participation in a long-running racketeering conspiracy composed of leaders, members, and associates of La Cosa Nostra, also known as the “Mafia.” LONDONIO and CALDWELL are charged with racketeering conspiracy, conspiracy to commit murder, murder, and firearms offenses. CALDWELL is also charged with assault and attempted murder in aid of racketeering, in connection with his alleged role in the shooting of a Bonanno Family member on May 29, 2013.
CALDWELL was presented last Friday, February 10, 2017, before the Honorable Lisa Margaret Smith at the United States Courthouse in White Plains, New York. LONDONIO was already in custody on state charges and will be transferred to federal custody and is expected to be presented in White Plains federal court today. The case is assigned to United States District Judge Nelson S. Román.
An initial pre-trial conference is scheduled for February 15 at 1:45 p.m. before Judge Román.
Manhattan U.S. Attorney Preet Bharara said: “The mob continues to kill and maim in the name of La Cosa Nostra, and as alleged, Christopher Londonio and Terrance Caldwell did just that. In a misguided show of allegiance to this violent way of life, Londonio and Caldwell allegedly murdered Michael Meldish and attempted to kill a Bonanno Family soldier. We thank the FBI, the NYPD, and the Bronx County District Attorney’s Office for their dedication that led to the federal racketeering charges announced today.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Hollywood and popular fiction almost romanticize the mob, so much so the general public may not know it exists in real life anymore. However, the crimes members are accused of taking part in are violent and all too real for their victims. The men charged in this case allegedly committed murder, robbery, dealing illegal drugs and extortion to only name a few. The FBI Organized Crime Task Force investigates these families and their string of criminal behavior each day, proving the mob is still a legitimate threat to the community.”
NYPD Commissioner James P. O’Neill said: “This is further proof that the mob’s rackets, schemes, and violence are persistent. As alleged, the defendants engaged in ruthless violence, including the murder of Michael Meldish in the Bronx and the attempted murder of a Bonanno solider in Manhattan both in 2013. Our thanks to the thorough work of NYPD detectives, FBI agents, and prosecutors in the Southern District that led to today’s indictment.”
According to the allegations in the Indictment, which was filed in White Plains federal court on February 8, 2017[1]:
La Cosa Nostra is composed of leaders, members, and associates who work together and coordinate to engage in a multitude of criminal activities. La Cosa Nostra operates through entities known as “Families.” In the New York City area, those families include the Genovese, Gambino, Luchese, Bonanno, Colombo, and Decavalcante Families. Each Family operates through groups of individuals known as “crews” and “regimes.” Each “crew” has as its leader a person known as a “Caporegime,” “Capo,” “Captain,” or “Skipper,” who is responsible for supervising the criminal activities of his crew and providing “Soldiers” and associates with support and protection. In return, the Capo typically receives a share of the illegal earnings of each of his crew’s Soldiers and associates, which is sometimes referred to as Atribute.@
Each crew consists of “made” members, sometimes known as “Soldiers,” “wiseguys,” “friends of ours,” and “good fellows.” Soldiers are aided in their criminal endeavors by other trusted individuals, known as “associates,” who sometimes are referred to as “connected” or identified as “with” a Soldier or other member of the Family. Associates participate in the various activities of the crew and its members. In order for an associate to become a made member of the Family, the associate must first be of Italian descent and typically needs to demonstrate the ability to generate income for the Family and/or the willingness to commit acts of violence.
From in or about 2011 up to and including in or about 2017, LONDONIO and CALDWELL, along with other members and associates of La Cosa Nostra, committed a wide range of crimes, including murder, attempted murder, assault, robbery, extortion, gambling, and narcotics trafficking. In particular, and as charged in the Indictment, on May 29, 2013, CALDWELL attempted to murder a Bonanno Soldier in the vicinity of First Avenue and 111th Street, in Manhattan. Separately, and as also charged in the Indictment, on November 15, 2013, LONDONIO and CALDWELL together murdered Michael Meldish in the vicinity of Baisley Avenue and Ellsworth Avenue in the Bronx.
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CHRISTOPHER LONDONIO, 43, of Hartsdale, New York, and TERRANCE CALDWELL, 58, of Manhattan, New York, are each charged with conspiracy to commit racketeering, in violation of Title 18, United States Code, Section 1962(d), conspiracy to commit murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(5); murder in aid of racketeering, in violation of Title 18, United States Code, Sections 1959(a)(1) and 2; possessing a firearm in furtherance of a crime of violence resulting in death, in violation of Title 18, United States Code, Section 924(j); and possessing a firearm in furtherance of a crime of violence on dates other than November 15, 2013, in violation of Title 18, United States Code, Section 924(c). CALDWELL is also charged with assault and attempted murder in aid of racketeering, in violation of Title 18, United States Code, Sections 1959(a)(3), 1959(a)(5), and 2. A chart showing the charges and maximum penalties for each count of the Indictment is below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Organized Crime Task Force, which comprises agents and detectives of the FBI, NYPD, Homeland Security Investigations, and the Waterfront Commission of New York Harbor. He also thanked the Bronx County District Attorney’s Office. He added that the investigation is continuing.
Assistant U.S. Attorneys Jennifer E. Burns, Scott Hartman, and Hagan Scotten are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Christopher Londonio and Terrance Caldwell, 17 Cr. 89
COUNT
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
1
Conspiracy to commit racketeering
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Life in prison
2
Conspiracy to murder in aid of racketeering
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
10 years in prison
3
Murder in aid of racketeering
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Mandatory life in prison or the death penalty
4
Assault and attempted murder in aid of racketeering
TERRANCE CALDWELL
20 years in prison
5
Carrying and using a firearm during and in relation to, and possessing a firearm in furtherance of, a crime of violence, resulting in the death of another
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Life in prison or the death penalty
Mandatory minimum 5 years in prison consecutive to any other sentence
6
Carrying and using a firearm, which was discharged, during and in relation to a crime of violence
CHRISTOPHER LONDONIO and TERRANCE CALDWELL
Mandatory minimum 10 years in prison consecutive to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Members of Multi-State Drug Trafficking Organization Sentenced on ThursdayRead the Press Release
Contact Person: Andy Moorman (864) 282-2100
Columbia, South Carolina --- United States Attorney Beth Drake announced that two members of a large, multi-state drug trafficking organization were sentenced on Thursday, February 9, 2017, in federal district court. Mister T. Crocker, age 36 from Columbia, and Lashaun Fair, age 37 from Anderson, were members of a drug trafficking organization that operated for approximately 13 years in multiple states, including South Carolina, Louisiana, Alabama, Georgia, and Texas. During the course of the conspiracy, members of the conspiracy distributed millions of dollars’ worth of cocaine, crack cocaine, and marijuana.
Assistant U.S. Attorney Andy Moorman, lead Organized Crime and Drug Enforcement Task Force (OCDETF) Attorney, was the lead prosecutor. OCDETF is a program administered by the Department of Justice that targets large scale, multi-state drug trafficking organizations.
Moorman told the Court during proceedings involving Crocker and Fair about their respective roles in the conspiracy. According to Moorman, Crocker was arrested on July 1, 2014, with co-defendant Kelvin Fulton after purchasing approximately 180 grams of cocaine from co-defendant Walter Lee in Anderson, South Carolina. Fair was a significant cocaine distributor in Anderson, South Carolina, whom federal agents observed leaving a home in Anderson on November 3, 2014, after purchasing a kilogram of cocaine from the organization’s source of supply, who lived in Atlanta, Georgia.
The Court sentenced Crocker to 30 months imprisonment and Fair to 60 months imprisonment for their respective roles in this organization.
The Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Anderson County Sheriff’s Office, the Anderson Police Department, the Greenville County Sheriff’s Office, the Greenville Department of Public Safety, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the Richland County Sheriff’s Office, the South Carolina Law Enforcement Division, the Franklin County (GA) Sheriff’s Office, and the Douglas County (GA) Sheriff’s Office investigated the case.
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Twelve Current and Former Tsa and Airport Employees Indicted for Smuggling Approximatley 20 Tons of CocaineRead the Press Release
SAN JUAN, Puerto Rico – On February 8, 2017, a federal grand jury in the District of Puerto Rico returned a superseding indictment against twelve defendants charged with conspiracy to possess with intent to distribute cocaine, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
During the course of the conspiracy, the defendants smuggled suitcases, each containing at least 8 to 15 kilograms of cocaine, through the TSA security system at the Luis Muñoz Marín International Airport (LMMIA). Sometimes as many as five mules were used on each flight, with each mule checking-in up to two suitcases. From 1998 through 2016, the defendants helped smuggle approximately 20 tons of cocaine through LMMIA.
Six current and former TSA employees, José Cruz-López, Luis Vázquez-Acevedo, Keila Carrasquillo, Carlos Rafael Adorno-Hiraldo, Antonio Vargas-Saavedra, and Daniel Cruz-Echevarría allegedly smuggled multi-kilogram quantities of cocaine while employed as TSA Officers at the San Juan airport. Their full time responsibilities were to provide security and baggage screening for checked and carry-on luggage that was to be placed on outbound flights from the LMMIA. During the duration of the conspiracy, these TSA employees smuggled multi-kilogram quantities of cocaine through the TSA X-Ray machines within LMMIA and onto airplanes without detection.
According to the superseding indictment, defendants Edwin Francisco Castro, Luis Vázquez-Acevedo and Ferdinand López became facilitators between the drug trafficking organizations and the TSA employees who smuggled the cocaine into the airplanes. Defendant Miguel Ángel Pérez-Rodríguez, who worked for the airport security company, was a source of supply of cocaine to the drug trafficking organization.
Defendant Javier Ortiz began assisting drug trafficking organizations as an employee of Airport Aviation Services (AAS) as a baggage handler/ramp employee. During the time of the conspiracy Ortiz used to pick up suitcases he knew contained cocaine from the mules at the airline check-in counter. Ortiz would then place the suitcases into the X-Ray machines being monitored by the TSA drug trafficking organization members, who cleared the suitcases. After the suitcases had been cleared by TSA members, Ortiz took the suitcases to their designated flight, making sure no narcotic K-9 unit or law enforcement personnel were present when the suitcase went from the checkpoint to the airplane. Once the suitcases were loaded into the airplane, defendant Ortiz would make a phone call to a drug trafficking organization member indicating the all clear and the mules would then board the airplane. Ortiz also paid the TSA employees for clearing the suitcases through TSA security.
Defendant Tomas Dominguez-Rohena assisted the drug trafficking organization by taking the suitcases he knew contained cocaine after they had been cleared by TSA members or smuggled passed security to their designated flight. Defendant José Gabriel López-Mercado was a mule for the criminal organization.
“These individuals were involved in a conspiracy to traffic massive quantities of illegal narcotics to the continental United States,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These arrests demonstrate the success of the AirTAT initiative, which has successfully allocated a dedicated group of state and federal law enforcement officers, whose mission is to ensure that our airports are not used in the drug traffickers’ illicit businesses.”
“This investigation was initiated by TSA as part of its efforts to address employee misconduct and specific insider threat vulnerabilities. TSA has zero tolerance for employees engaged in criminal activity to facilitate contraband smuggling,” said José Baquero, Federal Security Director, PR and USVI.
The Transportation Security Agency (TSA) and the Drug Enforcement Agency (DEA) are in charge of the investigation with the collaboration of the Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), the Federal Bureau of Investigation (FBI), the U.S. Marshals and the Police of Puerto Rico.
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
This case is part of the ongoing efforts of the Airport Investigations and Tactical Team (AirTAT). Originating in January 2015, AirTAT is a multi-agency initiative created to identify, locate, disrupt, dismantle, and prosecute Domestic and Transnational Criminal Organizations (DTCOs) and its operatives using the LMMIA, the Fernando Luis Rivas Dominicci Airport (the Isla Grande airport), and peripheral airports as platforms to smuggle narcotics, weapons, human cargo, counterfeit documents, illicit proceeds, and others. These airports play a strategic role for DTCOs to conduct contraband smuggling activities inbound and outbound to the continental US as well as internationally.
Tucson Woman Sentenced to 63 Months for Mailing Child Pornography to Imprisoned Husband Who Was Awaiting Trial on Separate Child Pornography ChargesRead the Press Release
TUCSON, Ariz. – Today, Breana VanDyck, 28, of Tucson, Ariz., was sentenced by U.S. Chief District Judge Raner C. Collins to 63 months in prison. Following a jury trial in September, VanDyck was found guilty of mailing child pornography. VanDyck’s term of imprisonment will be followed by lifetime supervised release, with stringent sex offender conditions, including the condition that she register as a sex offender.
VanDyck, using the U.S. Postal Service, printed and mailed child pornography to her husband at the Central Arizona Detention Center (CADC). At the time, her husband was in custody at CADC awaiting trial on charges involving the possession and production of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation, Tucson. The prosecution was handled by Carmen F. Corbin and Erica L. Seger, District of Arizona, Tucson.
CASE NUMBER: CR-15-1388-TUC-RCC
RELEASE NUMBER: 2017-013_VanDyck
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Ten Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
Ten alleged members of the Black Mob Gangstas/Donald Gee Family (BMG/DGF) Raleigh-area Bloods street gang, including its leaders, have been indicted in Raleigh, North Carolina, for conspiring to participate in a racketeering enterprise and related offenses.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s North Carolina Division and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
The 11-count superseding indictment was returned by a federal grand jury on Jan. 20, and unsealed today in U.S. District Court for the Eastern District of North Carolina. The indictment charges the defendants with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, drug trafficking conspiracy, witness tampering, obstruction of justice and related offenses. The defendants range from senior leadership to associates of the BMG/DGF Bloods:
- Demetrice Regus Devine aka Respect, 34;
- Dontaous Demond Devine aka Scooch and Boochie, 28;
- Demetrius Deshaun Toney aka Meat, 24;
- Brandon Jowan Mangum aka B-Easy, 28;
- Jamario Keon Jones aka Spect Junior and Skeeno, 24;
- Cleveland McNair aka Blee, 33;
- Christopher Darnell Evans aka Racks and Snacks, 27;
- Brenda Joyce Brown aka Lady Banga, 32;
- Katherine Victoria Gast aka Kat Snacks, 25; and
- Shaiona Marie Smith aka Slyfox, 22.
All of the defendants charged in the superseding indictment are already in custody.
According to the superseding indictment, the BMG/DGF Bloods is a violent street gang with members operating in Raleigh, including Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings and collected dues from the rank and file members, assaulting members who failed to pay or follow orders. The alleged members and associates of the BMG/DGF are charged with a wide range of crimes used to further their racketeering scheme, including murder, attempted murder, assault with dangerous weapons, drug trafficking, extortion, threats of violence and distribution of narcotics.
The superseding indictment charges gang leaders Demetrice Devine and Dontaous Devine with conspiracy to participate in racketeering activities of the BMG/DGF Bloods, among other charges. The indictment also charges two other alleged gang members, McNair and Evans, with conspiracy to participate in the gang’s racketeering activities.
According to the superseding indictment, BMG/DGF members and associates were connected to two separate murders. In May 2009, Dontaous Devine, Toney and Mangum allegedly shot and killed a rival gang member for refusing to pay BMG/DGF’s gang dues. The indictment also alleges that in November 2008, Jones and another gang member shot and killed a rival gang member under orders from a high ranking BMG/DGF member.
The FBI, Raleigh Police Department and the North Carolina Department of Public Safety investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section (OCGS) and Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina are prosecuting the case.
Devine et al. Superseding IndictmentTen Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
RALEIGH – The United States Attorney’s Office announced today that ten alleged members of the Black Mob Gangstas/Donald Gee Family (BMG/DGF) Raleigh-area Bloods street gang, including its leaders, have been indicted in Raleigh, for conspiring to participate in a racketeering enterprise and related offenses.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s North Carolina Division and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
The 11-count indictment was returned by a federal grand jury on January 20, 2017, and unsealed today in U.S. District Court for the Eastern District of North Carolina. The indictment charges the defendants with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, drug trafficking conspiracy, witness tampering, obstruction of justice, and related offenses. The defendants range from senior leadership to associates of the BMG/DGF Bloods:
• Demetrice Regus Devine, aka Respect, 34;
• Dontaous Demond Devine, aka Scooch and Boochie, 28;
• Demetrius Deshaun Toney, aka Meat, 24;
• Brandon Jowan Mangum, aka B-Easy, 28;
• Jamario Keon Jones, aka Spect Junior and Skeeno, 24;
• Cleveland McNair, aka Blee, 33;
• Christopher Darnell Evans, aka Racks and Snacks, 27;
• Brenda Joyce Brown, aka Lady Banga, 32;
• Katherine Victoria Gast, aka Kat Snacks, 25; and
• Shaiona Marie Smith aka, Slyfox, 22.
The last individual was arrested and taken into custody today. All of the other defendants charged in the indictment are already in custody.
John Stuart Bruce, U.S. Attorney, stated: “This significant indictment is the result of a lot of hard work by the FBI, the Raleigh Police Department, and the N.C. Department of Public Safety, as well as the attorneys in our office and those in DOJ’s Criminal Division. Stopping illegal gang activity, especially violent crimes, is a top priority for our office.”
“These suspects are part of a ruthless street gang that uses fear, intimidation, and even murder to protect the interests of their criminal organization. They believed they were beyond the reach of justice, even tampering with witnesses. Together with our law enforcement partners, we have disrupted a dangerous criminal enterprise and will continue to hold those accountable who mistakenly believe they are above the law,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
According to superseding indictment, the BMG/DGF Bloods is a violent street gang with members operating in Raleigh, including Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings and collected dues from the rank and file members, assaulting members who failed to pay or follow orders. The alleged members and associates of the BMG/DGF are charged with a wide range of crimes used to further their racketeering scheme, including murder, attempted murder, assault with dangerous weapons, drug trafficking, extortion, threats of violence and distribution of narcotics.
The superseding indictment charges gang leaders Demetrice Devine and Dontaous Devine with conspiracy to participate in racketeering activities of the BMG/DGF Bloods, among other charges. The indictment also charges two other alleged gang members, McNair and Evans, with conspiracy to participate in the gang’s racketeering activities.
According to the superseding indictment, BMG/DGF members and associates were connected to two separate murders. In May 2009, Dontaous Devine, Toney and Mangum allegedly shot and killed a rival gang member for refusing to pay BMG/DGF’s gang dues. The indictment also alleges that in November 2008, Jones and another gang member shot and killed a rival gang member under orders from a high ranking BMG/DGF member.
The FBI, Raleigh Police Department and the North Carolina Department of Public Safety investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section and are prosecuting the case.
Suburban Man Sentenced for Threatening Texas AG’s OfficeRead the Press Release
HOUSTON – A 55-year-old resident of Sugar Land has been ordered to federal prison for sending a threatening email to the Texas Attorney General’s Office (TXAG) and various employees with other state agencies, announced U.S. Attorney Kenneth Magidson. Syed Kaleem Razvi pleaded guilty Oct. 3, 2016.
Today U.S. District Judge Vanessa Gilmore sentenced Razvi to 24 months in federal prison immediately followed by two years of supervised release.
Razvi sent an email communication on June 8, 2015, to the Texas Attorney General’s Office, Child Support Division, as well as various employees with other Texas agencies. The subject line of the email said “Tell Atty General of Texas this.” The email threatened the Attorney General of Texas, as well as all those emailed that Razvi would “get up in arms against you all,” and that he wished “God burn your houses and burn the bodies of your own children and yourself.” The email also demanded that the Attorney General of Texas return his money or “FACE TERRORISM.”
Razvi will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation in conjunction with the Texas Attorney General’s Office - Criminal Investigations Division. Assistant U.S. Attorneys Ted Imperato, Alamdar Hamdani and Andrew Leuchtmann prosecuted the case.
Springfield Woman Charged in Two Metro-East Bank RobberiesRead the Press Release
Adrianna C. Frye-Williamson, 20, of Springfield, Illinois, was charged in a criminal complaint on Saturday, February 11, 2017, with two counts of Bank Robbery. The alleged violations took place on Friday, January 20, 2017 in Edwardsville, Madison County, Illinois, and Thursday, February 9, 2017 in Glen Carbon, Madison County, Illinois. Today, the Court ordered that Frye-Williamson be detained without bond until a bond hearing on February 16, 2017.
The offenses charged in the complaint allege (1) that on January 20, 2017, Adrianna C. Frye-Williamson committed the offense of Bank Robbery in that she by force, violence and intimidation, took from the presence of another, money belonging to and in the care and custody, control, management, and possession of the National Bank in Edwardsville, and (2) that on February 9, 2017, Adrianna C. Frye-Williamson committed the offense of Bank Robbery in that she by force, violence and intimidation, took from the presence of another, money belonging to and in the care and custody, control, management, and possession of the U.S. Bank in Glen Carbon, Illinois.
If convicted, the defendant faces a term in prison of up to 20 years on each count, a fine up to $250,000 and a term of supervised release of up to five (5) years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The cases were investigated by the Edwardsville Police Department, Glen Carbon Police Department and the Federal Bureau of Investigation with assistance from the Springfield Illinois Police. The case is assigned to Assistant United States Attorney Ali Summers.
Springfield Postal Employee Sentenced for Stealing MailRead the Press Release
DAYTON – Leanna Heskett, 47, of Springfield, was sentenced in U.S. District Court today to serve five months in prison for more than 100 instances of stealing items from packages she handled as a mail processing clerk at the Springfield, Ohio Post Office in 2015.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Monica Weyler, Special Agent in Charge, U.S. Postal Service Office of Inspector General Eastern Area Field Office announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court testimony, Heskett’s job with the Postal Service was to receive and sort mail and packages and prepare them for delivery by postal carriers. In 2014, customers in Springfield reported receiving packages with items missing from inside the packages. Several postal carriers in Springfield also reported noticing open parcels among those they received for delivery. USPS-OIG investigators determined that Heskett had been opening and stealing mail. Heskett pleaded no contest on August 1, 2016 to one count of mail theft.
Security video documented Heskett placing packages into her pants and leaving the work area, as well as opening packages, removing the contents and resealing the packages.
Heskett was also sentenced to two years of supervised release, to be served following her release from prison, including seven months of home confinement.
U.S. Attorney Glassman commended the investigation of this case by the USPS-OIG and First Assistant United States Attorney Vipal Patel, who represented the United States in this case.
South Bay Residents Charged with Conspiracy to Commit Extortion by Force, Drug TraffickingRead the Press Release
SAN JOSE- A federal grand jury indicted ten South Bay residents for conspiring to commit extortion by force and conspiring to engage in drug trafficking, announced United States Attorney Brian J. Stretch and Homeland Security Investigations (“HSI”) Special Agent in Charge Ryan Spradlin. According to the indictment unsealed today, seven of the defendants conspired to extort drug dealers while the other three defendants conspired to engage in trafficking methamphetamine.
According to the indictment, the following defendants conspired to engage in extortion:
- Velarmino Escobar-Ayala (aka Meduza)
- Tomas Rivera (aka Profugo, aka Caballo)
- Ismael Alvarenga-Rivera (aka Casper)
- Willfredo Edgardo-Ayala (aka Chino)
- Jose David Abrego-Galdamez (aka Largo)
- Melvin Lopez (aka Sharky)
- Alexander Martinez-Flores (aka Pocar)
In addition, the indictment alleges that these defendants conspired to obtain property from drug dealers in Santa Cruz by threatening violence against the dealers and other persons close to them. Further, the indictment alleges the defendants had a plan and purpose to engage in the extortion and threatened force, violence, and fear to obtain money that was demanded. The seven defendants have been charged with conspiracy to commit extortion by force in violation of 18 U.S.C. § 1951(a).
Also, the indictment alleges defendants Gerber Morales (aka Choco), Emilio Escobar-Albarnga (aka Diablo), and Josue Alcedis Escobar-Cerritos (aka Penguino) were engaged in a conspiracy engage in drug trafficking. According to the indictment, from March of 2015 until the present, the three defendants conspired to possess with intent to distribute 50 grams of more of a mixture of substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1), and 841(b)(1)(B)(viii).
According to additional court papers filed by the government today, the current charges in this case stem from a multi-year investigation into the activities of a violent Santa Cruz street gang known as Santa Cruz Salvatrucha Locos 13 (SCSL13). The government’s papers state that “SCSL13 is a subset of the larger Mara Salvatrucha 13 (MS-13) gang organization.” According to the government, the defendants all are alleged to be either active members or recruits performing criminal tasks on behalf of SCSL13.
The defendants were arrested this morning as part of a criminal enforcement operation that included more than 200 local and federal law enforcement personnel. The coordinated arrests and searches took place in three cities – Santa Cruz, Watsonville, and Daly City. Defendants made appearances before the Honorable Nathanael Cousins, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory sentence for a conviction of conspiracy to commit extortion is 20 years in prison and a $250,000 fine. A conviction for conspiracy to possess with intent to distribute 50 grams or more of methamphetamine carries a mandatory minimum sentence of five years in prison, a maximum prison term of 40 years, and a maximum fine of $5,000,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Joseph Alioto and William Edelman are prosecuting the case. The prosecution is the result of an investigation by the HSI.
Snapchat Videos Lead to Gun Arrests and ChargesRead the Press Release
LAS VEGAS, Nev.–Three men, including two former felons, were arrested and face criminal charges after posting videos on Snapchat of themselves illegally shooting firearms which included a stolen firearm, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI Las Vegas field office.
“The three defendants were arrested and charged with gun crimes. Criminals should take heed of these arrests. Law enforcement will utilize all resources at their disposal to protect citizens and to ensure safe Nevada communities for all to live in,” said U.S. Attorney Bogden.
“These arrests reflect the FBI's strong, collaborative partnership with the Las Vegas Metropolitan Police Department and our common goal of making our city safer. Those who seek to live the gang lifestyle or exploit others through human trafficking should take note of the unified effort of the law enforcement community to stop their despicable pursuits,” said SAC Rouse.
Peryoun Newman, 25, Shavonte Hill, 29, both of Las Vegas, were charged by a criminal complaint for felon in possession of firearms. Co-defendant, Jevontae Caldwell, 24, of Las Vegas, was charged with possession of a stolen firearm by the same complaint. Newman and Hill are former convicted felons. In 2013, Newman was convicted of conspiracy to commit robbery and pandering. In 2004, Hill was convicted of attempted murder with a deadly weapon and discharging a firearm into an occupied structure, and in 2010, in both federal and state court, he was found guilty for being a felon in possession of a firearm. It is illegal for a felon to possess a firearm.
According to the criminal complaint, on Jan. 27, 2017, during the course of an investigation into a criminal street gang and human trafficking, law enforcement observed a live Snapchat video that depicted Newman, a self-proclaimed “Wood” street gang member involved in illegal activities, holding and firing a semi-automatic Draco pistol in an indoor shooting range with Hill, Caldwell, and others. In the Snapchat videos, the defendants discussed what kind of firearms they had in their possession and were shooting. Las Vegas Metropolitan Police Department officers and detectives arrived at the indoor shooting range and observed the defendants placing a cardboard box into a vehicle’s trunk, then driving to an apartment. Newman, Hill, and Caldwell were arrested for probable cause. At the time of arrest, Caldwell had a 9mm semi-automatic EEA SAR Arms in his pants pocket and a .45 caliber semi-automatic handgun in a bag he discarded while attempting to escape apprehension. The .45 caliber was reported as stolen in Mesa, Arizona. During the execution of a search warrant of their vehicle and apartment, law enforcement found a .40 caliber semi-automatic Glock 23; a Draco 7.62X39mm pistol; a Master Piece Arm 9mm pistol with a 3” barrel; and a .40 caliber Glock 27, magazine wells, and ammunition.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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Santa Barbara Criminal Defense Attorney Sentenced to 2 Years in Federal Prison for Failing to Report over $3.5 Million in Income to IRSRead the Press Release
LOS ANGELES – A Santa Barbara-based criminal defense attorney was sentenced today to 24 months in federal prison for willfully failing to file tax returns for several years and failing to pay a total of $679,958 in income tax to the Internal Revenue Service.
Darryl W. Genis, 60, was sentenced this afternoon by United States District Judge Dale S. Fischer. In addition to the prison term, Judge Fischer ordered Genis to pay restitution of $679,958 to the IRS.
Genis pleaded guilty in October to three misdemeanor counts of willfully failing to file tax returns for his law practice for the years 2009 through 2011. In the plea agreement that led to his guilty pleas, Genis admitted that he failed to pay income taxes for a total of eight years.
According to court documents, for the tax years 2009 through 2011, Genis earned income from his law practice, he knew that his gross income for each year exceeded the threshold requiring him to file an income tax return, but he failed to file the required tax returns with the IRS.
Over the course of eight years – 2005 through 2012 – Genis failed to report $3,590,185 of income and he failed to pay a total of $679,958 in income taxes.
“During the years he was not paying his taxes, this defendant purchased a multimillion-dollar home in Santa Barbara for his family, which allowed him to rent a different million-dollar residence that he also owned,” said United States Attorney Eileen M. Decker. “Demonstrating his total disregard for honoring his tax responsibilities, in the span of just one weekend in 2009, he gambled away tens of thousands of dollars that easily exceeded the taxes he owed that year. Attorneys are no different than any other citizen; they are expected to follow the law.”
“Mr. Genis is a well-educated criminal defense attorney who knew of his responsibility to file his tax returns and pay the taxes owed,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Instead he chose to not file his tax returns or pay his taxes. He’ll now pay for his decision with the loss of his liberty and a period of incarceration.”
In sentencing papers filed with the court, prosecutors noted that Genis was a respected member of the Santa Barbara community and he certainly knew that his conduct related to his failure to pay taxes was criminal.
Judge Fischer ordered Genis to begin serving his sentence on or before May 15.
The investigation into Genis was conducted by IRS Criminal Investigation in Camarillo. The case was prosecuted by Assistant United States Attorneys Valerie L. Makarewicz and Benjamin L. Tompkins of the Tax Division.
Roanoke Man who Pled Guilty to Distributing Methamphetamine,Illegally Possessing a Firearm, Sentenced in Federal CourtRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who sold methamphetamine and illegally possessed a shotgun after having been previously convicted of a felony, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
John Mark Bryant, 21, of Roanoke, Va., previously pled guilty to one count of distribution of methamphetamine and one count of illegal possession of firearm by a previously convicted felon. Today in District Court, Bryant was sentenced to 57 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, in June 2016 Bryant was staying at the Stay-In motel in Salem, Virginia. Detectives working as part of the Roanoke HIDTA had determined that Bryant was distributing methamphetamine and firearms from his hotel room and set-up a methamphetamine and firearm purchase via a confidential informant. The informant arranged and made a purchase of methamphetamine and a shotgun from Bryant on June 16, 2016.
Thee investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Registered Sex Offender Pleads Guilty to Distributing Child PornRead the Press Release
WICHITA KAN. – A registered sex offender who has been living in Wichita pleaded guilty Monday to distributing child pornography, U.S. Attorney Tom Beall said.
Jeremy Michael Schmidt, formerly known as Jeremy Michael Davis, 41, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In 2013, Schmidt was convicted in Florida on a possession of child pornography charge and registered as a sex offender under the name Jeremy Michael Davis. He later changed his name to Jeremy Michael Schmidt.
Schmidt came to the attention of investigators in Wichita when they received four separate Cyber Tipline Reports from the National Center for Missing and Exploited Children. Investigators identified emails in which Schmidt provided links to child pornography.
Sentencing is set for May 1. He faces a penalty of not less than 15 years and not more than 40 years in federal prison and a fine up to $250,000. Beall commended the Wichita Police Department, Homeland Security Investigations, the Internet Crimes Against Children Task Force and Assistant U.S. attorney Jason Hart for their work on the case.
Readout of Today’s Events for Attorney General SessionsRead the Press Release
Attorney General Jeff Sessions sat down with Chicago Mayor Rahm Emanuel this afternoon in the Attorney General’s conference room to discuss what might be done to combat the shootings and murders in that city and bring back proactive community policing.
The Attorney General also had a detailed and productive conversation with Secretary of Homeland Security John F. Kelly about steps the Department of Justice and the Department of Homeland Security will take to secure our borders to end the flood of illegal immigration, drugs and human trafficking pouring into our country and undermining our national security.
In addition, the Attorney General also enjoyed meeting with Judge Neil Gorsuch and congratulated him on his nomination.
Putnam County man pleads guilty to possessing child pornographyRead the Press Release
HUNTINGTON, W.Va. - A Putnam County man faces up to 20 years in federal prison after pleaded guilty today to a child pornography crime, announced United States Attorney Carol Casto. Scott Allen Forloine II, 36, of Scott Depot, entered his guilty plea to possession of child pornography.
Forloine admitted that in April 2015, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer located in his residence. The investigation also revealed that Forloine was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“My office is committed to the fight against those who contribute to the exploitation and abuse of children,” said United States Attorney Casto. “We will use every available tool to work with our law enforcement partners to track these criminals down and prosecute them to the fullest extent of the law. The defendant is facing a significant sentence that should serve as a warning to anyone who victimizes children.”
The sentencing is scheduled for May 22, 2017.
The FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Property Manager of Poughkeepsie Housing Project Sentenced for Stealing HUD FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CARL IMMICH, formerly the property manager of Harriet Tubman Terrace Apartments, a Section 8 Housing Complex in Poughkeepsie, New York, was sentenced to 18 months in prison. United States District Judge Cathy Seibel imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Repeatedly and routinely, Carl Immich stole public money meant to subsidize housing for indigent tenants, and used it to dine out, travel, renovate his house, and play golf. For his brazen fraud, Immich was sentenced today to time in federal prison.”
According to the allegations contained in the Complaint, the Indictment, and statements made during court proceedings in the case:
Tubman Terrace is a large, low-income apartment complex in Poughkeepsie, New York. The rental payments for nearly all of the apartments are subsidized by the U.S. Department of Housing and Urban Development (“HUD”) pursuant to Section 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f. From in or about June 2010 through in or about November 2014, HUD provided approximately $150,000 to $160,000 each month to Tubman Terrace.
From in or about 2009, Tubman Terrace was managed by a management company, of which IMMICH is the principal and sole owner. In that capacity, IMMICH served as the management agent and property manager of Tubman Terrace since in or about 2009.
From at least in or about December 2010 until at least in or about March 2015, IMMICH fraudulently obtained at least approximately $150,000 of HUD funds from the operating account of Tubman Terrace, which were paid to him or used for personal expenditures. IMMICH did so through as least three different schemes: (1) he used credit cards intended for Tubman Terrace business expenses for personal expenses, which were then paid through Tubman Terrace’s operating bank account; (2) he obtained check payments from the Tubman Terrace operating bank account to cover other personal expenses; and (3) he obtained payroll checks for himself and his daughter reflecting no work or other entitlement by them to such salary.
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IMMICH, 54, of Rhinebeck, New York, pled guilty to theft concerning a program receiving government funds, and theft of government property. In addition to the prison sentence, IMMICH was also sentenced to three years of supervised release and ordered to pay $150,001 in restitution.
Mr. Bharara praised the outstanding investigative work of the HUD Office of Inspector General.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Lauren Schorr and Benjamin Allee are in charge of the prosecution.
Ohio woman pleads guilty to illegally possessing a firearm and assaulting a U.S. MarshalRead the Press Release
ELKINS, WEST VIRGINIA – Peggy Chaffin, 37, of Portsmouth, Ohio, pled guilty to illegally possessing a gun and using said gun to obstruct a Deputy U. S. Marshal, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Chaffin admitted being a felon in possession of a .22 caliber rifle. She was previously convicted of felony heroin possession and distribution in the Eastern District of Kentucky in August 2013. Chaffin also admitted to using that gun to obstruct, assault, and resist a Deputy U.S. Marshal in Orlando, West Virginia, in November 2015.
Chaffin pled guilty to one count of “Felon in Possession of a Firearm.” She faces up to ten years in prison and a fine of up to $250,000 for the first count. Chaffin also pled guilty to one count of “Assaulting, Obstructing, or Resisting a Federal Officer.” She faces up to twenty years in prison and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Braxton County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New Jersey Man Guilty of Wethersfield Warehouse RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found ANDREW ORECKINTO, 52, of Matawan, New Jersey, guilty of stealing more than 8,000 cartons of cigarettes from a Wethersfield warehouse in March 2011.
The trial before U.S. District Judge Jeffrey A. Meyer began on February 6 and the jury returned its verdict this morning.
According to the evidence introduced during the trial, at approximately 7:00 a.m. on March 20, 2011, Wethersfield Police responded to an open garage door complaint at New Britain Candy, a business and warehouse located at 24 Maple Street in Wethersfield. The business distributes items to convenience stores in Connecticut and neighboring states. A glue-like substance had been forced into the front door lock causing it to be inoperable, exterior surveillance camera wires and a phone line had been cut, and alarm panels and speakers had been disabled. Approximately 8,012 cartons of cigarettes, as well as a pallet jack, were missing from the warehouse. The stolen cigarettes had a wholesale value of approximately $300,000 and a retail value of approximately $500,000.
One individual, subsequently identified as ORECKINTO, was seen on video surveillance footage. He was dressed in a black hooded sweatshirt, dark pants, black gloves, a black face mask, and wore a headband light around his head.
Prior to the burglary, ORECKINTO had stolen a white box truck from a business in Hartford. The day after the burglary, the truck was found near a commercial construction site in Stamford. The stolen pallet jack was recovered from the cargo area of the truck.
The investigation included extensive analysis of prepaid cellphones and cell tower information. Examination of the call history of ORECKINTO’s prepaid phone ultimately led investigators to several other prepaid phones that had been used in multiple commercial burglaries in Connecticut, New York, New Jersey and Pennsylvania. ORECKINTO previously was convicted of two of these other burglaries, including a burglary that occurred at a Waldbaum’s Supermarket in Rockville Centre, N.Y., overnight on December 31, 2010 and January 1, 2011, and a commercial warehouse burglary in Florham Park, N.J., on April 28, 2008, during which $100,000 worth of copper was stolen. ORECKINTO was sentenced to a term of imprisonment for both of these burglaries.
At the time of ORECKINTO’s arrest for the New Jersey burglary, a search of his car revealed a list of licensed cigarette distributors in the State of Connecticut that had been printed from the Connecticut Department of Revenue Services web site. The list, which included the New Britain Candy warehouse in Wethersfield, also contained several handwritten notations next to many of the businesses, at least three of which also have been burglarized.
The jury found ORECKINTO guilty of one count of theft from an interstate shipment, an offense that carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for May 8, 2017.
This investigation has been conducted by the Wethersfield Police Department and the Federal Bureau of Investigation, with the assistance of the Nassau County Police Department and the Florham Park (N.J.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Miami-Dade Resident Convicted for Being a Felon in Possession of a Firearm After Shooting A Man Outside A Miami Gardens’ Convenience StoreRead the Press Release
Following a three-day jury trial, a Miami-Dade resident pled guilty in federal court to being a felon in possession of a firearm after shooting a man in front of a convenience store in Miami Gardens.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Cynthia Dawson Machanic, Acting Chief, Miami Gardens Police Department, made the announcement.
James Benjamin Bell, 52, pled guilty before U.S. District Judge Donald L. Graham for being a felon in possession of a firearm. Bell faces a statutory mandatory minimum sentence of fifteen years in prison if determined to be an armed career criminal. Sentencing is scheduled for April 20, 2017 at 10:30 a.m. before U.S. District Judge Donald L. Graham.
According to the court record, including evidence presented during the trial, on May 31, 2016, Bell argued with another man outside of a Miami Gardens convenience store before shooting him in the face. A bystander called 911 and provided a description of the shooter and the getaway car. Police officers quickly found the car and Bell exited the passenger side of the vehicle wearing clothing that matched the description of the shooter. Bell’s girlfriend was the driver. Officers located a firearm in Bell’s girlfriend’s purse. A ballistics test linked the firearm found in Bell’s girlfriend’s purse to the casing left on scene. At the time of the shooting, Bell was a convicted felon who was prohibited from possessing a firearm.
Mr. Ferrer thanked the Miami-Dade State Attorney’s Office for their assistance. Mr. Ferrer commended the investigative efforts of ATF and the Miami Gardens Police Department. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney?s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican national sentenced to federal prison for immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national was sentenced to a year and a half in federal prison today for an immigration crime, announced United States Attorney Carol Casto. Adan Zamudio-Escalante, also known as Victor Giron, 39, previously pleaded guilty to illegally reentering the United States after having previously been removed from the United States on two different occasions. He is also subject to removal proceedings.
Zamudio-Escalante admitted that he had twice been convicted of the federal crime of illegally reentering the United States. The first conviction occurred on April 1, 2005, in Texas. After that conviction, Zamudio-Escalante was removed from the United States to his home country of Mexico. Zamudio-Escalante then illegally reentered the United States. He was convicted for a second time of illegally reentering the United States on January 6, 2010, in West Virginia, and was again removed from the United States. Zamudio-Escalante was subsequently found in Charleston by Department of Homeland Security agents on September 20, 2016, having illegally reentered the United States for a third time.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Mexican Nationals Facing Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Earlier today, a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Jose de Jesus Abundis-Gonzales, 36, and Norberto Perez-Zepeda, 33, both Mexican nationals illegally residing in the United States, with heroin trafficking charges. The Magistrate Judge also entered orders requiring that the two men remain in custody pending trial.
Abundis-Gonzales and Perez-Zepeda were arrested on Feb. 7, 2017, after DEA executed search warrants at the Albuquerque residences of Abundis-Gonzales and Perez-Zepeda and seized a total of 239 grams of heroin, more than $12,000 in cash, and drug paraphernalia. According to the criminal complaint, the heroin allegedly was packaged in small balloons, ready for retail distribution.
If convicted of the charge in the criminal complaint, Abundis-Gonzales and Perez-Zepeda each face a statutory minimum penalty of five years and maximum of 40 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and Homeland Security Investigations. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Maryland Man Pleads Guilty to Carjacking, Drove Off with Woman and Her 2-Year-Old GranddaughterRead the Press Release
WASHINGTON – Jesse Green III, 41, of Germantown, Md., has pled guilty to carrying out a carjacking earlier this year in Southeast Washington in which he drove off with a woman and her 2-year-old granddaughter, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Green, also known as Michael McKoy, pled guilty on Feb. 10, 2017, in the Superior Court of the District of Columbia, to carjacking. The Honorable Ronna L. Beck scheduled sentencing for April 14, 2017. The charge carries a mandatory minimum of seven years in prison and a statutory maximum of 21 years. Green has been in custody since his arrest on the day of the crime.
According to the government’s evidence, on Jan. 8, 2017, at approximately 12:10 p.m., the woman, her husband, and their 2-year-old granddaughter were driving in a GMC Yukon sports utility vehicle. The husband pulled over and got out of the vehicle for a stop in the 5000 block of Kimi Gray Court SE. Green, a stranger, came out of a neighboring house and went to the vehicle. Then, without permission, he got into the driver’s seat and sped off, with the woman and child still in the vehicle. The child was in a car seat in the rear.
The woman demanded that Green let them out and she attempted to grab the steering wheel. Green, however, kept driving fast, passing through stop signs. He crashed into a parked vehicle near 51st Street and Central Avenue SE, traveled up an embankment, and then crashed backward into a telephone pole. He attempted to flee, but was soon apprehended. The victims were taken to a hospital by ambulance for examination and treatment.
In announcing the plea, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Kathryn Rakoczy, Paralegal Specialist Richard Cheatham, and Victim/Witness Advocate James Brennan. Finally, they commended the work of Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Man Pleads Guilty to Producing Child Pornography of BoysRead the Press Release
ALEXANDRIA, Va. – Vincenzo Leonardi, 27, of Lakewood, Ohio, pleaded guilty today to production of child pornography in connection with his online impersonation of a minor girl to entice and coerce minor boys to produce sexually explicit photographs and videos of themselves.
According to the statement of facts filed with the plea agreement, from at least May 2012 to February 2016, Leonardi posed as a minor girl named “Taylor Capps” on Facebook, Instagram, Kik, and other social media services, for the purpose of contacting minor boys over the Internet to engage in sexually explicit communications and conduct. For example, as part of his scheme, Leonardi sent pictures of a minor girl and other naked females to his victims. One victim, located in Loudoun County, was 9 years old at the time he was contacted by Leonardi. For that victim and at least five others located throughout the country, Leonardi successfully enticed and coerced them to record themselves engaged in sexually explicit behavior and to transmit those photographs and videos to Leonardi. As part of his plea agreement, Leonardi admitted that he attempted to similarly entice and coerce at least a dozen other minor boys he contacted online, all of whom were between the ages of 9 and 12 years old.
As part of his plea agreement, Leonardi admitted that his personal laptop computer, which was seized during the execution of a search warrant in December 2015, contained over two dozen sexually explicit videos and over 100 sexually explicit images of minors.
Leonardi was indicted by a federal grand jury on Nov. 3, 2016, and faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on May 12. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu are prosecuting the case. The U.S. Attorney’s Offices for the Northern District of Ohio and the District of Maryland significantly aided in the investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-247.
Long-time Manager of Hoquiam Wood Shavings Business Sentenced to Prison for Mail Fraud, Tax Evasion, Money Laundering and Interstate Transportation of Stolen PropertyRead the Press Release
The long-time manager of a Hoquiam wood shavings business was sentenced today in U.S. District Court in Tacoma to three years in prison and three years of supervised release for thirteen federal felonies related to his theft of $1.3 million from a family business, announced U.S. Attorney Annette L. Hayes. WILLIS D. “BILL” LONN, JR., 68, of Aberdeen was convicted in October 2016 of nine counts of mail fraud, two counts of income tax evasion, one count of money laundering conspiracy and one count of interstate transportation of stolen property following a six-day trial. At the sentencing hearing U.S. District Judge Benjamin H. Settle said LONN “profoundly abused the trust of his employer [and] callously betrayed family members and took what belonged to the company.”
“This defendant did not commit just a single act of embezzlement, rather, over the course of years, he stole from the company almost every day,” said U.S. Attorney Annette L. Hayes. “He betrayed the trust of his family members to satisfy his greed and then used the stolen money to start his competing business harming his victims even further.”
According to records filed in the case and testimony at trial, LONN was a long time manager for Long Beach Shavings Company (LBS). The company was owned by LONN’s uncle and cousins and was based in California. The company had one plant in Hoquiam, Washington where it processed wood shavings for use on farms, at horse shows or in pet stores. LONN had worked at the Hoquiam plant for about a decade when he launched a scheme in the 2000s to steal and sell the wood shavings products for his own enrichment. LONN did this by selling the shavings directly to customers in Washington and Oregon without turning the proceeds over to the company. Later in the scheme, LONN arranged to get wood chips for free from a Montesano lumber mill, but he informed the parent company that an entity named M & R Lumber needed to be paid for the wood shavings. LONN posed as M & R Lumber and created phony invoices that he mailed to LBS to bill them for the shavings. LONN then kept the money. Between the two schemes LONN obtained more than $1.3 million from LBS. He was terminated by the company in 2011 when the full scope of the scheme came to light.
Testimony at trial revealed that LONN never paid income taxes on the ill-gotten gain in tax years 2009 and 2010. Had LONN reported the income his tax bill for those years would have increased by more than $80,000.
“At this time of year most Americans are busy fulfilling their obligations as citizens of our country by preparing and filing honest and accurate tax returns. However, a small percentage of the population selfishly shuns their civic duty by dodging the tax laws that the majority of us observe,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “When this happens, IRS Special Agents stand ready to defend our nation’s tax system by bringing scofflaws to justice and ensuring a level playing field for all of us.”
Anthony Galetti, Inspector in Charge of Seattle Division of the U.S. Postal Inspection Service, stated, “Today’s sentencing confirms that anyone who uses the U.S. Mail to operate a fraud scheme will be held accountable. I’m pleased to see justice in a case which had such an impact on the community of Hoquiam.”
The case was investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI).
The case was prosecuted by Assistant United States Attorneys Brian D. Werner and Nicholas Manheim.
Kankakee Felon Sentenced to Six Years in Prison for Possession of GunsRead the Press Release
URBANA, Ill. - U.S. District Judge Colin S. Bruce today sentenced Santos Salgado, 31, of the 800 block of E. Station St., Kankakee, Ill., to serve 72 months in federal prison for illegal possession of a firearm by a felon. Salgado was also ordered to serve three years of supervised release upon his release from prison. Salgado has been in the custody of the U.S. Marshals Service since his arrest in June 2016. On Aug. 15, 2016, Salgado pled guilty to two counts of possession of a firearm by a felon as charged in the indictment.
Salgado pled guilty to possession of firearms: on Feb. 1, 2016, possession of a .22 caliber handgun and a .22 caliber rifle; and, on Mar. 24, 2016, possession of a .45 caliber handgun. At the time Salgado possessed the guns, he had prior felony convictions in Kankakee County.
The charges were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; the Kankakee County Sheriff’s Office; ISP/KAMEG; and, the Kankakee County State’s Attorney’s Office. The case was prosecuted in the Urbana Division by Assistant U.S. Attorney Bryan Freres.
Judge Sentences Erie Man to 5 Years in Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail and 7 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Bruce Johnson, 61, of Erie, Pennsylvania.
According to information presented to the court, Johnson possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Johnson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Doctor Sentenced to Prison for Distributing Prescription NarcoticsRead the Press Release
HOUSTON – A 72-year-old doctor has been ordered to federal prison for distributing large amounts of oxycodone and hydrocodone, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Richard Arthur Evans, of Houston, July 27, 2016, on all 19 counts as charged following approximately eight hours of deliberation. Co-defendant David Devido, 78, of Houston, pleaded guilty on the first day of trial.
Today, U.S. District Judge Kenneth Hoyt handed Evans a total sentence of 60 months in federal prison to be immediately followed by three years of supervised release. Evans was also ordered to pay a $250,000 fine and forfeit $268,000 in assets. In handing down the sentence, Judge Hoyt noted that Evans had previously surrendered his medical license and he had no previous criminal record. He was also ordered to serve three years of supervised release following completion of the prison term.
At the hearing, additional evidence was presented including the testimony of former patients who explained that they drove for six hours from the Baton Rouge, Louisiana, area to see Evans to obtain prescriptions for oxycodone and others drugs. The evidence also showed that Evans met patients at Winrock Clinic and New Haven Clinic in Houston. He invited patients to come to his office for oxycodone prescriptions after those clinics were closed.
Devido will be sentenced tomorrow.
During the trial, the jury heard testimony for 14 days from 15 witnesses, including other doctors who appeared as expert witnesses. The government presented more than 175 exhibits during the course of the trial.
The two defendants conspired to distribute oxycodone, a highly addictive and highly abused pain medication. Oxycodone is a semi-synthetic opiate which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido, a pharmacist, dispensed the drugs. Witnesses testified these pill are sold for approximately $40 each on the street.
Evans distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. He saw patients from Louisiana and other states, prescribed oxycodone and hydrocodone products and directed patients to the pharmacy Devido had owned.
Some of the patients testified as to lax procedures at the clinic and the ease with which they were able to obtain prescriptions. Evans charged patients $200-$240 cash for an initial office visit, at which time they would obtain a first prescription. Refills are not permitted for narcotics. However, the jury heard that patients were told they could obtain a new prescription in 30 days without an office visit as long as the patient sent a money order to Evans for $200-$240. Patients were also told they could obtain a third prescription without an office visit as long as they again sent the payment to Evans.
Once the patients sent in their money orders, Evans and his staff delivered the prescriptions to Devido at Briargrove Pharmacy. Devido and his staff would then send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The jury saw an undercover video depicting Evans signing off on prescriptions the nurse wrote without any examination or questioning of the patient. The jury also saw an undercover video depicting Evans signing off on prescriptions the nurse wrote without any examination or questioning of the patient. They also heard from a defense expert witness physician who testified he was surprised that more than 800 of the patients were from the Baton Rouge, Louisiana, area. The expert could only bring himself to say that a doctor who pre-signs prescriptions is practicing “poorly.”
As a result of the conspiracy, Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a two-year-period. The jury heard that the total money attributed to the diversion scheme was approximately $2.4 million.
The jury convicted Evans on one count of conspiracy, five counts of illegal distribution of narcotics, eight counts of mail fraud and five counts of money laundering.
Evans was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, Department of Health and Human Services and the Texas State Board of Pharmacy conducted the investigation, which was dubbed Operation Oxy Overload. Assistant U.S Attorneys Cedric L. Joubert and Quincy L. Ollison prosecuted the case.
Greenbrier County business owner sentenced to federal prison for failing to pay employment taxesRead the Press Release
BECKLEY, W.Va. – A Greenbrier County man was sentenced today to two years in prison for a federal tax crime, announced United States Attorney Carol Casto. Brandon J. Black, 32, of Maxwelton, previously pleaded guilty to failing to pay employment taxes. He was also ordered to pay $632,583.18 in restitution to the Internal Revenue Service.
Black owned and operated a private security business in Lewisburg that provided services to businesses and individuals throughout West Virginia. The business underwent name changes, initially beginning as Professional Security Services and then operating as CLB Security as of 2014. Black admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Social Security and Medicare taxes that were withheld from the wages of employees. Black further admitted that between January 2010 and June 2015, he withheld over $400,000 from employee paychecks and failed to pay over the money to the IRS. He also admitted that he failed to pay over more than $230,000 to account for his share of additional taxes as an employer. Black admitted that the total tax loss for his criminal conduct is over $630,000, and he also admitted that he owes that same amount to the IRS as restitution.
This case was investigated by agents of the IRS – Criminal Investigation Division, the FBI, and the West Virginia Office of the Insurance Commissioner – Fraud Unit. Assistant United States Attorney Eric Bacaj is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Four People Charged Federally for Bank Robbery Conspiracy Using Hoax BombRead the Press Release
BIRMINGHAM –Four people involved in a conspiracy to rob a bank by placing a hoax bomb at an elementary school to divert police were in federal court last week after their January indictment was unsealed, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A four-count indictment filed Jan. 25 in U.S. District Court charges ZACHARY EDWARDS, 35, RALPHEL MAURIE EDWARDS, 34, QUINESE NICOLE NICHOLS, 30, AND WENDELL ROY NICHOLS JR., 27, all of Birmingham, with conspiring in November to take money from a BBVA Compass Bank in Trussville by “force, violence, and intimidation.” The indictment also charges Zachary Edwards and Quinese Nichols with conspiring on Nov. 16 in Jefferson County to carry a firearm in furtherance of a crime of violence, that being bank robbery. The indictment further charges Zachary Edwards with two counts of being a convicted felon in possession of a firearm – a Ruger 9mm semi-automatic pistol on Nov. 16, and a Mossberg 12-gauge shotgun on Nov. 21.
Zachary Edwards was convicted in Jefferson County Circuit Court in April 2000 of assault, first degree, and discharging a firearm into an occupied dwelling, according to the indictment.
Zachary and Ralphel Edwards, who lived together but are not related, are both in the Jefferson County Jail on unrelated charges and are scheduled for arraignment in federal court on Thursday. Quinese and Wendell Nichols, who are siblings, turned themselves in to U.S. Marshals Friday and both were released on bond following court hearings.
The defendants carried out the conspiracy as follows, according to the indictment:
In early November, Zachary and Ralphel Edwards and Quinese Nichols discussed plans to rob a bank. Soon thereafter, Zachary and Ralphel Edwards obtained a cardboard box, a stopwatch, strands of wire, gunpowder, Play-Doh and duct tape, which Zachary Edwards used to construct a hoax explosive device. On Nov. 16, Zachary Edwards and Quinese Nichols drove to Magnolia Elementary School in Trussville, where Zachary Edwards placed the hoax device on the hood of a truck in the school’s parking lot. He then called 911 and, while disguising his voice, falsely reported to Trussville Police that he had just seen a Hispanic male place a suspicious package on a vehicle at the school.
Armed with the Ruger pistol, the two then drove to a parking lot near the Compass Bank on Chalkville Mountain Road, which they had visited two days earlier to familiarize themselves with the location. Ralphel Edwards and Wendell Nichols were parked nearby in separate vehicles to serve as lookouts for their co-conspirators.
Zachary Edwards and Quinese Nichols left Trussville without attempting to rob the bank after seeing what they believed to be a police officer close to where they were parked near the bank.
The maximum penalty for the bank robbery conspiracy is five years in prison and a $250,000 fine. The maximum penalty for conspiracy to possess a firearm during a violent crime is 20 years in prison and a $250,000 fine, and the maximum penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine.
The ATF investigated the case in conjunction with Trussville Police and the Alabama State Fire Marshal's Office. Assistant U.S. Attorneys William G. Simpson and Michael A. Royster are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Former ZeekRewards CEO Sentenced to More Than 14 Years for Operating $900 Million Internet Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that U.S. District Court Judge Max O. Cogburn, Jr. sentenced the former CEO of ZeekRewards to 176 months in prison for operating a $900 million Internet Ponzi scheme. Paul Burks, 70, of Lexington, N.C. was also ordered to serve three years of supervised release and to pay $244,000,000 as restitution. A federal jury convicted Burks in July 2016 of wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy following a three-week trial.
Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed court documents, evidence introduced at Burks’ trial and today’s sentencing hearing:
From January 2010 through August 2012, Paul Burks was the owner of Rex Venture Group, LLC (RVG), through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards (collectively “Zeek”). Burks and his conspirators induced more than 900,000 victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions, and that the public could share in such profits through investment in ZeekRewards. Burks and his conspirators, including Zeek’s former Chief Operating Officer Dawn Wright Olivares and her step-son and Zeek’s Senior Technology Officer Daniel C. Olivares, claimed at one point that investors would be guaranteed a 125% return on their investment.
Burks and his conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. Burks and his conspirators did not keep books and records needed to calculate such daily figures. Instead, Burks simply made up the daily “profit” numbers. Contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.
In addition to promising massive returns on investments, Burks and his conspirators used a number of ways to promote Zeek to current and potential investors. For example, the conspirators hosted weekly conference calls and leadership calls, where participants could call in listen to Burks and others make false representations intended to encourage victim-investors to continue to invest money and to recruit others to invest in Zeek. Burks also organized and attended “Red Carpet Events,” where victim investors came to hear details of the scheme in person. During these events, Burks and his conspirators made false representations about the massive retail profits generated by Zeek. They also used electronic and print media, including websites, emails and journals, to make false and misleading statements about the success of Zeekler to recruit victim investors.
As the Ponzi scheme grew in size and scope it became unsustainable and it eventually began to unravel as the outstanding liability resulting from the bogus 125% return on investment continued to rise beyond control. By August 2012, Burks and his conspirators fraudulently represented to the collective victims that their investments were worth nearly $3 billion, but had no accurate books and records to even determine how much cash on hand was available to pay such liability. Contrary to representations made to victim investors, at that time, Burks and his conspirators had only $340 million available to pay out investors. Over the course of the scheme, Burks diverted approximately $10.1 million to himself.
Burks also failed to file corporate tax returns or to make corporate tax payments for his companies, among other things. In addition, for tax year 2011, Burks issued fraudulent IRS Forms 1099s, causing victim-investors to file inaccurate tax returns for phantom income they never actually received.
At sentencing, Judge Cogburn stated that for the defendant’s scheme to work would have required a miracle on the order of the “loaves and fishes.” Judge Cogburn stated that a significant sentence was necessary to promote respect for the law, provide just punishment, and also deter others considering committing fraud. Judge Cogburn further noted that the scheme was “almost breathtaking” and emphasized that the defendant had time to stop it.
Burks will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Burks’ co-conspirators, Dawn Wright Olivares, Zeek’s Chief Operating Officer, and her step-son and Zeek’s Senior Technology Officer, Daniel C. Olivares, were previously sentenced to 90 and 24 months in prison and three years of supervised release, respectively, for their involvement in the scheme.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Secret Service and IRS-CI for investigating the case, and the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance with the investigation.
The prosecution is handled by Assistant United States Attorneys Jenny Grus Sugar and Corey Ellis of the U.S. Attorney’s Office in Charlotte.
Additional information and updated court filings about this and related cases filings can be accessed at the district’s website: http://www.justice.gov/usao/ncw/ncwvwa.html.
Former Ville Platte detective sentenced for filing false police report to cover up civil rights violationRead the Press Release
LAFAYETTE – A former detective with the Ville Platte Police Department was sentenced today to 18 months in prison for filing a false report to cover up a civil rights violation, announced U.S. Attorney Stephanie A. Finley of the Western District of Louisiana and Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.
Nathaniel Savoy, 39, pleaded guilty to the crime in November 2016. At the plea hearing, Savoy admitted that he conspired with a civilian to burglarize a local hardware store, and used his official authority as a law enforcement officer to cover up his criminal activity. Around midnight on March 8, 2015, Savoy and his accomplice drove to Doug Ashy Building Materials in Ville Platte, La., in Savoy’s police department-issued truck. An on-duty police officer who was patrolling the area noticed their suspicious behavior and drove over to investigate. Savoy falsely told the officer that he was checking on local businesses to prevent burglaries. Satisfied with Savoy’s explanation, the police officer drove away. Savoy then dropped off his accomplice and instructed him to break in and steal 20 packs of shingles for a construction project Savoy was working on in his spare time. Savoy then responded to a traffic stop across town to create an alibi, and as the senior officer on the scene, ordered the other officers to check houses and local businesses on that side of town, which was miles from the hardware store. Savoy then returned to the hardware store with his accomplice and loaded the shingles onto the bed of his pickup truck and drove off. The next day, having realized that he might have been caught on surveillance video, Savoy wrote and filed a police report in which he falsely stated that he happened to find several packs of shingles by the side of the road, and he loaded them onto his truck for safekeeping. Savoy filed the false police report with the intent to obstruct an investigation into his conspiracy to deprive the hardware store of property.
“The vast majority of American law enforcement officers conduct themselves with honor,” said Acting Assistant Attorney General Wheeler. “But when an officer violates his or her oath and breaks the law, as did Mr. Savoy, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“The people of this District deserve to have law enforcement officers working in their communities who follow the laws they are sworn to uphold,” said U.S. Attorney Finley. “Savoy’s actions are not representative of the majority of officers who risk their lives every day to protect and serve. We will continue to work with our local and federal partners to investigate and prosecute those who violate their oath to protect and serve their communities.”
This case was investigated by the FBI’s Lafayette Division and was prosecuted by Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana.
Former Porstmouth Resident Sentenced for Distribution of Child PornographyRead the Press Release
PROVIDENCE, R.I. – Adam C. Cobb, 48, formerly of Portsmouth, RI, was sentenced today in U.S. District Court in Providence to 5 years in federal prison for distributing child pornography. Cobb was arrested in April 2015, following an investigation by agents from Homeland Security Investigations (HSI) and members of the Rhode Island State Police Internet Crimes Against Children Task Force (RI ICAC).
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Cobb to serve 10 years supervised release upon completion of his prison term and to pay a fine of $25,000. Cobb pleaded guilty on February 24, 2016, to one count of distribution of child pornography.
Cobb’s sentence is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of HSI for New England; and Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in January 2015, The National Center for Missing and Exploited Children reported to the RI ICAC that an individual in Rhode Island uploaded images of child pornography to Tumblr.com. The investigation determined that an Internet address at Adam Cobb’s then Portsmouth residence was the address used to upload the images.
On March 5, 2015, ICAC Task Force members and HSI agents, supported by Naval Criminal Investigative Service agents, executed a court-authorized search warrant at Cobb’s residence and seized various digital media, computers and cellular phones. Additionally, the next day, a cell phone was seized from Mr. Cobb by Customs and Border Patrol agents at the Dallas/Fort Worth International Airport as Mr. Cobb entered the United States, having traveled from Tokyo, Japan.
A forensic examination of the digital media seized resulted in the discovery of photos and videos of child pornography depicting two juvenile females. With the assistance of the Baltimore, Maryland Police Department and HSI offices in Baltimore and in London, England, the RI ICAC determined the identity of both females.
Adam Cobb, who was arrested on April 3, 2015, has been detained in federal custody since December 21, 2015, after the court revoked his release on $1,000,000 surety bond after he admitted to violating the court imposed terms of his pre-trial release.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Former Harris County Deputy Ordered into Custody on Federal Child Pornography ChargesRead the Press Release
HOUSTON – The 30-year-old former law enforcement official taken into federal custody last week has been ordered detained on allegations of production and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Andrew Craig Sustaita, who resided in Spring, was previously a Harris County deputy sheriff, but is no longer employed there.
A federal grand jury indicted Sustaita Feb. 1, 2017, on charges of possession and production of child pornography. He was taken into federal custody Thursday, Feb. 9. Today, he appeared before U.S. Magistrate Judge Frances H. Stacy who found he was a danger to the community and a risk of flight and ordered him to remain in custody pending further criminal proceedings. In making that determination. Judge Stacy noted the characteristics of the defendant, the substantial prison sentence he potentially faces as well as the nature and strength of the evidence. She found no condition or set of conditions that would assure the safety of the community and his continued appearances in court. She also noted that the crimes he is charged with committing would constitute a crime of violence.
During the hearing, the government contended that Sustaita has access to weapons, is dangerous and believes he is above the law. The court heard that Sustaita allegedly used his position of trust to abuse at least two children. The court heard arguments that he is facing at least 15 years in prison and, with his law enforcement training, he could be in a position to avoid capture and possible flee.
The court considered arguments from the prosecution that contended Sustaita posted images to a known child pornography website that are believed to be child erotica and that he had commented on other images on that same site. According to the information presented in court today, the investigation into the user name allegedly belonging to Sustaita found items on the Internet in various places including a pay-to-play bestiality website. Further information presented to the court included discussions of the amount and types of images authorities have discovered on two devices believed attributable to Sustaita. The court heard that one video includes a known young girl showering. Other images contain adult male genitalia allegedly of the defendant placed on or near another known young female’s head while she appears to be sleeping and others that include allegedly the same male attempting to expose that child’s genitalia.
If convicted of the sexual exploitation of a child charge (aka production of child pornography), Sustaita faces a mandatory minimum sentence of 15 and up to 30 years in federal prison. He also faces an additional 10-year-maximum sentence upon conviction of possessing child pornography. The charges are also punishable by a $250,000 maximum possible fine. Upon completion of any prison term imposed, Sustaita could also face up to life on supervised release during which the court can impose a number of special conditions designed to protect the children and prohibit the use of the Internet. Sustaita would also be required to register as a sex offender upon conviction.
The Harris County Sheriff’s Office and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former Detective Convicted and Sentenced for Filing False Police Report to Cover up Civil Rights ViolationRead the Press Release
A former detective with the Ville Platte Police Department in Ville Platte, Louisiana, was sentenced today to 18 months in prison for filing a false report to cover up a civil rights violation, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana.
Nathaniel Savoy, 39, pleaded guilty to the crime in November 2016. At the plea hearing, Savoy admitted that he conspired with a civilian to burglarize a local hardware store, and used his official authority as a law enforcement officer to cover his tracks. Around midnight on March 8, 2015, Savoy and his accomplice drove to Doug Ashy Building Materials in Ville Platte, Louisiana, in Savoy’s department-issued truck. An on-duty police officer who was patrolling the area noticed their suspicious behavior and drove over to investigate. Savoy falsely told the officer that he was checking on local businesses to prevent burglaries. Satisfied with Savoy’s explanation, the police officer drove away. Savoy then dropped off his accomplice and instructed him to break in and steal 20 packs of shingles for a construction project Savoy was working on in his spare time. Savoy then responded to a traffic stop across town to create an alibi. Savoy, the senior officer on the scene, ordered the other officers to check houses and local businesses on that side of town, which was miles from the hardware store. Savoy then returned to the hardware store, his accomplice loaded the shingles into the bed of Savoy’s pickup truck, and they drove off. The next day, having realized that he might have been caught on surveillance video, Savoy wrote and filed a police report in which he falsely stated that he just happened to find several packs of shingles by the side of the road and he loaded them onto his truck for safekeeping. Savoy filed the false police report with the intent to obstruct an investigation into his conspiracy to deprive the hardware store of property under color of law.
“The vast majority of American law enforcement officers conduct themselves with honor,” said Acting Assistant Attorney General Wheeler. “But when an officer violates his or her oath and breaks the law, as did Mr. Savoy, the Department of Justice stands ready to enforce the law and protect the civil rights of all Americans.”
“The people of this District deserve to have law enforcement officers working in their communities who follow the laws they are sworn to uphold,” said U.S. Attorney Finley. “Savoy’s actions are not representative of the majority of officers who risk their lives every day to protect and serve. We will continue to work with our local and federal partners to investigate and prosecute those who violate their oath to protect and serve their communities.”
This case was investigated by the FBI’s Lafayette Division, and was prosecuted by Trial Attorney Christopher J. Perras of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana.
Former Des Moines, Washington Resident Convicted of Production and Possession of Child PornographyRead the Press Release
A U.S. District Court jury found a former Des Moines, Washington man guilty of producing and possessing images of child pornography, announced U.S. Attorney Annette L. Hayes. ROBERT D. THORSON, 58, was arrested May 30, 2016, after his girlfriend called Des Moines police after finding sexually explicit images of minors on THORSON’s phone. Over the three-day trial jurors heard testimony about images on THORSON’s phone, computer, thumb drives and DVDs. Chief U.S. District Judge Ricardo S. Martinez scheduled sentencing in the case for March 12, 2017.
According to records in the case and testimony at trial, THORSON’s girlfriend examined his phone looking for evidence he was seeing other women. Instead she found images of THORSON molesting young girls who resided in her home. The woman called Des Moines Police and THORSON was arrested. When investigators examined THORSON’s electronic devices they found images showing THORSON disturbing the clothing and bedding of sleeping children so he could make sexually explicit photos. THORSON’s clothing, tatoos and body parts appear in some of the images. THORSON’s electronic devices also contained images from a hidden camera installed in a bathroom at the home that captured minor children using the bathroom and the shower. While THORSON was in custody he sent letters to his former girlfriend threatening her and demanding she change her statements to police.
Production of child pornography carries a mandatory minimum sentence of fifteen years in prison.
The case was investigated by the Des Moines Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs and Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is Senior Deputy Prosecuting Attorney specially designated to prosecute child exploitation cases in federal court.
Former Charleston Job Corps Center employee sentenced to federal prison for misappropriating government fundsRead the Press Release
CHARLESTON, W.Va. – A Texas man, formerly of Charleston, was sentenced today to six months in federal prison for a financial crime, announced United States Attorney Carol Casto. Kevin Mabone, 56, previously pleaded guilty to misappropriating government funds. He was also ordered to pay $6,684.40 in restitution.
Mabone admitted that in 2014 and 2015, while he was the director of social development at the Charleston Job Corps Center, he used government credit cards to fuel his personal vehicle, rather than using the credit cards for legitimate, work-related purchases. He further admitted that from 2007 through 2012, while he was employed at the Miami Job Corps Center in Florida, he stole from the government in the same manner—by misusing government credit cards for personal fuel purchases. Mabone admitted that the total amount stolen from both locations was at least $6,684.40.
The sentencing hearing in this matter was originally scheduled for January 24, 2017. United States District Judge John T. Copenhaver, Jr., continued the sentencing until February 13, 2017, pending the United States Probation Office’s further investigation into this case. In the interim, the Court found that Mabone violated the conditions of his pretrial release because a felony warrant was issued for Mabone’s arrest in Dallas County, Texas, for theft of property. As a result, Mabone has been in federal custody since January 30, 2017.
The General Services Administration Office of Inspector General and the Department of Labor Office of Inspector General conducted the investigation. Assistant United States Attorney Gabriele Wohl is handling the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Former CEO of Nebraska Pharmaceutical Benefits Manager Guilty in Kickback SchemeRead the Press Release
TYLER, Texas – The former CEO of a Nebraska pharmaceutical benefits manager has pleaded guilty to engaging in illegal kickbacks in the Eastern District of Texas, announced Acting United States Attorney Brit Featherston today.
Douglas M. Pick, 57, of Omaha, Nebraska, pleaded guilty to making unlawful kickback payments today before United States Magistrate Judge John D. Love. At sentencing, Pick faces up to three years in federal prison. A sentencing date has not been set.
According to information presented in court, Pick was the founder and long-time President and CEO of Pharmaceutical Technologies, Inc. (PTI). The company, which operates as a pharmacy benefits manager (PBM), provides for the administration and delivery of pharmacy products and services. PTI uses a network of pharmacies to service employee welfare benefit plans and health care benefit programs across the United States. During Pick’s tenure, PTI contracted with certain individuals, known as “Producers,” who had close business relationships with benefit plans. These benefit plans require administrative services in connection with the delivery of pharmacy products and services to their members. Agreements between PTI and certain Producers were used to facilitate the payment of illegal kickbacks. These Producers unlawfully used their positions to steer the benefit plans to PTI in exchange for kickback payments. The payments by Pick and PTI were based on the volume of business the Producers steered to PTI. Such agreements and the related payments violate the Employee Retirement Income Security Act of 1974 (ERISA). Pick, as PTI’s President and CEO, was primarily responsible for the negotiations with Producers.
Between 2001 and 2013, Pick, acting on PTI’s behalf, entered into agreements with several Producers who unlawfully used their positions to refer benefit plan business to PTI in exchange for illegal kickback payments. These Producers collectively received illegal payments in excess of $3.5 million.
One such Producer was Tom Slack of Tyler, Texas. From 1998-2011, Slack served as the CEO of Tyler-based HealthFirst and its subsidiaries, including HealthFirst RX Solutions (HFRX). HealthFirst, a subsidiary of East Texas Medical Center, provides administrative services to employee benefit plans in East Texas. The plans include health care benefits, such as pharmacy products. HFRX, a private label PBM located in Tyler, provides pharmacy benefit services to HealthFirst’s client plans. In early 2004, Pick and Slack executed a contract in which PTI agreed to administer the pharmacy benefits of HealthFirst’s client plans through HFRX. The agreement specified that HealthFirst would pay PTI an administrative fee for every claim made for the filling of prescriptions. During April and May of 2004, Slack expressed to Pick that he wanted to personally receive money on the pharmacy business from HealthFirst in exchange for directing more business to PTI and automatic renewal of the PTI-HealthFirst agreement each year. Pick agreed that PTI would pay Slack in exchange for this commitment. To do so, Pick and Slack agreed that Slack would approve an increase of the PTI administrative fee imposed on HealthFirst’s clients for each prescription filled. PTI would then pay the increase to a shell company that Slack had established. Slack, who was fired by HealthFirst in July 2011 and later passed away in 2012, received more than $1.5 million in illegal payments/kickbacks from Pick and PTI.
Gary Gustafson, a Producer from Eden Prairie, Minnesota, received close to $750,000 in illegal payments/kickbacks from Pick and PTI. He pleaded guilty to federal health care fraud charges in the District of Minnesota in May 2016 and is awaiting sentencing.
To resolve the matter, PTI entered into a non-prosecution agreement with the United States and agreed to pay over $8.5 million. As part of the agreement, PTI agreed to cooperate with the government in the investigation and prosecution of individuals involved in the illegal kickback arrangements and to maintain internal controls, including compliance with ERISA, the Anti-Kickback Statute, and all other applicable statutes.
The case was investigated by the U.S. Department of Health and Human Services, the U.S. Department of Labor - Employee Benefits Security Administration, and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorneys Nathaniel Kummerfeld and Frank Coan and Special Assistant U.S. Attorney Kenneth McGurk prosecuted the case.
Federal inmate sentenced to prison for escapeRead the Press Release
BECKLEY, W.Va. – A federal inmate who was caught approximately a mile from Raleigh General Hospital was sentenced today to a year and a day in prison, announced United States Attorney Carol Casto. Jody Ladd Dellenback, 30, previously pleaded guilty to escape.
Dellenback admitted that on August 25, 2016, he ran away from his Bureau of Prisons escort after the completion of his medical examination at Raleigh General Hospital. Law enforcement authorities searched the area and found him about two hours later, slightly over a mile from the hospital. Dellenback was serving an 18-month sentence at the Federal Correctional Institution at Beckley for unauthorized use of a credit card.
This case was investigated by the Federal Bureau of Prisons with assistance from the Beckley Police Department, the Raleigh County Sheriff’s Office, and the West Virginia State Police. Assistant United States Attorney John File is handling the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Federal Jury Convicts Man for Robbing Multiple BusinessesRead the Press Release
Memphis, TN – A Memphis man has been convicted on seven counts of armed robbery affecting interstate commerce. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the verdict today.
According to information presented in court, during the month of January 2016, Eugene Cox, 23, and Squantivia S. Patterson, 23, both of Memphis; and Terry Farris, 38, of Millington, participated in multiple armed robberies of seven Memphis businesses: Shoney’s, Family Dollar, Krystal’s, Circle K, Church’s, Subway and Beauty and Beyond.
The guilty verdict followed a jury trial before the Honorable Sheryl Lipman, U.S. District Judge. Evidence at trial showed Terry Farris, along with Eugene Cox and Squantivia Patterson committed two robberies together.
On January 13, 2016, the trio robbed the Shoney’s at 308 Covington Pike. Later that evening, the men robbed Circle K at 6133 Macon. Cox and Patterson were captured on surveillance video inside the Circle K, while Farris remained outside of the business and served as the lookout. After the robbery of Circle K, the men parted ways.
On January 14, 2016, Farris robbed Family Dollar at 2711 Getwell and Krystal’s at 3675 Lamar. On January 16, 2016, he robbed Church’s at 925 Poplar. That same day, Cox and Patterson robbed Subway at 2938 Covington Pike. While committed on the same day, the robberies were unrelated. Cox and Patterson committed their last robbery on January 23, 2016, at the Beauty and Beyond beauty supply, 9024 Covington Pike.
As a result of the Memphis Police Department’s investigation, latent prints lifted from the crime scene at Family Dollar were determined to be the same inked impressions belonging to Farris. The investigation also yielded surveillance video from Family Dollar, Krystal’s and Church’s along with victims’ identification of Farris from photo line-ups.
For the seven counts, the penalty is a mandatory minimum of 35 years and up to life in prison. Sentencing is set for May 26, 2017, at 9:00 a.m.
The case was investigated by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorneys Karen Hartridge and Kevin Whitmore prosecuted this case on the government’s behalf.
Erie Felon Sentenced to Prison for Illegally Possessing Shotgun and AmmunitionRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 32 months in jail on his conviction of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Mark Anthony Gnacinski, Jr., 30.
According to information presented to the court, Gnacinski unlawfully possessed a 12 gauge shotgun and ammunition while being prohibited from firearm possession because he is a convicted felon. Gnacinski unlawfully possessed the shotgun and ammunition at approximately 2:30 a.m. while in Erie, Pennsylvania.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Erie Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Gnacinski.
Erie County Man Admits Having Child Pornography on His ComputerRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
Ian Matthew Ahenger, 43, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Ahenger possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for June 5, 2017 at 11:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Ahenger on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Ahenger.
District Man Sentenced to Seven Years in Prison for Series of Burglaries in Northwest WashingtonRead the Press Release
WASHINGTON – Melvin Anthony Turner, 49, of Washington, D.C., was sentenced today to a seven-year prison term for a series of burglaries of commercial establishments in Northwest Washington last summer, U.S. Attorney Channing D. Phillips announced.
Turner pled guilty in November 2016, in the Superior Court of the District of Columbia, to three counts of second-degree burglary. He was sentenced by the Honorable Maribeth Raffinan. Following his prison term, he will be placed on three years of supervised release.
The charges stemmed from a series of burglaries last summer targeting small businesses in the Washington area. In his plea, Turner admitted to three separate burglaries. First, he admitted to entering the Thai Pad restaurant, in the 4400 block of Connecticut Avenue NW, on July 11, 2016, and stealing $350 from the cash register. He also admitted attempting to take items from desk drawers in other locations in the restaurant. Second, he admitted to forcibly entering the Circle Yoga studio, in the 3800 block of Northampton Street NW, on July 16, 2016, and stealing a laptop computer. Finally, he admitted to entering the Sudhouse bar and restaurant, in the 1300 block of U Street NW, on July 21, 2016, and stealing approximately $4,000 in cash and a laptop computer.
After his arrest July 24, detectives with the Metropolitan Police Department (MPD) linked Turner to a number of additional burglaries between April and July of 2016 targeting small business that the government was prepared to prosecute if the case had gone to trial.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tiffany Fogle and Tiffany Jones. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Laura Crane and J. Matt Williams, who investigated the case and handled the sentencing.